Bonum Certa Men Certa

EPO and Microsoft Collude to Break the Law -- Part XIV: When is a Conflict of Interest Not a Conflict of Interest?

Previous parts:



Bill Gates and Campinos



Summary: Could the EPO's increasing reliance on Microsoft involve a conflict of interest?

If Lewis Carroll's Humpty Dumpty had ever managed to visit the bizarre "Wonderland" of the EPO he might have been tempted to formulate a new riddle along the lines of: "When is a conflict of interest not a conflict of interest?"



"To begin with there is Microsoft's chequered history of data protection infractions, anti-trust violations and US FCPA investigations."The answer, it seems, is: "When it involves the EPO".

At any rate, this kind of paradoxical "logic" fits the bill when it comes to the EPO's increasing reliance on Microsoft as a provider of IT products and services.

The casual observer looking at the situation from the outside might reasonably conclude that there are a whole host of legitimate concerns including strong indications of an irreconcilable conflict of interest.

To begin with there is Microsoft's chequered history of data protection infractions, anti-trust violations and US FCPA investigations.

But even if one were inclined to ignore all that, there is a more fundamental problem.

To put it in a nutshell: due to the company's position as a significant player in the global IP arena, Microsoft's role as a key IT provider to the EPO seems to be tainted by an inherent conflict of interest.

The situation might not be so precarious if Microsoft was simply a purveyor of computing hardware or a vendor of client-end data processing software for on-site data processing under the control of the EPO.

But the company's role at the EPO has now expanded far beyond that to the provision of cloud-based data processing services, including the processing of much if not all of the EPO's internal communications via Outlook, Microsoft Teams and Skype for Business.

What we have here could be described in simple terms as the large-scale export of operational data, including internal e-mail and video-conferencing communications, from the EPO to an external data processing infrastructure owned by and operated under the control of Microsoft.

It doesn't need an MBA from the Harvard Business School to realise that placing such sensitive internal operational data directly into the hands of a significant player in the global IP arena is a highly questionable undertaking.

Based on its track record to date, EPO management will undoubtedly defend its actions by arguing that Microsoft can be trusted to "do the right thing".

Microsoft will undoubtedly "do the right thing". The only question here is "the right thing for whom?"

Remember that we are talking here about a private for-profit business corporation with a well-documented track record of engaging in anti-competitive practices and other ethically dubious activities. Can any sane person be realistically expected to trust a company with such an egregious track record of data protection infractions, anti-trust violations and US FCPA investigations?

There should be more than enough warning signs here to set off alarm bells in the competent centres of oversight and governance. However, going by Steve Rowan's recent communiqué, nobody in the upper echelons of EPO management seems to be particularly worried.

Unfortunately, past experience over the last decade and a half has shown that the EPO doesn't deal with conflict-of-interest situations very well.

The rot seems to have really set in (for good) back in 2009 when the Administrative Council voted to appoint its then Chairman, Battistelli, as the executive head of the Office. At the time in question, Battistelli was an elected representative for a political party in France, which should have automatically disqualified him from holding such a position in an international organisation. But the Administrative Council remained oblivious to this glaring conflict of interest.

According to the internal EPO rumour mill, Battistelli had his successor as Chair of the Administrative Council, the Danish delegate Jesper Kongstad, quite literally "in his pocket". Kongstad reportedly received a secret "emolument" from Battsitelli's HR department in the form of the equivalent of an EPO principal director's salary -- a generous monthly tax-free sum of five-figure proportions.

One of Battistelli's first moves as President of the Office was to procure the abolition of the independent Audit Committee which reported directly to the Administrative Council.

It's highly ironic that one of the intended functions of the Audit Committee was to advise the Administrative Council about potential conflicts of interest. Now that it has been disbanded, there is no longer anybody around to warn the Council.

Given this background, it's not really surprising that the increasing reliance of the EPO on Microsoft as an IT provider hasn't generated any visible concern in the ranks of the organisation's senior management and governance bodies.

Microsoft bribe
Did "foreign corrupt practices" play a role in the award of EPO contracts to Microsoft? The opacity of the tendering process makes it difficult to give an answer to such questions.



Another remarkable aspect of the present case is the total opacity of the process that led to the award of the contract or contracts for cloud computing services to Microsoft.

It's not clear how much these contracts are worth and whether they were put out to public tender, or whether they were allocated by "direct award".

We also don't know who exactly was responsible for the internal vetting of these procurement decisions, although it seems fair to assume that they were ultimately approved and signed off by the President of the Office, António Campinos.

Whether or not Campinos was properly advised in the matter is of course a completely different question.

Readers of Techrights may recall that back in 2015, reports were circulating ([1] and [2]) about a programme of "closer cooperation" between the EPO's senior management and some of its leading corporate applicants, in particular Microsoft.

This arrangement attracted a lot of criticism at the time and many people quite rightly questioned whether it was appropriate for the EPO to be engaging in what amounted to a favourable treatment of large multinational corporations like Microsoft.

The recent expansion of Microsoft's business relationship with the EPO has caused some people to speculate about whether the latest developments might not have been influenced by a further programme of "enhanced cooperation" involving "foreign corrupt practices".

It is important to emphasise that there is currently no hard evidence of any "kickbacks" or "slush funds" operated by Microsoft at the EPO. For the moment, any such suggestions are based purely on speculation.

On the other hand, Microsoft's well-documented track record in other jurisdictions means that such speculation cannot be dismissed as completely off the wall.

Cxcel issue
The EPO is plagued by an entrenched culture of opacity and non-accountability which makes a credible investigation into suspected irregularities almost impossible



However, the problem here is that the EPO is plagued by such a deeply entrenched culture of opacity and non-accountability that if these procurement decisions had in fact been tainted by corruption, it is highly unlikely that this would ever be investigated and exposed, especially if any members of the senior management were involved.

It is doubtful whether the EPO's internal investigative procedures are really fit for purpose in such cases, and there is no external anti-corruption agency which would be competent to take appropriate action.

To sum up, we are left with a situation in which procurement decisions have been made at the EPO which effectively place sensitive internal operational data directly into the hands of an external IT service provider based in the US and subject to the laws of that jurisdiction -- including the US CLOUD Act of 2018.

In addition to this, the IT service provider in question happens to be a significant player in the global IP game.

At the same time, none of those who bear the ultimate responsibility for these procurement decisions seem to have the slightest concern about what appears to be a clear-cut case of a conflict of interest.

As Lewis Carrol's Alice might have said, "curiouser and curiouser!"

In the final part of the series we will consider whether the EPO's increasing reliance on cloud computing services hosted by Microsoft has effectively led to a sell-out of the organisation's "digital sovereignty".

Recent Techrights' Posts

Without IBM, Microsoft Would Not Have Taken Off. Both Companies Need to be 'Taken Down'.
Maybe it's time to boycott IBM as well
'Former' Red Hat Staff Upset That Techrights Covers IBM Accounting Problems
Are we touching a sensitive subject at IBM?
Ubuntu is Controlled by a Youngster From the British Army (Background in Mass Surveillance), So One Can Expect Ubuntu to Not Respect Privacy
"Canonical is aware of the legislation and is reviewing it internally with legal counsel"
IBM Hates Computer Freedom. This Means Red Hat Too is an Enemy of Software Freedom.
A summary of Fedora's position when it comes to "attestation"
IBM Union Says Many IBM Layoffs in Europe, With Netherlands and Belgium Confirmed, Allegedly Italy Soon (200 Layoffs)
IBM's demise will harm Red Hat and already harms Red Hat, according to whistleblowers
Microsoft and Microsoft's 'Open' 'AI' Seeking Bailout From the Pentagon Means Brand Erosion
Microsoft and its offshoots growing more and more dependent on military ("defence"; "Department of War") budget
Another EPO Strike a Fortnight From Now, Local Staff Committee Munich (LSCMN) Shares 127-Page Document Explaining How Policies Impact EPO Staff
The Office is circling down the drain
Microsofters' SLAPP Censorship - Part 3 Out of 200: A More In-Depth Breakdown
presents the narrative in a less chronological and more logically coherent fashion
2026 Seems Like (Potentially) the Last Year of Slop Drowning News Sites
Sites that do so perish [...] It's getting hard to find slop in news sites which cover "Linux" because many gave up
Links 05/03/2026: New LexisNexis Data Breach Confirmed, "Goldman Sachs Head During Financial Crisis Says He “Smells” a Similar Crash Coming"
Links for the day
"Silent Layoffs" or "Forever Layoffs" at IBM and Red Hat (After Bluewashing)
Like every day (all day long) we can see people who leave IBM and say something that's based on a 'script'
Free Software Foundation (FSF) and Others Promoting String of RMS Talks, Starting Tomorrow in Lucerne School of Computer Science and Information Technology
Well done, FSF!
Links 05/03/2026: A Bet Against Substack, American Government Openly Hostile Towards Environment
Links for the day
Gemini Links 05/03/2026: Greed and Sentiments Shifting Against Slop
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, March 04, 2026
IRC logs for Wednesday, March 04, 2026
FSF Promoting Richard M. Stallman (RMS) Talk in Switzerland in Just Over a Day From Now
RMS may have more talks on the way
Why Slop Will Flop - Part IV - We've Seen the End of It
Some years ago they insisted blockchains would revolutionise everything
Android is Proprietary 'Linux' and It Becomes More Malicious Over Time, Google Only Delayed What It Planned All Along
Google is a proprietary software giant, GSoC is only a distraction and confusion
Links 04/03/2026: Scam Altman Causes Chatbot Sub Numbers to Plunge, "Stocks Drop as Inflation Risk Emerges"
Links for the day
Why Slop Will Flop - Part III - Our Relationship With Slop (and Yours)
I never - except inadvertently - "used" an LLM-based chatbot
Why Slop Will Flop - Part II - Devil in the Details
News sites or social control media sites which tolerate slop are digging their own grave
Simpler Means Faster
Do you know your bottlenecks?
Gemini Links 04/03/2026: About a Missing Symbol and "Good Manners"
Links for the day
The Register MS Takes Money From Chinese Surveillance Threat to Promote a Ponzi Scheme
"Sponsored by Huawei."
Nicaragua's GNU/Linux Usage Measured at Over 8% by statCounter
Nicaragua is a poor country, but it also has rich culture
Why Slop Will Flop - Part I - Slop Fatigue Prevalent
See, sooner or later people (audiences of colleagues) find out and as soon as they find out you are slopping, they will lose interest
Microsofters' SLAPP Censorship - Part 2 Out of 200: Detailed Timeline From 2012 (Attack on Reporters That Question Restricted Boot) to 2024 (Lawsuit Against Reporter and His Wife in Another Continent)
we reproduce a document produced 2 years ago to give people more context and more facts
Links 04/03/2026: "The EU moves to kill infinite scrolling" and a call to "Nationalize Amazon"
Links for the day
Coming Soon: Evidence of Abuse in Our IRC Network
IRC's freedom can sometimes be its 'weakness' if not properly guarded
High GNU/Linux Adoption in Brunei Darussalam
It's worth noting (or at least noticing) that Microsoft loses ground in some of the countries where the government contracts paid the most
Media Blackout Reducing or Preventing Press Coverage of Microsoft Layoffs in 2026
Worse yet, there will be gaslighting and deceit
GNU/Linux in Laptops/Desktops Still Matters, It's Likely the Only Way to Achieve Software Freedom
Software Freedom requires all sorts of things at the "OS level"
Gemini Links 04/03/2026: The Garnet Star, The Hunt, The SYN Attacks
Links for the day
The EPO's General Consultative Committee (GCC) Discussion Illuminates How Much Worse Things Have Gotten ("on Strike and Participated in the 'Meeting'")
a videoconference - not a physical meeting - discussed EPO policies
Free Software Foundation Supports Its Founder, Advertises His Talks in Switzerland
When you suppress voices, assuming the reasons for suppression are bunk, it is always bound to backfire very badly
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, March 03, 2026
IRC logs for Tuesday, March 03, 2026
Over 1,500 EPO Workers Went on Strike Last Week
a new publication which celebrates some accomplishments of industrial actions and calls for further actions
Madame Streisand Wanted to Censor The Web, Instead She 'Created' a New Term, "Streisand Effect"
It is basically an own goal
Solicitors Regulation Authority (SRA) Failed to Detect Fraud in Law Firms... Until It Was Too Late
Earlier today we contacted some more politicians about this and received mail from them as well
Our EPO and IBM Coverage Bears Fruit
In case insiders want to get in touch with us, please ensure or at least try doing so securely
Defending Women Isn't a Crime, Everybody Can Agree on That
Their culture is unlike ours
EPO "Cocaine Communication Manager" - Part VI - Influx of Spaniards and Portuguese Workers (+77%) at Europe's Second-Largest Institution, Led by the 'Alicante Mafia'
There is now data supporting this assertion, new and complete data in fact
Links 03/03/2026: "Scam Altman in Damage Control" and Oil Traffic Disrupted
Links for the day
Gemini Links 03/03/2026: Phones, LLMs, and Changes on the Web
Links for the day
Richard Stallman Confirms Talk in Bern Next Week
Dr. Stallman has just formally confirmed his third talk this month in Switzerland
Nobody is Safe at IBM (or Red Hat)
There is no job security at IBM
GNU/Linux at All-Time High in Guam
there are many computers in that island
Bad faith: Hugo Roy knew FSFE impersonating FSF before French tribunal, colleagues deceived
Reprinted with permission from Daniel Pocock
Microsofters' SLAPP Censorship - Part 1 Out of 200: Claim No. KB-2024-001270 in a Nutshell
abuse of process by a law firm working for an American who was arrested for strangling women and another American whose own spouse calls a "rapist"
When EPO Team Managers (TMs) Are Harassing People Who Strictly Apply the European Patent Convention (EPC) in Patent Examination
There are two strikes planned for this month
Confirmed: Using Slop Gets You Fired
Let the story of Benj Edwards be a cautionary tale
Links 03/03/2026: "No one wants to read your AI slop" and "chatbots in the kill chain"
Links for the day
EPO and "Equivalent to More Than 100 Days of Strike"
The industrial actions continue and already have a positive effect
Streisand Effect, the Microsoft Way
Microsoft has once again proven the Streisand Effect
Keeping Track of IBM Layoffs in March 2026
IBM depends on bribery
GNU/Linux Measured at 7% in Yemen
Windows is too hostile and dangerous
Links 03/03/2026: Security Breaches, Iceland Wants EU Membership, and "Wall Street–Backed Lawmakers Want to Help Banks Gouge You"
Links for the day
Queensland Health Payroll System: IBM billion-dollar-blowout inquiry
Reprinted with permission from Daniel Pocock
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, March 02, 2026
IRC logs for Monday, March 02, 2026
Gemini Links 03/03/2026: GrapheneOS and Keyboard Shortcuts
Links for the day