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

Three Months
Next week on Tuesday our sister site turns 20.5
Links 06/12/2024: Promotion of Fake and Illegal Patent 'Court' (UPC), South Korean Strikes, and More Bailouts at Taxpayers' Expense
Links for the day
All the Red Flags in New Linux Foundation Report
How telling...
[Meme] Shooting the Messenger
"you needn't refute the message, just take out the messengers"
Software Freedom Conservancy (SFC) Associate Sued Us for Publishing Perfectly Accurate Article About SFC; We Sued Them for Harassment
SFC and its associates aren't nice people
Fantastic Journalism by Brian Fagioli
A lot of today's Web, even "news" sites, is spam
The Free Software Foundation (FSF) Has Raised More Than Three Times More Money Than the Software Freedom Conservancy (SFC), Which Mostly Gets Money From Corporations, Including Microsoft
Do not donate any money to copycat organisations. It's worse than money down the river because your money might get spent attacking and even defaming the originals.
 
Brittany Day (linuxsecurity.com) Reposing Linux Foundation/Microsoft FUD Using LLMs, Probably Controlled by Microsoft
Plagiarised FUD by LLMs
Links 06/12/2024: Alarm Raised in EU Over Meddling and Destabilisation by TikTok, Strong Criticism of 'Open'AI
Links for the day
In France, Android Skyrockets to 52%, Windows Falls to 26%
even in rich countries across Europe Windows is rapidly losing "market share"
When News Sites Become Shopping Catalogues Disguised as 'Reviews' or 'Articles'
Sometimes Fagioli uses HEY HI (AI, LLMs actually) to make 'articles' about HEY HI
[Meme] Hit and Run with SLAPP
Microsoft staff versus Techrights
[Meme] When You Go Against Corporate Front Groups and Shills of Moneyed Interests (EDRi is Microsoft-Compromised Now)
The "golden rule" is, follow the gold
The Register Exposed Many IBM Scandals, Lawsuits, and Secret Layoffs. Now IBM Pays The Register.
Hush money?
IBM Told the Media the Secret Mass Layoffs Would Carry on Till End of November, But They Still Happen This Month
"My team of 9 people had 4 regulars and 5 contractors. All contractors gone."
Gemini Links 06/12/2024: Shrinkflation and Working at Google
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, December 05, 2024
IRC logs for Thursday, December 05, 2024
Techrights Does Not Forget
Techrights has many anti-censorship mechanisms
Windows Has Fallen to All-Time Low in India
In India, only about 1 in 8 Web requests comes from Windows
Microsoft Criminals: Law Enforcement is the Real Problem
deflecting the issue and resorting to projection
[Meme] They Dropped the L (Libre and Law)
SFLC, could I borrow 75% of your letters?
Companies That the Software Freedom Conservancy (SFC) Will Censor the Community for, Using Their Very Large CoC
also exploiting poor (and sexually abused) women from eastern Europe
Software Freedom Conservancy (SFC) Has Asked a Blogger to Delete This Page About the SFC, So We Reproduce It in Full Here
Censored article
Increasing Productivity With Less Hardware, Little Power, and Fewer CPU Cycles (and Far Less Digital Waste in General)
A lot of people who glance at our PCs (as they visit us) act a bit baffled, as much of what we're using is a bunch of terminals and some text editors
Gemini Protocol Keeps Getting Better (Less and Less Reliance on Centralised Certificate Authorities)
Reliable systems do not depend on third parties, only themselves
Why We Moved to Perl and Dumped PHP Last Year
Elongating the lifetime of the underlying stack
Links 05/12/2024: Explaining the South Korea Chaos and French PM Barnier's Government Already Disintegrating
Links for the day
Gemini Links 05/12/2024: Domain Changes, Griping With Haskell
Links for the day
Links 05/12/2024: Mass Layoffs at Microsoft's PR (Bribery of Media) Agency, UnitedHealthcare CEO Shot Dead
Links for the day
GNU/Linux news for the past day
GNU/Linux news for the past day
IRC Proceedings: Wednesday, December 04, 2024
IRC logs for Wednesday, December 04, 2024
Links 05/12/2024: Formaldehyde and Cancer, US and China Boycotting One Another
Links for the day
Gemini Links 05/12/2024: Hermeticism, Living in the Shell, and More
Links for the day
At the OSI, Microsoft Operative (Funded by Microsoft) Promotes Proprietary Software of Microsoft
The OSI is deeply corrupt. The good news is, it's barely hiding it anymore.
It's FOSS? No, It's SPAM.
Another sellout
Links 04/12/2024: Social Control Media Thoughts, Enrons of 2024, and More
Links for the day
Gemini Links 04/12/2024: Soviet Esotericism, Mikrotik is Awesome, and More
Links for the day
Techrights is Officially an Adult
this site's eighteenth anniversary
Technology: rights or responsibilities? - Part IX
By Dr. Andy Farnell
Many Geeks' Achilles Heel: They Don't Take Computer Breaks
Life can get longer if you stay healthy
[Meme] Silicon Valley's "Successful Businessmen"
Debt is not a currency
Visualising About 0.7 Trillion Dollars of Debt in Supposedly "Successful" Tech Companies
If they're doing so well, how come they borrow so much money (which some would struggle to pay back or never manage to pay back)?
Single-Digit Microsoft: Windows Finally Falls Below 10% in Angola
it's only a matter of time before Windows is down to 5%
Coming Up With Topics to Cover and Issues to Comment on
Socialising is a big part of it
In Asia, Microsoft's Bing Became Smaller Than Yandex and It Shrinks Every Month
How long before Microsoft pulls the plug on Bing?
[Meme] Far From What Was Originally Intended
Makes site about RMS; Deletes his own 'site'
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, December 03, 2024
IRC logs for Tuesday, December 03, 2024
Illuminating Microsoft's Dirty Tactics
Criticising illegal things that Microsoft does can be classified as "Microsoft bashing" or "hatred"
Proof That Drew DeVault Vanished From Mastodon After the RMS Attack Site Was Linked to Him (and People Pointed Out DeVault's Fascination With Animated CP, Drawings of Naked Kids)
We assume he just wanted to vanish from Mastodon
Maybe Bill Gates is Getting Demented Like His Late Father (He Says Things That Are True But He's Not Supposed to Say in Public)
It happened in a podcast with Reid Hoffman
We've Clearly Struck a Nerve
Microsofters and Microsoft proxies have meanwhile lost their temper