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

IBM's Debt Ballooned by 8.5 Billion Dollars in Just 3 Months!
Hallmark of a company in a state of disarray, trying to spend its way out of trouble
Big Trouble in GNOME
even GNOME people admit the CoC went wrong
New Article Explains How the GPL Came About and WordPress Having Copyleft Obligations
Having been involved in the WordPress development community since almost the beginning, I know why it chose the GPL and how it restricts abuse by Automattic
Dr Richard Stallman (RMS) Gives Talk in Oxford University in 4 Hours
If you live nearby, go there (it's free as in gratis)
 
Serial Sloppers Are Killing the Web (They Probably Don't Care, Either)
Slop is a disease on the Web
Streaming Apps Are “Investor Fraud” That Kills the Planet
Reprinted with permission from Ryan Farmer
Things Get Increasingly Nasty at Microsoft Ahead of the Fake Results and May's Mass Layoffs Wave
They try to get people to 'resign' so that they won't count as layoffs and the company's 'wellbeing' will seem better
Slopping the Trough: Disney Plus Loses Billions and the Decline of Physical Media in America
Reprinted with permission from Ryan Farmer
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, April 24, 2025
IRC logs for Thursday, April 24, 2025
Links 24/04/2025: GAFAM Problems and No Peace (or Ceasefire) in Sight
Links for the day
Slopfarms on the Web Almost Always Generate Anti-Linux FUD When They Produce "Linux" Output
Welcome to the dying Web
Richard Stallman's Oxford Talk Has Just Ended, Here Are Some Photos
he might hop over to another European country
Gemini Links 24/04/2025: Birthday and Good Work of Academia in Esotericism
Links for the day
Links 24/04/2025: EU fines Apple and Facebook, Another Microsoft GitHub Security Blunder
Links for the day
IBM Gained Almost 6 Billion Dollars in "Goodwill" Value in Just 3 Months, According to IBM
Congrats to the management!
In Belarus, Yandex is Now Measured as 50 Times More 'Popular' (by Usage) Than Microsoft
Yandex continues to gain, whereas Bing cannot even register at 1%. Last month it was registered or measured at a measly 0.65%.
IBM Cannot Lie to Shareholders Anymore
"I would not be surprised if we see a layoff every quarter this year."
Using a Law Firm's Licence to Exercise Politics Through Frivolous SLAPPs and Nastygrams (to Silence People, Remove Pages, Demand Fake or Forced 'Apologies')
Things must be getting really bad when lawyers act for raving antisemites
We're Working to Make Full-Site Search Available
This site has over 1,000 'wiki' pages, many thousands of documents, several thousands of videos, and about 50,000 blog posts or articles. We need to make them easier to find/navigate.
Links 24/04/2025: IBM Loses Many Contracts, Intel to Lay Off Over 20% (Not Counting Those Who Leave 'Voluntarily')
Links for the day
Richard Stallman Can Explain to Oxford Artificial Intelligence Society Why LLM Slop is Not Artificial Intelligence and Why It Hurts Society
another 'crop' of LLM slop that damages GNU/Linux and facts
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, April 23, 2025
IRC logs for Wednesday, April 23, 2025
Open Source Initiative (OSI) Promoting Microsoft and Proprietary Software Using Microsoft Operatives
Because nothing says "Open Source" like GPL violations facilitated by Microsoft
Another Site Bites the Dust: "Open Source For You" Becoming a Slopfarm (LLM Slop)
What a shame. Another dead site.
Links 23/04/2025: Crackdowns on Dissent, Palin Loses Libel Retrial Against New York Times
Links for the day
Links 23/04/2025: Hard Times and Digital Amnesia
Links for the day
The GNU/Linux Site Formerly Known as "linoxide.com" is Back... as an LLM Slopfarm!
Better for linoxide.com to go offline than to do this
Get Rid of Back Doors, Don't Obsess Over Bounties and Other Corporate PR Stunts (or Needless Reboot Rituals)
Security as a term has mostly lost its meaning due to repeated misuse for many years
Richard Stallman to Speak in Oxford University Exactly a Day From Now
outsourced to GAFAM
Links 23/04/2025: "Hiding Corruption" and "The Cost of Defunding Harvard"
Links for the day
Microsoft 'Studies' Again? Leon Musolff is Writing Papers With Microsoft.
Even if one can see/find a link to "the study" (in the Bezos-controlled publication), most people won't look any further and just take everything at face value.
Towards GNU World Domination
The FSF led by Geoffrey S. Knauth with his friend Richard Stallman in the FSF's Board [...] Let's encourage people to adopt GNU/Linux. There has never been a better time.
statCounter Helps Visualise Just How Deep in Trouble Microsoft is (Especially in Africa)
Microsoft sabotaged efforts to connect Africans and equip them with GNU/Linux laptops
The Register is Using Linux-Hostile Clickbait in Articles of Linux Proponents
Don't be a "whore" to advertisers, team El Reg
Microsoft Windows in Cyprus Lacking a Future
Most people access the Web there from mobile
Matrix Has a Severe Problem With Illegal Images
If Matrix cannot get the CP problem under control, many projects and people will dump Matrix
Never Try to Justify Strangulation of Women (Not in the US and Not in the UK)
Joint post by Mrs. Rianne Schestowitz and Dr. Roy Schestowitz
Links 23/04/2025: Tesla Profits Plunge 71%, Intel Ready to Lay Off 20% of Staff, Microsoft and IBM Layoffs
Links for the day
Microsoft's Most Profound Issue is That People Moved to 'Mobile' and "App Stores" (Microsoft's Presence There is Negligible)
Expect a wild ride for Microsoft this year
Google News is Amplifying FUD and Lies About Linux (and OpenSSH/SSH) by Promoting Slopfarms With Machine-Generated FUD and Slop Images
Google should know better
Gemini Links 23/04/2025: Librarians, Anubis, and Refactoring a Gemini Capsule
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, April 22, 2025
IRC logs for Tuesday, April 22, 2025