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

Richard Stallman's Web Site Back Online, But It Seems Like a 2-Months-Old Snapshot
Latest political notes are dated July 2 (2026)
IBM Eliminating Over 20,000 IBM Workers by Year's End, Insiders Claim
the layoffs are silent
 
The Legal Services Board (LSB) Takes on Solicitors Regulation Authority (SRA) for Utter Failures, We'll Resume Our SRA Series to Illuminate How Bad the SRA Really Is
a quick overview of the latest news
Links 04/09/2026: Notorious Patent Trolls' Judge Enters the Private Sector (Corruption, Revolving Doors), Gloria Steinem's Life in Pictures
Links for the day
Gemini Links 04/09/2026: Worries, Upgrades, and CS Students
Links for the day
SPAM Disguised as Benchmark or Comparison: The Register MS "PARTNER CONTENT" is Getting Weirder by the Month
Sites that promote fake 'coins' or pyramid schemes to their audience(s) aren't worth tolerating
PIPs at IBMs are Layoffs Because They're Impossible to Satisfy (or They Terminate Workers Despite Satisfying Them)
What insiders say
In the United Kingdom You Can No Longer Make the Assumption People Use Windows (or 'Smart' 'Phone')
As autumn arrives Microsoft faces a crisis
SLAPP Censorship - Part 171 Out of 200: Talking About Corruption and Violence Against Women
Today the Labour Party (UK) speaks about corruption
Warming Up for Investigative Journalism About the European Patent Office (EPO), Europe's Second-Largest and Probably Most Corrupt Institution in Europe
It continues to exploit diplomatic immunity for impunity
Microsoft Handing Out PIPs by the Thousands, Anxiety in GAFAM Building Up
Years ago I heard from people who pretended to be ill to avoid getting fired
BRICS in the Windows: Brazil's GNU/Linux Share (as Measured by CDN) Has Hit Highest Point in a Month
The largest Web CDN, Clownflare, sees GNU/Linux at 8.1% right now in Brazil
Corporate Media Will Always Glorify Its Owners (Corporations That Value Nothing But Capital)
Collecting "money" like it's a form of competition where they track "score"
We'll Never Do Slop!
Being against slop is not being "left behind"
Thieves Complain About the People They Steal From
"When you point the finger at someone, there are three fingers pointing back to you"
Links 04/09/2026: "The Rise of the Billionaire Lobby", the "Imperialist Delusions", and Digital Restrictions (DRM) From Nvidia
Links for the day
Buying From China
Nations must begin to speak about their digital sovereignty, which Free software is best equipped to grant and best positioned to assure in the face of outside resistance
GNU/Linux Continues to Grow in China
GNU/Linux reached its highest point in a month
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, September 03, 2026
IRC logs for Thursday, September 03, 2026
Gemini Links 04/09/2026: Forgotten Realms Avatar Series and Slop Plagiarism's Footprint in Gopher/Geminispace
Links for the day
Like Uber, Paypal's Debt Has Shot Up 2.5 Billion Dollars in 3 Months, Now the Mass Layoffs Come to India
even reducing the salaries by offshoring isn't enough to save the company
Microsoft "engineers who aren’t critical are let go" this week/month (silent layoffs)
"stack ranking"
Is Microsoft Trying to Kill What's Left of XBox by Year's End?
How many people will still bother purchasing these consoles by the end of the year?
SLAPP Censorship - Part 170 Out of 200: Downtimes
Yesterday traffic skyrocketed here
The Register MS Publishes More Word Salads Promoting "AI" Because It's Paid to Do So
Hype, name-dropping, and scaremongering
Gemini Links 03/09/2026: Google Maps, Gemini's Early History, and Suppressing Slop Plagiarists
Links for the day
Links 03/09/2026: Unsafe Skies, Thunderbird Adopts Proprietary / Vendor Lock-in Traps, "Xbox Live Down Again"
Links for the day
Growing Thirst for Free Software, the LibreOffice Edition
LibreOffice is in "high demand"
Links 03/09/2026: John Ternus Enters Apple Amid Mass Layoffs, Journalist İrem Delice Arrested
Links for the day
Stallman.org Down Due to Virtual Machines Issue, "Senior Engineers are Investigating the Issue" Since Saturday
RMS site down due to virtual machines issues upstream
Linux Foundation is Plagiarism Hub, Linux is at Risk From It
Torvalds never looked weaker and more compromised
Gemini Links 03/09/2026: Back in Japan, Another New Year, Reasons to Avoid Have a "Smart" "Phone", and Rant About Built-in Batteries
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, September 02, 2026
IRC logs for Wednesday, September 02, 2026
Identi.ca is Practically Dead, Just Like All Social Control Media (Eventually)
All Social Control Media is a waste of time
Gemini Links 02/09/2026: Intentions, Publishing on Workstations, and Connectivity Standards Alliance (CSA)
Links for the day
GNU/Linux Reaches 6% in Nepal
Today I checked GNU/Linux in Nepal again
SLAPP Censorship - Part 169 Out of 200: Calling People "Nazis"
'Cancel culture' in action
GNU Turns 43 This Month, GNU/Linux Turns 35 Next Year
It seems like no area of computing has not been impacted by the GNU/Linux revolution
Uber Debt Grew 2.5 Billion Dollars in 3 Months, Company Lays Off at Least 10% of Workforce
The media repeats the "official" numbers
Links 02/09/2026: The Machine Stops, AuraSearch, and DOOM 1/2
Links for the day
1-1 Meetings at IBM This Week, PIPs Expected, Maybe RAs Too
As usual, we invite whistleblowers to tell us what's going on
Links 02/09/2026: Germany Blames Russia for Leipzig Airport Drone Attack and China Gains Power as US Faces Humiliation in the Midst of Presidential Cover-up
Links for the day
Quit Talking About "AI Layoffs" and Talk About How Chatbots and Other Bots Broke Recruitment Processes by Cheating
Bots talking to other bots isn't HR; it's a catastrophe
It's Inevitable Anyway, So...
of course blame Chinese Communists for the "anti-AI" messages
Robotics Isn't "Hey Hi", Robotics Isn't New Either
Is the official Arduino blog becoming shilling platform for Qualcomm's "hey hi" [so-called 'intelligent'] chips?
Giving 'Free Publicity' to the People You Hate and Attack
Be careful what you wish for in social control media
Today We'll Focus on Growth of GNU/Linux
We've meanwhile noticed that Clownflare statistics for north American nations show 19% of requests (CDN) originating from GNU/Linux
IBM Secret (or Silent) Layoffs in September 2026
We need whistleblowers
Gemini Links 02/09/2026: GAFAM's E-mail Cartel, ROOPHLOCH 2026, and Homeworlds
Links for the day
Not Only Microsoft and IBM Hide Layoffs (Secret Layoffs) and Fail to Follow the Law (or Bypass It)
Microsoft's tactics are not so unique
People Who Participate in the Slop Plagiarism Pyramid Scheme and the Moral Dilemma (What's Acceptable for a Salary?)
giant pyramid scheme
State of the Slop, Linux Edition
Whether slop about "linux" becomes rarer by the end of this year, well... time will tell
Links 02/09/2026: 'Open' 'AI' (Proprietary Slop Plagiarism) Destroying Evidence, "Data Center Backlash Has Officially Rattled Scam Altman"
Links for the day
Andrew Lee Has Turned Freenode Into a Slopfarm (Because Who Needs IRC Anyway?)
The site is churning out slop all day long
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, September 01, 2026
IRC logs for Tuesday, September 01, 2026