Bonum Certa Men Certa

“The Stupidest [Patent/Tax] Policy Ever”

Ask her what she thinks of the status quo

Mariana Mazzucato
By Alex Taffetani. Own work, CC BY 3.0.



Summary: It's pretty clear that today's European patent system has been tilted grossly in favour of super-rich monopolists and their facilitators (overzealous law firms and 'creative' accountants) as opposed to scientists

Economists sometimes speak negatively and critically about today's patent systems, seeing how far patent scope has come and how much litigation this incurs. Only those with very deep pockets can endure and pursue real justice. The USPTO has been compelled to stop that, partly owing to 35 U.S.C. €§ 101. The European Patent Office (EPO), on the other hand, persists like there's no tomorrow and the sky is the limit when it comes to patent grants. António Campinos and Battistelli measure nothing but "products"; "quality" has come to mean speed (or pendency).



"This is often being done in Europe by companies that aren't even European!"Patents have moreover become an "asset" for legal departments and law firms, not scientists. Just check who's best served by them, especially in Europe.

In a new article/interview an economist called Mariana Mazzucato spoke of loopholes for tax evasion -- basically tricks that have made it "legal" for large companies with patent monopolies to not pay tax on large transactions. This is often being done in Europe by companies that aren't even European! To quote some bits: [via]

But a narrative of innovation that omitted the role of the state was exactly what corporations had been deploying as they lobbied for lax regulation and low taxation. According to a study by Mazzucato and economist Bill Lazonick, between 2003 and 2013 publicly listed companies in the S&P 500 index used more than half of their earnings to buy back their shares to boost stock prices, rather than reinvesting it back into further research and development. Pharmaceutical company Pfizer, for example, spent $139bn (€£112bn) on share buybacks. Apple, which had never engaged in this type of financial engineering under Jobs, started doing so in 2012. By 2018, it had spent nearly one trillion dollars on share buybacks. “Those profits could be used to fund research and training for workers,” Mazzucato says. “Instead they are often used on share buybacks and golfing.”

That posed an urgent, more fundamental problem. If it was the state, not the private sector, which had traditionally assumed the risks of uncertain technological enterprises that led to the development of aviation, nuclear energy, computers, nanotechnology, biotechnology and the internet, how were we going to find the next wave of technologies to tackle urgent challenges such as catastrophic climate change, the epidemic of antibiotic resistance, the rise of dementia? “History tells us that innovation is an outcome of a massive collective effort – not just from a narrow group of young white men in California,” Mazzucato says. “And if we want to solve the world’s biggest problems, we better understand that.”

[...]

Soon, she became a regular visitor at Whitehall, advising both Cable and Willetts on policies such as the Small Business Research Initiative, which funded small and medium enterprises, and the patent box, which reduced the rate of corporate tax on income derived from patents (which she calls “the stupidest policy ever”).

Mazzucato knew that to influence politicians she would need to do more than just criticise. “The reason progressives often lose the argument is that they focus too much on wealth redistribution and not enough on wealth creation,” she says. “We need a progressive narrative that's not only about spending, but investing in smarter ways.”


Patent policy as it currently stands needs reforming, but the EPO goes in the opposite direction. What it means by "reform" is making it worse, or making it more favourable to lawyers at the expense of scientists. Or programmers... after all, software patents are being granted in Europe in defiance of the law and against the will of actual programmers!

Notice how law firms refuse to speak out against software patents. They're complicit. Quiet this weekend at IP Kat, as usual, except the article "2019 updates to the EPO Guidelines for Examination" -- one of the latest such articles which we've mentioned lately (this blog is not the first to break down these changes).

"The exclusion of computer programs from patentability," a section further down the bottom, speaks of "the [guidelines'] section relating the patentability of artificial intelligence and machine learning." Rose Hughes speaks of what comes into effect in just over a fortnight from now:

The updated version of the EPO Guidelines for Examination is now available (here). The new guidelines come into force on 1 November 2019. The guidelines, as the name suggests, are a guide to the current case law and practise of the EPO and are not legally binding (see IPKat herefor a full discussion of legal precedent at the EPO and the role of the guidelines). The 2019 update to the guidelines incorporates some of the significant developments in the established case law of the Boards of Appeal. One key change to the guidelines this year is an update to the assessment of novelty of selection inventions. Other updates include clarification of the definition of “substance or composition” and a new section on the criteria of reasonable expectation in an assessment of obviousness for biotechnology inventions.

[...]

The patentability of software is another hot topic at the moment, and subject to its own referral to the EBA (IPKat: The patentability of computer simulated methods - another referral to the Enlarged Board of Appeal). The 2019 guidelines include some updates to the section relating the patentability of artificial intelligence and machine learning. In particular, the guidelines now clarify that “[t]erms such as ‘support vector machine’, ‘reasoning engine’ or ‘neural network’ may, depending on the context, merely refer to abstract models or algorithms and thus do not, on their own, necessarily imply the use of a technical means. This has to be taken into account when examining whether the claimed subject-matter has a technical character as a whole (Art. 52(1), (2) and (3))”.


But EPO created loopholes for these words and terms, e.g. buzzwords ("hey hi") and hype ("blockchains"), not to mention vague nonsense like "technical effect". So the EPO gets to pretend that it obeys the law while in practice breaking it with impunity. It's being justified using pseudo-novelty and obfuscation.

Things ought to change. But will they? Who has more 'lobbying' power? Captured media of the litigation 'industry' keeps gaming the news and setting up events with stacked panels. People like Mariana Mazzucato would not be invited.

Recent Techrights' Posts

Parties and Milestones Again
we've begun putting up about 40 balloons
Microsoft is Disloyal Towards Its Most Loyal Employees
Against its most faithful enablers
Following the Line of Cocaine All the Way to the Top
Even a million denials and spin-doctoring won't distract from the core issue
Thankfully We've Made Copies of More Interesting Data From statCounter
If statCounter (the Web site or the 'webapp') vanished overnight, we'd still have something left of it
More Silent Layoffs at IBM/Red Hat
when the media counts such layoffs or presents tallies the numbers are very incomplete
 
PETA and Activism
Being staff or volunteer in PETA isn't easy
Big Blue, Huge Debt
debt will soar again
Links 27/10/2025: Mass Surveillance Sold as "AI", People Reluctant to Lose Physical Media
Links for the day
Techrights' 19th Anniversary: Bronze
Time to go back to preparing for this anniversary
Our Latest European Patent Office (EPO) Series Will Last Several Weeks, Will Ask the EPO Management and the European Union (EU) Very Difficult Questions
If nobody loses a job (or jobs) over this, then the EU basically became no better than Colombia or Nicaragua
Slopwatch: LinuxSecurity, UbuntuPIT, Brian Fagioli, and Google News
We focus on stories that are fake or LLM slop that disguises itself as "news" about Linux
Links 27/10/2025: Wikipedia Vandalism, Bruce Perens Opens up on Childhood
Links for the day
This Site Could Not be Done by LLMs Even If It Wanted to (Because It's Not a Parrot of What Other Sites Say)
LLMs have no knowledge or deep understanding
19 Years, No Censorship
No factual information is ever going to be removed, more so if it is in the public interest
We Are Not a Conventional Site, That's Why They Hate (or Love) Us
Throughout the week this week we'll be focusing on the EPO
The Cocaine Patent Office - Part I: António Campinos Brought Corruption and Nepotism to the EPO, Then Came the Cocaine
High-level manager at the European Patent Office (EPO) caught in public with cocaine, the Office has some answering to do
Purchasing/Possessing Computers Isn't the Same as Controlling Computers
Let's strive to put computers back under the control of their users, no matter who purchased these (usually the users)
Gemini Links 27/10/2025: Alhena 5.4.3 and Fixing Bash
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, October 26, 2025
IRC logs for Sunday, October 26, 2025
Links 26/10/2025: Microsoft Spies on Gamers, Open Transport Community Conference
Links for the day
Links 26/10/2025: LLM Slop / Plagiarism Programs Continue to Disappoint, CISA Layoffs Threaten Systems
Links for the day
Gemini Links 26/10/2025: Gemsync and Joining the Small Web
Links for the day
India.com a Click-baiting, SEO-Spamming, Slopfarming Heap
They do this almost every day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, October 25, 2025
IRC logs for Saturday, October 25, 2025
Without XBox Consoles, XBox is No More, It's Just a Brand (More Rumours of Microsoft Ending XBox, Then Laying Off Lots of Staff)
All signs indicate that Microsoft wants to "exit" the XBox business (not brand), but it does not want to publicly admit this as it would alarm staff and shareholders
Gemini Links 25/10/2025: Portugal, Midnightpub, and "Tech Right Admins"
Links for the day
Almost 2026 Already (When We Turn Twenty)
In just over a year the site will turn 20
When "Sponsored Feature" in The Register MS Means Ponzi Scheme Promotion From the Communist Party of China (CPC)
the promotion of a financial scam
Week of EPO Leaks: Workers of the EPO Are Getting a Pay Cut While Prices Rise Fast
More to come in the next few days
Microsoft is Finally Giving Up on XBox, The Chief Says the Grapes Are Sour Anyway
Microsoft loses hundreds of dollars on each XBox that it sells
Slopwatch: LinuxSecurity, UbuntuPIT, and Various Slopfarms Propped up by Google News
Why can't Google News do better than this?
Links 25/10/2025: Two New Smokescreens for Scam Altman and ‘TikTok USA’ Remains in Limbo
Links for the day
Bad faith: can't change Debian Social Contract (DSC) without unanimous consent of every joint author
Reprinted with permission from Daniel Pocock
Confirmed: Very Close Friend of Bill Gates and Microsoft's Biggest Patent Troll Nathan Myhrvold Flew the Lolita Express (a Gateway to Pedophilia), According to Bill Gates-Sponsored Seattle Times
There is no speculation or any "conspiracy theories" here;' those are verified facts
Gemini Links 25/10/2025: "The Highest Leader of The Global Civil Society Community", SSL Certificates Causing Bitrot
Links for the day
Links 25/10/2025: Target Layoffs and "Shutdown Sparks 85% Increase in US Government Cyberattacks"
Links for the day
"Big Data" Was a Big Lie
Remember "Big Data"? Remember "Data Scientists"...?
statCounter Has Been Broken for a Long Time
Considering the huge proportion of Web requests that come from LLM bots (more so this past year or two), statCounter may struggle to justify the operating costs
Techrights Anniversary Party on November 7th
Let us know if you need any accommodation-related arrangements
Trends That Must Alarm Microsoft and Mozilla
Expect Firefox to no longer be supported by various sites in the US
Why Microsoft Became the Layoffs Leader
The corporate media is projecting or signalling its own dishonesty when it tells us that Microsoft is a very "valuable" company while the data shows Microsoft is also a "market leader" in layoffs
Speaking for Ourselves and Letting the Facts Speak for Themselves
we've already published over 50,000 pages
For Second Time in a Day The Register MS Takes Money From Private Companies to Sell a Ponzi Scheme
Do not have empathy for those who have zero empathy towards you
IBM is Misleading IBM Shareholders
IBM is still all about vapourware and buzzwords
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, October 24, 2025
IRC logs for Friday, October 24, 2025