### Question
What does active business computer software royalties mean?


### Answer
**Active business computer software royalties** has the following meaning in *26 U.S.C. § 543*:

> any royalties—


(A) received by any corporation during the taxable year in connection with the licensing of computer software, and


(B) with respect to which the requirements of paragraphs (2), (3), (4), and (5) are met

#### Citation:
  - *26 U.S.C. § 543*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter G-Corporations Used to Avoid Income Tax on Shareholders > PART II-PERSONAL HOLDING COMPANIES**

