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 Layoffs in 2025: Rumours Say Even Managers Will Get the Axe, Some Via Loopholes Like PIP and/or RTO (Preparations Already Underway)
Where does IBM's money go?
FOSDEM Talks Are Vanishing
They no longer seem to be taking money from Microsoft and/or its tentacles
How "Open Source" Became Microsoft (But It's Actually Proprietary, OSI is an Openwashing Front Group Now)
They're still trying to rewrite history, but it's harder when Richard Stallman (RMS) is alive
 
Richard Stallman Gives Keynote Address in a Few Hours
Richard Stallman's personal site was updated to give more details
Microsoft Relegated by Manchester United
No Microsoft
Slashdot is Once Again Publishing Lies and Revisionism for Bill Gates, Citing Microsoft's MSN to Rewrite History and Distract From the Jeffrey Epstein Crimes
Of course this also distracts
Gemini Links 27/01/2025: Mental Locomotion, Gemini Protocol Bots From China, and Domain-Specific Languages
Links for the day
Microsoft Still Hires Journalists to Reward Them (Belated Payment) for Microsoft Propaganda
The PR/lying pipeline
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, January 26, 2025
IRC logs for Sunday, January 26, 2025
Links 26/01/2025: Privacy Breaches and Growing Nationalism
Links for the day
The UK's Press Gazette Has No Credibility Anymore, It Celebrates Plagiarism and Cheap Misinformation (This Ruins Linux Sites Too)
They encourage a form of plagiarism and that even ruins "Linux" sites
Journalistic Malpractice Helps Bill Gates Cover Up His Marriage Collapsing Because of His Very Deep Ties to Jeffrey Epstein (and It's Melinda Who Dumped Him, Divorce Proceedings Started by Her in 2019)
you can alter narratives and perceptions worldwide
The Linux Foundation's Certificate Authority (CA) Let's Encrypt Hits New Lows in Geminispace
13 known capsules still use it
Links 26/01/2025: Chatbot Woes and UnitedHealth Data Breach (Windows TCO)
Links for the day
Gemini Links 26/01/2025: The Postman and More
Links for the day
Links 26/01/2025: Fentanylware (TikTok) Turns to Hype/Pyramid Scheme, Insurers Failed to Comply With Federal Law
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, January 25, 2025
IRC logs for Saturday, January 25, 2025
Gemini Links 25/01/2025: Plaintext Weblog Posts and Software Development
Links for the day
More Details Emerge About Upcoming Long-Rumoured Layoffs at IBM
Without leadership there's no coordination
Links 25/01/2025: Microsoft Chaffbot Offline and Advocacy/Dissent in China Muzzled
Links for the day
Frequent Flyers of the 'Lolita Express' (Where Screwing Underage Girls is Big Business)
In the words of Bill's wife and mother of his 3 children
Microsoft-Sponsored Inauguration as a Reminder to Boycott Microsoft
If you do not support what's happening politically right now in the US, then stop giving money (or anything else) to Microsoft
Fund-Raising for Initiative Introducing Teens to Free Software Instead of Junk Like Bytedance's TikTok
A crowdfunding campaign coming soon
Bringing Down or Taking Down an Innocent Man is Difficult
One positive thing about all this is that we've come to witness (and meticulously document) how social control media works for the mob
Plagiarism at LinuxSecurity.com, Piggybacking Other People's Hard Work and Googlebombing "Linux"
They are googlebombing Google, and worse yet, they leverage bots to do this
Gemini Links 25/01/2025: Pictographs, Non-voters, and Frustrations
Links for the day
Links 25/01/2025: Microsoft Already Shutting Down Its UK "Experience Centre", "AI Deal" Linked to Atrocities
Links for the day
Red Hat is Required to Promote Microsoft's Proprietary Stuff and Even Produce Puff Pieces (Mindless Fluff) About It
Notice the aspect of bribed "media" or "news" or "press coverage" (pay-to-say)
The Limits of Freedom
This is generally not a new problem
The Fall of Corporate Media Controlled by Oligarchs Who Boost (or Are Compelled to Boost) Reckless Lies About the Poor While Normalising Rich People's Crimes
No wonder they have layoffs
IBM Layoffs (or Replacement With Low-Cost Labourers) Far Greater Than Reported by IBM
they serve to confirm what we've long said not only in relation to IBM but also Microsoft
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, January 24, 2025
IRC logs for Friday, January 24, 2025