06.12.19

Gemini version available ♊︎

Leaked Financial ‘Study’ Document Shows EPO Management and Mercer Engaging in an Elaborate “Hoax”

Posted in Europe, Patents at 3:51 am by Dr. Roy Schestowitz

Purveyors of ‘fake news’ inside what’s supposed to be a scientific institution

How One Family’s Deep Pockets Helped Reshape Donald Trump’s Campaign

Summary: How the European Patent Office (EPO) lies to its own staff to harm that staff; thankfully, the staff isn’t easily fooled and this whole affair will merely obliterate any remnants of “benefit of the doubt” the President thus far enjoyed

THE EPO has been under a (soon) decade-long attack from Campinos and Battistelli, who not only integrated European software patents into their agenda (in defiance of courts and Parliament) but have also attacked the staff and misused EPO money (Campinos might soon give a lot of EPO money to Third Reich goons).

“SUEPO has been too patient with Campinos (strike postponed) in spite of him repeatedly showing that nothing will change, except for the worse.”As we recently mentioned here on several occasions, there’s a fake 'crisis' being manufactured/claimed (not the real crisis) to push so-called ‘solutions’. “The delicious propaganda by EPO top managers to middle managers,” a source tells us, can be seen in this Manager Toolkit (English) [PDF].

As it turns out, there’s already a response to it. “The aim is here disseminate false information and make the deteriorations — sorry, the “reforms” to soon come — more acceptable to joe-average EPO staff although these are new unjustified thus unfair cuts,” the source adds. Here is the position of the Central Staff Committee (CSC) on the same financial study.

Zentraler Personalausschuss
Central Staff Committee
Le Comité Central du Personnel

Munich, 07.06.2019
sc19081cp – 0.2.1/1.3.2

The Financial Study: Yet Another Hoax (part 4)

At the EPO financial studies tend to be a pretext for cuts in staff benefits. The
latest study by Mercer and Wyman is no exception. Our previous publications showed that the study deliberately underestimates expected income from fees as well as the return on cash reserves, and overestimates staff costs. The present publication lists these misrepresentations and adds some more.

Recapitulation

The 2019 EPO Financial Study by Mercer and Oliver Wyman assumes1 that:

- between 2018 and 2038 the EPO will not raise its procedural and renewal fees except once, by 4%, in 2020. For the remaining period the fees are assumed to remain constant (page 115). A correction for inflation is not foreseen.

- between 2018 and 2038 the national renewal fees on patents granted by the Office will remain constant (page 116). A correction for inflation is not foreseen.

in sharp contrast during the same period EPO salaries are assumed to increase at a rate of 2.24% above inflation (page 119).

- without providing any underlying data, the study assumes that the costs of pensions and other post-employment benefits (incl. tax compensation) will almost triple over the next 20 years (pages 66-67, page 123).

- The study foresees no further transfer of operational surpluses to the RFPSS, although with a 4.8% return above inflation over the last 20 years (6.3% over the last 5 years) the money would be well placed (RFPSS/SB 41/19, page 2, Fig. 3).

the study assumes that operational surpluses will not be transferred to the EPOTIF either (page 63). The EPOTIF was recently created with the very purpose of shielding EPO capital from inflation and is expected to deliver a return of 4% above inflation (CA/F 10/18 para.10).

- instead expected operational surpluses are assumed to be parked as “other financial assets” with an average annual return of between – 0.03% and 0.78%, i.e. well below the level of inflation2.

- as indicated above, over the last 20 years the RFPSS had a real return of 4.8%. The actuaries who evaluate the RFPSS assume a long-term return of 3.5%. The Financial Study assumes a return above inflation of only 2.1% (FAQs). This transforms today’s 104% coverage (CA/61/17 point 79) into a 2 billion euro gap in 2038.

This is a long list of extremely unlikely assumptions. There may be more, e.g. in the assumptions for the patent processes which we have not checked in detail. We also have doubts about the assumed 2 years increase in longevity (page 122) and the constant 53.87% non-examining staff “as percentage of job groups 1-4” (page 112). At present examiners make up about 64% of our total staff.

___
1 Unless otherwise indicated, the page numbers in the list refer to the Financial Study.
2 Financial Study pages 120 and 122; the return is not explicitly mentioned but can be calculated from the data in the tables.


What about an effort by the Office?

The EPO’s financial situation is excellent – maybe even too good3 – and this despite the recent high costs of the “New Main” building in The Hague and significant losses in IT.
The Financial Study nevertheless wants us to believe that the EPO faces a significant financial gap and that now is the time to do something about it by cutting costs, staff costs. But what about other costs? Is Mercer pointing at possible savings elsewhere? Are the Member States contributing to the effort? Is Mr Campinos leading by example – even if only symbolically? It doesn’t seem so.

The Mercer study assumes 600 million euro in building costs. The real sum may be as much as 1.14 billion euro (CA/43/19, Figure on page 32). Some building maintenance is indeed necessary. But part of the money is for one of Mr Campinos’ pet projects: creating glass-walled offices. Mercer does not comment on these costs.

Mr Campinos strategy document points to another – potentially significant – sink for EPO money: cooperation with the Member States4. The most recent figure that we have seen for cooperation costs is about 25 million euros per year (CA/19/15). Mr Campinos now proposes to “maximize the impact of cooperation” with a new model that will be “all-inclusive and equally open to all member states”. The Council delegates as heads of the national patent offices are all potential beneficiaries of these cooperation activities. For the President the cooperation budget is an efficient tool to reward member states that support him in the Council and punish those that don’t. So we expect the cooperation budget to increase considerably despite the allegedly bad financial situation of the Office.

Finally there is the annual Inventor of the Year event. The sums concerned are relatively modest by EPO standards – a few million euro at most. But is promoting one inventor over the other (with a possible impact on the value of the invention) compatible with the EPO remaining neutral in the exercise of its functions? And is it (to use Mr Campinos’ words) “handling significant amounts of taxpayer’s money with due diligence, due process and careful legal assessment”? We do not think so.

Conclusion

The 2019 Financial Study is a very plump attempt to justify a further reduction of staff benefits while the Office continues its spending. Staff is not fooled.

The Central Staff Committee

____
3 Art. 40(1) EPC stipulates that the EPO’s budget should be balanced. We question whether with an operating surplus of about 20% the EPO budget qualifies as « balanced ».
4 Read: cooperation with the national patent offices (NPOs).

“Make your own opinion,” the reader concludes, “who do you think lies here?”

Mercer (sponsor of sites like Breitbart) and professional liars like Campinos, who only a couple of years ago attacked staff at the EUIPO in the name of ‘cost savings’…

SUEPO has been too patient with Campinos (strike postponed) in spite of him repeatedly showing that nothing will change, except for the worse.

Share in other sites/networks: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Reddit
  • email

Decor ᶃ Gemini Space

Below is a Web proxy. We recommend getting a Gemini client/browser.

Black/white/grey bullet button This post is also available in Gemini over at this address (requires a Gemini client/browser to open).

Decor ✐ Cross-references

Black/white/grey bullet button Pages that cross-reference this one, if any exist, are listed below or will be listed below over time.

Decor ▢ Respond and Discuss

Black/white/grey bullet button If you liked this post, consider subscribing to the RSS feed or join us now at the IRC channels.

DecorWhat Else is New


  1. [Meme] EPO Legal Sophistry and Double Dipping

    An imaginary EPO intercept of Administrative Council discussions in June 2013...



  2. Links 21/10/2021: PostgreSQL JDBC 42.3.0 and Maui Report

    Links for the day



  3. [Meme] [Teaser] “Judge a Person Both by His Friends and Enemies”

    Fervent supporters of Team Battistelli or Team Campinos (a dark EPO era) are showing their allegiances; WIPO and EPO have abused staff similarly over the past decade or so



  4. 'Cluster-Voting' in the European Patent Office/Organisation (When a Country With 1.9 Million Citizens Has the Same Voting Power as a Country With 83.1 Million Citizens)

    Today we examine who has been running the Finnish patent office and has moreover voted in the EPO during the ballot on unlawful "Strike Regulations"; they voted in favour of manifestly illegal rules and for 8.5 years after that (including last Wednesday) they continued to back a shady regime which undermines the EPO's mission statement



  5. The EPO’s Overseer/Overseen Collusion — Part XVIII: Helsinki's Accord

    The Finnish outpost has long been strategic to the EPO because it can help control the vote of four or more nations; evidence suggests this has not changed



  6. [Meme] Living as a Human Resource, Working for Despots

    The EPO has become a truly awful place/employer to work for; salary is 2,000 euros for some (despite workplace stress, sometimes relocation to a foreign country)



  7. Links 20/10/2021: New Redcore Linux and Hospital Adoption of GNU Health

    Links for the day



  8. IRC Proceedings: Tuesday, October 19, 2021

    IRC logs for Tuesday, October 19, 2021



  9. Links 19/10/2021: Karanbir Singh Leaves CentOS Board, GPL Violations at Vizio

    Links for the day



  10. [Meme] Giving the Knee

    The 'knee' champion Kratochvìl and 'kneel' champion Erlingsdóttir are simply crushing the law; they’re ignoring the trouble of EPO staff and abuses of the Office, facilitated by the Council itself (i.e. facilitated by themselves)



  11. Josef Kratochvìl Rewarded Again for Covering Up EPO Corruption and the EPO Bribes the Press for Lies Whilst Also Lying About Its Colossal Privacy Violations

    Corrupt officials and officials who actively enable the crimes still control the Office and also the body which was supposed to oversee it; it's pretty evident and clear judging by this week's press statements at the EPO's official Web site



  12. [Meme] Sorry, Wrong Country (Or: Slovenia isn't Great Britain)

    Team UPC is trying to go ahead with a total hoax which a high-level European court would certainly put an end to (if or when a referral is initiated)



  13. How Denmark, Iceland, Finland, Norway and Sweden Voted on Patently Unlawful Regulations at the EPO

    We look back and examine what happened 8 years ago when oppressed staff was subjected to unlawful new “regulations” (long enjoyed by António Campinos, the current EPO autocrat)



  14. The EPO’s Overseer/Overseen Collusion — Part XVII: The Non-Monolithic Nordic Bloc

    We start our investigation of how countries in northern Europe ended up voting on the unlawful “Strike Regulations” at the EPO and why



  15. Proof That Windows “11” is a Hoax

    Guest post by Ryan, reprinted with permission



  16. Firefox Becomes as Morally Reprehensible as Apple, Facebook, or Uber

    Guest post by Ryan, reprinted with permission



  17. Links 19/10/2021: GNU dbm 1.22 and Godot 3.4 RC 1

    Links for the day



  18. [Meme] [Teaser] GitHub an Expensive and Dangerous Trap (Also: Misogyny Hub)

    The ongoing Microsoft GitHub exposé will give people compelling reasons to avoid GitHub, which is basically just a subsidised (at a loss) trap



  19. Norway Should Have Voted Against Benoît Battistelli's Illegal (Anti-)'Strike Regulations' at the European Patent Office

    Benoît Battistelli‘s EPO faced no real and potent opposition from Norwegian delegates, who chose to abstain from the vote on the notorious and illegal so-called ‘Strike Regulations’ (they’re just an attack on strikes, an assault on basic rights of labourers)



  20. Links 19/10/2021: Sequoia PGP LGPL 2.0+, Open RAN Adoption

    Links for the day



  21. [Meme] [Teaser] Benoît Battistelli, King of Iceland

    Later today we shall see how the current deputy of the head of the EPO‘s overseeing body was in fact likely rewarded for her complicity in Benoît Battistelli‘s abuses against EPO staff, including staff from Iceland



  22. IRC Proceedings: Monday, October 18, 2021

    IRC logs for Monday, October 18, 2021



  23. Links 19/10/2021: MyGNUHealth 1.0.5 and Ubuntu 22.04 Now Developed

    Links for the day



  24. [Meme] [Teaser] Thrown Under the Bus

    Tomorrow we shall look at Danish enablers of unlawful EPO regulations, Jesper Kongstad and Anne Rejnhold Jørgensen



  25. The World Needs to Know What Many Austrians Already Know About Rude Liar, the Notorious 'Double-Dipper'

    Today we publish many translations (from German) about the Austrian double-dipper, who already became the subject of unfavourable press coverage in his home country; he’s partly responsible for crushing fundamental rights at the EPO under Benoît Battistelli‘s regime



  26. The EPO’s Overseer/Overseen Collusion — Part XVI: The Demise of the Austrian Double-Dipper

    Friedrich ‘Rude Liar’ Rödler is notorious in the eyes of EPO staff, whom he was slandering and scandalising for ages while he himself was the real scandal



  27. Links 18/10/2021: Porteus Kiosk 5.3 and Ventoy 1.0.55

    Links for the day



  28. [Meme] [Teaser] More to Life Than Patents

    Greedy sociopaths oughtn’t be put in charge of patent offices; this is what’s dooming the EPO in recent years (all they think about is money



  29. Microsoft GitHub Exposé — Part II — The Campaign Against GPL Compliance and War on Copyleft Enforcement

    Microsoft contemplated buying GitHub 7.5 years ago; the goal wasn’t to actually support “Open Source” but to crush it from the inside and that’s what Microsoft has been doing over the past 2.5 years (we have some details from the inside)



  30. Links 18/10/2021: Linux 5.15 RC6 and 7 New Stable Kernels

    Links for the day


RSS 64x64RSS Feed: subscribe to the RSS feed for regular updates

Home iconSite Wiki: You can improve this site by helping the extension of the site's content

Home iconSite Home: Background about the site and some key features in the front page

Chat iconIRC Channel: Come and chat with us in real time

Recent Posts