11.27.19
Posted in Europe, Patents at 1:29 pm by Dr. Roy Schestowitz
Who does the EPO even serve?
Summary: The EPO continues to lie to everybody in order to defraud the public (with public money) and pour money into few pockets that love to gamble with that money (for personal gain)
BEHIND the lies and the fraud of the European Patent Office (EPO) we have the likes of António Campinos making rounds of smiles and photo-ops, just like Battistelli (except that ENA sociopath lacks the capacity to smile).
“Behind all those smiles there’s a very dark agenda.”People or stakeholders are expected to think everything is nowadays rosy because the EPO says (warning: epo.org
link) “EPO and INPI Brazil launch technical and strategic partnership”; well, the EPO President can have a chat in Portuguese about it, but that won’t change the fact that it’s little but another photo-op stunt. The EPO has published a selected photo-op in tweets, too.
What’s the actual substance behind it? Nothing new; just renewal of some old and mundane MoU. To quote: “The European Patent Office (EPO) and the National Institute of Industrial Property of Brazil (INPI) have signed a Memorandum of Understanding on a Reinforced Technical and Strategic Partnership to enhance co-operation between Europe and Brazil in the area of patents.”
Behind all those smiles there’s a very dark agenda.
The EPO’s examiners lack time and capacity to do their job, say the EPO’s examiners themselves. They’re pressured to grant illegal software patents in Europe where it’s against the law (in effect granting fake patents!). With quality of granted patents rapidly declining (as is their eligibility as seen by courts) someone will need to start flagging the loads of fake ones. European Patents cannot be presumed valid anymore. It’s a crisis in the making. This data which the EPO brags about may prove to be more harm than good. What the EPO nowadays calls “hey hi” (AI) typically refers to software patents and the EPO has just said: “Artificial intelligence: is the IP world ready for it? We summarised what experts had to say at our Patenting AI conference…”
They’re doing it all over again. They’ve also just asked: “Interested in the EPO’s #patent search strategies & techniques?”
This links to this page that starts with: (warning: epo.org
link) “This year’s Search Matters conference aims to deliver workshops and lectures with a special focus on disruptive technologies such as 3D printing and AI.”
“Hey hi” again. No honesty, just buzzwords and nice-sounding hype waves.
Earlier this week the EPO again “tweeted” some “SME” nonsense, such as: “How do SMEs with diverse profiles leverage European #patents to sustain growth in Europe?”
That links to the EPO-commissioned propaganda, as usual, inverting what’s true with complete fabrication to suit the misleading narrative. Hours ago the EPO tweeted: “Are you a startup? At this seminar in Ljubljana we’ll explain what SMEs should have in their basic IP toolkit…”
They pull this kind of stunt every day, lying to SMEs about their role in the EPO’s eyes.
Remember what the EPO said about its financial situation. SUEPO Central calls it a "hoax" (that’s an understatement, it’s a scam — an elaborate one too) and it has just published this “Letter to EPO AC Chairman re Financial Study from Chairman Association of EPO Pensioners” [PDF]
(sent to a lot of people).
From the introduction:
The Association of EPO Pensioners has continued to analyse to Financial study. The findings of the Association have been issued as a new letter for the Administrative Council, since the Association’s request to be allowed as an observer at the meeting when the study is discussed has been refused.
From the underlying document (as HTML)
Der Vorsitzende
The Chairman
Le President
De Voorzitter
26th November 2019
Mr Josef Kratochvil (per email)
President of the Industrial Property Office of the Czech Republic
Chairman of the Administrative Council of the EPO
cc: All Heads of delegations on the Administrative Council of the EPO (per email)
President of the EPO (per email)
Central Staff Committee (per email)
Dear Mr Kratochvil
I respectfully request that this letter is added to the agenda when documents CN83/19 and CA84/19 are discussed at the meeting of the Administrative Council th is December.
I also reiterate my earlier request that the Association should be allowed to take part as an observer when this point on the agenda is being discussed.
The Association of EPO Pensioners of course agrees that the EPO needs to plan its financial future prudently. It is however important that such planning is based on realistic assumptions and not on merely speculative elements as explained below. This has resulted in a calculated financial gap which is largely overestimated.
1. Decision Basis for Selection of Scenario
The EPO has chosen the Base 2 scenario in the Financial Study resulting in a calculated financial gap of 3.8 BN€ and then added to this a further 53% or 2.0 BN€ as a safety buffer, resulting in a total financial gap of 5.8 BN€.
The Association of EPO Pensioners having made an in-depth analysis of the study calls into question the calculation and selection of the Base 2 Scenario as well as the financial gap(s) arrived at.
a) The Base 2 Scenario is not based on an economic forecast but on a theoretical stress test scenario performed by the European Systemic Risk Board (ESRB). The Association is of course not calling the results of the stress test into question, but wishes to point out that the ESRB itself states as a disclaimer for its scenario that the “Scenario presented is not a forecast. It should not be interpreted as the ESRB’s expectations about future economic and financial developments.”
b) In the Financial Study the Base 2 Scenario is based on a global recession. However, the stress test scenario of the ESRB which has been used is nothing but a financial crisis scenario with a 30% drop in equity values assumed in 2021.
c) The Base 1 Scenario on the contrary is based on proper economic and financial forecasts performed by OECD, the World Bank and the International Monetary Fund.
The Association finds that it would therefore have been appropriate to select the Base 1 Scenario for the discussions about the financial gap and how to close it and NOT to select the Base 2 Scenario, which is based on a theoretical “what if’ scenario. To then add another 2.0 BN€ safety buffer for which the only justification is a speculative assumption that the present low interest environment will persist for another 20 year is not plausible.
2. Closing the Financial Gap in Base 1 Scenario
The financial gap in the Base 1 Scenario is calculated as 1.6 SN€. This financial gap can effortlessly be more than covered by two measures entirely under the control of EPO management. These measures are:
~ To digitise the Patent Grant Process (PGP) end-to-end (Measure 13).
~ To invest 60% of cash surpluses in EPOTIF (Measure 15).
In CA/83/ 19 and CA/84/19 the positive financial impact of digitising PGP end-to-end is calculated by the Office to bring savings of 1.2 SN€. Despite the fact that the financial study includes spending of over 1.0 SN€ on various building projects, investing 60% of remaining surpluses in EPOTIF is calculated by the consultants to still have a positive financial impact of 1.0 SN€. The table below summarises the result in Base 1 Scenario applying these two measures:
|
Value |
Base 1 Calculated Financial Gap |
-1.6BN€ |
Diqitisinq PGP end-to-end (Measure 13) |
+ 1.2 BN€ |
Invest 60% of cash surplus in EPOTIF (Measure 15) |
+ 1.0 SN€ |
Net Result |
+ 0.6 BN€ |
The Association of EPO Pensioners, for the reasons given above, is of the opinion that Base 1 Scenario should form the basis for any measures to be taken to close the financial gap. As shown above the financial gap is more than closed by the proposed two measures identified in the Study which are entirely under the control of EPO management.
3. Closing the Financial Gap in Base 2 Scenario
For the sake of completeness, this analysis will show that also the calculated financial gap in the Base 2 Scenario and Base 2 + Buffer Scenario can equally be closed without resorting to measures having a serious negative impact on present and future members of the Association of EPO Pensioners.
There is already a proposal for decision by the Administrative Council at its December 2019 meeting to increase contributions to the Pension scheme by 3.3% from 2020 onwards. This corresponds to measure 10 in the Financial Study where it is given the monetary value of 0.3 SN€.
It is worthwhile to recall that in the Financial Study salary expenditure for the next 20 years has been calculated based on an annual salary adjustment of inflation +0.5%. For the same period only one single fee adjustment of +4% has been included in the revenue calculations, whereas the Administrative Council has adopted a policy of biennial inflation based fee adjustments. In document CA/80/19, presented for decision by the Administrative Council at its December 2019 meeting, the President of the Office advocates the necessity to continue to pursue this policy of biennial inflation based fee adjustments. The continued consistent implementation of this policy (Measures 11 and 12) would improve the financial result with a further +1.3 BN€.
Page 2 of 4
The table below summarises the result in the Base 2 scenario applying all of the above:
|
Value |
Base 2 Calculated Financial Gap |
- 3.8 BN€ |
Diqitise PGP end-to-end (Measure 13) |
+ 1.2 BN€ |
Invest 60% of cash surplus in EPOTIF (Measure 15) |
+ 1.0 BN€ |
Increase contribution to Pension Fund (Measure 10) |
+ 0.3 BN€ |
Biennial inflation based fee adjustments (Measures 11 and 12) |
+ 1.3 SN€ |
Net Result |
+/- 0 BN€ |
As can be seen from the table above, the financial gap of 3.8 BN€ resulting from using a scenario based on a financial crisis, is also covered. As already stated, the Association of EPO Pensioners is of the opinion that Scenario 1 is the only one that constitutes a realistic basis for discussion of any measures to be taken.
Should the Administrative Council, after deliberations and taking into account our in-depth analysis, decide that the Base 2 Scenario is to be used, it is reassuring to note that even the case of a Financial Gap in this scenario, which is calculated on the basis of a financial crisis, can be completely addressed by applying five measures (Measures 10, 11, 12, 13 and 15) already planned or proposed the President of the Office.
4. Closing the Financial Gap in Base 2 + Buffer Scenario
The Association of EPO Pensioners is of the firm opinion that the gap now presented to be 5.8 SN€ by the addition of a further 2.0 SN€ as safety buffer to Base 2 Scenario is not based on real facts. The only justification for adding 2.0 BN€ to a scenario based not on a forecast but on a financial crisis seems to be an assumption that the present low interest environment will remain for the next 20 years.
The Association wishes to draw the attention of the Administrative Council to the fact that the 2008-20 18 long- term annualised performance of the RFPSS was 7.9%, thereby exceeding the annualised long-term objective for the Fund by 2.9%. Moreover, this performance has been achieved in spite of very volatile financial markets and a continuous low interest environment!
In their calculations before applying the safety buffer of 2.0 SN€, the consultants have already indirectly introduced a further safety buffer of about 2.6 SN€ by reducing the expected net return on investments made by the Reserve Funds for Pensions and Social Security (RFPSS) to 2.1% above inflation. This is in clear contradiction to the Strategic Asset Allocation (SAA) unanimously agreed by the Supervisory Board of the RFPSS (SBRFPSS) on which also the Office is an important stakeholder with voting rights. This SAA is expected to give a net return of 3.5% above inflation. The much lower return on investment used in the Financial Study results in the above-mentioned further safety buffer with a net return which is about 2.6 SN€ less than the net return to be achieved using the SAA agreed by the SBRFPSS.
Since this further safety buffer of about 2.6 SN€ has already been incorporated in the calculations made by the consultants by their use of a much lower return on investment by the RFPSS than agreed by the SBRFPSS, it is impossible to understand why a safety buffer of another 2.0 SN€ has been added to a financial crisis Base 2 scenario in which financial losses have already been accounted for.
Page 3 of 4
5. Conclusion and Request
The analysis performed by the Association of EPO Pensioners and presented here in this letter, highlights several questionable assumptions made in the Financial Study, amongst others, the basis for selection of Scenarios and also putting into question the validity of the financial gap(s) presented.
To avoid serious consequences and impact on present and future members by implementation of Measures which are not needed, the Association therefore requests that the Administrative Council mandates the Office to revisit and reanalyse the Scenarios and the financial gap(s) to enable further discussion in the Supervisory Bodies of the Organisation before returning with concrete proposals, if any are needed, to be adopted by the Administrative Council.
Curt Edfjall
Chairman, Association of EPO Pensioners
Page 4 of 4
We’ve omitted the E-mail address of Curt Edfjall to reduce charge of spamming. The fact remains, however, that such a letter deserves broader audience. How many people out there are aware of the EPO’s abuses against its own staff? At the expense of Europe? The EPO likes to present itself as beneficial to the European economy, but that too is a fat lie, i.e. the usual.
As one attorney put it today: “Unfortunately I can’t interact with the EPO in my language. It would REALLY simplify my life.”
The EPO’s management shamelessly fosters a system that facilitates just loads and loads of litigation, irrespective of the impact on the European economy as a whole. █
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Posted in Hardware at 6:00 am by Dr. Roy Schestowitz
Summary: The vision of Purism is promising (freedom-respecting mobile devices), but practical limitations seem to be getting in the way and even big fans have begun reconsidering
EARLIER this week we wrote about evident problems with shipment/fulfillment by Purism after we had seen press reports about it and also heard from readers.
One such reader said he read an article on Techrights regarding Purism and “would like to add the problems [he was] having.”
“I can’t believe there is only 350 units being produced for the first 4 batches??? This stinks!”
–Anonymous“Last Tuesday,” he said, “after reading many articles about the Librem 5, I decided to ask for a refund on my ‘pre-ordered’ phone as I feel some things don’t feel right. The communication was cordial, making sure they had the right credit card details to my account and was told it would take 2 – 15 days.
“On Thursday I checked my Purism account to still find my order was ‘active’ and awaiting shipping, so I emailed again asking for confirmation, only to receive a very cavalier response saying ‘we’ll sort it in a couple of days!’
“As you can imagine this was a red rag with my reply being rather angry reminding them I wasn’t a backer but a pre-order and interest will [be] expected. As of today my order is still active and I don’t hold much hope that anything will happen soon.
“The good news is, less than a day ago we learned that Purism issued a refund.”“So info I did find strange was on the Purism forum, an early backer 350th (he screen shot his place) received his email asking what batch he would like, which he put Aspen, Birch and Chestnut, only to receive a reply he would be in Evergreen? I can’t believe there is only 350 units being produced for the first 4 batches??? This stinks!”
That’s the bad news. The good news is, less than a day ago we learned that Purism issued a refund. So at least our worst fears are bygones. █
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Posted in Europe, Finance at 4:35 am by Dr. Roy Schestowitz
Overview
Understanding Thierry Breton
Further parts pending review and research

The IMF’s “Madame Bailout”: Always smiling, always polite –
“but she’s an American lawyer at heart – a killer shark”
Summary: In December 2016 Lagarde was found guilty of negligence but served no time because of connections
The bromance with Nicolas may have turned sour but Thierry continues to enjoy cordial relations with other former cabinet colleagues.
One person with whom he has maintained close links over the years is the high-flier Christine Lagarde, the IMF’s “Madame Bailout”, who is regularly fêted in media puff-pieces as the “rock-star” of international finance.
Lagarde was appointed head of the International Monetary Fund in 2011 and has recently moved back across the Atlantic to take over the helm at the European Central Bank in Frankfurt.
“She handled major antitrust and labour cases, was made partner after six years and was named head of the firm in Western Europe. She joined the Executive Committee in 1995 and was elected as company chairman in October 1999.”Her career began as a lawyer back in the 1980s when she joined the Chicago-based international law firm Baker & McKenzie as an associate after completing law studies in Paris in 1981. She handled major antitrust and labour cases, was made partner after six years and was named head of the firm in Western Europe. She joined the Executive Committee in 1995 and was elected as company chairman in October 1999.
According to press reports, Lagarde’s years working in America gave her “an empathy with Anglo-Saxon ways” and “a pragmatic, team-oriented style of solving problems”.
But the charming and elegant facade conceals a ruthless streak. One official who had the misfortune to fall out with her put it like this: “She’s always smiling, always polite, but she’s an American lawyer at heart – a killer shark”.
In May 2005, Lagarde left her legal career in Chicago and returned to France to take up a position as Minister for Foreign Trade under President Jacques Chirac and his Prime Minister, Dominique de Villepin.
“While Thierry’s wife, Valerie, was off on a jolly up the Ganges with First Lady Bernadette Chirac, Thierry and Christine were busy posing for official photo-ops alongside Uncle Jacques.”A few months earlier in February 2005, Thierry Breton had assumed his portfolio as Minister for the Economy.
The two newcomers at the cabinet table had some common ground because they were not career politicians but had started their careers in the private sector. In addition to this they were both ideologically aligned to the neo-liberal wing of the UMP.
Press photos from that period often show Breton and Lagarde in tandem, frequently appearing together with their political patron, Jacques Chirac.

On board the presidential jet with defence minister Michele Alliot-Marie (February 2006)
For example, they were among the select group of ministers who accompanied Chirac on his state visit to India in February 2006.

Accompanying Uncle Jacques on a state visit to India (February 2006)
While Thierry’s wife, Valerie, was off on a jolly up the Ganges with First Lady Bernadette Chirac, Thierry and Christine were busy posing for official photo-ops alongside Uncle Jacques.
Official press photos from the period indicate a strong professional rapport between the Ministers for Economy and Foreign Trade who often appear in public like two peas in the proverbial pod.

The ministerial duo – like two peas in the proverbial pod
It comes as no surprise to find that the pair continued to rub shoulders at social events long after Thierry had departed from the cabinet table. A photo from 2009 shows the pair enjoying a “night at the opera” in Paris where they attended a gala performance of Verdi’s Macbeth organised by the Friends of the Paris Opera.

A night at the opera: attending a performance of “Macbeth” in Paris (April 2009)
As we have seen, Sarkozy decided to ditch Breton as Minister for Economy when he took over the reins of power in France in May 2007.
However, he kept the “killer shark” Lagarde on his team. She was initially assigned to the Ministry of Agriculture but a few weeks later after a disappointing election result for the UMP, Sarkozy decided to reshuffle his recently-formed cabinet.
As a result of this reshuffle, Lagarde was moved to the Ministry for Economy (Bercy) where she was mandated to oversee various reforms, including tax cuts and the implementation of measures to liberalise the labour market.
Lagarde remained at Bercy until mid-2011 when a high-profile international scandal that erupted around the IMF boss Dominique Strauss-Kahn suddenly and unexpectedly opened up a new career opportunity for her.

Lagarde with IMF head honcho DSK – the body language says it all…
On 14 May 2011, Strauss-Kahn (often referred to by his initials as “DSK”) was arrested and charged with the sexual assault and attempted rape of 32-year-old Nafissatou Diallo, a chambermaid at the Sofitel New York Hotel in Manhattan earlier that day.
At the time of the alleged attack, Strauss-Kahn was the head of the International Monetary Fund (IMF) and a kingpin of the French Socialist Party where he was regarded as the favoured candidate for the upcoming French Presidential election in 2012.
“Strauss-Kahn’s position at the IMF quickly became untenable as criminal proceedings were opened against him in New York on charges of sexual assault and attempted rape. Four days after his arrest, he resigned as head of the IMF.”But, as is well known, a week is a long time in politics. Strauss-Kahn’s position at the IMF quickly became untenable as criminal proceedings were opened against him in New York on charges of sexual assault and attempted rape. Four days after his arrest, he resigned as head of the IMF.
The criminal charges were eventually dismissed at the request of the prosecution due to doubts about the testimony provided by the alleged victim and a lack of conclusive physical evidence. Diallo filed a parallel civil suit against Strauss-Kahn which was settled out of court for an undisclosed amount, reported to have been $1.5 million.
The affair brought a sudden and abrupt end to Strauss-Kahn’s IMF career on the international stage. However, his difficulties turned out to be a golden opportunity for Lagarde.
Her privileged relationship with Sarkozy propelled her to the forefront in the IMF succession stakes and before long she was once again on her way across the Atlantic to take up her new position in Washington D.C.
But the past was about to catch up with her.
Several months after her appointment as head of the IMF, the public prosecutor in France recommended an investigation into her involvement in a massive government payout to businessman Bernard Tapie in 2008.
The case itself was decades old, going back to the 1990s when Tapie had to sell his stake in the sportswear firm Adidas because he became a government minister under François Mitterand. From 1993 to 2008 a long-drawn out legal battle took place between Tapie and the partly state-owned Crédit Lyonnais bank. Tapie claimed that Crédit Lyonnais had short-changed him when it sold Adidas on his behalf.
In 2008, the case was referred to a special arbitration panel which ruled that Tapie should receive compensation of €404 million from the French state. Lagarde, who was Minister for Finance at the time, decided that the ruling should be accepted without challenge.

Bernard Tapie received an award of €404m approved by Lagarde
The case was controversial because Tapie was a close friend of Sarkozy and he was reported to be on the verge of bankruptcy at the time of the settlement. It was alleged by opposition politicians that the settlement procedure had been politically motivated and was designed to reward Tapie for his support for Sarkozy during the 2007 election campaign.
“…a special court established to try cases of ministerial misconduct, ordered that Lagarde should stand trial for alleged complicity in the misuse of public funds.”On 3 December 2015, a French court ruled that Tapie should return the compensation with interest. A few days later, the Court of Justice of the Republic, a special court established to try cases of ministerial misconduct, ordered that Lagarde should stand trial for alleged complicity in the misuse of public funds.

Not amused – Christine Lagarde on the opening day of her trial in Paris (12 December 2016)
Following a hearing which took place in December 2016, Lagarde was found guilty of negligence. She was not present in court to hear the verdict because she had already left Paris to return to her IMF job in Washington.
Lagarde could have faced up to a year in prison and a fine of €15,000 upon conviction, but the court decided that she should be spared a sentence. And so, incredibly, despite the guilty verdict she emerged from the trial without a criminal record.
The court’s ruling, which took many by surprise, was “explained” by the presiding judge Martine Ract Madoux as follows: “The context of the global financial crisis in which Madame Lagarde found herself in should be taken into account.” The judge also cited the court’s desire to protect Ms Lagarde’s “good reputation” and “international standing” as reasons for not imposing a sentence!
“Following a hearing which took place in December 2016, Lagarde was found guilty of negligence.”To the outside observer, it seems like a clear case of “different strokes for different folks” in the land of “Liberty, Equality and Fraternity”.
Despite the leniency of the court, the episode must have been an unpleasant experience for someone like Lagarde who is not used to standing in the dock. But, despite the public embarrassment, she could take consolation from the loyal support that she received from many old friends during her ordeal.
These included her former cabinet colleague, Thierry Breton, who dutifully attended the hearings and was spotted in the foyer of the court exchanging pleasantries with Claude Soulier, general secretary of the CJR on 14 December 2016.

Breton with Claude Soulier, general secretary of the Court of Justice of the Republic, prior to a hearing of IMF boss Christine Lagarde (14 December 2016)
Whatever emotional distress Lagarde may have suffered from her little scrape with the CJR, she emerged unscathed from this encounter with the wheels of justice.
As one cynical commentator chose to put it: “As is usual for white-collar establishment criminals in France, she did not receive any formal punishment, and was left to get on with her career.”
Her term at the IMF was due run until 2021, but in July of this year Lagarde announced that she was stepping down early and would leave on 12 September 2019.
She hadn’t fallen victim to some sleazy PR disaster like her predecessor the self-confessed “libertine” and reported sexual predator, Strauss-Kahn. Nor was she facing fresh allegations of ministerial misconduct. On the contrary, she had her eyes set on a new career move.
“…Thierry Breton, who dutifully attended the hearings and was spotted in the foyer of the court exchanging pleasantries with Claude Soulier, general secretary of the CJR on 14 December 2016.”As it happened, Lagarde had just been nominated by EU leaders to replace the outgoing European Central Bank president Mario Draghi from 1 November. Her nomination was approved by the European Parliament on 17 September and her appointment was officially confirmed in October.
According to Politico, the choice of Lagarde for the top ECB post was the result of a Franco-German political “horse-trading” deal in return for which the Germans received the top job at the European Commission which was assigned to Ursula von der Leyen (née Albrecht).
There are still a lot of unanswered questions about Lagarde’s “non-conventional” appointment as president of the ECB but this is not the place to go into them.
All that remains to be said at this point is that it now seems almost certain that “Madame Bailout” will soon be joined in the upper echelons of the EU Nomenklatura by her old cabinet colleague, Thierry “Mister Cash” Breton, as soon as his nomination as Commissioner for the Internal Market has been rubber-stamped.
We will just have to wait and see whether or not Thierry will be at the receiving end of any gushing missives from Christine such as the “pledge of allegiance” which she addressed to her former political patron, Sarkozy.
According to press reports, this “billet-doux” to Sarkozy was found during a police raid on Lagarde’s Paris flat in 2013 in the course of investigations into the Tapie affair:
Dear Nicolas, very briefly and respectfully,
1) I am by your side to serve you and serve your plans for France.
2) I tried my best and might have failed occasionally. I implore your forgiveness.
3) I have no personal political ambitions and I have no desire to become a servile status seeker, like many of the people around you whose loyalty is recent and short-lived.
4) Use me for as long as it suits you and suits your plans and casting call.
5) If you decide to use me, I need you as a guide and a supporter: without a guide, I may be ineffective and without your support I may lack credibility.
With my great admiration,
Christine L.
In the next part we will explore Thierry’s connections to another UMP luminary, albeit a relatively minor one – Benoît Battistelli, a deputy-mayor of Saint-Germain-en-Laye, who gained notoriety as president of the European Patent Office. █
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