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

European Patent Office (EPO) Series: From Alicante to Munich: Another Smooth Ride
Campinos is intent on transforming what was originally envisaged as a temporary public office into his own permanent personal feather-bed
Daniel Pocock and the Important Observation About Threats of Cult-Like Behaviours (No Rationality, No Reason, Just "Mob Rule")
It's a threat to Europe's sovereignty
The "PIP Parade" of IBM's Lousy Management, Which Said "Blockchain" Was the Future
In a healthy company such a CEO would be punished for utterly wrong visions and predictions. Not at IBM...
SLAPP Censorship - Part 135 Out of 200: Limited Liability Partnership (LLP) That Does Not Disclose Financial Activities Before August
It certainly looks like they keep losing the remaining women that still exist in the firm
Links 31/07/2026: "Climate Cover-Up Continues" and Pesticides "Cook the Planet"
Links for the day
Datacentre 'Boom' Sceptics Aren't Luddites, They Recognise a Threat to Human Survival (Not Limited to Climate Change)
Archaeologists very well know that no species will survive forever
Microsoft's Claims Are Based on a Big Lie
the bubble is coming to its hard limits
Don't Lose Sight of the Impact of "End of 10" (Vista 10)
GNU/Linux has taken off fast
Microsoft's Debt Continues to Steadily Increase, Not Counting Hundreds of Billions in Secret/Hidden Debt
The mass layoffs will carry on, maybe labelled LITE
IBM is Circling Down the Drain, the 'Growth' Comes From Beancounting Tricks and Salary Cuts
IBM was down 2.17% yesterday
Microsoft's "Headcount" Distracts From How Big a Cull It Had This Month
It also speaks of numbers "[a]s of June 30" though the "buyouts" were effective July 1 and since then well over 10,000 workers have vanished
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, July 30, 2026
IRC logs for Thursday, July 30, 2026
Gemini Links 31/07/2026: Music, Journaling, and Longing
Links for the day
More Fake News From (and for) IBM, Nobody Ever Held Accountable for Fraud
Companies that turn a blind eye to their own corruption end up recruiting more corrupt people and sacking those who object to the corruption
Links 30/07/2026: Smol Document Server and More PalmOS-ing
Links for the day
Links 30/07/2026: Microsoft Refuting Its Own Slop Hype and "Amazon Is Gutting Its Hey Hi (AI) Division" (GAFAM Bubble)
Links for the day
Today The Register MS Published "AI" Spam and Fake Article by "Senior Technical Marketing Engineer"
unethical practices
Cult inquiry parliament leak fallout
Reprinted with permission from Daniel Pocock
Techrights Will Always Protect Sources
Our #1 priority is sources
European Patent Office (EPO) Series: Legal Concerns and Suspicions of Irregularities
complaints submitted to OLAF
The Era of Silence
So stay silent, remain hidden
GAFAM and IBM Dying in Massive Debt, Hence the Mass Layoffs (Increasingly Silent Layoffs That the Media Fails to Mention)
the integrity of this economy is only as good as its leaders or those who govern the market
TheLayoff.com Deletes Comment That Called IBM's Previous CEO, Ginni Rometty, "Gin 'n Tonic"
It is hard to believe the comment was deleted for being a duplicate (in another thread)
The Mainstream Media Continues to Overlook or Intentionally Ignore Hundreds of Billions in Hidden/Secret Microsoft Debt
the issue is that Microsoft's crisis is a lot greater and broader than this
SLAPP Censorship - Part 134 Out of 200: What "Majority Rules" Tell Us About the Litigant
we press on with this series
Overshoot Day Sites That Contribute to the Problem
Some of these are not even accessible (at all) without JavaScript
Microsoft May Have Gotten Rid of 8% of Its Workforce This Month
It's hard to know what's really going on because there's no transparency due to NDAs
Links 30/07/2026: "Age of Irrationality", Google Losing Money, and "House of Ellison is on the Brink"
Links for the day
Gemini Links 30/07/2026: Homeworlds Notes and Manuscript Submitted
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, July 29, 2026
IRC logs for Wednesday, July 29, 2026
As Expected, Facebook Collapses, Microsoft Hides Massive Debt
GAFAM is a giant mountain of debt
At The Register MS "PARTNER CONTENT" Means Company Writing Fake Articles About Itself and Its Own Products
At The Register MS, content-farming has become a thing
Staff of EPO Cautions Against Unlawful Weaponisation of PIPs Against Industrial Actions That Protest Corruption
PIP-like sanctions against anybody who does not toe the line of Cocaine King?
IBM, Running Out of Things It Can Sell, is Selling Software Patents
IBM is not just pathetic; it's actively harmful because it lobbies for software patents and spreads software patents around
Gemini Links 29/07/2026: Star Trek, Retirement, and ODEs in GNU Octave
Links for the day
Links 29/07/2026: "BuzzFeed Lays Off 33 Percent of Remaining Staff" (Trying LLM Slop Some More), Scam Altman Mocked by the Media
Links for the day
GNOME Curated and Censored by IBM (Under the Guise of "Code of Conduct")
Felipe Borges (IBM) has just posted a follow-up
Digital Mass Surveillance as a Hallmark of Failed Societies
"small leap forward in tech ethics"
I Found a Typo, Don't Vote!
Social control media isn't good at adding any meaningful signal
Jeremy Sands Explained the Harms of Codes of Conduct
next week the 500th show milestone [is reached]
Tonight's Earnings Report From Microsoft and Facebook ('Meta') Will be Faked Because They Hide Almost a Trillion Dollars in Debt
The US economic system is only as honest as the people who govern it
The Vacuum Syndrome
Parables help
The Only Old People Who Can Survive IBM Are the CEO and His Circle of Enablers
very similar to what's happening at the EPO
The 'Church' of Moglen/Stallman
'reunion' with Eben Moglen
Microsoft Layoffs Aren't Done Ahead of the Need to Tell Shareholders About "Efficiency" (Tonight)
Microsoft layoffs won't be "Done" until what's left of Microsoft is "None"
Microsoft Lacks Growth. Ahead of 'Results' The UK's Competition and Markets Authority (CMA) Finds Merit in Allegations Slop is Microsoft's Excuse for Price Hikes (Piggybacking Vendor Lock-in).
At this stage it's not hard to see why many nations gravitate away from Microsoft
Parliament leaks confidential cult inquiry witness contact list (COFG Victoria)
Reprinted with permission from Daniel Pocock
Troll-Feeding is Time-Wasting
in social control media
WordPress is Technical Debt
There are a number of technical tasks underway and maybe some testing (this coming weekend or later)
Will Red Hat Still Exist in 2027 or Just Become a "Brand" at IBM?
Whistleblowers told us IBM was laying off about 500 Red Hat engineers earlier this year
Call for IBM Whistleblowers
If you work for IBM and have something material (like balance sheets) to prove financial misconduct, please try to 'touch base' and establish a secure communication channel we can both use
EPO Series on EU and Pan-European Corruption, Vote-Rigging, Extending Beyond the EPO Itself
By Saturday it will be August already, so we'll start preparing for Rianne's birthday
SLAPP Censorship - Part 133 Out of 200: Lies by Omission
As usual, the other side wants people to ignore how much they lost
European Patent Office (EPO) Series: Streamlining the Decision-Making Process
Negrão was one of 17 applicants for the position but he somehow managed to end up as the sole candidate on the shortlist prepared by the Management Board in June 2020
Links 29/07/2026: "Hugging Face Has a Deepfake Nudes Problem" and "$1.5B Anthropic Copyright Infringement Ruling" (Plagiarism is Not "Training")
Links for the day
Comments on Today's Judgment
It hopefully helps clarify what actually happened
Microsoft Has Fallen to #3 in Singapore
There are many technically talented people in Singapore or overseas workers who lodge in Singapore
Thank You, Andy
Burnham and "Tech Rights"
Solicitors Regulation Authority (SRA) Inaction and Incompetence - Part II - 77 Messages Sent, Did Not Even Investigate or Examine Any of the Actual Evidence (British Taxpayers' Money Wasted)
SRA has become known (even notorious) for inaction
Inevitable Politics
In technology, provided the work you do has growing impact (we served almost 2 million requests yesterday), things will inevitably become more political - whether you like it or not does not matter
Not Only "Loonies Take on Farage"
pretending that the opposition to the right wing is "Loonies"
Brigading Against Women - Part I - Bypassing the Legal System by Threatening Companies in Another Continent
In the next part we'll begin to connect Lozza's online activities (and court activities) to those of Garrett
IBM is Trying to Turn Debt (Borrowed Money) Into Fake Growth and It'll Worsen Matters
they put in their balance sheets a fake "growth" in something that does not even exist
Microsoft Relies on Misleading Narrative of Studios Going 'Independent'; in Reality There Are Mass Layoffs in Them
This is not a good narrative for Microsoft
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, July 28, 2026
IRC logs for Tuesday, July 28, 2026
Gemini Links 29/07/2026: Arosa, Tired Tuesday, and Constellation Browser
Links for the day