Bonum Certa Men Certa

More Patents Would Mean More Tax Evasion for Large Corporations and More Taxes/Duties on Society

Money in post



Summary: The EPO's love-affair with abstract (e.g. software) patents is good news for those to whom quality/enforceability of patents doesn't matter, only volume (for cross-licensing, shakedown and tax evasion purposes)

THE 'plague' which is patent maximalism has truly invaded Europe and a cabal of clueless officials, very few of whom have any background whatsoever in the sciences, would only listen to large law firms, not local businesses that actually produce things. This is a problem. Policy is being shaped to increase the volume of litigation rather than innovation. Evidence-based studies aren't taken into account; instead it's all dogma. It's a 'brain virus'. The patent microcosm profits from it.



"Examiners at the EPO are smart enough to see what the management is doing. It's pressuring staff and compelling the examiners to grant software patents or risk getting sacked (a very high risk now that there are slow-motion layoffs)."As readers may very well know, 35 U.S.C. €§ 101 at the U.S. Patent and Trademark Office (USPTO) means that software patents are virtually if not practically verboten (courts would not tolerate these) and software patents in Europe aren't allowed or at severely restricted -- a simple fact that doesn't seem to bother former banker António Campinos, whose experience in this domain is about as limited as Battistelli's.

Nowadays the EPO allows patenting of software provided you use buzzwords. So says Marks & Clerk's Darren Hau (paid-for placement in Lexology), coming from a firm of software patents boosters. Hours ago he wrote:

In its annual update of the “Guidelines for Examination”, the European Patent Office (EPO) has provided further guidance for its examiners in relation to the patentability of inventions relating to mathematical methods and computer programs. This updated guidance is of particular relevance to inventions relating to the fast-growing field of Artificial Intelligence (AI). In part 1 of this article, we provide a summary of the key points from the updated guidelines that are relevant to AI inventions. Part 2 will follow, in which we will provide an in-depth assessment of the impact of the new guidelines on the patentability of AI inventions.

By way of background, the patentability of computer implemented inventions at the EPO has long been governed by the general principle of requiring a non-obvious technical solution to a technical problem, as established by the EPO Boards of Appeal in T0641/00 (COMVIK).

[...]

In summary, a claim to an AI algorithm based upon a mathematical or computational model on its own is likely to be considered non-technical. A simple recitation of a type of artificial intelligence model being employed, such as, a neural network, a support vector machine, or reasoning engine alone in the claims is unlikely to overcome such objections. However, restriction of the claim to a specific technical purpose and/or a specific technical implementation may impart technical character onto the AI algorithm and thus the invention may be considered patentable by the EPO.


Examiners at the EPO are smart enough to see what the management is doing. It's pressuring staff and compelling the examiners to grant software patents or risk getting sacked (a very high risk now that there are slow-motion layoffs).

"The more patents they get, the more 'tax returns' (or exemptions) they can get. Therein lies the recipe for a perfect blunder if not plunder."Who benefits from these patents? Certainly not Europe. Certainly not programmers, either. But it's all about law firms and their foreign clients, which include patent trolls from other continents.

Also in the week's early news there's this is a reminder that France facilitates tax evasion using patents or what's euphemistically being called "patent boxes"; this is costing billions to the British economy (lost tax), as revealed quite recently in annual figures, and it benefits rich corporations, not small ones. This new article has the details and from its relevant part:

Let’s be honest: France never was famous for its tax attractiveness. Its patent box regime, though quite modern when first enacted in the 1960’s, grew a bit rusty and rigid as compared to those adopted by our EU partners.

It turned out to be non-compliant with the latest OECD recommendations and, more specifically, with its conclusions under Action 8 of the BEPS action plan.

The latter advocated for the implementation of the so-called “nexus” approach, which correlates the benefit of the reduced tax rate applicable to profits derived from licensing, sublicensing, or selling patents and like assets to R&D expenses borne to create them. Surprisingly, such approach was absent from the French regime.

We, together with other tax practitioners and companies, strongly advocated for a thorough revision of the patent box regime. The current draft, unfortunately, suggests rather prudent changes and amendments.

First (and without much surprise), the draft bill proposes to adopt the nexus approach. Direct references to the OECD talks are made in the preparatory work of the bill. Going forward, the reduced rate will be directly correlated to the amount of R&D expenses borne by French taxpayers.

Luckily this regime will continue to coexist with the French R&D tax credit. In addition, the French government suggests expanding the scope of the regime to profits derived from the license or sale of IT software.

Up to now, these flows touching upon software fell out of the ambit of the French patent box regime (which, as its name suggests, was limited to patents and similar intangible property). Yet, patentable inventions would now be excluded from such regime.

One will regret that this regime was not modernized, notably by lowering the rate. The regime will quite certainly remain at 15%, whereas most EU countries have adopted IP tax regimes subject to 10% rates or lower.


So in the name of "tax attractiveness" they basically give tax cuts to the rich and then dress that up as "patents", saying that it's something to do with "R&D" -- a lie so commonplace that anyone with a clue would likely giggle rather than nod. The more patents they get, the more 'tax returns' (or exemptions) they can get. Therein lies the recipe for a perfect blunder if not plunder.

Recent Techrights' Posts

Daniel Pocock as Independent Candidate, Now in The London Standard
"Daniel Pocock is an independent candidate."
Andy Burnham as National Leader Would be Excellent for Techrights
Burnham has envisioned a British "centre of power" (or gravity) that moves northwards, isn't concentrated in the southeast anymore
In Defence of Courts' Privacy Policies
If you want friends, go offline. Meet real people and share real experiences.
 
We Don't Depend on Google (or Search Engines in General)
there's a lesson here and it extends beyond sites
Only "Torvaldos" (Linus Torvalds) Can Use the F-Word, CoC Does Not Apply to the Enforcer, and Richard Stallman Punished for Using the Other F-Word ("Freedom")
"Linus Torvalds tells AI haters to fork off"
Explaining the Culture of Bulletin Board-Style Chat
Only desperate detractors would try to present something (cherry-picked) from IRC as some sort of official statement for Techrights
Independent, But Not Fringe
"Daniel Pocock is an Independent Candidate."
In Free Software, Nobody Gets Fired
Way to own one's code and project
PIP-Styled Mass Layoffs Allegedly Coming to Microsoft by 12 August 2026
Microsoft has been doing "silent layoffs" (PIPs and more) for quite some time
Daniel Pocock's Candidacy (Election of Member of Parliament) Mentioned in BBC and Over a Dozen News Sites Since Yesterday
Funnily enough, albeit not surprisingly, the same people who attack Pocock also attack us
Links 18/07/2026: Spotify Uses Slop Song Descriptions, "San Francisco Demands Removal of Nudify Apps"
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, July 17, 2026
IRC logs for Friday, July 17, 2026
Gemini Links 18/07/2026: A Manifesto by The Dissident, Shokz Headphones, and Gemini Tinylog Reader (GTL)
Links for the day
IBM Already Tentatively Down for Next Week (Monday) After Its Worst-Ever Week
What a week for IBM!
Links 17/07/2026: Protests Erupt Throughout Ukraine and Anthropic Caught Secretly Spying on Users
Links for the day
Gemini Links 17/07/2026: "Silence Doesn't Mean Abandoned", Revisiting PalmOS in 2026
Links for the day
Farage Out, Daniel Pocock in?
Can Pocock beat his previous voting record?
Layoffs at Microsoft Are Massive, Go Under the Radar for the Most Part
Microsoft is in a really bad shape
One Heck of a Week for IBM, the 'Grandpa' of 'High-Tech', International Business Machines Corporation (NYSE:IBM) Under Investigation by Bronstein, Gewirtz & Grossman, LLC
If IBM gets busted or might be busted, will the CEO jump, get pushed, or be arrested?
Why I Quit Academic Career (or Academia) Nearly 15 Years Ago
I am told by people who stayed that it has only gotten worse
“Why Open Source Misses the Point of Free Software”
As Dr. Richard Stallman once put it
GNU/Linux Grows at the Expense of Microsoft Windows in Croatia, Now Close to 8%
Croatia has been mentioned a lot lately in relation to EPO "lobbying" (vote-rigging)
27-Year IBM Veteran on IBM: "Worse than the Titanic and Perhaps Just Like Madoff, Enron, etc."
several comments we saw today envisioned the CEO of IBM in an orange suit (in US prison)
EPO "Cocaine Communication Manager" - Part XV - Nazi-Like Thinking at the European Patent Office (EPO) Not a Thing of the Past
antisemitism inside the EPO
Daniel Pocock Running for Office Again, Clacton-on-Sea By-election
By-election - code name "Pocock-on-Sea"
ServiceNow/ServiceLine and Slop at the EPO is Becoming a Health Risk to Staff
PD44 has historically been the oppressor at the EPO
IBM Can Burn Pensioners to Appease Wall Street and Protect the Billionaire CEO With His Humongous Bonuses
Its stock it set to open 2.82% in the red
IBM SHAREHOLDER INVESTIGATION: Potential Securities Claims Involving International Business Machines (IBM)
there's a risk of criminal action against executives
Tux Machines Moving Onwards and Upwards
"...tasks expand to fill the time available"
The Register MS is Publishing Spam for Gartner Group to Spread Hype About "AI", Mentioned 30 Times in the Paid (Fake) Article
One sure thing is, the so-called 'tech media' is profoundly compromised by American corporations
"Market Share" of GNU/Linux Nearly Trebled in Cambodia This Month
GNU/Linux is still measured at 8% by statCounter
GitHub is Dying (Traffic Down Despite Bots and Slop), Microsoft Will Eventually Cull it - Just Like XBox - to Limit the Losses
Do not stay on GitHub (Microsoft) under the false assumption that it is "free hosting" or will always be around
Teaser: Daniel Pocock is About to Go Mainstream Again
Stay tuned, Pocock has something in store
Microsoft Has Just Been Sued Over Layoffs
If the rumours are true, there is yet another wave of layoffs at Microsoft
Richard Stallman Always Cautioned, Upfront, That His Political Views Were Wholly Separate From His Scientific Work or GNU
Notice that he already spoke a lot about politics
Links 17/07/2026: Microsoft is Cutting OneDrive Coverage, Larry Ellison Sued by Paramount Investor
Links for the day
Nichirei and Asahi Beer Need to Take Cyberattacks as Hint of Opportunity to Move to Free Software
Windows TCO
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, July 16, 2026
IRC logs for Thursday, July 16, 2026
Gemini Links 17/07/2026: Sunlight in the Clouds, Techno-Therapy, and Sloppifying Original Text
Links for the day
Links 16/07/2026: Slop Recognised as a Waste of Energy, Hong Kong Cracking Down on Dissent/Opposition Some More
Links for the day
GNU/Linux Approaching 5% "Market Share" in Oceania, Almost Trebling in 12 Months
It is difficult to ignore the gains made by GNU/Linux this month
Microsoft Whistleblowers Explain How Brutal the Latest Cull is (Layoffs in Seconds-Long Calls, Mass Elimination of Whole Studios and High-Level Officials)
we see anonymous leakers or whistleblowers in the media today
Gemini Links 16/07/2026: esp32-gemserv, Slop-Contaminated Free Software, and Moving Systems
Links for the day
Last Summer Microsoft Mass Layoffs Came in Two Large Waves, Rumours Say Next Week Another Large Wave is Coming
If many more Microsoft layoffs are formally admitted next week we will not be surprised
Tomorrow is Another Strike Day at Europe's Second-Largest Institution, the Media is Still Deliberately Ignoring It
Fridays are now recommended “anchor days" for EPO strikes
Public Interest News Foundation Shows News Drought or News Deserts in the United Kingdom
Public Interest News Foundation shows that we should be deeply concerned
Illusions of Choice
Choices can be differently bad or equally bad
Windows Down to 10% in India
Windows is a "burning platform"
One Year Has Passed
Our aim is to repair an injured system wherein "abuse of process" can be turned into a weapon, leveraged even by foreigners who are funded by affluent third parties
Techrights is Annoying People Who Work for (and Serve) People Who Annoy (and Abuse) Society
Working against us (instead of with us) has historically been a bad strategy
No Skinnerboxes, No Slop, No False Idols or Corporate Prophets
Torvalds does not understand the everyday struggles of tech workers and tech users because he is a millionaire
IBM's Next Stop: $199 (Market Cap Already Under 2.5 Times IBM's Debt)
Don't rush to call us "sensationalist" over it
Links 16/07/2026: Solar Greenwashing by Energy-Wasting GAFAM and Growing Concerns About Harm by Social Control Media
Links for the day
Gemini Links 16/07/2026: Photography, Agility, and "Today I have Truly Become a Linux User."
Links for the day
Rebellion Brewing at Microsoft
As always, we welcome Microsoft whistleblowers
Technology Against Human Nature
Losing a sense of what it means to be alive
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, July 15, 2026
IRC logs for Wednesday, July 15, 2026