Bonum Certa Men Certa

The EPO Bubble — Part III — Dividing Up the Spoils...

Overview: [Teaser] The EPO's Deflating Patent Bubble and Pursuit of Illegal Software Patents (With Kangaroo Courts, UPC, and Bullied Examiners)

Series parts:

  1. The EPO Bubble — Part I — An “Unprecedented Surge”
  2. The EPO Bubble — Part II — Signs of a Deflating Bubble?
  3. YOU ARE HERE ☞ Dividing Up the Spoils...


Battistelli and the pigs
The higher the volume of granted patents, the larger cash pool available to be divvied up between the EPO and its contracting states.



Summary: The corrupt presidency of António Campinos sees a sharp decline in the number of patent grants; as a result, it bullies honest examiners and seeks to illegally expand patent scope (read: European software patents and other unlawful monopolies) with help from the Administrative Council, motivated by self-serving overzealous greed; there's a lot of money at stake!

In the preceding parts we looked at the EPO’s "grant bubble" which commenced with Benoît Battistelli’s "unprecedented surge" of 2016 and we saw how this "bubble" has started to deflate over the course of the last two years.



To the outside observer this development probably looks like the natural and healthy "correction" of an undesirable and unsustainable state of affairs.

However, the senior management of the EPO and their "friends" on the Organisation’s governing body - the Administrative Council - are likely to see matters differently.

"The essential point to be grasped here is that every granted European patent application generates "national renewal fees" (NRFs) in all of the designated EPO contracting states during the time that it is maintained in force by its proprietor."Those who are inside EPOnia’s "golden circle" have a "vested interest" in propping up the bubble in order to safeguard the lucrative cash flow from the legendary “Dukatenesel”.

The essential point to be grasped here is that every granted European patent application generates "national renewal fees" (NRFs) in all of the designated EPO contracting states during the time that it is maintained in force by its proprietor.

The NRFs generated by these patents are shared between the contracting states and the EPO in accordance with Article 39 EPC (warning: epo.org link). The current split is takes place on 50-50 basis.

Article 39 EPC foresees that the EPO could be awarded as much as 75% of the overall NRF revenue - subject to the Administrative Council agreeing to a change in the distribution ratio.

"In any event, the bottom line here is clear: the higher the volume of granted patents, the larger the cash pool available to be divvied up between the EPO and its contracting states."However, in practice, an increase of the EPO’s NRF dividend is unlikely to be approved by the Administrative Council because the contracting states jealously guard their own share of the loot. If anything, they would prefer to increase this and reduce the EPO’s slice of the cake if only they could find a plausible pretext for doing so.

In any event, the bottom line here is clear: the higher the volume of granted patents, the larger the cash pool available to be divvied up between the EPO and its contracting states.

An increased grant rate at the EPO boosts the revenue of the national patent offices of the contracting states. All of these national offices are financed predominantly by NRFs from granted European Patents.

As an illustrative example, let us briefly consider what this implies in the case of one of the EPO’s most significant contracting states, Germany.

"All of these national offices are financed predominantly by NRFs from granted European Patents."Back in 2014, Germany’s estimated NRF revenue share was € 149 million.

By 2021 this amount had risen to € 211 million, an increase of around 40% compared to 2014.

To put these figures into perspective, in 2021 the total expenditure of the German Patent and Trademark Office (DPMA) was € 248,5 million and it recorded an operating profit of € 214,7 million which was transferred to the federal treasury.

In other words, the revenue accruing to the DPMA from granted European patents in 2021 (€ 211 million) was sufficient to cover about 85% of its expenditure.

This portion of the DPMA’s revenue was also more or less equivalent to its reported operating profit (€ 214,7 million) which was transferred to the federal treasury.

"In other words, the revenue accruing to the DPMA from granted European patents in 2021 (€ 211 million) was sufficient to cover about 85% of its expenditure."No wonder that the German delegation on the EPO Administrative Council was such an enthusiatic supporter and "enabler" of Battistelli’s "reforms" at the EPO!

The EPO for its part receives a 50% share of the total NRF revenue generated in its contracting states.

This means that an increased grant rate also bolsters the EPO’s own internal "slush fund" for keeping delegates from the smaller contracting states "onside" by means of EPO-financed co-operation projects.

In view of these circumstances it should come as no surprise that the ongoing deflation of Battistelli’s "grant bubble" is a cause for concern in some quarters. We shall look into this in more detail in the next part.

The numbers go down again?

Recent Techrights' Posts

Martina Ferrari & Debian, DebConf room list: who sleeps with who?
Reprinted with permission from Daniel Pocock
Europe Won't be Safe From Russia Until the Last Windows PC is Turned Off (or Switched to BSDs and GNU/Linux)
Lives are at stake
Links 23/04/2024: US Doubles Down on Patent Obviousness, North Korea Practices Nuclear Conflict
Links for the day
Stardust Nightclub Tragedy, Unlawful killing, Censorship & Debian Scapegoating
Reprinted with permission from Daniel Pocock
 
Microsoft is Shutting Down Offices and Studios (Microsoft Layoffs Every Month This Year, Media Barely Mentions These)
Microsoft shutting down more offices (there have been layoffs every month this year)
Balkan women & Debian sexism, WeBoob leaks
Reprinted with permission from disguised.work
Links 24/04/2024: Advances in TikTok Ban, Microsoft Lacks Security Incentives (It Profits From Breaches)
Links for the day
Gemini Links 24/04/2024: People Returning to Gemlogs, Stateless Workstations
Links for the day
Meike Reichle & Debian Dating
Reprinted with permission from disguised.work
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, April 23, 2024
IRC logs for Tuesday, April 23, 2024
[Meme] EPO: Breaking the Law as a Business Model
Total disregard for the EPO to sell more monopolies in Europe (to companies that are seldom European and in need of monopoly)
The EPO's Central Staff Committee (CSC) on New Ways of Working (NWoW) and “Bringing Teams Together” (BTT)
The latest publication from the Central Staff Committee (CSC)
Volunteers wanted: Unknown Suspects team
Reprinted with permission from Daniel Pocock
Debian trademark: where does the value come from?
Reprinted with permission from Daniel Pocock
Detecting suspicious transactions in the Wikimedia grants process
Reprinted with permission from Daniel Pocock
Gunnar Wolf & Debian Modern Slavery punishments
Reprinted with permission from Daniel Pocock
On DebConf and Debian 'Bedroom Nepotism' (Connected to Canonical, Red Hat, and Google)
Why the public must know suppressed facts (which women themselves are voicing concerns about; some men muzzle them to save face)
Several Years After Vista 11 Came Out Few People in Africa Use It, Its Relative Share Declines (People Delete It and Move to BSD/GNU/Linux?)
These trends are worth discussing
Canonical, Ubuntu & Debian DebConf19 Diversity Girls email
Reprinted with permission from disguised.work
Links 23/04/2024: Escalations Around Poland, Microsoft Shares Dumped
Links for the day
Gemini Links 23/04/2024: Offline PSP Media Player and OpenBSD on ThinkPad
Links for the day
Amaya Rodrigo Sastre, Holger Levsen & Debian DebConf6 fight
Reprinted with permission from disguised.work
DebConf8: who slept with who? Rooming list leaked
Reprinted with permission from disguised.work
Bruce Perens & Debian: swiping the Open Source trademark
Reprinted with permission from disguised.work
Ean Schuessler & Debian SPI OSI trademark disputes
Reprinted with permission from disguised.work
Windows in Sudan: From 99.15% to 2.12%
With conflict in Sudan, plus the occasional escalation/s, buying a laptop with Vista 11 isn't a high priority
Anatomy of a Cancel Mob Campaign
how they go about
[Meme] The 'Cancel Culture' and Its 'Hit List'
organisers are being contacted by the 'cancel mob'
Richard Stallman's Next Public Talk is on Friday, 17:30 in Córdoba (Spain), FSF Cannot Mention It
Any attempt to marginalise founders isn't unprecedented as a strategy
IRC Proceedings: Monday, April 22, 2024
IRC logs for Monday, April 22, 2024
Over at Tux Machines...
GNU/Linux news for the past day
Don't trust me. Trust the voters.
Reprinted with permission from Daniel Pocock
Chris Lamb & Debian demanded Ubuntu censor my blog
Reprinted with permission from disguised.work
Ean Schuessler, Branden Robinson & Debian SPI accounting crisis
Reprinted with permission from disguised.work
William Lee Irwin III, Michael Schultheiss & Debian, Oracle, Russian kernel scandal
Reprinted with permission from disguised.work
Microsoft's Windows Down to 8% in Afghanistan According to statCounter Data
in Vietnam Windows is at 8%, in Iraq 4.9%, Syria 3.7%, and Yemen 2.2%
[Meme] Only Criminals Would Want to Use Printers?
The EPO's war on paper
EPO: We and Microsoft Will Spy on Everything (No Physical Copies)
The letter is dated last Thursday
Links 22/04/2024: Windows Getting Worse, Oligarch-Owned Media Attacking Assange Again
Links for the day
Links 21/04/2024: LINUX Unplugged and 'Screen Time' as the New Tobacco
Links for the day
Gemini Links 22/04/2024: Health Issues and Online Documentation
Links for the day
What Fake News or Botspew From Microsoft Looks Like... (Also: Techrights to Invest 500 Billion in Datacentres by 2050!)
Sededin Dedovic (if that's a real name) does Microsoft stenography
Stefano Maffulli's (and Microsoft's) Openwashing Slant Initiative (OSI) Report Was Finalised a Few Months Ago, Revealing Only 3% of the Money Comes From Members/People
Microsoft's role remains prominent (for OSI to help the attack on the GPL and constantly engage in promotion of proprietary GitHub)
[Meme] Master Engineer, But Only They Can Say It
One can conclude that "inclusive language" is a community-hostile trolling campaign
[Meme] It Takes Three to Grant a Monopoly, Or... Injunction Against Staff Representatives
Quality control
[Video] EPO's "Heart of Staff Rep" Has a Heartless New Rant
The wordplay is just for fun
An Unfortunate Miscalculation Of Capital
Reprinted with permission from Andy Farnell
[Video] Online Brigade Demands That the Person Who Started GNU/Linux is Denied Public Speaking (and Why FSF Cannot Mention His Speeches)
So basically the attack on RMS did not stop; even when he's ill with cancer the cancel culture will try to cancel him, preventing him from talking (or be heard) about what he started in 1983
Online Brigade Demands That the Person Who Made Nix Leaves Nix for Not Censoring People 'Enough'
Trying to 'nix' the founder over alleged "safety" of so-called 'minorities'
[Video] Inauthentic Sites and Our Upcoming Publications
In the future, at least in the short term, we'll continue to highlight Debian issues
List of Debian Suicides & Accidents
Reprinted with permission from disguised.work
Jens Schmalzing & Debian: rooftop fall, inaccurately described as accident
Reprinted with permission from disguised.work
[Teaser] EPO Leaks About EPO Leaks
Yo dawg!
On Wednesday IBM Announces 'Results' (Partial; Bad Parts Offloaded Later) and Red Hat Has Layoffs Anniversary
There's still expectation that Red Hat will make more staff cuts
IBM: We Are No Longer Pro-Nazi (Not Anymore)
Historically, IBM has had a nazi problem
Bad faith: attacking a volunteer at a time of grief, disrespect for the sanctity of human life
Reprinted with permission from Daniel Pocock
Bad faith: how many Debian Developers really committed suicide?
Reprinted with permission from Daniel Pocock
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, April 21, 2024
IRC logs for Sunday, April 21, 2024
A History of Frivolous Filings and Heavy Drug Use
So the militant was psychotic due to copious amounts of marijuana
Bad faith: suicide, stigma and tarnishing
Reprinted with permission from Daniel Pocock
UDRP Legitimate interests: EU whistleblower directive, workplace health & safety concerns
Reprinted with permission from Daniel Pocock