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

Not a Security Expert If You Cannot Manage to Keep Online a Simple Two-User Mastodon Instance Somebody Else Built
From uptime of ~99% to maybe 80%
Microsoft Has All the Symptoms of a Dying Company (Mass Layoffs of the People Who Built the Company)
the company's debt is going through the ceiling
For Effective 'Finlandisation' (Not Digital Sovereignty) to Be Replaced by Autonomy Finland Needs to Think Like GNU (Software Freedom), Not Linux (Openwashing Source, Plus LLM Slop and Killswitches)
What is 'Finlandisation'?
IBM's Kyndryl in Trouble: Mass Layoffs, Payroll Problems, Buybacks (in Company Whose Debt is Almost Twice Its Total Value), and Soon $9 Per Share (Down Over 80%)
Kyndryl is done. Stick a fork in it.
ICYMI: GNU/Linux Did Not Start in Finland
If we're honest/true to ourselves, we need to recognise history for what it is, not what some corporations (like GAFAM) want it to be
Codecs and Software Patents - Part VII - Entering Phase II, the Battle Against Companies That Normalise Taxed (by Patents on Mathematics) Codecs
In the next few part we'll deal with the impact on Free software, including the GNU Project
 
LLM Slop is Not Reliable, Constitutes No Process of 'Thinking'; There's No Thought Process at All, No Grasp or Understanding, Let Alone Context
Lies have become the "business model" [...] More people ought to talk about it and explain to other people what LLMs really are
Focus is Important, Focus is Everything
We are still running 6 multi-part series in tandem
Guest Post on False Marketing and PR Blitzes by Anthropic
A lot of people my age are just tired of the nonsense
Links 15/05/2026: UK antitrust regulator is officially investigating Microsoft Office, Anthropic’s Fraudulent Lies About Mythoslop Don't Withstand Scrutiny
Links for the day
IBM is Googlebombing the Media With Fake Numbers to Promote Fake Technology
a classic example of why much of today's media cannot be trusted (anymore)
Up to 10,000 Microsoft Layoffs in a Couple of Months
Many ways to skin a cat
Truth Hurts. People Hurt by Truth Aren't Entitled to Compensation.
Family members aren't exempt
SLAPP Censorship - Part 77 Out of 200: They Never Knew How to Handle Women (Except to Attack Them)
The case against us was really quite simple
Update on Sirius Open Source in 2026 (When Your Former Employer Commits Crimes and Nobody is Held Accountable)
I did not envision myself spending several years (even 4 years after leaving that company) challenging the system for tolerating and even covering up corruption
The Corrupt Lecture the Non-Corrupt - Part XXIII - Cocaine Use at the EPO's Top-Level Management "Adds Up" and Worsens Things "Over Time"
"cocaine use knocks the IQ down permanently a tiny bit with each use. Over time that adds up."
Gemini Links 15/05/2026: Slop Fatigue and Banning LLM Use
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, May 14, 2026
IRC logs for Thursday, May 14, 2026
Links 14/05/2026: Health Science, Cheeto Meets Pooh, and Facebook Staff Loathing the CEO
Links for the day
Gemini Links 14/05/2026: Early Morning Practice and Number to Roman Numeral Converter
Links for the day
FSF Advertises the Father of Software Freedom Giving a Talk in Germany (a Digital Sovereignty Interest Hub, Sponsor of Free Software)
Free Software vs malware and the need for reverse engineering
Cybershow (UK) Shaping Up to be a Neat and Very Large Gemini Capsule
If only more platforms did the same, plenty of energy would be spared, "old" machines would be totally suitable (even with 20 tabs open), as we'd focus on substance, not bells and whistles
SLAPP Censorship - Part 76 Out of 200: The Problem With the United Kingdom Allowing Americans to File Lawsuits by Proxy (Relayed by "Hired Guns")
Solicitors in UK warned not to act as ‘hired guns’ to silence critics of super-rich
When Microsoft's LinkedIn Goes Offline All Your Fake Friends/Connections and Manufactured 'Status' Will be Gone
Many people quit social control media because they recognise it for what it truly is
Major Setback for IBM in the Courtroom, the Demolition of IBM is Proving Costly
Kyndryl is a sign of how IBM ("mother ship") is run and where IBM is heading
Links 14/05/2026: Willful Ignorance and Mass Layoffs at Microsoft
Links for the day
Gemini Links 14/05/2026: Rewatching V for Vendetta, JPEG XL, and Platform Migrations
Links for the day
The Corrupt Lecture the Non-Corrupt - Part XXII - What the Science Says About Cocaine in the Workplace (EPO President, Mr. Campinos, Please Take Note)
What the science says
European Patent Office (EPO) President, Mr. Campinos, Ignoring Its Staff While Protecting His Friends
the President is covering up cocaine use while ignoring his own workers
Slop Cannot Replace Everybody (the Story of Perl and Universities)
Quantity where abundance exists is without merit; quality is what people opt for as they have limited time and patience
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, May 13, 2026
IRC logs for Wednesday, May 13, 2026
Links 13/05/2026: Sudan War Enters Fourth Year and Strait of Hormuz Leaves Safe Passage a Gamble
Links for the day
Gemini Links 13/05/2026: Useless Protests and Foofaraw on Geminispace
Links for the day
Mainstream Media: Microsoft Says No Layoffs. Microsoft: OK, There Are Layoffs.
Where is Waggener Edstrom/Frank Shaw now?
IBM's Kyndryl Down Almost 20% in 5 Days, IBM Down 35% in About 6 Months, Further 'Staff Reductions' at Red Hat (Problems Paying Salaries!)
Will this year's festivities be Krishna's last?
More Mass Layoffs at Microsoft, Only Weeks After the "Buyout" Nonsense (Glorified Severance to Highest-Paid American Staff)
Next up it is LinkedIn
IBM is in a Freefall, When Will IBM's CEO Fall on His Sword?
Since he controls the Board, is anyone in a position to fire him?
At GitLab, "AI" is "All India"
It says "as much as 30%," but they also hire and it's clear what demography is targeted
Verified Accounts of Microsoft Offering 'Retirement' (Layoffs) to People in Their 40s, Over Two Decades Earlier Than Retirement Age
It's not even about performance, it's about age (or "cost" as well as location; they cheapen the labour)
Links 13/05/2026: Slop Turns Into 2008-Style Subprime Bubble, Mass Layoffs at Starbucks
Links for the day
They Don't Like the Layoffs, So They Are Rebranding Them
Layoffs are layoffs
IBM Downgraded as the Shares Sink to New Lows
The current strategy of IBM is financial engineering, wage reductions, and mass layoffs that the corporate media refuses to even write about
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, May 12, 2026
IRC logs for Tuesday, May 12, 2026
Gemini Links 13/05/2026: TUIs and Internet Radio
Links for the day
How the European Patent Office Became a Crime and Corruption Hub, One of Europe's Biggest
incomplete outline