Bonum Certa Men Certa

European Digital SME Alliance: Unified Patent Court (UPC) “Unconstitutional”, Harms SMEs, Brings Software Patents to Europe, “Should be Based on EU Law and Not on an International Agreement.”

Another TTIP- or TTP-style behind-closed-doors agreement which infuriates those potentially affected (once they actually find out about it)

European Digital SME AllianceSummary: Position paper from a legitimate (not fake) group of SMEs blasts the Unified Patent Court (UPC) for being little more than a conspiracy of powerful businesses and other opportunists to work around the law, misrepresent SMEs, and undermine Directive 2009/24/EC (effectively a ban on software patents)

EARLIER this morning we wrote about the UPC in relation to misleading new propaganda from patent lawyers. The EPO has been lying to everyone, insisting that the UPC is legitimate and that it's somehow "for SMEs" when the reality is exactly the opposite, as a recent scholarly paper about SMEs served to show. Patent lawyers who play along with the EPO's propaganda are doing a lot of damage, but then again, remember that it's "damages" from which they profit. They want patent war. The more, the merrier. As for the EPO, it now pays obscene amounts of money to a PR firm from the US, which in turn pays to organise UPC propaganda events in the US (definitely not for European SMEs). It takes extreme gullibility/ignorance to fail to see what's happening here.



"It takes extreme gullibility/ignorance to fail to see what's happening here."When talking about SMEs we must remember that there are fake (AstroTurfing) lobbying groups of Microsoft, pretending to be fronts of SMEs (e.g. Association for Competitive Technology), but European Digital SME Alliance is not a fake one (members listed at the bottom of the statement below). As the statement states clearly: "The European Digital SME Alliance aims to ensure that ICT SMEs get talked to rather than just talked about."

The latter is what has been happening for quite some time. We mentioned this. The European Digital SME Alliance is based in Brussels and Benjamin Henrion, who is also based in Brussels (the EPO increases/maintains lobbying presence there), paraphrased [1, 2] the European Digital SME Alliance as saying "An EU wide patent system should be based on EU law and not on an international agreement [...] UPC rules of procedure are illegal, undemocratic, no parliaments, even unconstitutional in DE" (not exact words).

Here is the statement in full, extracted and edited based on the original PDF:

European Digital SME Alliance

4 April 2016

Position Paper on Agreement on a Unified Patent Court

Insufficient legal protection for digital SMEs



The European DIGITAL SME Alliance is concerned that the Agreement on a Unified Patent Court (UPC) will undermine the legal protection of software developers against lawsuits based on possibly invalid software patents. Under this agreement, companies may be convicted for an alleged patent infringement without first proving whether the patent in question is valid or not.

Threats to digital SMEs



The European software market is loaded with tens of thousands of software-€­related patents1. Patents can cover several features in a computer program. For small and medium sized software developers it becomes increasingly difficult to avoid those patents by using alternative means. The existence of software-€­–related patents is per se questionable: software is sufficiently protected directly or indirectly by the copyright law for computer programs under Directive 2009/24/EC.

More in general, the validity of software patents is quite uncertain when looking at the overall patent collection. More than 50 % of all oppositions or nullity procedures against software patents lead to a partial or total revocation of patents2. Thus, there is no basis for trust on the reliability and completeness of the patent granting procedure.

All SMEs in the software sector can be accused of patent infringement and receive an injunction by a court. This poses a constant threat to the companies. The defence against a patent infringement lawsuit is costly and can take years. This situation is worse in countries like Germany, where the proceedings for patent infringement can lead to an injunction even though the lawfulness of the patent in question has not yet been determined. Injunctions _______________ 1 The search for patents in the German Patent and Trademark Office containing the phrase „computer program“ in the patent claims led to 20.278 Hits on 10.11.2015.

2 http://www.epo.org/about-€­–us/annual-€­–reports-€­–statistics/annual-€­–report/2014/statistics/searches.html: In 2014, in opposition procedures at the European Patent Office in 31% of the cases, patents were totally removed and in 38% of the cases at least partially removed




force companies to withdraw their product from the market. Years after such injunction, when the SME has accumulated huge losses, a court may judge invalid the patent in question. Hence, companies that own large patent portfolios can use the threat of patent infringement lawsuit to undermine the competition of SME software developers in the market.

Creating a long-€­–lasting legal uncertainty



According to the Agreement on a Unified Patent Court, when ruling on an alleged patent infringement, the local and regional chambers of the Unified Patent Court will be empowered to decide in their own discretion, whether an objection for nullity of the patent shall be taken into account. The chambers will have different options:

(a) They can decide about a counterclaim for revocation together with the question of patent infringement; (b) they can suspend the patent infringement process until the nullity proceeding is ruled or (c) they can decide about a patent infringement without considering the question of nullity.

Thus, the agreement fails to establish a legal precedence for the clarification of the validity of patents. Should the agreement come into force, it would extend the German approach of a conviction without prior clarification of the legal situation to all participating countries. Worryingly, the choice of an international agreement as operational tool will make it very difficult to review the content of the agreement over the next decades, thus worsening the consequences and perpetuating the damage to SMEs in the digital sector.

Unconstitutional rules of procedure



According to the agreement, an administrative committee composed by representatives of the signatory countries will be alone responsible for setting up the rules of procedure of the new Unified Patent Court. The rules of procedure deal with numerous matters of the procedure that concern the procedural rights of the parties. The definition of this set of rules that regard the basic rights of the parties without democratic legitimation by the parliaments is, for countries like Germany, even unconstitutional.

Fragmentation of legal positions



Croatia, Poland and Spain are not signatories of this agreement.

The requests of the European DIGITAL SME Alliance



Digital SMEs need a European patent system that protects them from the attacks of owners of extensive portfolios often based on unlawful software patents. For small and medium sized software companies it is essential that the patent system prevent the implementation of questionable patents. Thus, the procedural law should ensure a complete examination of the patent, prior to the decision on conviction for an alleged patent infringement. An EU wide patent system should be based on EU law and not on an international agreement.




About the European DIGITAL SME Alliance



The European Digital SME Alliance (former PIN SME) is an association formed in 2007 to represent the interests of Europe’s ICT SME sector. Currently ten national and regional associations are members, representing tens of thousands ICT SME companies in Europe. The European Digital SME Alliance aims to ensure that ICT SMEs get talked to rather than just talked about. It provides a voice for ICT SMEs in the policy and business arenas and is already represented in several EU expert groups and taskforces.

Membership



BASSCOM – Bulgarian Association of Software Companies (BULGARIA), CNA -€­–Comunicazione e Terziario Avanzato, Confederazione Nazionale dell’Artigianato e della Piccola e Media impresa (ITALY), UKITA, United Kingdom IT Association (GREAT BRITAIN), CONETIC – Confederación Española de Empresas de Tecnologias de la Información, Communicaciones y Electrónica (SPAIN), BITMi – Bundesverband IT-€­–Mittelstand (GERMANY), GPNI – Groupement Professionnel National de l’Informatique (FRANCE), it-€­–forum midtjylland (DENMARK), SwissMedia – Swiss IT & Multimedia Association (SWITZERLAND), Belgrade Chamber of Commerce, IT Association (SERBIA), Vojvodina ICT Cluster (SERBIA), STIKK – Kosovo Association of Information and Communication Technology (KOSOVO), Balkan and Black Sea ICT Clusters Network (ALBANIA, BOSNIA AND HERZEGOVINA, BULGARIA, GREECE, MONTENEGRO, ROMANIA, SERBIA, KOSOVO, TURKEY, REPUBLIC OF MACEDONIA, UKRAINE)



The UPC basically mirrors what we find in TPP and TTIP. It's a corporate attack on democracy itself and it is falsely advertised to the public (if it's advertised at all). Protests may be needed and more antagonism from those affected is now imperative.

Recent Techrights' Posts

SLAPP Censorship - Part 167 Out of 200: The Court of Appeal Might be the Next Step
Today is our last vacation day
Salaries Are Counted in Money, Not in Participation in the Employer's Scheme
articles greatly exaggerating GAFAM salaries
Even Linux Cannot Cope With Slop
Bots on the Web are truly obnoxious
 
In the UK, Bing (Microsoft) Down to Lowest Level Since January
our tax money being passed to Microsoft via MoUs (back door deals with kickbacks)
German Government Sponsors IBM Because of GNU/Linux
Flatpak is sponsored by, run, and controlled by IBM
Richard Stallman Speaks to Christine Hall of FOSS Force, stallman.org is Down for Over a Day
interview does a good job addressing the hype about LLMs too
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, August 30, 2026
IRC logs for Sunday, August 30, 2026
Gemini Links 31/08/2026: Holidays, Stream of Consciousness, and Posting Online
Links for the day
Anniversaries Next Month
The month should be otherwise quiet and uneventful for us
Coding is Not Obsolete
we drown ourselves in chaff to meet "LOC" objectives while ignoring everything else
Microsoft Layoffs Perpetual But Silent, People Pushed Out Using Pressure or Incentive Schemes
Earlier this month we named some of the programs
Links 30/08/2026: Apple Rant and LLM (Slop) Scrapers Target Gemini Protocol and Gopher
Links for the day
Walls in Free Software
mind your own business and move on
What a Summer!
Tomorrow is the last day of this month
Links 30/08/2026: Soldiers in Niger Attack Presidential Palace and Airport, Nepali City Struggles to Handle the Many Dead Bodies
Links for the day
Clownflare Sees GNU/Linux Rising to 11% This Past Week
Is it the year of "Linux in China"?
Links 30/08/2026: Russian Strike on a Ukrainian Warehouse and Rhetoric Escalations
Links for the day
Gemini Links 30/08/2026: Photography, Paper Books, Linux Kernel and the Debian Projects Permitting Slop Plagiarism
Links for the day
Imagine a World Where Nobody Fights for Software (and Computing) Freedom
The community keeps fighting back, so some of these ambitions are delayed or watered down
FSF Has Grown (More Staff) After a Year of Financial Growth
On October 4 the FSF turns 41
GNU/Linux Has Become More Mainstream in the United Kingdom
It's a long weekend here and we guess some people dabble in GNU/Linux migrations, at least at home
SLAPP Censorship - Part 166 Out of 200: Garrett Wasn't Found Innocent Per Se, the Court Wanted More Evidence of Who Was Behind Particular Accounts Using Tor
It's complicated
Criminals Don't Obey Laws, California Does Not Enhance Online Safety
It has been a while since we last mentioned so-called 'age-verification' laws
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, August 29, 2026
IRC logs for Saturday, August 29, 2026
Links 29/08/2026: Stop the Hate, Goldfish Myths, and xmpp.nz
Links for the day
Links 29/08/2026: Wave of Social Control Media Bans, Suno Data Breach Class Actions
Links for the day
Links 29/08/2026: Microsoft GitHub Outage (Again), "Displaying Ads Directly on Your Monitor", and "Election Deniers Could Soon Control Elections"
Links for the day
IBM is "Taking the PIP" (Piss), People 'Retire' 'Voluntarily' to "Focus on Family"
IBM has a billion bucks for 'the butcher', but not a million dollars for critical projects and initiatives in Free software
It Should be Uncontroversial to Say That Social Control Media is a Weapon
Democracy is not compatible with the likes of Kapo-Berg and MElon controlling public discourse of billions
Misuse of Bots (Now Sold as "Agents", "Hey Hi", "Automation", and "Efficiency")
They even try to rebrand robotics as "hey hi" and try to sell slop as "work"
Debian: Plagiarism OK, Just be "Responsible" About It
The result isn't the worst, but it's not good either
Don't Let Them Kill Activism
Are the oligarchs shutting the lid on activism and whistleblowers?
SLAPP Censorship - Part 165 Out of 200: Two Years Since My Wife and I Sued
In early September 2024 we hit back
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, August 28, 2026
IRC logs for Friday, August 28, 2026
Gemini Links 29/08/2026: Death Notice, Systems Biology, and Gopher
Links for the day