Bonum Certa Men Certa

Outsourcing and Offshoring Patents for Extortion and Tax Evasion

Offshoring



Summary: Some of the latest examples of patent mischief and antitrust issues; the darker side of patents explored

THE most grotesque elements of both the European and north American patent systems would have to do with bypassing the law. Racketeering and tax evasion are apparently OK as long as patents are used to achieve these.

Apple, for example, is fast becoming like BlackBerry, which is trying to not look like a patent troll and is thus delegating the blackmail to another entity. This new report calls it outsourcing and notes that that "BlackBerry's exit from the device-manufacturing business was part of a broader turnaround strategy as the company worked to streamline its operations to focus on the more promising software and services market."

The patent extortion is now done from an external entity. Microsoft does the same thing.

As for Apple? It still does all the litigation directly, albeit it uses patents for 'legalised' tax evasion. They just make up the law. Widely used tricks of billionaires like Tim Cook are being used routinely. This is how an Apple advocacy site put it:

Reuters notes that Apple could be caught out by one provision in the bill. The bill introduces a minimum tax of around 13% on income from patents held overseas, and this could put an end to one method Apple has used to reduce its tax bill.


The original says:

The U.S. Republican tax overhaul passed by Congress this week will allow Apple Inc (AAPL.O) to bring back its $252.3 billion foreign cash pile without a major tax hit - a long-standing company goal.

Other provisions of the bill, namely the cut in the corporate tax rate from 35 percent to 21 percent, are also a big boon for Apple.

But not everything went the company’s way. A critical difference between the Senate version of the bill and the final version could actually raise the amount of cash taxes that Apple pays on profits from patents held abroad, tax experts said.


We already wrote a great deal about this (patents 'boxes' as a tool of corporate tax evasion in Ireland and elsewhere in Europe). There is even a new article about it in the Irish press.

What about those Apple fines in Europe? Or the notorious tax avoidance that Florian Müller wrote about last year? Will Apple ever pay? Will it just lobby like Microsoft did?

Qualcomm's fight with Apple was recalled by Müller at the start of the year when he wrote about the status of the case in the United States, Europe and Asia. To quote:

Ever since I can remember, no information and communications technology company has ever faced as many simultaneous and earth-spanning antitrust problems as Qualcomm: unilateral-conduct investigations by competition authoritities in the United States, Europe and Asia; thorough merger reviews of Qualcomm's proposed acquisition of NXP; and antitrust lawsuits brought by Apple in multiple jurisdictions. Then there's at least one other company (analysts believe it's Huawei) that stopped paying license fees. Some early-stage decisions made by federal judges in the Northern and Southern Districts of California didn't work out well for Qualcomm. It's losing the most momumental multi-front war any company in this industry has ever been embroiled in.

From the outside it's always easy to say: they should settle, especially since they can't realistically win. It's never a bad idea to promote peace, and here it's just impossible to imagine that all those regulators and judges and private parties are wrong and Qualcomm (plus Maureen Ohlhausen, the last woman standing in Qualcomm's corner) are right. But let's be realistic: there is so much at stake here that Qualcomm will most likely still be the first item on my list for next year's first blog post, too.


There's a legitimate antitrust element to it -- one that we covered here before.

It would be a shame if patents became famous for trolling, extortion, and anti-competitive practices. That is not what the patent system should be about.

Recent Techrights' Posts

Next Week's "Bloodbath" at Microsoft Includes "Silent Layoffs" (Which Microsoft Won't Count)
The notion of "silent layoffs" is fast becoming the "new normal"
XBox Being Discontinued, Some Models of XBox Canceled, Not on Sale Anymore
First some of the largest retailers quit stocking/selling XBox, now a 2TB model is axed
Firehose of Spam (Fake News) From The Register MS Today
This is how awful the state of news sites really is
 
Saying "No" is Not a Bad Thing
Society benefits from people who say "No!" even when it seems impolite (and possibly inconvenient) to say so
Akira Urushibata on the Likely False (Unverifiable) Claims Anthropic Makes About Defects for Marketing/Hype
Some pro-LLM person has managed to derail the discussion on this topic
European Patent Office (EPO) Series: "Team Campinos" in Split
The EPO team was of course headed by Campinos himself who delivered a "forward-looking" keynote speech to the assembled audience consisting mainly of Administrative Council delegates from the national IP offices
Supporting Women in the Free Software Community
The common theme here is abuse of women
Left IBM After Many Years, Came to Microsoft/XBox, Now Silent Layoffs at XBox
many inside XBox will have their last day next week
Gemini Links 27/06/2026: Homeworlds and Tarot Cards
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, June 26, 2026
IRC logs for Friday, June 26, 2026
Links 26/06/2026: SoftBank Forbids Mentioning That Slop is a Scam, "'We Need Courageous People' to Combat Greed and Corruption"
Links for the day
Gemini Links 26/06/2026: "Negativity of Reddit" and "Moving Blog to Gemini"
Links for the day
Same MIT Site That Fabricated the Fake News for IBM is Still Being Paid to Produce Fake "Reports" That Prop Up a Ponzi Scheme
If this is the media we deserve as a society and believe keeps us informed, then we are all doomed
'Social' Slop: The Social Control Media and Slop Crises Are Converging
Social Control Media and slop may have a shared fate. People will shun them both.
Union Syndicale Fédérale (USF) Speaks Out Against Campinos and Informs the Chairman of the EPO Administrative Council
Does Mr. Kratochvíl pay any attention at all?
'António the Pretender' Campinos is Digging His Own Grave With Grotesque Lobbying Intended to Undermine Democracy in Europe's Second-Largest Institution
One way or another, the EPO will never be the same again
The Principle of "Do No Harm"
"Do No Harm" is a common saying
After Years of Bluewashing People Who Are Still Labelled "Red Hat" Suddenly 'Leave' (Might be PIPs), IBM in "Forever Layoffs" Loop
Remember that Red Hat had mass layoffs this year
Microsoft Staff Bracing for Impact Ahead of "Layoffs Lottery"
some people start to assess who will get culled next
Donald Trump and IBM's CEO: Twins Separated at Birth, Saturating the Media With False Reports About Things That Don't Exist
Every "journalist" that went ahead with this fake news should be sacked on the spot for a rejection of fact-checking
The Register MS Will Become Indistinguishable From Spamfarms at This Current Pace
Follow the money...
Microsoft Layoffs Have Already Begun in Its PR Department
It is called Waggener Edstrom
Techrights Community as Litigants in Person (LIPs)
Unwittingly and due to circumstances we're had to step in to protect women abused by monstrous men who lack empathy
European Patent Office (EPO) Series: Rest and Recuperation on the Adriatic Coast
The EPO President's connections with the Croatian SIPO date back to his days as head of the EU trademark agency EUIPO
Slopfarms Becoming Scarce and Few (or Inactive)
we'll try to refrain from even giving the remaining slopfarms any visibility
The Register MS Promotes Things That Do Not Exist... for Money
How much more ZTE spam will come out before 5PM?
Links 26/06/2026: RIP, Om Malik, 1966-2026
Links for the day
Memory Leaks Suck
Slop ('vibe') coding means lots of bad programs
Natural Disasters and Personal Disasters
Thank you, Om Malik, for the positive memories
Gemini Links 25/06/2026: Life Philosophy and Misery
Links for the day
GAFAM Became a Mainstream Term, and Why Words Matter
Conveying problems in useful terms [...] Impairing propaganda attempts (e.g. calling parrots "intelligence", back doors "confidential", and outsourcing "cloud") should be the first step
European Patent Office (EPO) on Strike Today, Next Week Another Historic Week
If you live in Europe, contact your delegates today
FSF FreeJS Project (Part of the GNU Project's Goals) Advanced Further in 2026
They're moving to reduce dependence on anything to do with Microsoft
SLAPP Censorship - Part 119 Out of 200: Our Suggestions to Our Politicians and Heads of State
coverage about SLAPPs and related matters
Microsoft Already Closing Down Studios, According to Some Publishers
It is being compared to what happened in Intel
IBM PIP Stories Told in Public, Fake IBM News (Fabricated Claims) Drown Media Sites
IBM is seeding fake news to help justify the bailout
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, June 25, 2026
IRC logs for Thursday, June 25, 2026
Microsoft Falls to Lowest Value Since 2023
Microsoft can come back down to somewhere below $100
This Could be the Start of Microsoft's Biggest Wave of Layoffs in 50+ Years
This is what it looked like for Intel a few years ago
The Register MS is Promoting a Pyramid Scheme for Money, But It Is Over 6 Million Pounds in Debt
How much lower can the reputation of this publisher sink?
Gemini Links 25/06/2026: Unix-like People and NeoGeo
Links for the day
Members of the Delegations in the EPO's Administrative Council Told That Amid Unrest Campinos Must Go; a Year of EPO Strikes Means It's Time to Change Leadership
Which strategy is needed for the European Patent Organisation?
The Cyber Show on How Data is Misused and Broadcast is Abused to Crush Resistance to Harmful Technology
We recently published a number of articles about how Computer Science is coming under attack
Increasing Participation Rates in Staff Representatives' Elections at the European Patent Office (EPO)
The industrial actions seem to have brought colleagues closer together
Microsoft's Mass Layoffs Have Already Begun (Could Not Wait 'Til July)
Microsoft's biggest layoffs round in 50+ years?
Assessing the "Worth" of a Life
Don't let blunt plutocrats decide whether Venezuelans deserve sympathy or not
Planning 20-Year Techrights Event
Interested people can contact us in IRC
Links 25/06/2026: Earthquakes Strike Venezuela, Conflict of Interest in Kangaroo Court UPC
Links for the day
More Weight of IBM's Stock is Ascribed to Lies and Things That Do Not Exist
Turning stones into gold?
SLAPP Censorship - Part 118 Out of 200: Exposing Crimes is Not a Crime, It is a Public Service
We will soon enter the sixth year of lawfare
Links 25/06/2026: "Why We Need Seed Legislation" and XBox Chaos Predicted by Insiders
Links for the day
Gemini Links 25/06/2026: Hobbies Change, Young love, Strange Encounter, and Raspberry Pi Zero W
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, June 24, 2026
IRC logs for Wednesday, June 24, 2026