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09.20.16

The EPO’s ‘Investigative’ Function is Totally Out of Control and Continues to Get Bigger, Whitewashed by So-called ‘Review’

Posted in Europe, Patents at 12:30 pm by Dr. Roy Schestowitz

Like his political ilk in France, Battistelli is a “big government” proponent who does not mind even torturing people (as if his personal ends justify the means)

Gestapomen following the white buses

Summary: An update on the situation which still causes great unrest at the European Patent Office (EPO), namely abuse of staff by the so-called Investigative Unit (Eponia’s equivalent of unaccountable secret services)

An article about the EPO’s Investigative Unit has been long overdue. It’s like the goons or thugs of the Office, or the militant guards of Team Battistelli, which are complemented by a fleet of bodyguards in spite of low threat levels. Staff is subjected to scans as though it is boarding a plane and sometimes subjected to psychological torture. Almost everyone we hear from says that working for the EPO is a nightmare if not torture; some seriously think about leaving. They can’t take it anymore. It wasn’t always the case; Battistelli made it so. Over the past couple of years the EPO has been acting like a frightened state with secret services and armed bodyguards, not like a public service or institution. We already published a series of articles about it last year [1, 2, 3, 4, 5, 6, 7]. Nothing at all has changed for the better; in fact, things have gotten even worse. Things continue to exacerbate and lying has become so chronic that next month there will be a whole “report” and “conference” to tell the world that EPO staff is happy. Even North Korea has not yet stooped this low…

“External quality review of the EPO investigative function” was not too long ago sought by particular EPO workers. “The administration has started an “external quality review of the EPO investigative function”,” they wrote, and one “can find an in-depth analysis of the investigation guidelines and the functioning of the Unit…”

We have made a local copy of it [PDF]. The document is 14 pages long so we haven’t converted it to HTML. Instead, “short observations on the review process” can be found below:

Investigating the EPO Investigative Unit – a peer review?

Introduction
When the Investigation Guidelines were adopted, a review was foreseen after three years, i.e. early 2015. At the time Mr Battistelli did not seem interested. That has changed: in its December meeting the Administrative Council insisted on a review, not only of the Guidelines but also of the Unit itself. Ms Bergot has now informed the CSC that an external review of the EPO quality function will soon take place. That could be good news, or it could be a white-washing exercise.

External review of the WIPO Investigation Function
Interestingly, a very similar review has taken place in WIPO only half a year ago. The external reviewers were a “senior investigation officer” from an UN organization, Mr Sébastien Godefroid and Mr Claudio Zanghi, head of the EPO Investigative Unit. The EPO Investigative Unit is hardly a best practice example. Maybe not surprisingly the report recommends strengthening the WIPO Investigative Unit by hiring staff, providing less information to the accused, and making access to electronic data easier. Data protection issues are not even mentioned in the report.

External review of the EPO Investigation Function
The two external reviewers selected by the EPO are Mr James Finniss, who is currently Deputy Director of the Investigation Division of the UN Office of Internal Oversight Services (OIOS), and Ms Olivia Graham who is Ethics Officer at the International Monetary Fund, i.e. both are working for international governmental organisations. This almost certainly means that the standards applied will be those common in such organisations. Almost all international organisations show a lack of transparency (excess demands of confidentiality), a lack of accountability (no truly independent overview, immunity of suit) and a lack of respect for staff rights (fundamental rights, labour rights, data protection e.a.). The circle of investigators working in international organisations is furthermore rather small. They form a rather tight-knitted community: they regularly visit each other, meet at conferences etc. To have this relatively small group of people assessing each other in turn would not seem the best way to guarantee independence.

To quote from the corresponding PDF:

The application of Circular No. 342 in practice has confirmed fears expressed by staff representatives prior to its introduction. The Circular has been used to transform the EPO into a “police state”. The most relevant issues in this regard are summarised in the present document. In particular, it is noted that investigators are immune from any independent external control or oversight and there is no effective means for holding them to account for any irregular or otherwise disproportionate actions involving breaches of internal EPO regulations or national law.

Regarding so-called investigators — the ones whose jobs were advertised almost a year ago — a couple more got hired and “the general reaction is,” according to a source of ours is: “Hell, another bunch of parasites we have to feed” (people who produce nothing).

Big government, eh?

“The boards of appeal,” our source added, “will lose some relatively young members due to retiring.” We guess they know what’s coming. We don’t think there are any job openings advertised at present for the boards. This, perhaps, is just what Battistelli prefers. As the UPC won’t happen (at least not any time soon), Battistelli is now stuck between a rock and a hard place. The Office is collapsing and there’s no remedy. They’re scaring away all the skilled people and are unable to recruit equally-skilled replacements. Europe will suffer.

09.19.16

Patents Roundup: Disclosure Requirements, Mobile Patents, Patent Lawyers’ Plagiarism, USPTO Getting Sued, and Corporate Domination of the Patent System

Posted in America, Apple, Asia, Europe, Microsoft, Patents at 4:40 am by Dr. Roy Schestowitz

“Called “patent sharks”, they bought dormant agricultural patents and then sued farmers who were unknowingly using protected technology. This brass knuckles tactic outraged rural activists and led to the same calls for sweeping patent reform that we hear now.” —Gerard N. Magliocca, Blackberries and Barnyards: Patent Trolls and the Perils of Innovation

Blackberries and Barnyards

Summary: The unwanted elements of the patent system (as it stands at present) illuminated by very recent news and patent court cases

WE sometimes worry that our growing focus on the EPO has distracted somewhat from the patent quality problems at the USPTO. We spend an enormous amount of time looking into patent news from all around the world and occasionally something catches our eye that needs a quick comment but not a comprehensive rebuttal. Herein we lay out some recent patent news, with or without further comment.

Disclosure Requirements

“Patents cannot be used defensively, only as means of retaliation (M.A.D.) so that both sides suffer and only lawyers win (they profit from patent wars irrespective of the outcome).”When it comes to patents, rules vary wildly depending on the country. Here we have Switzerland-based site praising its own country on patents, but it’s only part of the story because for a rich country to have a lot of patents makes a lot of fiscal sense, for reasons we explained last month. The Swiss patent system and the role of Switzerland in the EPO requires taking into account Switzerland’s rather unique economy.

Mobile Patents

According to the patents-centric media, Judge Koh, probably best known in recent years for her involvement in Apple and Samsung trials, is still going strong. “The Senate Judiciary Committee on Thursday voted 13-7 to approve the nomination of U.S. District Judge Lucy Koh to the Ninth Circuit,” says this report.

One article, this one coming from a niche Web site, wrongly assumes that ‘app’ (buzzword, usually meaning software for mobile devices) development requires patents. If you develop a mobile ‘app’ and waste time/effort worrying about patents on software, then you’re probably doing it wrong and wasting resources. Patents cannot be used defensively, only as means of retaliation (M.A.D.) so that both sides suffer and only lawyers win (they profit from patent wars irrespective of the outcome). Deterrence using patents does not exist when trolls are involved.

“Microsoft had extorted HTC using patents as well; HTC chose to settle to avoid legal action and potential embargoes.”“Apple Was Hit with a $22M Verdict for Infringing an Acacia Patent,” wrote a patent attorney the other day. Acacia is a Microsoft-connected patent troll. As for Apple, when it sued HTC 6 years ago it showed that it too was quite a patent bully. “According to the complaint,” says another new report, HTC is being sued again and “the plaintiff [Infogation] alleges that Infogation Corp. suffered damages to its business from having its patent infringed. The plaintiff holds HTC Corp. and HTC America Inc. responsible because the defendants allegedly manufacture and distribute mobile phones containing software that infringes the plaintiff’s patents.”

They just can’t leave HTC alone, can they? Microsoft had extorted HTC using patents as well; HTC chose to settle to avoid legal action and potential embargoes. Speaking of embargoes (or injunctions), another example of the ITC being exploited for embargoes (using patent allegations before even a proper trial) can be seen in this new press release. So much for promoting innovation, eh? Promoting racketeering maybe… Microsoft has used the ITC for embargoes using patents for nearly a decade now.

“What’s a Patent Worth?”

“Patents are a lot like financial bubbles and are also an instrument of tax evasion some of the time.”That’s the headline of this article which says: “When a technology business fails, and the flesh of the going concern is stripped away, often the only thing that remains is a paper skeleton of potentially valuable patents. In 2011, Nortel Networks’ patent portfolio of wireless technology patents sold for $4.5 billion. A few years later in 2013, Kodak’s portfolio of digital imaging patents brought in $525 million. Now, Yahoo’s patent portfolio of nearly 3,000 patents is on the block, and experts estimate that it could sell for $1 billion. While “expert” valuations are not always accurate, (Nortel’s portfolio was initially valued at $1 billion, and Kodak’s portfolio was initially valued at $2.2-2.6 million; see http://spectrum.ieee.org/at-work/innovation/the-lowballing-of-kodaks-patent-portfolio) the estimates for Yahoo’s portfolio work out to more than $300,000 per patent, well in excess of the cost of acquisition.”

As we explained before, Yahoo’s patents are mostly software patents, thus they’re pretty worthless right now (after Alice).

Patents are a lot like financial bubbles and are also an instrument of tax evasion some of the time.

Hartig Drug Co. v Senju Pharmaceutical Co.

“Microsoft does this a lot to vendors that sell GNU/Linux, Chrome OS, and Android devices. It’s a form of extortion, depending on how it’s done and how severe the threats are, quality of patents (if disclosed) aside.”A patent maximalism site said about a fortnight ago: “Perhaps one of the most influential first year law school classes for the task of learning how to “think like a lawyer” is civil procedure. Particularly when the professor is bold enough to engage students on the intricacies of the topic, its intricacies can make for a challenging final exam. These experiences should come to mind for many antitrust lawyers when considering the Third Circuit’s decision in Hartig Drug Co. v. Senju Pharmaceutical Co., where the Court applied subject matter jurisdiction principles to reverse a District Court’s dismissal of Hartig’s antitrust allegations on the pleadings.”

Notice the antitrust element of it. It’s quite common when it comes to patent monopolies.

Asetek v AVC

“Patent lawyers say we need to respect patents, but they sure don’t respect copyrights some of the time.”This recent coverage of a case involving patents on cooling systems is also noteworthy. To quote: “The Asetek patents cover liquid cooling systems used to cool integrated circuits (such as those on a computer). Over the past several years, Asetek has sued several competitors for infringing the patents including CoolIT and Cooler Master. In 2014, Asetek sent AVC a letter accusing the company of infringing — however the letter mistakenly accuesd AVC of manufacturing the Liqmax 120s (it does not). After some letters back-and-forth, Asetek eventually sent a letter that it “believes that AVC is likely selling other infringing products in the United States.” After an unsuccessful meeting, AVC filed its declaratory judgment action. The question is whether these facts are sufficient to show an actual controversy between the parties.”

So this can formally become a lawsuit pretty soon, unless money is coughed out in pre-trial settlement. This too often turns out to be of an antitrust nature. Microsoft does this a lot to vendors that sell GNU/Linux, Chrome OS, and Android devices. It’s a form of extortion, depending on how it’s done and how severe the threats are, quality of patents (if disclosed) aside.

Stryker v Zimmer

Earlier this month we found some coverage of the case at MIP which explained: “The Federal Circuit has affirmed the jury’s finding of wilful infringement but vacated and remanded the district court’s award of treble damages, in its Stryker v Zimmer decision”

“Patent lawyers are so dishonest about so-called innovation, so why not plagiarise too?”We wrote about Stryker/Halo in the past. “The jury awarded Striker [sic] $70 million in lost profits,” explains another site. “On appeal,” it added, “the Federal Circuit affirmed as to infringement, validity and damages. [...] Most of the new Stryker opinion involves a recitation of the Federal Circuit’s previous opinion affirming the district court as to infringement and validity. The last three pages, however, deal with the § 284 enhancement issue on remand. What’s interesting is that the Federal Circuit is maintaining its bifurcated approach to enhancement of damages, first requiring a predicate willfulness determination followed by the judge’s discretionary determination of whether and how much to enhance damages. This is essentially the same process as before. See i4i Ltd. Partnership v. Microsoft Corp., 598 F.3d 831 (2010). Pre-Halo, the second step of the process (the district judge’s determination of whether and how much to enhance damages) was a totality-of-the circumstances analysis that was reviewed for abuse of discretion (i.e.: basically the same as the court required in Halo). Id. The Federal Circuit’s post-Halo approach to enhancement involves the same two steps, with the exception that the willfulness determination itself is guided by the holding in Halo rather than requiring the two-element objective/subjective determination of Halo. (The enhancement determination is too, but it’s hard to see much difference there.) Under Halo, the subjective component alone can be enough to establish willfulness.”

This was very good news for patent trolls. It still is.

Patent Lawyers and Plagiarism

“It sure looks as though patent trolling is a ‘thing’ in east Asia right now…”Patent lawyers say we need to respect patents, but they sure don’t respect copyrights some of the time. There is even plagiarism reported and potentially a lawsuit to provide evidence of it. “This creates some very interesting problems for lawyers,” said a patents pundit, “and calls to my mind the case a few years ago where a patent prosecutor was sued for using language from a patent in a specification for another client. I’m not a copyright lawyer, and so just raise this case for you to think.”

Patent lawyers are so dishonest about so-called innovation, so why not plagiarise too? Another article by Dennis Crouch speaks of patent malpractice today. It’s part of an outline of upcoming SCOTUS cases. To quote the introduction:

The Supreme Court will begin granting and denying petitions in early October. Meanwhile, several new petitions are now on file. Last week I wrote about the TC Heartland case as a mechanism for limiting venue. Without any good reason, the Federal Circuit overruled a 1957 Supreme Court case that had strictly limited patent venue as spelled out in the patent venue statute 1400(b). See VE Holdings (explaining its overruling of Fourco Glass). A result of VE Holdings is the expansive venue availability that facilitated the rise of E.D. Texas as the most popular patent venue. TC Heartland simply asks the Supreme Court reassert its Fourco holding – something that could almost be done with a one-line opinion: “REVERSED. See Fourco Glass Co. v. Transmirra Products Corp., 353 U.S. 222 (1957).” The best arguments for the Federal Circuit’s approach are (1) the reasoning of Fourco itself is a bit dodgy; and (2) VE Holdings is well settled doctrine (decided 26 years ago) and Congress has revised the statutory provisions several times without amending. As a side note, several members of Congress have suggested they will act legislatively if SCOTUS fails to act.

Two new petitions (Grunenthal v. Teva and Purdue v. Epic) stem from the same Federal Circuit OxyContin case and focus on anticipation and obviousness respectively. Grunenthal v. Teva questions how ‘inherently’ operates for anticipation purposes. Purdue suggests that – despite the final sentence of Section 103, that the actual circumstances of the invention should be available to help prove non-obviousness (but still not be available to prove obviousness). Another new petition includes the BPCIA case Apotex v. Amgen that serves as a complement to the pending Sandoz case questioning the requirements and benefits of providing notice of commercial marketing.

USPTO is Getting Sued Again

“What they mean by “monetisation” is shakedown or a gentle form of blackmail.”Last week we wrote about fraud at the USPTO, or examiners defrauding taxpayers as Florian Müller and others chose to frame it. According to this article, the USPTO has another embarrassment to cope with. To quote: “In Hyatt v. USPTO, Civ. No. 16-1490 (D.Nevada, Filed June 22, 2016), Hyatt asks for injunctive relief to stop the PTO from repeatedly ‘reopening prosecution’ in his cases and consequently shielding the cases from judicial review by either the PTAB or Article III courts. Hyatt is experiencing the common reality of examiners reopening prosecution once an appeal brief is filed.”

The Ts: Patent Tax and Trolls

“Well, patents on corn oil extraction are deemed invalid by a court, probably because the USPTO just issues a patent for every piece of paper that comes in, leaving courts to clean up their mess.”In recent weeks we wrote about what had happened in east Asia, where patent trolling is becoming an epidemic. It sure looks as though patent trolling is a ‘thing’ in east Asia right now and here is IAM writing about a new non-practicing entity (IAM would never use the T word). To quote: “Just over a month since display maker Sharp came under the formal control of Hon Hai Precision Industry (Foxconn), big changes to its IP operations are already in the offing. Nikkei Asian Review reported on Tuesday that the Japanese company’s IP function would be hived off into a separate IP management company on October 3rd, with one goal being to create more value from Sharp’s massive global patent portfolio. Speaking exclusively to IAM, Foxconn IP chief YP Jou confirmed how the responsibilities for the Sharp portfolio will be divided within the sprawling Foxconn IP apparatus, and revealed the team’s priority when it comes to monetisation.”

What they mean by “monetisation” is shakedown or a gentle form of blackmail. Speaking of so-called ‘monetisation’, this new report says that “[f]ive big holders of cellular patents, including Qualcomm Inc., are joining an effort proposed by Ericsson AB to jointly license patents in an emerging field called the Internet of Things.”

“Some person with an MBA spreads some myths about patents right now, as if companies just can’t do without them.”Here comes the patent tax to surveillance of all Things (IoT). “Qualcomm has long derived a chunk of their revenue from licensing,” said this one person, “so this isn’t a big change for them.”

Qualcomm also came under heavy regulatory scrutiny for it. Watch what IAM wrote about this. These guys are looking at the surveillance of all Things (IoT) only from the point of view of patents; yes, patents alone.

Patents on Corny Stuff

“Unless we get engineers to enter the political systems, we’ll continue to have lawyers with their lawyer buddies from college writing laws, including patent laws.”Well, patents on corn oil extraction are deemed invalid by a court, probably because the USPTO just issues a patent for every piece of paper that comes in, leaving courts to clean up their mess. This new press release says that “GreenShift Corporation (OTCQB: GERS) provided an update regarding the ongoing patent infringement action involving GreenShift’s subsidiary, GS CleanTech Corporation (“CleanTech”), and its corn oil extraction patents.”

Corporate Domination of IP [sic] Law

Some person with an MBA spreads some myths about patents right now, as if companies just can’t do without them. Watch the corporate sob story: “It’s clear the current system is working for no one except those who want money for nothing. America’s inventive spirit has been the lifeblood of our economic growth for generations, moving us from horse-drawn carriages to electric cars in just over a century. Missteps by the courts, Congress, and the Patent Office have threatened to drive that underground, unwittingly rewarding a few large corporations happy to profit off the work of others at no cost to themselves. That’s not the American way.”

“…TPP threatens to spread software patents almost everywhere. It is a truly villainous back room deal and it should be crushed.”What he is trying to say is that people accused of infringement “want money for nothing” and that it’s the “American way” to give large companies monopolies, so as to prevent others from competing. He advocates protectionism, not an American way. Unless we get engineers to enter the political systems, we’ll continue to have lawyers with their lawyer buddies from college writing laws, including patent laws. It’s the sad truth. Here is another new lawyers’ congregation (EPIP) where they speak ‘on behalf’ of inventors, developers etc. Notice the “IP” in the event’s name. The notion of so-called ‘IP’ (an umbrella for several totally separate things) helps mislead people into equating patents with copyrights and secrets; this event wasn’t about patents as it covered other aspects of so-called ‘IP’ (an umbrella for several totally separate things) and when people say “IP” we should always ask them to be specific. IP means nothing; copyrights, trademarks, patents and trade secrets do. Here is how EPIP started: “The plenary session kicked off with Professor Rochelle Dreyfuss highlighting the expansion of trade secrets protection globally, and the worrying potential unintended consequences. There are increasing concerns that trade secrets and economic espionage law in the US is being used to racially profile researchers. (Interesting coverage on the targeting of Chinese-American researchers here.) Dreyfuss discussed the potential negative impact of non-compete clauses on innovation, employees and economic growth. She argued that criminalisation related to trade secrets generates an especially strong chilling effect as high-tech workers are unwilling to risk incarceration. Dreyfuss also observed that TPP (Trans Pacific Partnership) does not create a minimum trade secrets standard, and is trying to express a new norm that information shouldn’t be free.”

Just to remind readers, TPP threatens to spread software patents almost everywhere. It is a truly villainous back room deal and it should be crushed.

With or Without the UPC (Which Will Probably Never Happen) Battistelli is Crushing the EPO and Ejects Experienced Staff, a Future Without Examination Possible

Posted in Europe, Patents at 2:57 am by Dr. Roy Schestowitz

The ‘reforms’ at the EPO turn out to be all about attracting the low-quality applicants from China, the US, etc. (quantity over quality)

EPO Frame Breaking

Summary: A pessimistic but probably realistic take on what is happening at the European Patent Office (EPO), which is undergoing a silent transformation so wide-ranging that stakeholders deserve to know about it

LAST night we wrote about some of the latest lies from the EPO‘s President Benoît Battistelli and Team UPC. All that wishful thinking from Team UPC would have us believe that the UPC can still happen — the same kind of lie that Battistelli and his foot soldiers (like Margot Fröhlinger) try to make probable. Some of the latest nonsense about UPC ratification is dressed up as Dutch, but it is perfectly clear that the UPC cannot pass without the UK (and it won’t happen any time soon, if ever).

We are rather disturbed to see a sharp and abrupt departure from truth. Battistelli is comparing staff to criminals (a total fiction, entirely unsupported by facts) and last week he spread some nonsense about patent quality — a subject on which we last wrote last night as well as last week. Battistelli wants people to believe that patent quality at the EPO is still OK, citing his mouthpieces for 'evidence' when/if asked.

Not too long ago we learned that the damage caused to patent quality at the EPO was so profound that some doubt examination will even be carried out at all (or just some automated checks that are inherently flawed). Rubberstamps are just a wet dream or a fantasy of Battistelli and with the objective of “production” in mind he’s just sending the task of examination down the drain.

Here is a comment we found a few days ago:

For any patent office, it would be good to separate search and examiner processes. The two must be done by two separate departments so that each has good time to perform their part. This era of internet throws up tonnes of prior art.

Provide good time for the examiners to understand the inventions that they need to examine. They should be allowed to consult (in a clear transparent way, with written documentation of the conversations) applicant at all times during the search and examination.

Limit the number of claims per application (10-15 only), per category for a thorough search and examination.

It would be good to ask prior art directly from the inventors — as opposed to the patent offices of corresponding applications. Many come up with the most relevant ones only.

This relates to documents we saw in which depletion of stocks of workload is demonstrated. Sooner or later overcapacity (of staff) and under-performance (in examination terms) will destroy the EPO as it was once known. Remarking on “HR Reforms”, some highlight “a culture of pressure, fear and insecurity” (for workers). “In the meantime,” says a document we saw, “we hear worrying reform proposals” and they are as follows:

Pressurize: Further institutionalised production upward spiral: increasing production and productivity is a permanent mantra at the EPO. Since 2014 an 18% increase production target has been deemed adequate. The President has forecast a further 10% increase for 2016.

Hire…: Clear instructions have been given to recruit as quickly as possible as many examiners as possible: for instance instructions from the HR department (4.3) have been issued to effectively revise the decision leading to rejection of candidates in DG1 recruitment procedures;

… and fire: Revision of disciplinary procedures is due in the June AC meeting: if it passes, it will allow the President to dismiss staff for professional reasons – such as underproduction – without disciplinary committee;

A life after?: The “post-service integrity” reform [...] will allow the EPO President to decide if a former employee is allowed to work in whatever area: patent attorney, lobby, journalist, blogger, SUEPO, Charity, etc. The threat of a pension cut (a further change to be decided by the June AC meeting) or being deleted from the list of professional representatives before the EPO (managed by the EPO) is deterring for former employees;

As if this were not enough, further reforms seem to be under discussion:

Production: There are plans to apply the “corridors” (production targets linked to the individual grade) more systematically in the coming years. That would lead to substantial supplementary pressure for high grades employees, which happen to be the old part of the population and are considered less desirable staff in the EPO lately. Clearly an underproduction warning (see above) works as an adequate deterrent against inflexible staff.

Flexibility: There are rumours of plans to revise Art. 46 ServRegs, i.e. to “flexibilize” the use of “reserve status” to deal with overcapacity and render it much more economical for the EPO. As the rumour goes, a maximum of 2 years with 50% salary would be “offered” to staff chosen at the discretion of the President;

Insecure: Despite regular official denials (such as those of the Early Certainty dedicated site FAQs), rumours are recurrent that EPO Staff would be recruited on contracts: in particular, contracts for examiners may become the new standard [...] Unseen just a few years ago, according to the latest published staff changes, there is already a clear trend to recruit more and more examiners on contracts: In May, 17 of the 18 new entrant examiners were contract staff, in March all 21!

More uncertainty: Rumours are becoming insistent that a Pension reform is imminent: without going into details, the direction can only be detrimental to all staff, also in place, as the present administration considers that “acquired rights” are superfluous old-fashioned privileges.

Insiders already know a lot of the above (word of mouth), but do patent applicants know this? Is there a public realisation or broad understanding of the EPO’s race to the bottom? It’s scraping the bottom of the recruitment barrel, the human/labour rights spectrum, and the lowest levels in the patent ladder. Battistelli is doing to the EPO what Republican politicians did to Flint, Michigan.

When EPO Liar-in-Chief Benoît Battistelli Defamed His Staff in Parliament, Comparing Them to Nazis and Criminals

Posted in Europe, Patents at 2:09 am by Dr. Roy Schestowitz


Summary: A reminder of the audacity of Benoît Battistelli, who in his capacity as a politician — a problem in its own right — slanders EPO staff

WHEN the man in charge of the EPO pretends there are no legitimate critics but only "Nazis" or "criminals" we know there’s a serious problem. Battistelli’s lies to the French Parliament in March 2016 were recalled by a reader of ours, who helped us get an accurate translation of what Battistelli had said. We need this for the record. Perhaps some people from the EPO can use that to take action against Battistelli, who is just a chronic liar with zero tolerance of criticism. We were amused to find this new comment last night. Posted by “Le roi est mort, vive le roi!” it said: “The King goes home!..the EPO has scheduled an EPO-SIPO conference in BB’s [Battistelli] hometown near Paris.” Battistelli and China’s regime have a lot in common. Both suppress criticism (even severely punishing — not just censoring — critics) while lying to the public on a daily basis. That’s a recipe for a great Battistelli meeting. There’s lots of common ground there.

“I recently came across this document,” told us a reader. We are making a local copy of it for long-term preservation purposes [PDF]. “It is the official minutes of a hearing which took place before the European Affairs Committee of the French Parliament on 1st of March, 2016. The text of the minutes can be found online here. The PDF version is downloadable from this link. A video of the hearing (in French) can also be found here.”

“The hearing mainly consists of a rather boring presentation of facts and figures by Battistelli,” our reader told us. “However, it starts to get interesting when he is questioned about the social situation at the EPO and about the controversial disciplinary proceedings against staff representatives. The most interesting part is the following passage on page 15 of the minutes in which Battistelli responds to the questions about the disciplinary procedures and falsely accuses the dismissed staff representatives of having being involved in actions having a criminal character such as the alleged “use of Nazi symbols and slogans and insults to the German staff members on the basis of references to Nazism.””

Here is the relevant bit:

En l’occurrence, puisque vous abordez ce sujet, nous avons à faire face à la situation suivante : des représentants élus du personnel ont été conduits à démissionner six mois après leur élection, à la suite de harcèlement, de menaces, de tentatives de diffamation et de chantage.
Ces personnels ont porté plainte. Il est de mon devoir de m’assurer que leur plainte est entendue, fait l’objet d’une enquête, puis que, selon les faits avérés, nos procédures disciplinaires sont appliquées – je précise que la composition de notre comité disciplinaire est paritaire.
Je signale pour votre parfaite information que les faits qui ont justifié ces licenciements font l’objet d’une procédure au pénal ouverte en Allemagne, car ils sont de nature criminelle. Je tiens à votre disposition plusieurs éléments factuels à ce sujet, tels que l’emploi de symboles et de mots d’ordre nazis ainsi que d’injures visant des personnels de nationalité allemande sur la base de références au nazisme.

English translation:

In this case, since you have referred to the matter, we have to face the following situation: some elected staff representatives were driven to resign six months after their election, as a result of harassment, threats, defamation attempts and blackmail.

These staff members filed a complaint. It is my duty to ensure that their complaint is heard, forms the subject of an investigation, and that, on the basis of the facts determined, our disciplinary procedures are applied – I note that our disciplinary committee has a joint composition [Translator's Note: i.e. it includes members nominated by the staff committee].

For the completeness of your information, I would point out that the facts which justified the dismissals are the subject of pending criminal proceedings in Germany because they are of a criminal character. I can provide you with further factual details of this matter if required, such as the use of Nazi symbol and Nazi slogans and insults to the German staff members on the basis of references to Nazism.

We previously extracted (from the video) the audio of the relevant bits, but now we have the full text and a translation. “The minutes of the hearing and the associated video are part of the official public record of the French national parliament,” our reader noted. “They provide incontrovertible documentary evidence about Battistelli’s methods and the relentless smear campaign that he has been conducting against EPO staff representatives on the basis of false and unfounded accusations. It’s incredible that somebody who so openly and brazenly misleads a national parliament with such false and apparently libellous accusations can still hold on to his job.”

Battistelli has gotten away with scandals even worse than this. By failing to sack him the Administrative Council does itself irreparable damage and even after Battistelli is gone this damage will permeate and affect both the Office and the Council.

09.18.16

EPO President Benoît Battistelli and Team UPC Are Still Lying, Don’t Believe a Word They Say

Posted in Europe, Patents at 12:38 pm by Dr. Roy Schestowitz

Newspeak and half-truths would actually be an improvement for them

'Deceiver' poster
Deceiver at the Internet Movie Database

Summary: A rather bulky rebuttal to some of the latest misleading statements from EPO management and law firms that wish to expand/advance their own careers at the expense of the integrity of the European patent system

THE SITUATION at the EPO is pretty grim right now, but what’s even worse is the UPC, which threatened to bring some of the worst elements of the USPTO into Europe and beyond.

“There are even very expensive events that are intended for shameless self-promotion by Battistelli.”EPO workers must have noticed that after the summer the EPO has barely said or announced anything. The managers seem to be trying to keep a low profile (as allegedly advised by their PR 'experts') and the only time they speak out is at staged events where there’s no opportunity for dissent (if there is dissent, the EPO will delete it from articles even after publication). There are even very expensive events that are intended for shameless self-promotion by Battistelli. The EPO plans a similar event for next year and is publicly asking all those whom it can message to play along. It even gets pushy and sends unsolicited promotion. Check out some of the latest EPO 'spam' to European universities (latest examples are in [1, 2, 3]). It’s pathetic if not painful to watch. As we noted here before, the EPO under Battistelli wastes a fortune essentially buying off the media for positive puff pieces in several countries [1, 2]. This is not sustainable. There are also staged pro-UPC events, supported by the EPO and funded by its PR 'experts'.

“There are also staged pro-UPC events, supported by the EPO and funded by its PR ‘experts’.”Not much is being said these days about the social climate at the EPO, but there’s propaganda in the making and we are prepared to respond to it (the Social Conference is scheduled for next month). Instead, right now the topic on everyone’s lips is the slip in patent quality and sometimes the slip of the UPC.

“The EPO likes to give the impression that it’s possible to achieve certainty for the applicant,” one person wrote a few days ago. Well, certainty that one can get a patent is not certainty that the patent is a valid one and that the courts will respect that patent. Watch how many patents granted by the USPTO are now dropping like flies at the courts (potentially destroying the applicant). The full comment said: “The EPO likes to give the impression that it’s possible to achieve certainty for the applicant and for the public by carrying out a high quality examination. This is bottucks. EPO search and examination is trivial compared with the effort expended when there is an imminent risk of winning/losing a lot of money. It’s a useful first approximation – nothing more.” In response to this one person wrote:

It is true that a high productivity or production does not necessarily lead to a lower quality. If people know what to do and how to do it, it is possible. However the prerequisite is that people have been correctly trained.

I have strong doubts that this is the case at the EPO in view of the tremendous production pressure put on newcomers. How can it be that after three years a newcomer is fully proficient in search and in examination? In the past, when search and examination were separate, the three year goal was for each function, now only for the mixed one.

Anyone believing that the EPO searches all dependent claims is believing in father Christmas, not to say more, and Mr Spigarelli should know better.

If an examiner finds an X document, if he finds one, then he stops the search. If he wants to have a good production and achieve a quick grant, he will find nothing but a pseudo X or a lot of A documents. Examiners are not all to be blamed, they do what they are told, and anyone resisting this will be mowed down.

Look at case law of the boards of appeal. It happens that the Board has to quote new prior art when deciding on appeal following refusal of an application. If the search is so wonderful, why would the boards be led to bring in new prior art? Whether it is correct to do so is an other point, but this is what is happening.

It is certain that if the claims are correctly drafted a search is easier to carry out. Simply trying to push the blame towards applicants is a bit too easy. The responsibility is shared in the present situation.

Simply churning out searches and grants is not necessarily a sign of quality. The objectives according to the plan are achieved, if not overthrown. Remember what happened to “planned” economies. But the top management of the EPO can feel happy. They are managers…. but certainly not leaders. But this is another story.

Several days ago we wrote about Battistelli's patent quality brag (comparing the EPO to arguably the worst patent office in the West when it comes to patent quality). Since then — as we are watching this closely — the brag has reached some Australian Web sites with a modified headline [1, 2]. This headline is a lie unless EPO and Battistelli are the same thing (we explained why it’s not, noting that staff — quite broadly — loathes Battistelli and disagrees with him). These news sites are rewriting the headline from Andrew Chung (or his editor at Reuters) like some other people did before them, so “Europe patent boss” is becoming just “EPO”. Not good…

One can be left with the illusion that the only takeaway is that EPO quality is absolutely fine and great when real figures/facts are somewhat alarming.

“One can be left with the illusion that the only takeaway is that EPO quality is absolutely fine and great when real figures/facts are somewhat alarming.”Responding to this latest nonsense from Battistelli, Benjamin Henrion (FFII) wrote: “Maybe he could comment on the progress bar patent?”

“Battistelli says EPO issues better patents than USPTO,” he added, but “always remember patent examiners can’t read binaries” (he added some informative image about the progress bar patent).

As we noted here a long time ago, Battistelli is pretty clueless about patents. It’s not his area at all and he’s not a scientist, either. He surrounds himself only by people who tell him what he wants to hear and reprimands the rest. EPO is quite a Pariah when it comes to patent quality, it ignores European law regarding patent scope, and it definitely breaks many laws in order to punish staff that speaks about it. Right now, says Henrion, the “EPO explains you with sounds on how they grant software patents https://e-courses.epo.org/wbts/cii/index.html”

That’s how bad it has become. The EPO is making enemies by promoting software patents and FFII might return to activism or take more actions if this carries on. Henrion told them (directly), “you really want a fight isn’t it?”

They are basically pushing for software patents while at the same time advocating/promoting the UPC, which in itself would be supportive of software patents.

“They are basically pushing for software patents while at the same time advocating/promoting the UPC, which in itself would be supportive of software patents.”Regarding Battisteli's UPC lobbying and the latest lies from the EPO, backlash is apparent online (there are several opponents of the UPC there). The only exception to this backlash is Team UPC, i.e. the patent law firms that stand to benefit from the UPC. Here it is pushing for ratification in the UK because democracy, to these people at least, does not matter. The lawyers want more money. This post says that “while the UK continues not to ratify the UPC Agreement, the system, at least in its current form, cannot come into force. If the EU and the participating member states fail to reach an agreement enabling (or at least attempting to enable) continued UK involvement, there will be no upheaval in the UK patent litigation system upon Brexit, and no UPC operating elsewhere in Europe. This would appear to strengthen the UK’s negotiating position in Article 50 negotiations, compared with the scenario in which it had already ratified the UPC Agreement.”

“The opinion is worth a read, if you can stomach the legalese,” one person told us, but it seems to be so heavily biased in favour of the UPC, as one can expect from legal firms. They’re not independent or objective observers.

Here is EIP becoming so delusional that it wants us to assume the UPC can happen in the first place (without the UK), in order for the UK to join it later. Watch their optimism in Twitter: “UK #IP organisations obtain legal opinion on #UK participation in #UPC post #brexit, UK can still take part”

“We never saw any criticism of the UPC from these folks.”Team UPC’s echo chamber (basically a bunch of Battistelli-controlled mouthpieces and UPC proponents patting each other on the back/shoulder) can also be seen at Managing IP, which set up events in which to promote the UPC last week (or almost a fortnight ago) [1, 2, 3, 4].

One thing that we mentioned the other day was Italy’s step towards something that can never happen in the first place. Now we have Team UPC, the antidemocratic group of lawyers (and Bristows in this case), pushing for a dead (Trojan) horse to enter the gates of Italy. Have they no sense of shame? Have they now given up yet?

“UPC would put Italian SMEs at a disadvantage because of the choice of official language,” Henrion told them and the facts are on his side. The UPC would also put Italian SMEs at risk of more lawsuits and SMEs rightly complain about this. Henrion said that “maybe FFII should commission a legal opinion on whether UPC can bring us software patents and trolls.”

“They are trying to convince the already-convinced (who are paid for it) that the UPC is great and then pressure British politicians while conveniently misleading, tricking and misrepresenting their views.”Speaking of Bristows, their employees are still pushing for the UPC (which is effectively dead) in public events. One of them has just spoken of Milan and said she “feels incredibly at home in Italy, which is apropos given her heritage. So when she finally landed in Milan this morning for this year’s AIPPI Congress her cares melted away. That is until she saw her agenda….This year’s AIPPI Congress is jammed packed with incredible events, from panel sessions dealing with everything from contributory patent infringement to IP and food, to lunch time sessions focusing on expert evidence and study questions on copyright and linking, IP securities and added matter. The final day will be devoted to a very political topic – the fate of the UPC post-Brexit followed by a biosimilars preliminary injunction mock trial in the UPC. The AmeriKat [from Bristows] and a team of incredible friends and contributors, including her colleague Vanessa Rieu (Bristows), will be reporting from the events on the IPKat over the coming days.”

By “reporting” she probably means advocating, as usual. We never saw any criticism of the UPC from these folks.

In response, says one patent attorney: “Interesting UK counsel opinion here. No legal bar to UK participation in UPC – only political issues.”

Not true. He links to a PDF from EIF’s Web site [PDF], but again, this is a case of an Team UPC echo chamber, nothing else. They are trying to convince the already-convinced (who are paid for it) that the UPC is great and then pressure British politicians while conveniently misleading, tricking and misrepresenting their views.

09.15.16

Battistelli is Lying About Patent Quality While It Continues to Nosedive at the EPO as Part of His Neo-liberal ‘Production’ Strategy

Posted in Deception, Europe, Patents at 6:57 pm by Dr. Roy Schestowitz

Patent quality? That’s the old EPO. Now it’s all about quantity!

The Leader of the Luddites
The Leader of the Luddites, engraving of 1812

Summary: Battistelli, who tries to automate and streamline everything so as to maximise patent grants rather than examine applications properly, is making incredible claims that will almost certainly backfire on him

AMID EPO crisis, which undoubtedly continues to deepen, more and more people start to compare it to the USPTO, where patent quality has been rather notorious for quite some time (they almost just rubberstamp applications, with a 92% acceptance rate).

For weeks now (if not a whole month and a half!) the EPO has been 'spamming' universities in Europe on a daily basis, in order to help Battistelli's lobbying campaign (today was no exception [1, 2]). Both time and money may be running out. Talented workers are already leaving, causing brain drain that’s unprecedented in the EPO’s history. What will perhaps be left is just the job skill of using a rubber stamp, causing a copious lump of patents to come through with no quality assessment/control. That’s a nightmare scenario for the EPO’s reputation, on which has been based for decades. For the third time in one week the EPO does the unthinkable by inviting software patents. “At the EPO,” it wrote today, computer-implemented inventions must fulfil special patentability criteria. Learn more here!”

This is the third time in just a few days that the EPO tacitly promotes software patents in Europe. Remember that these are not legal in Europe (political decisions were made on patent scope more than a decade ago), but then again, under Battistelli the EPO is above the law anyway. Or so it claims. It just ignores court decisions against it, flaunting immunity. Is there any credibility left to lose? Is the EPO’s Twitter account signaling that the EPO will likely rubberstamp just about anything, including software patents (provided they’re written in some misleading fashion, as per the EPO’s advice)? This could become a threat to the very existence of the EPO. People won’t pay to receive (or renew) patents. The demand may go down. Prices (fees) likewise. What might be the impact on salaries?

“You should see the new issue of the Gazette,” one person told us, “a piece of Pravda-type propaganda…. interview with Battistelli, Lisbon with Battistelli… what is also interesting is that they have employed two more “investigators”…” (a subject we shall expand on another day).

So the EPO is apparently the embodiment of just one person, Battistelli, examiners that are treated like machine operators in an assembly line, and daily propaganda to keep those operators chugging along. No wonder a lot of smart people have decided to leave or retire early. They see the writings on the wall. Battistelli is just a liquidator, not a leader.

A new article by Andrew Chung, who wrote a highly misleading headline (unless his editor types the headlines, as is quite common) that we noted last night using a screenshot, is repeating Battistelli’s latest propaganda in a new puff piece (published 24 hours ago). It’s again misleading and we can’t help but wonder what Chung has been drinking (maybe more of that aforementioned Kool-Aid). Basically, Battistelli is riding the coattails of older patents. He ruins EP (European Patent) quality while hiding it using the accomplishment of his predecessors. This guy is so clueless about patents (his workers know far more than he will ever know), but Chung acts like some kind of Battistelli stenographer (reposted in other news sites) and the editor went with the headline “Europe issues better patents than U.S. – Europe patent boss” (as if the US is a good yardstick these days).

As realised by EPO insiders, Battistelli is demolishing the EPO as they once know it and he now lies to everyone, much to the pleasure of those who lie for him (here he is propped up by CIPA and other interest groups or publishers that are in bed with the EPO [1, 2, 3, 4]).

The article itself will probably help Battistelli’s lobbying (he likes to cite his paid “media partners” for support of his claims) and here is what it says:

Amid growing concerns by some U.S. lawmakers that federal officials may be granting patents that fuel abusive litigation, the head of the European Patent Office says his agency is producing better-quality patents than its American counterpart.

EPO President Benoît Battistelli said his office scrutinizes patent applications more closely than the U.S. Patent and Trademark Office, which he said results in patents that are more legally sound going out the door.

[...]

Battistelli, a French national who has led the EPO since 2010, said his agency has developed databases and search engines that allow it to perform the most comprehensive research on prior inventions that could lead to a rejection of a patent.

Unlike in the United States, he added, all patent applications are scrutinized by three officials, known as patent examiners, rather than just one.

This leads to a lower rate of granted patents, he said, but they are legally solid.

On the other hand, it costs roughly twice as much to obtain a patent in Europe, around 5,000 euros ($5,625), than in the United States.

Fact-checking Battistelli’s claims? Not needed. Just write down what a chronic liar says and call yourself a “Reuters journalist”.

This article was sent to us by several EPO insiders although we actually noticed it an hour after it had been published (we have an alerting system for all things EPO). Here is what a patent attorney wrote in response to a related discussion today:

On how to trade off quality and productivity, the USPTO and the EPO cannot meaningfully be compared. That’s because the EPO is master of its own house and the USPTO is not. Who makes the law of patent validity in Europe? The EPO’s Enlarged Board of Appeal. Who in the USA? The Supreme Court of the USA and it makes law that i) frustrates any USPTO drive towards productivity and quality and ii) encourages Applicants and their lawyers to obfuscate and work diligently away from clarity in the claims.

So of course Mr Spigarelli sees it all as very simple. Pure self-interest drives Applicants at the EPO to draft clearly. EPO separation of search and examination, and strict enforcement of EPC Rules by DG1, makes it imperative that i) from the outset, Applicant presents an exhaustive set of dependent claims and ii) DG1 searches them all, at the outset, exhaustively. That way lies both quality and productivity. Simples. But not yet at the USPTO.

Now that the USA is on a First to File system however, Applicant self-interest in that country will kick in, gradually to improve drafting in the USA and, in its wake, will come better quality and productivity. How so? Because the US will now find it has to ratchet up its “written description” requirement to somewhere near the EPO’s exacting Gold Standard for disclosure, in order fairly to judge issues of novelty, priority and added matter.

In response to this, one person wrote:

Improving patent quality flows both ways, with the quality of the drafted claims submitted for examination being an equally important aspect in the equation. The article mentioned situations where the examiners don’t understand the invention – that’s a clear indictment of the patent attorney who drafted the claims, isn’t it? A strategy of drafting overly broad claims and seeing what sticks is not helpful for anyone (other than the attorney charging fees to his client).

The examiners in the USPTO need more time, better IT support and investment to help improve the quality of their work. They are working hard in less than perfect circumstances and we should all support them. Sharing lessons learned with the EPO is a good start, but attorneys need to do their part too, IMHO.

Also in response to the above:

“The U.S. speakers mostly assumed a trade-off between the two goals of productivity and quality…snip…Alfred Spigarelli, European Patent Office (EPO), disagreed with the trade-off premise, and stated that at the EPO, a focus on quality results in productivity. He argued the ultimate goal is always quality, from which productivity flows.”

At the EPO, “Early Certainty” equals quality with timeliness. And timeliness increases productivity, since examiners are given targets on that. The trade-off is merely hidden and fully loaded onto the individual examiners’ shoulders.

“Professors Melissa Wasserman and Michael D. Frakes discussed their study which indicates that promoted USPTO examiners may generally grant more patents because of less examination time as they are promoted.”

At the the EPO, promoted and non-promoted examiners have the same examination time, but promoted examiners likely grant more.

Same here, same there, same everywhere …

Looking at another thread, this one new comment on “Early Certainty” reveals how insiders feel about the patent quality and overcapacity:

- Overrecruitment is discussed in internal FAQ’s on Early Certainty, but not in the external one, of course.

- Production demands for newcomers have always been inflating, as they doe for all other examiners on a yearly basis.

- Contracts for examiners: the numbers are in the Social Report published by the EPO.

We shall expand on that another day, possibly this weekend, due to lack of time. The above comments (the first three) were posted in response to coverage from an event that was mentioned here a few days ago. David Kappos, as we expected, used it to lobby for software patents again (he’d paid for that lobbying). Being like a corrupt official-turned-lobbyist, here is what he did: “Finally, David Kappos, former head of USPTO and current partner at Cravath, Swain and Moore, reviewed how the USPTO has historically worked on patent quality. He pointed out that the USPTO has been applying the changing standards and rules set by the courts. He stated that the U.S. Supreme Court’s Alice test is not a helpful flexible rule, but arbitrary and vague. He believes that the courts and USPTO are placed in a position of having to apply an impossible standard and should not be blamed for their application of said standard.”

This utter nonsense from Kappos, calling for decline in patent quality (like it was under his reign), comes at an interesting/strategic time when software patents are pretty much dead. There are few exceptions to that, as we mentioned here before, but in the vast majority of cases software patents drop like flies, even in bulk. Last night we mentioned articles like this one (cherry-picking of cases by the patent microcosm) and here we have a Microsoft advocacy site, citing Microsoft’s lobbying site, showing that Microsoft props up illusions of software patents resurgence, pretending they’re fine (they’re not). Remember that Microsoft is among the companies that pay Kappos to lobby along those lines. Here is what Microsoft has to say: “The U.S. Court of Appeals for the Federal Circuit yesterday issued an important decision strengthening the law related to software patent eligibility under Section 101 of the Patent Act. This ruling gives us useful guidance for determining which software innovations qualify for protection and helping provide greater stability to the U.S. patent system, a foundation for our digital economy. Erich Andersen, vice president and deputy general counsel of Microsoft’s IP (Intellectual Property) Group wrote a blog post expressing his views on this ruling.”

Well, as expected right from the start, patent law firms yank out their misleading jubilations because of McRO (one single patent!) [1, 2] and Gene Quinn generalises at Watchtroll, having ignored pretty much all the recent decisions which invalidated software patents (the cherry-picking or selective coverage tactic).

“What we see in the US is a dodgy system wherein the patent office is inclined to just grant everything, courts reject a lot of patents, and if Battistelli gets his way the EPO will be the same, inviting a lot of patent trolls, software patents that hamper innovation, and a lot more money for the patent microcosm.”In other news regarding patent scope in the US, “patented software” became the subject of an antitrust lawsuit, a drug patent of Teva got invalidated by PTAB [1, 2, 3], and USPTO examiners awarded another software patent (which courts would likely invalidate if ever scrutinised properly).

What we see in the US is a dodgy system wherein the patent office is inclined to just grant everything, courts reject a lot of patents, and if Battistelli gets his way the EPO will be the same, inviting a lot of patent trolls, software patents that hamper innovation, and a lot more money for the patent microcosm. So, are EPO patents better than US patents? Well, the old ones probably are, but Battistelli is going to change that. As a Conservative Neo-liberal he’s likely to just abuse science, just like his 'master' Sarkozy, who is now publicly denying climate science.

Battistelli and His Circle — Not Just Team UPC — Still Delusional About the Prospects of a Unified Patent Court (UPC)

Posted in Deception, Europe, Patents at 5:52 pm by Dr. Roy Schestowitz

Long nose

Summary: The crazy theory or baseless belief that somehow, somewhere, by some truly miraculous means, UPC will suddenly become a reality, damaging the whole of Europe for the sake of patent law firms

IT IS TRULY SAD to see that Team UPC and the EPO‘s President are still living in a delusional world, surrounding themselves only with equally delusional people (echo chamber/choir). They want us too to live in a fantasy, and maybe even believe that the UPC still has a chance. We refuted/debunked this fairy tale many times in July (after Brexit) and to quote a comment we’ve received this week, “Germany will not ratify the UPC treaty. Thus the project is dead.” It seems rather obvious, but when one has an agenda, reality has a distortion field. Unlike Team UPC, yours truly has no financial stake when it comes to the UPC. It’s just that the UPC is unjust, it is undemocratic, and it would render many patent examiners (i.e. scientists) redundant. The UPC is very harmful to Europe, even though it will never happen anyway. It’s just a lot of effort and resources down the drain.

Madman in chief Battistelli is still lobbying for the UPC. He never gets tired of this, having done so since before he was even a President at the EPO. “European Patent Chief Wants Post-Brexit UK In Unified Court” is the headline of a new article from Law 360 and some people are distorting this headline to suit their agenda (“EPO wants UK to ratify Unified Patent Court agreement despite Brexit” is not what the original said), equating the “EPO” with Battistelli as if it’s a one-person organisation (Battistelli has 0% approval rating at the EPO, so clearly his own workers strongly disagree with him). To quote Law 360: “The European Patent Office is urging the U.K. to ratify an agreement to create a Unified Patent Court system for the European Union, even though voters in the country passed a referendum to leave the bloc, EPO President Benoît Battistelli said Tuesday.”

Team UPC is desperately trying to float this dead project (Germany won’t ratify it) and Italian elements of this team speak up amid new reports like this one (“Changing places: why Milan should host a UPC central division court”). We have heard it before (about Milan as a theoretical substitute for London), but it’s not so suitable a substitute and it requires a massive overhaul of the UPC and what it stands for (not even renaming Milan “London” would shift all the skilled people to Milan). Found via Twitter was this firm of “Intellectual Property Consultants” (their own description) trying to convince us that the UPC is somehow coming because, in their own words:

Italian Parliament’s lower house passes ratification of Unified Patent Court Agreement

The lower house of the Italian Parliament has approved a bill on ratification of the Unified Patent Court Agreement, a passage through the upper house is necessary for final approval.

Yesterday the Italian Parliament’s lower house, the Chamber of Deputies, approved the draft law on ratification of the Unified Patent Court Agreement (UPC Agreement), with 302 votes in favour, 108 against and 25 abstentions.

The Unified Patent Court is the supranational tribunal that will eventually have exclusive jurisdiction on both European and unitary patents.

[...]

The Committee for EU Policy asked the government to consider the opportunity, within the United Kingdom’s Brexit process, of requesting that Italy forward its candidacy for the seat of the Unified Patent Court’s central division originally assigned London.

The bill must pass through the Italian Senate before final approval.

Several other Italian patents-centric firms want the UPC and spoke about it today. Why? Because it would pass Europe’s wealth into their pockets while retarding science, technology, medicine, etc. The Unified Patent Court is not about Europe but about some European lawyers. Not even all of them…

For reasons we laid out before, the UPC is almost certainly dead and unlike some others who deny it here’s one firm which at least acknowledges the role of Brexit in burying the UPC, probably in the whole of Europe if not just in the UK. “Netherlands ratifies #UPC agreement with press release noting uncertainty over Brexit,” says this tweet, linking to a Dutch article. Watch what Bristows (probably the most vocal among Team UPC) wrote about it a short while ago. Certainly, especially in the UK, the UPC is a dead (Trojan) horse and Bristows speaks of a “Great programme from BBC radio4 on Brexit’s impact on the #law including the #upc”

All this UPC lobbying is intended for Team UPC “to get what they want – the UPC in operation asap,” said a new comment today. This rightly speaks of “delusions of grandeur”:

I fear that delusions of grandeur abound. Much of the analysis (but not all) is based on how to get what they want – the UPC in operation asap. That seems to require the UK to sign up quickly, while the UK government is dealing with a Brexit scenario! There seems to be a lot of yes, yes but we are more important so the UK will act against its citizens’ mandate as that’s in our best interest. They may be surprised to hear that the UK government, irrespective of its personal opinion, is facing a new reality and may have reasons not to help them on this matter.
It astounds me that there is such a lack of appreciation for the changed framework. All those pushing for change and acceptance of change appear to be the least able to accept change when it involves them.

No matter what self-serving patent law firms are saying, the UPC (or the unitary patent) is basically dead in the water. They try to mislead the public and confuse politicians. They tried this on David Davis here in the UK (Bristows). It’s rude if not just pathetic. “UPC will not replace EPO patent opposition procedure,” one person wrote, “further view from pharma industry” in the Managing IP UPC advocacy events in France and Germany last week [1, 2, 3, 4]. These lobbying events with the EPO inside were filled to the rim with Team UPC. To quote one person: “Thanks @ManagingIP for an excellent #patent forum http://bit.ly/2bUxYpI including key updates from @EPOorg on #UPC + industry perspective” (lawyers are not an industry but a meta-industry).

These patent law firms are trying to perturb patent law to increase their profits (more damages, more lawsuits) and one such firm published Unitary Patent, Unified Patent Court, and “Brexit”, having noted (from the lobbying events) that “British EP patent attorneys probably in better position to represent at #upc than English solicitors!”

We expect the conspirators behind the UPC to rename and restructure it, maybe start from scratch or try to patch the whole thing in vain. They won’t know the impact/outcome of Brexit for years to come, so this is tremedously premature and they don’t even know whether to include the UK or not. It’s almost a non-starter.

Remember. Mark our words. The UPC will never happen, not under this name and not in this current form. It’s just reality distortion.

09.14.16

As Part of So-called ‘Reforms’, the EPO’s President is Gradually Eliminating the Boards of Appeal, Not Just Their Independence

Posted in Europe, Patents at 6:42 pm by Dr. Roy Schestowitz

Wim Van der Eijk (below), Chairman of the Enlarged Board of Appeal (EBoA) and EPO Vice-President of DG3, is said to be on his way out (giving Battistelli even more control/leverage)

Wim Van der Eijk

Photo from EPO.org

Summary: The EPO appears to be preparing for a post-examination (or very poor examination quality) era, heralded in part by the mistreatment of the Boards of Appeal, who are highly specialised workers akin to the Patent Trial and Appeal Board in the United States

THE EPO is an office like no other office, but WIPO is a close match because it too is unaccountable and it routinely abuses staff, which then has no legal/judicial recourse (we have posted several links to stories about it in our daily links this month and earlier today). Even independent judges are being mistreated by the EPO and are then subjected to mock ‘trials’.

Today, for a change, the EPO invited people to sign up to the blog (lies) of Battistelli, who is a chronic liar that is a textbook definition of “newspeak” (see the recent announcement about the exile of appeal boards). When the EPO isn’t busy 'spamming' universities for a lobbying campaign of the Battistellites at the expense of the EPO (this continued today [1, 2] with two more universities) it is busy pushing or retweeting glamousing dross about “European Patent Office @EPOorg President #Benoit Battistelli” (this is what people are seeing if they follow the EPO, it’s just a cult of a single monomaniacal person).

Battistelli’s own lobbying event is the only thing that these people can talk about (other than repeated mentions of some pages in the EPO’s Web site) and right now the UK-IPO helps the EPO further marginalise the boards (barrier to Battistelli’s God-like powers), citing a vacancy which we mentioned earlier this week.

“Registration for the “Boards of appeal and key decisions 2016″ conference closes tomorrow,” the EPO says, but how long will it be before the boards too get closed/shut down by Battistelli? Judging by articles we read (not just in English), there are no long-term guarantees in Haar and the isolation of staff there is bound to discourage job applications, never mind poor retention of existing staff. We foresee the EPO trying to replace the boards with the UPC — a subject we have been writing about for a number of years now.

“EU software patents [are] pushed with the establishment of a pan-European patent court,” Benjamin Henrion (FFII) wrote today, noting/highlighting again the correlation between the UPC and patent scope. We recently highlighted UPC lobbying by the EPO’s Margot Fröhlinger (as recently as last night) and we have been told by EPO insiders that their internal Gazette is lying about the UPC and other topics (more on that tomorrow; for now, see footnote 9 below). Here is what one person wrote today in a comment about Fröhlinger:

I am becoming increasingly concerned regarding the positions publicly espoused by Margot Fröhlinger.

I can agree with her position that “There are no guarantees in life so no one is sure if the CJEU will agree on the legality of UK’s participation if challenged”. However, what are we to make of the fears that she has voiced about the UPCA unravelling due to the CJEU being “politically insensitive”? That is, how else can those fears be interpreted other than as concerns that the judiciary will not provide a ruling that is politically convenient (for the executive)?

Further, indicating a belief that the CJEU will give “its blessing” to a revised UPC Agreement in which a non-EU Member State (i.e. the UK) participates can only be interpreted either as wishful thinking or an indication that undue pressure will be put on the CJEU to reach the “right” decision.

The fact is, the CJEU should be left to its own devices to decide whether any new UPC Agreement is consistent with EU law. I have my doubts about whether this will be possible. This is not least because I struggle to see how the CJEU could, in relation to a system established under EU law, give its blessing to the participation of a country that is not obliged to follow rulings of the CJEU. However, I do not rule out the possibility that a system could be devised that might genuinely be consistent with EU law. That is, unlike Ms Fröhlinger, I have no intention of pre-judging the outcome.

It seems that the EPO management in general (and not just the president) is in need of education regarding the different roles of the executive and the judiciary, as well as the importance of ensuring that one does not interfere with the other.

Whenever the EPO actively pushes for (if not lobbies for, inappropriately and unprofessionally) the UPC it shows rather clearly that it doesn’t envision a future with patent appeals. For what it’s worth, some insiders believe that examination (and thus appeals) is on its way out at the EPO.

“A different view on the relocation of the Boards of Appeal in Haar,” a short paper about the exile of the boards by Battistelli and his tyranny, was recently disseminated internally. In the interests of transparency we have decided to share it below:

Where have the Boards of Appeal gone?

The reform

With CA/D 6/16, the Administrative Council (AC) decided to create a new organisational entity, the “Boards of Appeal Unit”1 (BoAU). Comprised of the Boards of Appeal and the Enlarged Board of Appeal, including their registries and support services, the new unit shall be directed by a “President of the Boards of Appeal” (PBoA) to be appointed by the Administrative Council in accordance with new Rule 12a(1) EPC. Therefore, with effect from the 1st July 2016, DG3 has been disbanded and replaced by the BoAU.

The PBoA is to manage the Boards of Appeal Unit using functions and powers transferred to him by the President of the Office (PEPO) in an Act of Delegation2. In particular, the PBoA is expected to prepare resource requests to cover the needs of the Unit: the PEPO is then expected to provide the necessary resources (see new Rule 12a(2, 3) EPC).

The building

Although most stakeholders did not see any problem retaining the Unit in the Isar building, the PEPO insisted that relocation had to be included as part of the whole reform package in order to “improve the perception of independence”. In Part C of CA/43/16 Rev.1, the AC approved the principle of the removal of the BoA from the Isar building, but keeping them in the Munich area “in a location with good traffic links and appropriate accommodation standards”.

Although the first PBoA has not yet been appointed by the AC, nevertheless the Administration has been very active during the summer in defining the needs of the BoAU and identifying a “suitable” building in the location. Early in July, a few buildings in Munich were inspected for consideration together with representatives of the BoAU, but the Administration found none of them suitable. Shortly afterwards, Principal Director General Administration (PD44) publically announced that a suitable building had now been found and that the BoAU relocation was already scheduled to take place on 1st July 2017 to Richard-Reitzner-Allee 8 in Haar, a city of about 20 000 residents in the Munich hinterland. The chosen “8inOne” building was renovated by its owner to a “very high standard” in 2014, essentially following the concept of open-space offices. It has remained empty since then.

Not all details have been made public yet. However, it is a safe assumption that the rent should be much lower than in more desirable locations in Munich, although the building will have to be refurbished to accommodate individual offices, rooms for oral proceeding and other facilities and adapted to accommodate EPO IT systems. In order to amortise the costs of refurbishment, the contract would commit the Office to remain in the location for 15 years. This long commitment contrasts starkly with the hurried process of finalising the plans and then submitting a complete, formal proposal for approval in the October meeting of the Budget and Finance Committee (BFC).

The needs of the BoAU

This “rush to complete” is all the more problematic as the proposal doesn’t properly take into account the actual needs of the BoAU. The Boards themselves have expressed not only general concerns3 about the present situation; they also have concrete reservations on the suitability of the building for a proper functioning of the unit. To summarise, the Presidium concluded that the building will not offer enough space4 (or all the facilities) necessary for a proper functioning of the Boards and has informed the PEPO accordingly. For more details, [x] suggest that you read the publication5 by the Presidium. In a first response to addressing these problems, the President has decided to plan an additional two meeting rooms and to rent more space for a library in the basement.

The new reform of the BoA entails aspects of both perceived independence and performance improvement. It is obvious to us that the resources presently planned for the BoAU are woefully insufficient to produce the necessary improvements that will realise these goals since the working conditions are neither adequate nor appropriate for such judicial activities.

The needs of staff

From a staff perspective, the relocation would obviously be detrimental for the majority. Although the building is located outside Munich, perceived independence should not be confused with physical isolation. Besides, the offices are too small, the meeting rooms are too few, and the building has no other facilities or “social” rooms. It means that services normally offered to EPO staff in Munich (fitness room, Amicale room, medical and administrative facilities) won’t be available for EPO staff in Haar. Staff will be heavily impeded in availing themselves of these services if it means that they have to travel to the Isar building or to the Pschorrhöfe for them. The Administration already admits that the current canteen is too small to accommodate both EPO staff and staff from other tenants, not to mention visiting patent attorneys and the general public. As a workaround, they propose making use of local external outlets, but these appear to be insufficient and inadequate, thereby rendering the proposal impractical.

The Office praises itself for being a model employer offering numerous amenities to its employees. However, [x] can only conclude that staff at the Haar site would be disadvantaged when compared with their colleagues at Munich sites.

When this is combined with the conditions of employment resulting from the reform of the BoA (for example the limitations in the security of tenure6 , the capping of the career progression7 and increased constraints in post-service activities8), all these factors may prompt more active BoAU staff to retire earlier. With further reforms (pensions, etc.) expected to further worsen conditions of employment, all these changes will reduce the attractiveness of the BoAU as an employer and complicate (long-overdue) recruitment.

Consultation

Staff in the BoAU perceives the reform process as both intransparent and non bona fide. To date, the statutorily required consultation with staff representation has not taken place. According to PD44, the floor plan (“Raumbelegungsplan”) had to be finalised in August. In our view, this renders the probability of statutory consultation leading to any improvement in the reform as unpromising.

A vision

There appears to be no clear, long-term AC vision for the Boards of Appeal.

In the AC meeting of June 2016, delegations kept advocating a quick ratification of the UPC Agreement thereby creating a Unified Patent Court, although its setting-up now seems subject to increasing uncertainty due to Brexit. They appear to align with the PEPO in this respect9. Anyway, legal study concluded that the number of cases migrating from the BoA to the UPC would be a very modest one.

The number of unfilled posts in the BoA has significantly increased10 from 2014 on and this worrisome trend continues unabated. At the same time, the upward production trend in DG1 does not suggest that we should expect any decrease in the number of appeals in the future, assuming [x] maintain a constant quality in the decisions of the first-instance Examining and Opposition Divisions.

[x] wonder whether the AC delegations should realistically expect such an efficiency boost in the BoAU, with new procedures so streamlined11 that the BoAU can both master the caseload and reduce the pendency with reduced resources. [x] suggest they should reconsider their options before embarking on a relocation project which already does not seem future-proof.

Conclusion

By hastily preparing a proposal to relocate the BoAU from the Isar building into the Munich hinterland, the PEPO pre-empts an action that should be assigned to the PBoA, in accordance with new Rule 12a(3) EPC, for the sake of improved (perceived) independence. Furthermore, the building does not meet the needs of the BoAU and its users (patent attorneys and public) and therefore cannot be said to meet the goal set by the AC of “appropriate accommodation standards”. It further deteriorates the working conditions of staff in the Unit whilst at the same time committing the PBoA and the Office to a long-terms contract.

It remains to be seen whether the BFC (and the AC) will actually condone what could be seen as an original sin.

________
1Unit: “a single thing, person, or group that is a constituent of a whole; a part of a military establishment that has a prescribed organization as of personnel and materiel” (Merriam-Webster’s Learner’s Dictionary)
2 See Part II of Annex 3 of CA/43/16 Rev.1
3 See the “AMBA Statement on the Current Situation” on the AMBA site
4 It is unclear whether the rented net surface amounts to 10740 m2, as mentioned by PD44, or to 9089 m2, as calculated by the Boards. Presently, the Boards have roughly 13000m2 in the Isar building.
5 Unfortunately, access to this publication is presently restricted to the BoAU
6 see new Rule 12d(3) EPC
7 see new Article 11 ServRegs as amended in CA/D 8/16
8 see CA/D 5/16
9 See Gazette August 2016, page 11: “I don’t see any reason why the UK couldn’t still ratify the UPC.”
10 See page 4/72 of the social report CA/55/16 Corr. 1
11 Pursuant to new Rule 12c(1) EPC, the BOAC as an emanation of the AC adopts the Rules of Procedure of the BoA, instead of the Presidium in the older days.

More information can be found in this article (in German, accurate translations are desirable).

Regarding the President of the Boards of Appeal, it seems certain that Battistelli is going to replace and maybe even eject Mr. Van der Eijk. According to a source, “he’s to be replaced” after being flagged as “ill” for a conspicuously long time (we wrote about it last year). “I don´t know his whereabouts,” this source told us. We may post an update about this pretty soon. Some people speculated that he had been punished for disloyalty to Battistelli (which is very much warranted), but we could never ascertain/verify this claim.

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