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A System in Their Back Pockets: Protecting Large Corporations in High-Profile Patent Cases

Posted in America, Patents at 10:03 am by Dr. Roy Schestowitz

Whose pockets are deepest? When the USPTO is run by people from Google and from IBM

Back pocket

Summary: A couple of new examples of patent cases where the bigger company (with deeper pockets) wins, either by injunctions against small companies or by invalidating the patents of smaller companies

“The U.S. Supreme Court on Monday,” according to Reuters, “refused to review a case involving the cancellation of a Versata Inc patent that had previously been the subject of a $345 million jury verdict against enterprise software maker SAP SE.”

“By deciding not to take up the case, the Supreme Court left intact a decision by the U.S. Court of Appeals for the Federal Circuit affirming the patent’s invalidation, which Versata said casts too wide a net in categorizing patents as financial in nature.”
The US Supreme Court (SCOTUS), by refusing to step in, does not put at danger decisions such as Alice, which is probably what we want. This is about CAFC ruling against patents. To quote Reuters: “By deciding not to take up the case, the Supreme Court left intact a decision by the U.S. Court of Appeals for the Federal Circuit affirming the patent’s invalidation, which Versata said casts too wide a net in categorizing patents as financial in nature.”

In other news, in light of the Cisco v Arista case (covered here before), Arista is complaining [1, 2, 3]. “The International Trade Commission issued a limited exclusion order and cease and desist order for Arista infringing three patents in an investigation brought by Cisco Systems relating to ethernet switch products,” MIP summarised. The ITC’s build-in bias is a subject we tackled here before.

The European Patent Organisation’s Administrative Council Helps Benoît Battistelli Destroy Patent Quality for the Sake of ‘Production’

Posted in Europe, Patents at 8:06 am by Dr. Roy Schestowitz

The “historic achievement” is destroying the European Patent Organisation in just two days

Administrative Council and Benoît Battistelli

Summary: In secretive sessions behind closed doors Battistelli and the Administrative Council conspired to send the no-longer-independent boards of appeal to exile, assuring that patent quality will nosedive and make the Office akin to a registration/filing office

THE EPO scandals should matter to everyone as everybody is effected, not only Europeans. This is a war that’s waged between a class (rich people) and an occupation (patent lawyers) against everybody else. These rich people and patent lawyers are not necessarily European at all; they have clients from other countries/continents and some are not even based in Europe. A Napoleonic egoistic president who cares not about his popularity keeps leading the charge and they (along with the Administrative Council, typically lawyers and heads of national patent offices themselves) support him. As last night's report reminds us, staff (examiners, i.e. scientists) is just collateral damage and judges — i.e. people whose role is to uphold the rule of law (unlike lawyers who typically try to work around the law) — are being driven to exile, as per this morning's leak (now available as text). One might easily be led to believe that we’re dealing here with a developing nation (or ‘third world country’ as some call it), but this is good old Europe, where systemic corruption is apparently still rampant. Patent examination is no longer appreciated because it’s just easier to charge applicants for virtually nothing. It’s like selling ‘holy’ water.

What the EPO now calls “reform” is basically a continuation of demolition of the appeals process, i.e. of quality control. A post in the EPLAW blog about the so-called reform says the following this morning: [found via this comment]

The structural reform of the Boards of Appeal (BOA) aims to increase their organizational and managerial autonomy, the perception of their independence and also their efficiency, in order to respect the principle of effective legal protection within the current legal framework of the European Patent Convention.

It introduces a new institutional framework in which the BOA will no longer be a Directorate General of the EPO directed by a Vice-President but a separate unit called Boards of Appeals Unit headed by a newly created President of the BOA. The Chairman of the Enlarged BOA will act as President of the BOA. The President of the EPO will delegate to the President of the BOA managerial functions and powers including the right to propose new members of the BOA and to propose re-appointment after the term of appointment.

A new advisory body, the Boards of Appeal Committee (BOAC) is created as a subsidiary body of the Administrative Council (AC), composed of six members appointed by the AC, three of them representatives of the member states in the AC and another three from among serving or former judges of international or national courts. The President of the EPO and the President of the BOA have the right to attend BOAC meetings, without voting rights.

BOAC is a funny name. Why did Battistelli et al not just call it “BUNK”, for the whole ‘reform’ is just bunk? For quite some time now we have hypothesised that the Unitary Patent Court/s would replace the boards if not (at best) complement their existing functionality, but right now Battistelli, his Office, a pro-UPC baroness and legal professionals pretty much acknowledge that the UPC is in shambles. It’s impossible to deny, but MIP carries on with its UPC progress [sic] reports today (early in the morning).

How did we end up with a demolished set of boards (of appeal)? How did that happen so fast? Apparently Team Battistelli had people stay up until 2 AM to accomplish this task. As one person put it this morning: “It seems that the new version of the reform of the BOA was adopted with only one vote against (NL) and two abstentions (HU, IT).” This person shared “Reform of the BoA, final version, with modifications highlighted.” [PDF]

“My respect to the representatives of NL, HU and IT,” wrote another person. “Shame on all the others!” The leak that we published this morning caught the attention of the following commenter who wrote:

Just seen a report on Techrights:


Reform of the BoAs: 35 in favour, 2 abstentions, 1 against.

Reforms include:
relocation of the BoAs to a different building in Munich;
increase of the appeal fees;
new (career) structure;
new conflict of interest rules.

There are no other words for it, what a bloody disgrace! The last point (on conflicts of interest) particularly sticks in my craw. Even CIPA questioned the legality / enforceability of those rules (“We question whether broad discretionary proposals would be enforceable in a national court if necessary”). And yet this point seems to have been totally lost on more than 90% of the delegations to the AC.

The other points in the report are almost too much to bear (“the Office presented a comprehensive social report, highly appreciated by the delegations”, blah, blah, blah). The final straw has to be postponement of discussion of disciplinary procedures. That is nothing more than code for “Carry on as you were, take your decisions and we will cover it all up afterwards”.

This seems like a massive loss for the EPO and a win for Battistelli, whose interests are very different from the EPO’s. One person asked a short while ago: “Isn’t there anything we can do? I realize that many of the people who write are EPO employees and fear for their salaries/pensions, but not everyone, surely.”

Even past employees of the EPO are affected by this. Past patent recipients are likewise affected by this. Entire industries in Europe are negatively affected by this. Look what Battistelli has done. What will remain of the EPO by the time he leaves or gets sacked? Surely, the disaster which the EPO has become will cost a lot of money to the European economy; Europe will rot if this isn’t stopped. The European Patent Office has just deepened the crisis and it will be harder to undo if Battistelli’s attacks on the boards get implemented (not just reoccupying vacant openings). The EPO's PR team pretends everything is great, but exactly the opposite is true (that’s why it hired disaster management professionals from the outside). Is Australia wishing to be associated with Battistelli and his declining Office starting today? “On 1 July 2016,” this article says, “the Patent Prosecution Highway (PPH) pilot program between the Australian Patent Office and the European Patent Office (EPO) begins.”

Is this likely to end up like the previous pilot programme which blew up in the EPO's face? Or the shortening of appeal periods (also effective starting today)?

Reading through some comments in IP Kat this morning, fury and despair are dominant. There is nothing at all to be tolerated, let alone celebrated.

One person wrote:

Let us face it, Battistelli has won the final battle. It is now clear that Battistelli can threaten the enlarged board of appeal publicly (that is the subject of this article) and get away with it. Any pretense of rule of law is abandoned.

It is now also clear that Battistelli can simply ignore the demands of the Council as he pleases (social dialogue, justice needs to be seen to be done, etc…). And it is also clear that he can fire whomever he pleases any time he pleases as he sees fit.

He won.

Regarding the EPO’s monopoly one person said:

My dear Anonymous friend, if the users are not happy with all this they can go somewhere else to get their European Patents.

Oh, wait – they can’t …

The following comment called it “end of the EPO saga and the lowest morality level in the history of the Office.”

We have now reached the end of the EPO saga and the lowest morality level in the history of the Office.
It it clear that BB with his incompetent team will now reign undisturbed for another two years with the full support of the AC, whose members he convinced with cooperation money and intimidated with all kinds of threats.
We can well imagine what they will produce in the coming two years with their absurd synergism.
Disgraceful the attitude of the German delegation and government who tolerate such a situation on their territory. But we know: they have their own interest as the German Office has always been in competition with the EPO !
Disgraceful also the attitude of attorneys and their associations, especially the German and British ones. They will now get the inevitable erosion of quality and (good for them!) no many chances to play around with the claims as – in the name of efficiiency – the procedure will become more and more strict.
Adieu to the good old days of the ideals! Adieu to the EPO as a model organisation! Adieu to the solid values of justice and respect ! The sharks are here.

“If these reports are true,” wrote another person, “then the reputation and functioning of the EPO has been dealt a mortal blow.”

If these reports are true, then the reputation and functioning of the EPO has been dealt a mortal blow. The AC has let the president off the hook yet again, when there could not have been more blatant evidence of him overreaching his powers (and even defying the will of the AC). I now struggle to conceive of a situation where the AC would impose severe sanctions (or indeed any sanctions at all) upon the president… so it is perhaps not all that fanciful after all to suggest that we could have a Guantanamo-am-Isar if it carries on this way.

Is there a well-informed reader who can provide us with information about how the various different delegations voted? Also, are there final forms of the texts of the proposals that have been approved by the AC? Whilst I am at a loss as to how this situation can be fixed, it will be important for the users to know which national delegations have effectively ignored their feedback.

Upon reflection, we should perhaps not be too surprised that BB was, in the words of a previous commentator, “granted impunity”. A much clearer infringement of the independence of the Boards of Appeal occurred when the president suspended (pending investigation) a member of the Boards. In addition to being contrary to the independence of the Boards, no one has ever seriously suggested that this action was anything other than a gross violation of the wording (and principles) of the EPC. And yet the AC officially sanctioned / pardoned that action. They also sanctioned the prolongation of the suspension of the member concerned, which (in view of the term of office of that member) could be viewed as dismissal in all but name, ie yet another contravention of the EPC. Next to these actions, the president sending a naughty letter looks like nothing to get too worked up about.

Which reminds me: did the AC decide what to do about the suspended member, given that the EBoA has closed the disciplinary proceedings without proposing dismissal? Under the provisions of the EPC, it would seem that the only viable course of action will be to reinstate the member, pay his costs for the proceedings (as well as salary withheld during the period of suspension) and leave him in peace to get on with his job. There is also an argument that his term of office should be extended for a period equal to that of the period of suspension.

But is any of that likely to happen, or will the AC sanction yet another violation of the EPC? At least the costs for the proceedings should be paid, as that has been ordered by the EBoA…. but, oh wait, I forgot that, thanks to the AC, the president can ignore the orders of all judiciary with total impunity!

Regarding “EPO communication,” one person said, “the Communication Department did yet another miracle” and to quote the reasons why:

The last “News from the Council” published by the EPO is clear: the last AC that took place the last two days in Munich was, if not a great success, at least an “historic achievement” (sic!). One can further read that the “social report [was] highly appreciated by the delegations”!! So one may gain the impression that everything went smoothly and parties are happy with our management and the situation in the EPO.

To put it mildly, this is far from being the truth. Or at least, this is far from being the perception of observers in and around the AC.

Fact is that in fine only ONE single topic was discussed in 2 days: DG3. And from the feedback gathered, (see below) the AC was very dense, including a working session until 2 o’clock in the morning. It has been a very hard ride for all participants, in particular for the President and his team.

One thing the EPO official communication is correct about: however sweaty, muddy and tough the whole game was in the end, what counts is that the president is still standing. Eventually, nobody cares if the game has been won during the prolongation, penalty shot or many yellow cards have been handed out… let alone if the real problems have not been addressed.

Regarding the DG3 ‘independence’ (“23 interventions, no support but… expecting overnight a fundamental miracle”):

As indicated above, the AC only dealt with the single point of DG3 independence in two days: 23 interventions were made just on the first day. All of them, but 3, very critical of the original proposed reform.

In substance the criticisms broadly took on board the comments made by AMBA and the Staff Representation. These were mainly aimed at the potential interference or abuse of influence that the president could still have on the independence of the board such as:

o Delegation of functions and power and the revocation of that delegation;
o Right of nomination of BoA and its president (more or less qualified as “Systemwidrig” by the DE);
o Other topics such as careers, budget, Rules of Procedure, etc…;
o Many insisted on the need to involve all parties in a consultation to produce a document having a wide acceptance.

In the other fields that are loosely linked to the issue of independence but were adamantly presented by the Office as “part of the package”, the criticism was equally severe:

o The Tax structure was heavily criticised by most interveners: “it does not make sense cut the filing costs of patents on the one hand and, on the other hand, render their defence expensive”, said more or less (not verbatim) the German delegation;
o The relocation of building was broadly criticised as neither fit for purpose and nor economically making sense;
o Last but not least the “post-employment” reform was discussed only in this context but was broadly perceived by most as neither useful in this context and wrong in its form: “es wirkt wie ein Fremdkörper”, so the DE Delegation.

Despite the flood of criticism, the Board 28 was tasked to work overnight on a new amended version taking on board the above comments…. “Mission impossible” was the comment from several observers.

This is just about the worst possible outcome and they rushed it so that it all happened in just two days without chance/opportunity for vetoes (many people are on holiday right now). Incidentally, it also helped take the abuses against EPO staff off the table and out of the agenda.

Finally, explains the following text, “sessions behind closed doors” went on, resulting in “flabbergasted” DG3 colleagues and “dizzy” staff representatives:

Showdown: a “compromise solution” (sic!) produced overnight to solve the problem of independence of DG3!

Some hope had been raised after that first day, that the AC had seen the light: the heavy discussions on the first day given some indication that not only the real problems have been grasped but also solutions integrating the comments made by observers, in first place AMBA, would be integrated. While no observers are allowed in the C-points (confidential), several participants reported that the level of disagreement continued in an even more intense during these sessions behind closed doors form (cannot confirm that shouting may even have been

But this hope evaporated quickly on the second day as a Rev.1 of both the independence document (CA/43/16 rev1) and the Post-service employment (CA/29/16 add.1rev.1) were tabled. It followed a surreal and short discussion were most intervening delegations explained their support for the suggested “compromise solution” (FR, DE, IT, SL, President). Despite warning from the IT, NL delegations, Epi and your staff representation, the document was “waved through” with only 2 abstentions (HR, IT) and one against (NL). The good intentions of the previous day towards consultation were forgo en: as an illustration, the observers, that is Epi/business Europe and the Staff representation, received the new version during the live session and nobody had a word about “statutory consultation” either.

Clearly some of the changes are positive in content, but the complexity of the dossier is such that, at this stage, it is too early to grasp their consequences. Fact is that these changes fail to take into consideration the main comments made the day before. It is even less understandable how this sudden change of mood came about. DG3 colleagues are flabbergasted and staff representatives dizzy. One remains sure: a fundamental document has been produced overnight, “mit heisser Nadel gestrickt”. God helps us… I suppose?

What an incredible coup that was. The EPO was right to call this “historic”. It’s definitely the lowest point in the EPO’s history, unless someone can point out to us something even worse.

At the European Patent Organisation the Administrative Council Does Not Care About Staff

Posted in Europe, Patents at 7:04 am by Dr. Roy Schestowitz

“An Earthquake Would be Needed for the Administrative Council… Not to Support My Major Proposals.”Benoît Battistelli

Arūnas Želvys, Director of the State Patent Bureau of the Republic of Lithuania, and EPO President Benoît Battistelli sign the agreement
This is how Benoît Battistelli allegedly ‘buys’ the Administrative Council

Summary: The Administrative Council (AC) of the European Patent Organisation continues to show carelessness and apathy if not complicity by maintaining a deeply heartless approach and blind support for a President with 0% approval ratings (among polled staff)

WHEN IT COMES to the EPO, disregard for the rule of law, for the rights of staff and for anything other than self-servitude is the norm. We were therefore far from shocked by the Administrative Council’s attitude this week. The Administrative Council is now complicit rather than merely apathetic or misinformed (ignorance as an excuse). It actively helps Battistelli crush the EPO, destroy the lives of staff, and basically discredit the European Union as a whole (bringing it closer to a state of collapse). This matters not only to people who work within or interact with the EPO; it should matter to everybody in the world, not just in Europe. This is a coup by neo-conservatives-like charlatans from ENA and until/unless they are stopped, there are going to be severe long-term consequences. It’s a truly destructive force.

“This matters not only to people who work within or interact with the EPO; it should matter to everybody in the world, not just in Europe.”The Administrative Council has no excuses for its behaviour and Mr. Kongstad clearly returned to Battistelli’s lap 4 months after his strongly-worded letter. Battistelli made a mockery of nearly every member of the Administrative Council as he didn't do anything they told him to and yet his sacking isn’t even on the agenda. Following last night's report and this morning's leak we now have some updates from an insider.

“Social dialog and other “minor” issues,” noted the person (referring to social unrest as a minor issue sarcastically), “circulez ya rien à voir!”

Here is a roundup of the relevant developments:

On the first day, the presidential activity report was the opportunity very little rejoicing from the delegations. Beyond the casual and traditional congratulations for the good production, all delegations asked pointed questions or even explicit criticism on the quality of the EPO work. A thorough report from the Office was requested. Further the Social climate was qualified as “unsatisfactory” (DE) or giving “great concerns” (NL) and it was promised to discuss this more in detail later.

Unfortunately, it seems that this point went under as the delegates rushed to catch their plane after lunch. The Social Report on the second day was the occasion of surreal congratulations for its “extensiveness” (NO) and the “great amount of facts” (UK). A staff representative reminded the AC that Laurent Prunier got suspended just one day before this very AC session. And Staff plea to urgently act on this front remained uncommented: not a word was lost on the deep social crisis in the EPO. And neither was the AC March resolution

All these points, including the two reform proposals (investigation CA 52/16 and disciplinary procedure) were brushed aside and pushed to the next council. The same applies to DG3 colleague who will have to wait until the next session of the AC (at least) to know how this noble institution intends to put into application the final decision taken of the Enlarged Board of Appeal several weeks ago. By then, the DG3 colleague will have been suspended almost two years.

“I suppose a mix of perplexity, disappointment and deep sadness are in order,” concluded the person who wrote the above.

Consider the Bretton Woods Legal Opinion and Report, which are circulating [PDF] among EPO staff [PDF] these days. “Bretton Woods was instructed by SUEPO to produce an opinion in respect of the rights of staff members,” as one person put it, but the Administrative Council continues to ignore any such reports, perhaps drunk on money (since months ago). As one reader put it to us: “Is it the Administrative Council or the great People’s Chamber in Pyongyang? I’m too punch-drunk to add anything else.”

Links 1/7/2016: Enlightenment 0.21.0, Peppermint 7, New Mint

Posted in News Roundup at 5:13 am by Dr. Roy Schestowitz

GNOME bluefish



Free Software/Open Source


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    Google Calendar went down on Thursday morning, preventing people from accessing their schedules.

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      In a study published Tuesday in the journal Proceedings of the Royal Society B, researchers describe how night-time light pollution is causing early budburst—emergence of new leaves on a tree—in four common types of British tree: ash, oak, sycamore and beech. The researchers based their findings on data collected by citizen scientists and satellite imagery giving information on levels of light pollution in areas across the UK.

      “For the last 13 years, a bunch of citizen scientist have been noting the time at which four common tree species come into budburst,”Richard ffrench-Constant, paper co-author and an entomologist at the University of Exeter, told me. “We found that budburst correlates with the amount of artificial light in an area.”

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      “We certainly have not become less greedy or less stupid,” Hawking said. “The population has grown by half a billion since our last meeting, with no end in sight. At this rate, it will be eleven billion by 2100.”

      He noted that the massive problem of pollution has only grown in the last five years.

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      The voice of a man, presumably the girls’ father, Jason Sheats, 45, can be heard saying: “I’m sorry! I promise you whatever you want.”

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      MPs on the international development committee and MEPs in the European Parliament earlier this year called on the Government to stop selling weapons to the autocratic petro-state.

  • Transparency/Investigative Reporting

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      And yet… that’s exactly what’s happening. And the culprit, once again, is the Computer Fraud & Abuse Act (CFAA), which we’ve written about for years. The law, which is woefully out of date, and was passed (literally) by a Congress that was freaked out over the movie WarGames, is supposed to target evil “computer hackers.” But it’s written so broadly, including terms like “unauthorized access” or “exceeding authorized access,” that it’s been used against things like violating a terms of service (that you didn’t read or even agree to) or against downloading too many files. And that’s scaring the hell out of researchers.

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      Unlike the dramatic wildfires near Fort McMurray, peat fires smolder slowly at a low temperature and spread underground, making them difficult to detect, locate and extinguish. They produce little flame and much smoke, which can become a threat to public health as the smoke creeps along the land and chokes nearby villages and cities.

  • Finance

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      If you are talking about a short-term food donation to stave off hunger, such as after an earthquake, go ahead, please help. But for any long-term good to come of all this, it must respect the realities of the local market, and it must be sustainable. Free chickens are unlikely to do that.

  • AstroTurf/Lobbying/Politics

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      Glasgow East MP Natalie McGarry also finds it extraordinary that the anti-immigration US billionaire appears to be approaching foreign nationals with his ‘beggging bowl’

    • Burn It All Down

      Unless Lin-Manuel Miranda does a musical of his life, Bernie’s just a footnote in the history books. But the stigma that he won via a set of tricks to include the “superdelegate system,” some election fraud, and overt partisanship by the Democratic National Committee and much of the media, never mind what Obama does with the FBI report into her mishandling of classified information, lingers like the smell of ripe sh*t in a stadium toilet.

    • This is the creepiest thing David Cameron has ever said

      He will say Britons believe in “certain values”, adding: “To belong here is to believe in these things. And it means confronting head-on the poisonous Islamist extremist ideology. Whether they are violent in their means or not, we must make it impossible for the extremists to succeed.”

      It’s expected Cameron will introduce a counter-extremism bill in his Queen’s Speech later in May. Planned measures include introducing new orders to ban extremist organisations and restrict people who seek to radicalise youngsters.

    • Top Clinton aide was “frustrated” with her boss’ e-mail practices

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      Huma Abedin is the vice-chair of Clinton’s presidential campaign and the former deputy chief of staff and senior advisor to Clinton during her stint as secretary of state. She was deposed on June 28 by an attorney representing the conservative action group Judicial Watch as part of discovery for a lawsuit being brought against Clinton. Judicial Watch published the transcript of that deposition yesterday, and Abedin revealed what she knew about Clinton’s use of the mail server and how she was “frustrated” with the technical glitches caused by Clinton’s mobile device and e-mail travails.

    • Feds ask for 27-month delay in release of Clinton staff emails

      The Obama administration on Thursday asked a federal court to delay until October 2018 the release of 14,000 pages of emails from aides to former Secretary of State Hillary Clinton.

      In a court filing on Wednesday, administration lawyers said the State Department miscalculated the amount of material it would need to process the documents as part of a lawsuit with the conservative organization Citizens United.

      As a result, the government asked for a 27-month delay to release the emails, which were originally due out on July 21.

      “State deeply regrets these errors, and is working diligently to correct them as quickly as possible,” the lawyers said.

  • Censorship/Free Speech

  • Privacy/Surveillance

    • US courts didn’t reject a single wiretap request in 2015, says report

      The number of wiretaps authorized by the courts in 2015 rocketed compared to the year before, says a new report.

      According to the annual wiretap report released on Thursday, which outlines how many real-time intercept requests were submitted by state and federal law enforcement agencies, the courts allowed 4,148 wiretaps during the last calendar year, up by 17 percent on the year-ago period.

      Most were issued by state courts. The majority of wiretaps were authorized in California, which accounted for 41 percent of all applications.

      New York came in second with 17 percent of wiretaps for the year.

      But not a single wiretap request was rejected during 2015, the report showed.

    • How many US wiretap requests were rejected in 2015? Not a single one.

      A new federal report shows that the number of surveillance requests skyrocketed in 2015, and that courts approved every single one of them. That’s right, not one single wiretap request was rejected during 2015.

      The U.S. government’s annual wiretap report details how many real-time intercept requests were submitted by state and federal law enforcement agencies. The most recent edition of this report, released today, says America’s courts allowed 4,148 wiretaps during the last calendar year, up by 17 percent from the previous year.

      Most of the wiretap requests in the most recent report period were issued by state courts, and California approved the most of all states — a whopping 41% of all applications.

    • A Government Error Just Revealed Snowden Was the Target in the Lavabit Case

      It’s been one of the worst-kept secrets for years: the identity of the person the government was investigating in 2013 when it served the secure email firm Lavabit with a court order demanding help spying on a particular customer.

      Ladar Levison, owner of the now defunct email service, has been forbidden since then, under threat of contempt and possibly jail time, from identifying who the government was investigating. In court documents from the case unsealed in late 2013, all information that could identify the customer was redacted.

    • Lavabit founder confirms feds’ Snowden spy efforts led to encrypted email service shutdown

      Lavabit founder Ladar Levison last week confirmed what had been an open secret: That he shuttered his encrypted email service in 2013 because of the federal government’s pursuit of former National Security Agency (NSA) contractor Edward Snowden.

      In a statement issued June 24, Levison said that the gag order that had enforced his silence had been lifted. “After three years, and five separate attempts, the federal judge overseeing the case has granted Mr. Levison permission to speak freely about [the] investigation,” the statement read.

    • Snowden’s email provider confirms it was an investigation target

      It’s a poorly kept secret that officials targeted Lavabit’s secure email service as part of their investigation into Edward Snowden’s leaks. Heck, the US government inadvertently leaked the truth itself. However, a gag order has prevented Lavabit from publicly acknowledging this… until now. In a statement, company founder Ladar Levinson can finally confirm that law enforcement pursued Lavabit in order to access Snowden’s communications. When the investigation began, authorities wanted the provider to hand over an encryption key that would not only expose Snowden, but all 410,000 Lavabit customers. It’s no wonder that Levinson decided to close shop — it’s hard to advertise private email when the feds can theoretically spy on any of your users.

    • Government websites to use HTTPS encryption from October

      GOVERNMENT DIGITAL SERVICES (GDS) websites will use HTTPS encryption from 1 October, according to new security guidelines. And about time too.

      In addition, all services will have to publish a Domain-based Message Authentication, Reporting & Conformance (DMARC) policy applicable to their email systems.

    • Leaked FBI documents reveal secret rules for spying on journalists with National Security Letters

      Today, The Intercept published leaked documents that contain the FBI’s secret rules for targeting journalists and sources with National Security Letters (NSLs)—the controversial and unconstitutional warrantless tool the FBI uses to conduct surveillance without any court supervision whatsoever.

    • US efforts to regulate encryption have been flawed, government report finds

      US Republican congressional staff trying to find a middle ground on encryption have said previous efforts to regulate privacy technology were flawed and that lawmakers need to learn more about technology before trying to regulate it, according to a report released on Wednesday.

      The 25-page white paper – entitled Going Dark, Going Forward: A Primer on the Encryption Debate – does not claim any magical solution to the fight over encryption software that has roiled western capitals for more than two years. It was written by Republican staff on the House committee on homeland security, led by representative Michael McCaul, who has proposed a bipartisan top-level panel of encryption experts with senator Mark Warner, the Virginia Democrat.

      But the document remains notable nonetheless for its measured language and criticism of other lawmakers who have tried to legislate their way out of the encryption debate. It also sets a new starting point for Congress as it mulls whether to legislate on encryption during the Clinton or Trump administration.

    • Facebook is chipping away at privacy – and my profile has been exposed

      Quietly, over the last year, Facebook has killed the concept of a private account.

      The site has always had a love-hate relationship with privacy: it’s long offered some of the most granular controls of any social network for choosing who sees what content, letting users make posts visible on a sliding scale from “everyone” to “only me”.

      That’s increasingly important for Facebook, which has seen a reduction of 21% in “original sharing”, users making posts about their own life. As people have become more aware of the downsides of sharing personal details publicly, it seems that they’ve stopped sharing altogether. Letting them have some control over who sees what they post is an important part of restoring trust.

    • Facebook wins privacy case, can track any Belgian it wants

      In a somewhat unexpected twist, Facebook has won a legal battle against Belgium’s data protection authority, which had sought to prevent Facebook from tracking non-Facebook (or not-logged-into-Facebook) users, both on the Facebook website itself but also via the company’s Like and Share buttons that can be found in even the darkest depths of the known universe.

      The Brussels appeals court dismissed the case on Wednesday, saying that the Belgian CPP (Commission for the Protection of Privacy) had no jurisdiction over Facebook, which has its European headquarters in Dublin, Ireland.

      “We are pleased with the court’s decision and look forward to bringing all our services back online for people in Belgium,” a Facebook spokesperson said.

    • Facebook Wins Belgian Court Case Over Storing Non-User Data

      Facebook Inc. won an appeal overturning a Belgian privacy ruling that prompted the social network to block people without an account from accessing its site within the country.

      The Brussels Court of Appeal said the nation’s data protection authority couldn’t prevent Facebook from storing data from non-users in a fight over measures the technology giant says help it combat hacking attacks.

      “Belgian courts don’t have international jurisdiction over Facebook Ireland, where the data concerning Europe is processed,” the Brussels court of appeal said in a ruling Wednesday, referring to the company’s European headquarters. The court also said there was no urgency to rule on the case since Belgian court proceedings only started in mid-2015 over behavior that started in 2012.

    • My Activity Dashboard — How To Know How Much Google Knows About You
    • Google’s My Activity reveals just how much it knows about you

      Google has rolled out new tools to let users see what its ad-tracking service has learned about them, and to let users opt in or out of a new personalised ads service.

      The addition to Google’s account settings, called My Activity, allows users to review everything that Google has tracked about their behaviour – across search, YouTube, Chrome, Android and everything else – and edit or delete it at each step.

      If you use Google for everything you do, you might be surprised by just how much it catalogues about your comings and goings on the internet.

    • Another Terrorist Watchlist Leaks, This One Compiled By Thomson Reuters

      Thomson Reuters’ “global screening solution” pulls from hundreds of other databases, including sanctions lists, law enforcement lists, and compiled data from regulatory agencies. The collection doesn’t cause too many problems in the United States, but as Joseph Cox of Motherboard points out, it’s a bit more a problem when deployed in Europe.


      As we’ve seen from other terrorism blacklists, the US government is no better at drawing conclusions or checking its lists for false positives on a regular basis. The fact that Thomson Reuters database pulls from hundreds of sources is probably better than the FBI/DHS method of shrugging people onto terrorist watchlists based on hunches, surnames, or camera ownership. It’s still disturbing that a private entity can control access to various services around the world by selling a watchlist to corporate customers, but there’s no reason to believe this private blacklist is any worse than those compiled by various governments.

    • US Intelligence Agencies To Americans Travelling Abroad: Trust No One, Use Burner Phones, They’re All Out To Get You

      The Office of the Director of National Intelligence (ODNI) has been going through something of an awkward phase the last few years. The Office, which is a part of the White House, and is supposed to direct and coordinate various parts of the intelligence community, has been trying to figure out how to be more open and “transparent” to the public since the Snowden documents began flowing. Given that historically the intelligence community has focused on being as secret as is humanly possible, it’s not very good at this whole transparency thing. And sometimes it’s just really, really awkward. Just try (really) to watch this video it put out on Wednesday, telling US travelers abroad to fear everyone and everything.

    • Encryption thwarting Feds, terrorists going dark … or not, actually

      Despite repeated warnings by the Obama administration over the use of encrypted communications by criminals, the government says that it encountered less encryption last year than in 2014.

      This according to the latest US Courts Wiretap Report on government surveillance requests, which was published this month.

      The report, which logs federal and state wiretap authorizations, finds that law enforcement officials encountered encrypted communications during wiretaps just seven times in 2015, compared to 22 times in 2014.

    • US border control could start asking for your social media accounts

      The US government is proposing making social media accounts part of the visa screening process for entry into the country.

      US Customs and Border Protection’s proposed change would add a line on both the online and paper forms of the visa application form that visitors to the US must fill out if they do not have a visa and are planning on staying for up to 90 days.

      The following question would be added to both the Electronic System for Travel Authorization (Esta) and I-94W forms: “Please enter information associated with your online presence—Provider/Platform—Social media identifier.”

      The information will be optional, for now, but the proposed change published by the US Federal Register states that “collecting social media data will enhance the existing investigative process and provide Department of Homeland Security (DHS) greater clarity and visibility to possible nefarious activity and connections by providing an additional tool set which analysts and investigators may use to better analyze and investigate the case.”

    • Amazon Dash buttons may get a new brand blitz
    • Here’s What Facebook’s Big New Change Really Means
    • Mobile messaging apps vying for dominance in Asia and beyond
    • App providers ordered to fulfill ’6 obligations
    • China tightens rules for mobile app developers
    • App providers face new data collection regulations in China
    • China issues regulations on mobile APP collection of user data
    • Mobile app developers in China hit with draconian new rules
    • New Regulations Could Make Apple Part of China’s Surveillance and Censorship Machine
    • Alexa does not like when you ask her about the NSA

      Amazon’s virtual assistant Alexa is pretty good at answering most questions. But if you ask her if the NSA is monitoring you right now? She turns herself off.

    • Defending Human Rights in a Digital Age
    • Federation Council Approves Controversial Anti-Terrorism Laws

      The upper house of the Russian parliament, the Federation Council (FC), has passed a controversial anti-terrorism legislation package, the Interfax news agency reported Wednesday.

      The laws include far-reaching surveillance initiatives, harsher punishments for inciting or justifying terrorism online, and an increase in the number of crimes with which children aged between 14 and 17 can be charged. The lower house of parliament, the State Duma, approved the laws on June 24.

      Independent Duma Deputy Dmitry Gudkov took to social media to call the vote a “revolution” after five of the 170 council members voted against the legislation. The FC usually passes legislation unanimously.

    • Guy Asks Indian Supreme Court To Ban Encrypted WhatsApp… Because People Plan Raves With It

      And, yes, he also tossed in the “fear! terrorists!” argument as well, because of course. And it’s not just WhatsApp. He also wants a variety of other messaging platforms, such as Telegram, Hike and Viber, banned for using encryption (even though the implementations on many of those platforms is questionable). Of course, we don’t need to go through all the reasons why this is dumb. Strong encryption is much more likely to help protect the private information of the general populace from people looking to do bad things with it than it is to help terrorists in their planning. Could terrorists use it? Yes, just as terrorists can use other neutral, but important technologies for bad purposes. But we don’t go and ban them entirely just because they can be misused.

  • Civil Rights/Policing

    • Donald Trump renews support for waterboarding at Ohio rally: ‘I like it a lot’

      Donald Trump offered renewed support on Tuesday for the use of torture while repeatedly comparing a proposed free trade agreement to rape.

      Trump, who has often praised the use of waterboarding and has spoken positively about alleged war crimes committed by American troops, said at a campaign rally, “We have to fight fire with fire”, after referencing the penchant for beheadings by Isis.

    • Texas Judge Indicted For Making Secret 10-Year Deal With Red Light Camera Company

      The market for red light cameras obviously can’t sustain itself, even with certain legislators drooling over the prospect of installing these revenue generators at every intersection.

      Part of the problem is the technology is still incredibly fallible. Cameras have issued tickets to walls, parked vehicles, and many, many drivers obeying all traffic laws. Millions of dollars of refunds have been paid out by municipalities who once thought they’d have to do nothing more than sit back and let the cash roll in.

      Citizens aren’t fans, so legislators have often pushed these through with a minimum of discussion. Major players in the traffic cam industry lobby hard for placement of their products — sometimes going as far as to engage in good old analog bribery and corruption.

      Officials, both public and private, have been indicted (and convicted) for their participation in the proliferation of traffic cams. Not that the cameras themselves were necessarily illegal, but because the only thing better than an uptick in public funds is an uptick in private funds.

    • Silicon Valley’s Leaky Pipeline Problem

      The latest data point from a Bloomberg analysis reveals that nearly 1,900 U.S. entrepreneurs received venture capital funding for their startups, 2009-2016. Of those, just 141 were women.

      So, then, you have to ask: Which women? Because things are even worse for women of color. A recent report from #ProjectDiane showed that from 2012 to 2014, African American female founders effectively received next to no venture funding. Of the 10,238 funding deals during that period, only 0.2 percent (24, total) went to African American women entrepreneurs.

      What’s happening here? If you believe that entrepreneurial capacity and talent are evenly distributed by gender and race, then why is there this vast difference in how men versus women, versus women of color, are able to tap venture funding?

    • Chagos islanders cannot return home, says Supreme Court

      Former residents of the Chagos Islands who were forcibly removed from their homeland more than 40 years ago have lost their legal challenge to return.

      Families left the Indian Ocean islands in the 1960s and 70s to make way for a US Air Force base on Diego Garcia, the largest of the group of islands.

      An Immigration Order preventing anyone from going back was issued in 1971.

      The Supreme Court – UK’s highest court – upheld a 2008 House of Lords ruling that the exiles could not return.

    • Apostates refused service at Wegmans bakery – fear of invoking offense led to discrimination, says Ex-Muslims of North America

      Wegmans, a chain of 89 grocery stores, refused to bake and decorate a cake for a private celebration for those who have left the faith of Islam.

      The request included a picture of the Ex-Muslims of North America (EXMNA) name and logo, with a caption of “Congratulations on 3 years!”, but was refused by an associate from the Fairfax branch of the popular chain, stating that the request was “offensive”.

    • Scientology Seeks Captive Converts Via Google Maps, Drug Rehab Centers

      Fake online reviews generated by unscrupulous marketers blanket the Internet these days. Although online review pollution isn’t exactly a hot-button consumer issue, there are plenty of cases in which phony reviews may endanger one’s life or well-being. This is the story about how searching for drug abuse treatment services online could cause concerned loved ones to send their addicted, vulnerable friends or family members straight into the arms of the Church of Scientology.

    • No decision after hearing for UK man accused of hacking FBI, NASA

      After two days of evidence, Lauri Love still does not know whether he will be extradited to the United States.

      In hearings at Westminster Magistrates’ Court, the Judge heard from 15 witnesses for the defence, but none from the prosecution. Lauri Love, 31, of Stradishall, has been accused by the US authorities of hacking into the US Federal Reserve, NASA, the FBI, and the Missile Defence Agency.

      He was first arrested by the UK’s National Crime Agency (NCA) in October 2013 and was released on bail in July 2014. US prosecutors claim that Love’s alleged offences were not politically motivated and were instead designed to “to disrupt the operations and infrastructure of the US government” by stealing classified data and personally identifying information of government and military personnel.

    • Johnny Manziel’s Lawyer Accidentally Texts The AP And Then Threatens To Sue Them If They Report On It

      It’s become common game by many in America and elsewhere to crap on lawyers whenever the opportunity presents itself. This is done unfairly in many cases, with a lack of understanding of what the adversarial nature of our legal system requires of legal advocates. For instance, a lawyer that strongly advocates for a client accused of something terrible isn’t himself or herself terrible. That’s the duty of the job.

      But for one of the lawyers on the staff of Johnny Manziel, the seemingly troubled and frequent guest of the court who was once primarily known as a football player, it appears both that proper lawyer-ing is a bit more difficult than for most and that he’s a bully to boot. As you may have heard, Bob Hinton, who had been tasked with representing Manziel in his domestic abuse court case, accidentally texted the Associated Press information about his attempts to settle the case in a rather unfavorable light with respect to his client.

    • Rhode Island Governor Dumps Revenge Porn Bill In Favor Of Upholding First Amendment

      In an unexpected turn of events, Rhode Island’s governor has chosen the First Amendment over the hot button issue of revenge porn. One of several bad bills recently introduced by legislators (the others being a dreadful CFAA clone and badly-written “cybercrime” bill) is dead, killed by a politician who actually realized the potential damage to free speech it might have caused.

  • Internet Policy/Net Neutrality

  • DRM

    • Xbox Fitness Users Shelled Out Big Bucks For Workout Programs They’ll Soon Be Totally Unable To Use

      In late 2013, Microsoft launched Xbox Fitness for the then-new Xbox One. The fitness program leaned heavily on the Kinect motion sensor you’ll recall Microsoft initially and ingeniously forced everybody to buy — even though many users had no interest in the accessory. Xbox Fitness included 30 free training sessions, but also allowed users to pay significantly more for additional workouts, including shelling out $60 for P90X routines, to individual Jillian Michaels videos that cost users $12 each. These users likely assumed that once they bought these workouts, they’d be able to use them indefinitely.

      Those users apparently didn’t get the memo that we no longer own the things we buy.

  • Intellectual Monopolies

    • African Group Proposes Patents And Health Programme At WIPO

      This week in the World Intellectual Property Organization patent law committee, the African Group submitted an updated proposal for a work programme on patents and health that would help developing countries tailor patent law to their circumstances.

    • US Sees Weak African IP Protection, But Not Enough To Lose Unilateral Trade Benefits

      The Office of the United States Trade Representative (USTR) today (29 June) released its annual report on the eligibility of African nations for unilateral trade benefits offered by the US. While some countries were praised for progress on intellectual property protection, others were found to be weak in this area, but none were removed from eligibility for that reason. Overall, reporting on IP rights varied widely in the report.

    • TAFTA/TTIP Just Got Harder: Brexit Is ‘A Midsummer Night’s Nightmare’ Says EU Trade Commissioner

      After the dramatic and largely unexpected victory of the “Brexit” (Britain Exit) camp in the UK — those who want the country to leave the European Union — politicians around the world are trying to work out what the implications will be. For the UK, of course, it meant an immediate trashing of the UK pound against the US dollar; for the US, it meant the loss of a reliable ally within the EU camp.


      As that mentions, trade is one area where the UK played a key role for the US, and its departure from the EU will make negotiations for the TAFTA/TTIP deal, now dragging on into their fourth year, even harder, since the UK was one of the main countries pushing for it. The European Commission is worried: after the results of the Brexit vote were known, the EU’s commissioner for trade, Cecilia Malmström, called it “A midsummer night’s nightmare,” (original in Swedish.)

    • Will the USPTO’s “Patents 4 Patients” Program Even Make It Off the “Cancer Moonshot” Launch Pad?

      Second, in the field of biology specifically, there is considerable debate about whether there are any laws of nature at all. The Evolutionary Contingency Thesis states that there are no laws of biology, since biological relationships are the result of evolutionary forces—random mutations, environmental variables and selection pressures, and multiple functionally equivalent adaptions. As Stephen Gould put it vividly: “evolution is like a videotape that, if replayed over and over, would have a different ending every time.” That a particular sequence of amino acids codes for a specific protein is just as much a result of contingent evolutionary forces as the ability of aspirin to stop headaches: neither was a necessary outcome of the universe. Or to put in the terms overused by the Supreme Court, neither of these are on the level of Einstein’s E=mc2 or Newton’s universal law of gravitation.

    • WIPO Patent Law Committee Adopts Work Programme; Good Omen, Some Say

      World Intellectual Property Organization members attending this week’s patent law committee meeting agreed on a work programme, reflecting divergent views on patents and health, exceptions and limitations, and patent quality.

    • Trademarks

      • You’ll Never Guess Which Portmanteau Everyone Is Suddenly Trying To Trademark

        It had to happen. There was no avoiding it. It’s quite common for individuals, and sometimes even businesses, to surf the wave of a popular news cycle and attempt to translate some story into a trademark to exploit. A good percentage of the time, this is done as something of a short-term squatting attempt, where some word or phrase becomes suddenly popular and someone races to trademark it in order to license or sell it to another entity. Other times, it’s simply done to capitalize on the sudden popularity of a word or phrase directly.

        You already know where this is going. Yes, the “Brexit” trademarks are starting to pour in, almost literally in the case of Sam Adams Boston Lager maker Boston Beer.

      • NRA Trademark Complaint Over Yes Men Parody Takes Down 38,000 Websites

        You may have seen last week a website called ShareTheSafety.org, which was an impressively detailed parody site, pretending to be from the National Rifle Association (NRA) and gunmaker Smith & Wesson about a “buy one, give one” handgun program — where it claimed you’d buy a handgun, and a free handgun would then be sent to an inner city individual “in need” of a gun. The parody was deep and thorough — including setting up another domain, NRApress.org, in order to post a single press release about this program, and which cleverly is designed with actual links to actual NRA press releases and, if you just go to the main domain, it redirects to the NRA’s actual press site. The site definitely fooled a few people, and there were lots of questions popping up on Twitter about whether or not it was real or parody.

        Of course, a day or so after it started spreading, it was revealed that famed pranksters The Yes Men were behind it. They also posted a promo video and a fake press conference announcing the program (the fake press conference being a fairly common Yes Men trope).

    • Copyrights

      • Marrakesh Treaty brought into force by Canada accession

        Canada has become the key 20th nation to accede to the Marrakesh Treaty to Facilitate Access to Published Works for Persons Who Are Blind, Visually Impaired or Otherwise Print Disabled. This means the treaty will come into force on September 30, three months after Canada’s accession.

      • WIPO Treaty On Copyright Exceptions For Visually Impaired Enters In Force

        The World Intellectual Property Organization treaty to facilitate access to books in special formats for visually impaired people will enter into effect, as the 20th member state acceded to the treaty today.

        As a result of the accessions, the Marrakesh Treaty to Facilitate Access to Published Works for Persons Who Are Blind, Visually Impaired or Otherwise Print Disabled will enter into effect on 30 September 2016, according to sources.

      • Malibu Media Sues Its Former Lawyer Over Missing Funds, Breach Of Bar Rules

        All aboard the schadenfreude express! It appears that when you base your business model on dubious litigation, you also to attract dubious litigators. (See also: Righthaven, Prenda Law.) So, this latest development in the Malibu Media saga — brought to our attention by Sophisticated Jane Doe of Fight Copyright Trolls — is perhaps less surprising than inevitable.

EPO Leak: Administrative Council’s Latest Meeting Report (Updated)

Posted in Europe, Patents at 4:03 am by Dr. Roy Schestowitz

AC meeting report
Click for full-sized version (the EPO‘s intranet version, i.e. the public is kept in the dark for now)

Summary: The outcome of the Administrative Council’s meeting, where Battistelli managed to avoid earthquakes and basically did just about everything he wanted, reinforcing the perception that there is no oversight

Yesterday’s AC meeting report was limited in terms of concrete evidence. Well, now we have the above (click to zoom in/get a full view). Noteworthy among IP Kat comments this morning is this person who says: “We will see how the new BoAC drafts the Rules of Procedure of the Boards of Appeal based on the wish of the President and the AC to reduce the backlog of appeal cases, ie to streamline and speed up the appeal proedure. No auxiliary requests and only revision of the decision of the department of first instance. Brave new EPO.”

“But still the president convinced the AC members (a qualified attorney/practitioner before the EPO between them?) to decide that they knew better.”
Another person jokes: “I understand that a dead cat has been found, stuck in the ventilation system of the main building of the EPO. That was obviously the source of the overwhelming smell of corruption that lingered in the air. The problem is solved now.”

Another comment notes, “as far as I could see not one person who has to use the BoA, be it the parties, their representatives or the board members themselves, supported any of the proposed changes. But still the president convinced the AC members (a qualified attorney/practitioner before the EPO between them?) to decide that they knew better. But that’s democracy for you.”

“Nobody cares for the users,” replies the following comment. “Because they dared to criticize Battistelli they are getting a fee increase and no place in the Boac…”

“Battistelli plans another such lobbying event for next year (if he survives this long in his job).”Speaking of fee hikes (coverage here and elsewhere before), with examination quality at the EPO sinking why would anyone withdraw? This morning the EPO published update to examination fees (warning: epo.org) and last night we got another reminder that EPO applicants’ money gets wasted on Battistelli’s PR stunts and lobbying. To quote this new article: “For the Munich-based team of the VOK DAMS, agency for events and live-marketing, this year’s award was a special anniversary, as it was the 10th awards ceremony designed and implemented by VOK DAMS in a row, looking back on a long-standing the successful partnership between the EPO and VOK DAMS. [...] More than 550 VIP guests from politics, economy, and academia were on site at the MEO arena in Lisbon, when the EPO president opened the award ceremony together with the Portuguese Prime Minister António Costa and the EU commissioner for research, science and innovation Carlos Moedas.”

We have already mentioned the role played Moedas and António Costa, serving to reinforce the perception that this was just Battistelli’s wasteful lobbying effort (lobbying Portugal, the Commission and more). So far this week (in 3 days alone) the EPO has posted about half a dozen calls for nominations (in Twitter) for the next massive waste of money (millions of Euros). Battistelli plans another such lobbying event for next year (if he survives this long in his job).

Update: Here is the above image as text (credit due):

News from the Administrative Council
Outcomes of the 148th session
The Administrative Council (AC) met on 29 and 30 June for its 148th meeting. Following the presentation of the activities report of the President, the AC members congratulated the Office, the management and the staff, for the excellent results achieved so far in 2016. In what was a dense agenda, the latest session of the AC notably included the adoption of the reform of the Boards of Appeal.
Structural reform of the Boards of Appeal
By a very large majority (35 in favour, 2 abstentions, 1 against), the delegations supported the proposal of the Office concerning the reform of the Boards of Appeal, which aims at increasing the perception of independence and the efficiency of the Boards, based on five pillars:
a structural reorganisation of the BOA, with the setting-up of a Boards of Appeal Committee (BOAC) as a subsidiary body of the Administrative Council and a unilateral act of delegation of powers from the President of the Office to a newly created President of the BOA;
a new career system for members and Chairmen of the BOA;
the relocation of the BOA to a separate building in Munich;
a better cost coverage for appeals;
specific rules on the prevention of conflict of interest for members and Chairmen of the BOA.
After two attempts of reform which failed in 1995 and 2004, this is an historic achievement.
Budgetary and financial items
The AC unanimously approved the account of the 2015 budget. The financial statements 2015 received an unreserved opinion from the Board of Auditors in compliance with the International Financial Reporting Standards (IFRS). This is the sixth year in a row that this positive qualification has been obtained. The Board of Auditors expressed their positive comments in relation to the EPO Quality Management System, the project for the New Main building in The Hague and the good management of the IT roadmap. The delegations also gave a unanimous positive opinion on the initial budgetary orientations for 2017, showing their continuous support for the strategy of the Office.
The Council appointed Mr Groffmann as the new Administrator for the RFPSS, on a proposal of the President of the Office, in agreement with the Supervisory Board of the RFPSS.
Social topics
For the fourth year in a row, the Office presented a comprehensive social report, highly appreciated by the delegations. For the first time, the Office also submitted an environmental report. In relation to healthcare matters, the proposal of the Office to switch to a self-insurance scheme as of 1 January 2017 and the new contract awarded to Cigna for the administration of the healthcare reimbursement scheme, following an international tender were unanimously approved.
Because of the time necessary to finalise the reform of the BOA, it was not possible to address the two proposals on the revision of investigation guidelines and disciplinary procedures which are postponed to the October session of the AC.

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