Bonum Certa Men Certa

The EPO Bubble — Part III — Dividing Up the Spoils...

Overview: [Teaser] The EPO's Deflating Patent Bubble and Pursuit of Illegal Software Patents (With Kangaroo Courts, UPC, and Bullied Examiners)

Series parts:

  1. The EPO Bubble — Part I — An “Unprecedented Surge”
  2. The EPO Bubble — Part II — Signs of a Deflating Bubble?
  3. YOU ARE HERE ☞ Dividing Up the Spoils...


Battistelli and the pigs
The higher the volume of granted patents, the larger cash pool available to be divvied up between the EPO and its contracting states.



Summary: The corrupt presidency of António Campinos sees a sharp decline in the number of patent grants; as a result, it bullies honest examiners and seeks to illegally expand patent scope (read: European software patents and other unlawful monopolies) with help from the Administrative Council, motivated by self-serving overzealous greed; there's a lot of money at stake!

In the preceding parts we looked at the EPO’s "grant bubble" which commenced with Benoît Battistelli’s "unprecedented surge" of 2016 and we saw how this "bubble" has started to deflate over the course of the last two years.



To the outside observer this development probably looks like the natural and healthy "correction" of an undesirable and unsustainable state of affairs.

However, the senior management of the EPO and their "friends" on the Organisation’s governing body - the Administrative Council - are likely to see matters differently.

"The essential point to be grasped here is that every granted European patent application generates "national renewal fees" (NRFs) in all of the designated EPO contracting states during the time that it is maintained in force by its proprietor."Those who are inside EPOnia’s "golden circle" have a "vested interest" in propping up the bubble in order to safeguard the lucrative cash flow from the legendary “Dukatenesel”.

The essential point to be grasped here is that every granted European patent application generates "national renewal fees" (NRFs) in all of the designated EPO contracting states during the time that it is maintained in force by its proprietor.

The NRFs generated by these patents are shared between the contracting states and the EPO in accordance with Article 39 EPC (warning: epo.org link). The current split is takes place on 50-50 basis.

Article 39 EPC foresees that the EPO could be awarded as much as 75% of the overall NRF revenue - subject to the Administrative Council agreeing to a change in the distribution ratio.

"In any event, the bottom line here is clear: the higher the volume of granted patents, the larger the cash pool available to be divvied up between the EPO and its contracting states."However, in practice, an increase of the EPO’s NRF dividend is unlikely to be approved by the Administrative Council because the contracting states jealously guard their own share of the loot. If anything, they would prefer to increase this and reduce the EPO’s slice of the cake if only they could find a plausible pretext for doing so.

In any event, the bottom line here is clear: the higher the volume of granted patents, the larger the cash pool available to be divvied up between the EPO and its contracting states.

An increased grant rate at the EPO boosts the revenue of the national patent offices of the contracting states. All of these national offices are financed predominantly by NRFs from granted European Patents.

As an illustrative example, let us briefly consider what this implies in the case of one of the EPO’s most significant contracting states, Germany.

"All of these national offices are financed predominantly by NRFs from granted European Patents."Back in 2014, Germany’s estimated NRF revenue share was € 149 million.

By 2021 this amount had risen to € 211 million, an increase of around 40% compared to 2014.

To put these figures into perspective, in 2021 the total expenditure of the German Patent and Trademark Office (DPMA) was € 248,5 million and it recorded an operating profit of € 214,7 million which was transferred to the federal treasury.

In other words, the revenue accruing to the DPMA from granted European patents in 2021 (€ 211 million) was sufficient to cover about 85% of its expenditure.

This portion of the DPMA’s revenue was also more or less equivalent to its reported operating profit (€ 214,7 million) which was transferred to the federal treasury.

"In other words, the revenue accruing to the DPMA from granted European patents in 2021 (€ 211 million) was sufficient to cover about 85% of its expenditure."No wonder that the German delegation on the EPO Administrative Council was such an enthusiatic supporter and "enabler" of Battistelli’s "reforms" at the EPO!

The EPO for its part receives a 50% share of the total NRF revenue generated in its contracting states.

This means that an increased grant rate also bolsters the EPO’s own internal "slush fund" for keeping delegates from the smaller contracting states "onside" by means of EPO-financed co-operation projects.

In view of these circumstances it should come as no surprise that the ongoing deflation of Battistelli’s "grant bubble" is a cause for concern in some quarters. We shall look into this in more detail in the next part. ⬆

The numbers go down again?

Recent Techrights' Posts

Dejan Panovski Outs linuxize.com as a Slopfarm, Another Site That Sold Out and Became LLM Garbage
From what we can gather, both images and text are slop
A Microsoft Lunduke OS (LCOS) is Not Even in Top 100 in DistroWatch, Microsoft Lunduke Just Games the Numbers Like Linspire Did (and Got 'Banned' for It)
Linspire used to send people to 'its' DistroWatch page to make the illusion of popularity
 
Gemini Links 27/09/2026: Writing Well, Productivity, and a Relaunch in Geminispace
Links for the day
Making This Site More Useful to More People
Search engines (as a concept) are under attack
Exposing Crimes of Americans (From the UK)
We must ensure UK prisons are never misused to punish/silence people who expose crimes in America
Spam and Chatbot Spam in Internet Relay Chat (IRC)
Maintaining one's own IRC network requires some housekeeping, but it's simpler than outsourcing to malicious companies
Search Engine of Techrights Improved for Better Signal-to-Noise Ratio
Our growing community needs more search facilities
Microsoft: We Love Layoffs, We Do Silent Layoffs, More Microsoft Projects/Teams/Studios Confirmed to be Shutting Down
XBox is dying. Piece by piece.
Brigading Against Women - Part VI - On Garrett and Lozza, Defamation, Attempts to Crack My Wife's Accounts, Social Engineering to Try to Take Sites Offline, Subscribing Us to Mountains of SPAM
tried swatting us
Links 27/09/2026: "Provost of Dartmouth Busted Using Hey Hi (AI) Slop for His Own Writing in Newspapers and Academic Journals" and "UK Government Enforcement Reform"
Links for the day
People and Sites Wish a Happy 43th Birthday to GNU (Today)
We've collected some examples
Links 27/09/2026: Microsoft Fired People a Day After Promotion, "Fragility of Online Journalism"
Links for the day
Brigading Against Women - Part V - SWATTING, Extortion Against Webhosts, and Lawfare Under Sworn Oath (Perjury Also)
Matthew Garrett has no qualm about still collaborating with Lozza
20 Years Later
There's a strong anti-democracy movement brewing in many places
Gemini Links 27/09/2026: Telescopes/Gskyer, Writing for Writing's Sake, and Writing Tools
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, September 26, 2026
IRC logs for Saturday, September 26, 2026
Gemini Links 26/09/2026: Computer Cases Dreary, Web Drowning in Botspam
Links for the day
Reform UK auditor: Electoral Commission accounts, Companies House accounts, a going concern or not?
Reprinted with permission from Daniel Pocock
European Patent Office (EPO) Series: Temporary Public Office or Permanent Personal Feather-Bed?
there are no visible signs that the Administrative Council has the slightest interest in contemplating a change in leadership at the EPO
Brigading Against Women - Part IV - Death Threats, Threats to Women, and Threats for Pointing Out, Correctly and Based on Hard Evidence, That Garrett and Lozza Talk to Each Other About Me Every Year (for 4 Years)
Brett Wilson LLP too is a toxic manosphere
More GAFAM Layoffs at Apple, Second Time in Weeks (Silent Layoffs Silently Target Older and "More Expensive" Staff)
How many layoffs happen at Apple silently and go unreported or very scarcely reported?
Gemini Links 26/09/2026: Rant About Slop Ruining Crafts (Drowning the Signal With Plagiarism) and "Going Mechanical"
Links for the day
Links 26/09/2026: Microsoft Says Notification Data Breach/Surveillance Hole There by Design, EU Rapidly Dumping Microsoft for Digital Sovereignty
Links for the day
The Former Linux News Site ostechnix.com is LLM Slop
Please do not link to sites that promote and/or spread slop
Links 26/09/2026: Volkswagen Recalling ~50,000 Cars, US Attacks Its Own Media
Links for the day
Making Oneself Obsolete With Slop
Dr. Lemire also puts on display a degree of hypocrisy
Brigading Against Women - Part III - Racism Looms Large, Not Just Sexism
threats from a racist
Microsoft CEO Calls Layoffs "Streamlining" and Says Microsoft Layoffs Are "Great to See"
The lack of honesty here is only to be expected from Microsoft
Media silence deafening as Reform UK on brink of administration
Reprinted with permission from Daniel Pocock
Gemini Links 26/09/2026: Travel, Group Insurance Death Spiral, Stargazing, and Lagrange Meets LLM Slop
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, September 25, 2026
IRC logs for Friday, September 25, 2026
Longtime Symbol of Microsoft's XBox Franchise, Halo, Down to Barely 20 People
The purge is huge, far bigger than submissive media cares to point out
EPO Meeting Ran Out of Time to Discuss the Scabs ('Young Professionals')
EPO staff representatives in The Hague meet a member of the 'cocaine cabinet'
The Register MS Promotes Slop for Banned Companies That Put Chinese Back Doors in Things, "AI" Mentioned 37 Times in One Page!
taking money from the undemocratic state and its surveillance outfits
Microsoft Attacked European Courts and Jurists, Now Europe Dumps Microsoft
This is because GNU/Linux is technically better, but the political factors contribute to that as well
Julian Assange Ready to Talk More (After More Than a Decade of Arbitrary, Unjust Confinement)
Two years ago, upon his release, his wife said he'd need some time off before properly or fully returning to the public eye
IEEE Tribute to Richard Stallman, Michael Tiemann, Linus Torvalds, Larry Augustin, Eric S. Raymond, Bruce Perens, Frank Hecker and Brian Behlendorf (Revolution OS Showing)
Live shortly
Winding Up Racists
What happens next shall be interesting
Links 25/09/2026: Selling Rogue, Defective Bots as "Agents" Results in PR Fiasco and Breaches; Russian 'Hybrid Attack' and "How Russia Evades Sanctions"
Links for the day
Gemini Links 25/09/2026: Arvelie Calendar, 44net, Pebbles, and Building the Bagel Concert Finder
Links for the day
Large Wave of IBM PIPs, the RAs Wave Comes After 'Low-Hanging' Fruit (Families) Disposed of
PIPs are the new RAs
Links 25/09/2026: Carcinogen Atrazine Pollutes Americans' Bodies, "Donald the Deadbeat Does Diesel", and Anger Over Data Centres Grows
Links for the day
Theory That Microsoft Cheapens Its Workforce to Push Workers Out on Their Own (Theory Advanced by Insider)
people work longer hours for less, i.e. their hourly salary is decreasing
Daniel Pocock Makes It Into Mainstream Media Again (Going After Racists)
American bigots funding blatant and shameless racists here in the UK
Tackling Racism in the United Kingdom (Racism Funded by Americans) Using the Courts
We'll talk about racism my wife and I experienced in the events leading up to litigation
Another Woman (or Women) Has Just Run Away From Brett Wilson LLP (After Barely a Month!), the Hired Guns of Garrett and Graveley (Microsoft)
They call this phenomenon "death spiral"
SLAPP Censorship - Part 200 Out of 200: Will GNU Boot Undo the Technical Damage Caused by Microsoft and Garrett? (And Garrett's Litigation Allies From Microsoft)
Today we publish the final part of this series
US Government Sites Can Now Totally Ignore Mozilla Firefox Users or Users of Firefox Derivatives
Firefox, now at 1.1% in the US (based on American government sites), has sunken to the point of no return
Things Not to Measure in Quantity Alone
More patents do not beget greater innovation
Even Microsoft Boosters Start to Doubt XBox Will Exist (It's Being Phased Out, Just Not "Officially")
This is how to phase out a business unit without officially saying so (as it might alarm investors)
Omarchy is Built on the Idea That Slop is Desirable (It's Not)
They call bots and plagiarism "agents" and "training"
IBM is Shrinking Very Fast (Silent, Unannounced Layoffs)
IBM and Microsoft both avoid WARN notices by compelling staff to leave or silently removing them with some NDA
In Some Parts of Microsoft 50% of All Staff Subjected to Layoffs, Media Pretends Only 0.1% of Staff Are Removed
This really says a lot about the state of today's so-called 'media'
SLAPP Censorship - Part 199 Out of 200: An American Burden on the British Legal System
A year ago (October 2025) the head of media (Jointly in Charge of the Media and Communications List), the judge in the Garrett case, said that this case was a waste of the court's money
EPO Management Wants Everything to be Done in Microsoft Spyware
In reality, this management should be ousted for normalising cocaine at the Office
Criminalising Opposition to Fraud
slop causes social issues
The Register MS Does Not Properly Flag Its SPAM About Slop
Signs of desperation
Gemini Links 25/09/2026: Ljubljana, Tanana River, and Curse of Slack
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, September 24, 2026
IRC logs for Thursday, September 24, 2026
Supporters of winding-up process staking claims against Reform UK Party (CR-2026-007405)
Reprinted with permission from Daniel Pocock
Winding-up petition leaked before service on Reform UK Party Limited / Nigel Farage
Reprinted with permission from Daniel Pocock