Bonum Certa Men Certa

Leaked Financial 'Study' Document Shows EPO Management and Mercer Engaging in an Elaborate “Hoax”

Purveyors of 'fake news' inside what's supposed to be a scientific institution

How One Family’s Deep Pockets Helped Reshape Donald Trump’s Campaign



Summary: How the European Patent Office (EPO) lies to its own staff to harm that staff; thankfully, the staff isn't easily fooled and this whole affair will merely obliterate any remnants of "benefit of the doubt" the President thus far enjoyed

THE EPO has been under a (soon) decade-long attack from Campinos and Battistelli, who not only integrated European software patents into their agenda (in defiance of courts and Parliament) but have also attacked the staff and misused EPO money (Campinos might soon give a lot of EPO money to Third Reich goons).



"SUEPO has been too patient with Campinos (strike postponed) in spite of him repeatedly showing that nothing will change, except for the worse."As we recently mentioned here on several occasions, there's a fake 'crisis' being manufactured/claimed (not the real crisis) to push so-called 'solutions'. "The delicious propaganda by EPO top managers to middle managers," a source tells us, can be seen in this Manager Toolkit (English) [PDF].

As it turns out, there's already a response to it. "The aim is here disseminate false information and make the deteriorations -- sorry, the "reforms" to soon come -- more acceptable to joe-average EPO staff although these are new unjustified thus unfair cuts," the source adds. Here is the position of the Central Staff Committee (CSC) on the same financial study.

Zentraler Personalausschuss Central Staff Committee Le Comité Central du Personnel

Munich, 07.06.2019 sc19081cp – 0.2.1/1.3.2

The Financial Study: Yet Another Hoax (part 4)



At the EPO financial studies tend to be a pretext for cuts in staff benefits. The latest study by Mercer and Wyman is no exception. Our previous publications showed that the study deliberately underestimates expected income from fees as well as the return on cash reserves, and overestimates staff costs. The present publication lists these misrepresentations and adds some more.

Recapitulation

The 2019 EPO Financial Study by Mercer and Oliver Wyman assumes1 that:

- between 2018 and 2038 the EPO will not raise its procedural and renewal fees except once, by 4%, in 2020. For the remaining period the fees are assumed to remain constant (page 115). A correction for inflation is not foreseen.

- between 2018 and 2038 the national renewal fees on patents granted by the Office will remain constant (page 116). A correction for inflation is not foreseen.

in sharp contrast during the same period EPO salaries are assumed to increase at a rate of 2.24% above inflation (page 119).

- without providing any underlying data, the study assumes that the costs of pensions and other post-employment benefits (incl. tax compensation) will almost triple over the next 20 years (pages 66-67, page 123).

- The study foresees no further transfer of operational surpluses to the RFPSS, although with a 4.8% return above inflation over the last 20 years (6.3% over the last 5 years) the money would be well placed (RFPSS/SB 41/19, page 2, Fig. 3).

the study assumes that operational surpluses will not be transferred to the EPOTIF either (page 63). The EPOTIF was recently created with the very purpose of shielding EPO capital from inflation and is expected to deliver a return of 4% above inflation (CA/F 10/18 para.10).

- instead expected operational surpluses are assumed to be parked as “other financial assets” with an average annual return of between - 0.03% and 0.78%, i.e. well below the level of inflation2.

- as indicated above, over the last 20 years the RFPSS had a real return of 4.8%. The actuaries who evaluate the RFPSS assume a long-term return of 3.5%. The Financial Study assumes a return above inflation of only 2.1% (FAQs). This transforms today’s 104% coverage (CA/61/17 point 79) into a 2 billion euro gap in 2038.

This is a long list of extremely unlikely assumptions. There may be more, e.g. in the assumptions for the patent processes which we have not checked in detail. We also have doubts about the assumed 2 years increase in longevity (page 122) and the constant 53.87% non-examining staff “as percentage of job groups 1-4” (page 112). At present examiners make up about 64% of our total staff.

___ 1 Unless otherwise indicated, the page numbers in the list refer to the Financial Study. 2 Financial Study pages 120 and 122; the return is not explicitly mentioned but can be calculated from the data in the tables.




What about an effort by the Office?

The EPO’s financial situation is excellent – maybe even too good3 - and this despite the recent high costs of the “New Main” building in The Hague and significant losses in IT. The Financial Study nevertheless wants us to believe that the EPO faces a significant financial gap and that now is the time to do something about it by cutting costs, staff costs. But what about other costs? Is Mercer pointing at possible savings elsewhere? Are the Member States contributing to the effort? Is Mr Campinos leading by example – even if only symbolically? It doesn’t seem so.

The Mercer study assumes 600 million euro in building costs. The real sum may be as much as 1.14 billion euro (CA/43/19, Figure on page 32). Some building maintenance is indeed necessary. But part of the money is for one of Mr Campinos’ pet projects: creating glass-walled offices. Mercer does not comment on these costs.

Mr Campinos strategy document points to another – potentially significant – sink for EPO money: cooperation with the Member States4. The most recent figure that we have seen for cooperation costs is about 25 million euros per year (CA/19/15). Mr Campinos now proposes to “maximize the impact of cooperation” with a new model that will be “all-inclusive and equally open to all member states”. The Council delegates as heads of the national patent offices are all potential beneficiaries of these cooperation activities. For the President the cooperation budget is an efficient tool to reward member states that support him in the Council and punish those that don’t. So we expect the cooperation budget to increase considerably despite the allegedly bad financial situation of the Office.

Finally there is the annual Inventor of the Year event. The sums concerned are relatively modest by EPO standards – a few million euro at most. But is promoting one inventor over the other (with a possible impact on the value of the invention) compatible with the EPO remaining neutral in the exercise of its functions? And is it (to use Mr Campinos’ words) “handling significant amounts of taxpayer’s money with due diligence, due process and careful legal assessment”? We do not think so.

Conclusion

The 2019 Financial Study is a very plump attempt to justify a further reduction of staff benefits while the Office continues its spending. Staff is not fooled.

The Central Staff Committee

____ 3 Art. 40(1) EPC stipulates that the EPO’s budget should be balanced. We question whether with an operating surplus of about 20% the EPO budget qualifies as €« balanced €». 4 Read: cooperation with the national patent offices (NPOs).



"Make your own opinion," the reader concludes, "who do you think lies here?"

Mercer (sponsor of sites like Breitbart) and professional liars like Campinos, who only a couple of years ago attacked staff at the EUIPO in the name of 'cost savings'...

SUEPO has been too patient with Campinos (strike postponed) in spite of him repeatedly showing that nothing will change, except for the worse.

Recent Techrights' Posts

The Administrative Council of the European Patent Organisation Has More Reasons Than Cocainegate to Vote for Real Change in the European Patent Office
This is about democracy and accountability in Europe
Within Weeks, Clownflare Has Collapsed Again, Time to Dump Clownflare
It's run by amateurs who, even if you maintain your site perfectly well, will render it inaccessible without prior notice
Web Developers in the US Can Already Disregard Mozilla, Firefox, and Firefox Users
"Last month, Firefox turned 21"
 
Massachusetts Institute of Theft (MIT) Nowadays in the Business of Selling SPAM to Prop Up Fashionable Pyramid Schemes
There is nothing benign about it, more so when they misuse the MIT brand to lend credibility to elaborate schemes or scams
Many IBM Departures Today (Last Friday)
Way to go, IBM leadership
Gemini Links 05/12/2025: Need for Simpler Systems, Molecular Dynamics, and More
Links for the day
Slopwatch: Not Much Today, Same as in Recent Weeks
Google News got 'conned' (maybe willingly) by one operator of several (at least 3) slopfarms that trash "Linux"
On IBM: "More Layoffs in Minnesota Are Coming" (Unverified Hearsay, for Now)
IBM is having loads of layoffs before the holidays
Links 05/12/2025: Openwashing by Microsoft's 'Open Source' Initiative, Unauthorised War Without Boundaries/Borders Waged by US
Links for the day
Finnish Politician Aura Salla Says Finland Must Dump Microsoft, Citing Security and Control Reasons, Not Costs
She says Finland should quit using Microsoft
Does This Pass the NDA "Sniff Test" at IBM?
In many companies, those who suck up to management get ahead
Links 05/12/2025: Slop Harming Democracy/Elections, More Bans Around the World on Kids' Use of Social Control Media
Links for the day
IBM Has No Layoffs, According to IBM, and According to the Media Parroting IBM
Another day of parrots (losers) who call themselves "journalists"
IBM Will Make You Unemployed On Christmas Eve
lists of people to cull
Cars Getting Worse and More Lethal
Who will be held accountable?
To "Take Back Control" Start With Actions Against 'Tech' (Mass Surveillance, Mass Censorship, Mass Control) Monopolies
collusion, price-fixing, a "cartel" of sorts
Beyond the Hype: Almost Nobody Uses Chatbots, Not Even 1% of Activity Online
3 years ago when Scam Altman (Microsoft) acted as if Google (search) was doomed a lot of the press got paid to pretend this was true
Rumour That Another IBM Round of Mass Layoffs (RAs) in Preparation Before the Current One is Even Completed
IBM still has strong brand recognition (because of its age and past might), but that won't last forever
Techrights Publication Pace to Increase Next Year
one is encouraged to stay indoors
Upgrading the Site
Debugging might be needed, so feedback helps
Why Microsoft is Panicking
Keep advocating (or "marketing") GNU/Linux to Vista 10 (or Vista 7) users... there are still over a billion of them "out there".
The Fate of "Blockchains" and "Metaverse" as a Sign of Things to Come for Slop ("AI")
Doesn't that tell us a lot about the modus operandi of these companies?
A Year After the Owner of X (Twitter) Performed Several Nazi Salutes on Stage the Germany-Based and Microsoft-Funded 'FSFE' Decides to Exit X (Twitter)
Will the real Free Software Foundation (FSF) follow suit?
EPO: What Comes Next
European media seems to have been sedated by soft bribes from cocaine addicts
Slopwatch: The Volume of Slop Has Certainly Gone Down a Lot Lately, Slop Image Providers Abandoned/Changed
It's a big improvement compared to past months
Thousands Laid Off at IBM, "Last Day" Yesterday
IBM is a dying company. This is a problem for Red Hat.
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, December 04, 2025
IRC logs for Thursday, December 04, 2025
Gemini Links 05/12/2025: Espressif ESP32-C5 UEXT Module, Pixelfed, and the Web Getting Much Worse
Links for the day
Links 04/12/2025: "People Hooked on [Slop] Far Are More Likely to Experience Mental Distress", Monopolies in Europe, and "Blogging Makes Me Feel Like A Worse Writer"
Links for the day
Dr. Andy Farnell: Can we regain control (of technology)?
"Technology as spiralling mass hysteria has the unsettling potential to draw even rational sceptics like myself into disaffection"
Links 04/12/2025: "Hey Hi" Implosion and Half of Europeans See Cheeto Trump as Enemy of Europe
Links for the day
Communication Needs Open Standards and Open Data
Standards are imperative
The "Hey Hi" House of Cards
The "Hey Hi" bubble is living on borrowed time (days or weeks) and it can implode any time now
Supporting the Free Software Foundation (FSF) Also Supports GNU Development
The FSF is mostly raising money to pay salaries
IBM's "AK Sez" Campaign
In today's media, to be characterised as important and smart one needn't be important and smart
Microsoft's Vista 11 Not Gaining, Just Plateauing or Even Going Down (Over Time)
"Desktop Windows version Market Share Worldwide"
Bubbles Popping, "Hey Hi" (AI) a Passing Fad
"Microsoft slides amid report it's cutting software sales quotas tied to AI"
At The Register MS, "Exclusive Webinar" Means Sponsored Video Ad Disguised as an Article
Why would one choose to watch these?
IBM Forces Staff to Sign an NDA If They Want Severance Package, in Effect Bribing Them or Denying Them Money They're Entitled to If They 'Disparage' IBM
We wrote about the legality or illegality of this in relation to Microsoft two years ago
IBM and Red Hat Not Done With 2025 Layoffs ("RAs") Yet
IBM isn't quite done laying off people this year, with only 3 weeks till Christmas
Gemini Links 04/12/2025: Christmas Looms, Devuan, and Programming
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, December 03, 2025
IRC logs for Wednesday, December 03, 2025
Loads of People Exit IBM Tomorrow
Way to slam the door on on those who march or walk on
Slopwatch: It's Blowing, Jim (Gym), the Bubble is Blowing Up
Let's race to "zero GPT"
At IBM, "Last Day" Can be Same as Layoffs ("RAs"), Might be Euphemism Advanced by PR/HR Under NDA-Tied Conditions
They try to act all happy cheerful (in public) about becoming unemployed
Links 03/12/2025: "Disastrous Hey Hi (AI)", Breaches of Confidentiality, and "Global Democratic Recession"
Links for the day
Fake Security and 'Free' Certificates as a Trap of Planned Obsolescence and Top-Down Centralisation
The boiling frogs
Links 03/12/2025: UK Budget Leak and Criticism of Peace Posturing Over Ukraine
Links for the day
So Far Rust in Ubuntu Has Turned Out to be an Expensive Mistake
it is certainly seeming or feeling like the wrong people are in charge and they make bad decisions based on false reasoning
Gemini Links 03/12/2025: Obsession, Ubuntu, and Programming With Scheme
Links for the day
The Next Stages of EPO Coverage (and Why That Matters)
What's at stake here?
Wayland Rejection Is Not Racist
We need to collectively reject that
Reflections on a Month of Techrights Search
it looks like we've survived nearly a month without the search functionality being leveraged to stage DDoS attacks
New Year's Resolutions 4 Weeks Ahead of 2026
the main New Year's Resolution was... sleep
IBM Layoffs: It's Like They Read From a Script, Like They've Signed a Non-Disparagement Agreement/Clause
Some new departures
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, December 02, 2025
IRC logs for Tuesday, December 02, 2025