Bonum Certa Men Certa

European Digital SME Alliance: Unified Patent Court (UPC) “Unconstitutional”, Harms SMEs, Brings Software Patents to Europe, “Should be Based on EU Law and Not on an International Agreement.”

Another TTIP- or TTP-style behind-closed-doors agreement which infuriates those potentially affected (once they actually find out about it)

European Digital SME AllianceSummary: Position paper from a legitimate (not fake) group of SMEs blasts the Unified Patent Court (UPC) for being little more than a conspiracy of powerful businesses and other opportunists to work around the law, misrepresent SMEs, and undermine Directive 2009/24/EC (effectively a ban on software patents)

EARLIER this morning we wrote about the UPC in relation to misleading new propaganda from patent lawyers. The EPO has been lying to everyone, insisting that the UPC is legitimate and that it's somehow "for SMEs" when the reality is exactly the opposite, as a recent scholarly paper about SMEs served to show. Patent lawyers who play along with the EPO's propaganda are doing a lot of damage, but then again, remember that it's "damages" from which they profit. They want patent war. The more, the merrier. As for the EPO, it now pays obscene amounts of money to a PR firm from the US, which in turn pays to organise UPC propaganda events in the US (definitely not for European SMEs). It takes extreme gullibility/ignorance to fail to see what's happening here.



"It takes extreme gullibility/ignorance to fail to see what's happening here."When talking about SMEs we must remember that there are fake (AstroTurfing) lobbying groups of Microsoft, pretending to be fronts of SMEs (e.g. Association for Competitive Technology), but European Digital SME Alliance is not a fake one (members listed at the bottom of the statement below). As the statement states clearly: "The European Digital SME Alliance aims to ensure that ICT SMEs get talked to rather than just talked about."

The latter is what has been happening for quite some time. We mentioned this. The European Digital SME Alliance is based in Brussels and Benjamin Henrion, who is also based in Brussels (the EPO increases/maintains lobbying presence there), paraphrased [1, 2] the European Digital SME Alliance as saying "An EU wide patent system should be based on EU law and not on an international agreement [...] UPC rules of procedure are illegal, undemocratic, no parliaments, even unconstitutional in DE" (not exact words).

Here is the statement in full, extracted and edited based on the original PDF:

European Digital SME Alliance

4 April 2016

Position Paper on Agreement on a Unified Patent Court

Insufficient legal protection for digital SMEs



The European DIGITAL SME Alliance is concerned that the Agreement on a Unified Patent Court (UPC) will undermine the legal protection of software developers against lawsuits based on possibly invalid software patents. Under this agreement, companies may be convicted for an alleged patent infringement without first proving whether the patent in question is valid or not.

Threats to digital SMEs



The European software market is loaded with tens of thousands of software-€­related patents1. Patents can cover several features in a computer program. For small and medium sized software developers it becomes increasingly difficult to avoid those patents by using alternative means. The existence of software-€­–related patents is per se questionable: software is sufficiently protected directly or indirectly by the copyright law for computer programs under Directive 2009/24/EC.

More in general, the validity of software patents is quite uncertain when looking at the overall patent collection. More than 50 % of all oppositions or nullity procedures against software patents lead to a partial or total revocation of patents2. Thus, there is no basis for trust on the reliability and completeness of the patent granting procedure.

All SMEs in the software sector can be accused of patent infringement and receive an injunction by a court. This poses a constant threat to the companies. The defence against a patent infringement lawsuit is costly and can take years. This situation is worse in countries like Germany, where the proceedings for patent infringement can lead to an injunction even though the lawfulness of the patent in question has not yet been determined. Injunctions _______________ 1 The search for patents in the German Patent and Trademark Office containing the phrase „computer program“ in the patent claims led to 20.278 Hits on 10.11.2015.

2 http://www.epo.org/about-€­–us/annual-€­–reports-€­–statistics/annual-€­–report/2014/statistics/searches.html: In 2014, in opposition procedures at the European Patent Office in 31% of the cases, patents were totally removed and in 38% of the cases at least partially removed




force companies to withdraw their product from the market. Years after such injunction, when the SME has accumulated huge losses, a court may judge invalid the patent in question. Hence, companies that own large patent portfolios can use the threat of patent infringement lawsuit to undermine the competition of SME software developers in the market.

Creating a long-€­–lasting legal uncertainty



According to the Agreement on a Unified Patent Court, when ruling on an alleged patent infringement, the local and regional chambers of the Unified Patent Court will be empowered to decide in their own discretion, whether an objection for nullity of the patent shall be taken into account. The chambers will have different options:

(a) They can decide about a counterclaim for revocation together with the question of patent infringement; (b) they can suspend the patent infringement process until the nullity proceeding is ruled or (c) they can decide about a patent infringement without considering the question of nullity.

Thus, the agreement fails to establish a legal precedence for the clarification of the validity of patents. Should the agreement come into force, it would extend the German approach of a conviction without prior clarification of the legal situation to all participating countries. Worryingly, the choice of an international agreement as operational tool will make it very difficult to review the content of the agreement over the next decades, thus worsening the consequences and perpetuating the damage to SMEs in the digital sector.

Unconstitutional rules of procedure



According to the agreement, an administrative committee composed by representatives of the signatory countries will be alone responsible for setting up the rules of procedure of the new Unified Patent Court. The rules of procedure deal with numerous matters of the procedure that concern the procedural rights of the parties. The definition of this set of rules that regard the basic rights of the parties without democratic legitimation by the parliaments is, for countries like Germany, even unconstitutional.

Fragmentation of legal positions



Croatia, Poland and Spain are not signatories of this agreement.

The requests of the European DIGITAL SME Alliance



Digital SMEs need a European patent system that protects them from the attacks of owners of extensive portfolios often based on unlawful software patents. For small and medium sized software companies it is essential that the patent system prevent the implementation of questionable patents. Thus, the procedural law should ensure a complete examination of the patent, prior to the decision on conviction for an alleged patent infringement. An EU wide patent system should be based on EU law and not on an international agreement.




About the European DIGITAL SME Alliance



The European Digital SME Alliance (former PIN SME) is an association formed in 2007 to represent the interests of Europe’s ICT SME sector. Currently ten national and regional associations are members, representing tens of thousands ICT SME companies in Europe. The European Digital SME Alliance aims to ensure that ICT SMEs get talked to rather than just talked about. It provides a voice for ICT SMEs in the policy and business arenas and is already represented in several EU expert groups and taskforces.

Membership



BASSCOM – Bulgarian Association of Software Companies (BULGARIA), CNA -€­–Comunicazione e Terziario Avanzato, Confederazione Nazionale dell’Artigianato e della Piccola e Media impresa (ITALY), UKITA, United Kingdom IT Association (GREAT BRITAIN), CONETIC – Confederación Española de Empresas de Tecnologias de la Información, Communicaciones y Electrónica (SPAIN), BITMi – Bundesverband IT-€­–Mittelstand (GERMANY), GPNI – Groupement Professionnel National de l’Informatique (FRANCE), it-€­–forum midtjylland (DENMARK), SwissMedia – Swiss IT & Multimedia Association (SWITZERLAND), Belgrade Chamber of Commerce, IT Association (SERBIA), Vojvodina ICT Cluster (SERBIA), STIKK – Kosovo Association of Information and Communication Technology (KOSOVO), Balkan and Black Sea ICT Clusters Network (ALBANIA, BOSNIA AND HERZEGOVINA, BULGARIA, GREECE, MONTENEGRO, ROMANIA, SERBIA, KOSOVO, TURKEY, REPUBLIC OF MACEDONIA, UKRAINE)



The UPC basically mirrors what we find in TPP and TTIP. It's a corporate attack on democracy itself and it is falsely advertised to the public (if it's advertised at all). Protests may be needed and more antagonism from those affected is now imperative.

Recent Techrights' Posts

Fresh IBM Layoffs Reported in Europe and North America, Jobs Allegedly Moved to South Asia (Low Salaries)
As usual, IBM does not talk about this
Microsoft Has Not Much Left to Show Investors, Shares Fall Almost 20%
It's not even clear how Microsoft makes money anymore
The Fall of the Open Source Initiative (OSI): The OSI Election is Rigged, Biased Against People Who Oppose the Openwashing of GPL-Violating Bots Operated by Microsoft for Profit (OSI Gets Paid to Promote This)
they reckon that pretence of calm would serve them best, helped by puff pieces
In Vietnam, statCounter Sees Microsoft Windows Falling Below 7% "Market Share"
Can Microsoft still demand $500 or more per Windows licence?
 
Links 11/03/2025: NASA Besieged and "DOGE Has Become What It Claimed To Destroy"
Links for the day
Illuminating Injustice is Critical When Reckless Microsofters and Law Firms Try to Silence Reporters of Violence Against Women
I want to clarify that I'm well within my right (and not running afoul of any rules) by explaining what goes on here
EPO Central Staff Committee: "The Strategy of the Office Lacks Transparency and Cannot be Understood"
Microsoft and the EPO violate data protection laws
Links 11/03/2025: Spring and Misfin Server
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, March 10, 2025
IRC logs for Monday, March 10, 2025
Latvia (and Lithuania) Stepping Away From GAFAM, Microsoft
Windows becomes unessential as Android and GNU/Linux rise
Microsoft Layoffs Are Infectious (Don't Get Acquired or Become a Partner)
It seems like companies choosing to become "buddies" with Microsoft are dooming themselves and their products
A Closer Look Inside the EPO, Courtesy of Benoît Battistelli's Submissive Lapdogs Roberta Romano-Götsch and Elodie Bergot
new report comes from the Local Staff Committee Munich (LSCMN)
Links 10/03/2025: Staff Strikes, Mass Layoffs in Gaming Industry
Links for the day
Gemini Links 10/03/2025: "Eat The Rich" and Two-Year Anniversary of the 'Space Elevator' Orbit (Like 'Webring')
Links for the day
Links 10/03/2025: Small Web Praised, LLM Chatbots Exposed as Worse Than Useless Again
Links for the day
A Call for GNU/Linux and BSD Developers to Unite Against GAFAM and the Regime They Empower
We have long encouraged and continue to encourage people who value Software Freedom to altogether boycott GAFAM
The Ludicrous Mythology of Commonality as Signal of Value, Merit, Popularity
Devalue what's true, promote marketing?
[Video] Richard Stallman on the Four Essential Freedoms (Manuel Cuda News, 2025)
Added to a channel several days ago by Manuel Cuda News
Gemini Links 10/03/2025: Realisation About Young People, Punks, and Discord IPO
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, March 09, 2025
IRC logs for Sunday, March 09, 2025
[Video] Richard Stallman on Understanding the Misconception of So-called 'Artificial Intelligence'
to "know and understand"
FSF's Defective by Design (DBD): Amazon Tightens the Digital Handcuffs
Reproduced verbatim
The Fall of the Open Source Initiative (OSI): Plenty of Issues, Plenty of Censorship
The OSI is abusive on many levels!
EPO Staff Appraisals Apparently Benefit Kakistocracy, Including Cheaters Who Grant Illegal Patents and Punish Good Patent Examiners (Who Find Valid Reasons for Denials)
In prior reports the staff representatives said that rewards typically went to people who granted many patents, i.e. didn't do proper examination and instead just allowed many fake patents get enshrined as EPs, causing fiasco (from which some patent attorneys could profit)
As The Web Gets Drowned Out, Sinking in a Pool of LLM Slop, Real News Sites With Real News Become Increasingly Rare If Not Extinct
This is a real problem
Links 09/03/2025: Moderna Patents Thrown Out, Climate United Sues E.P.A.
Links for the day
Gemini Links 09/03/2025: Lagrange 1.18.5 and Writing Mannerisms
Links for the day
Links 09/03/2025: FiveThirtyEight Killed by Disney, Nature (Journal) Chooses Suicide by Slop
Links for the day
Links 08/03/2025: International Women's Day, Software Patents Being Squashed
Links for the day
Hiding Problems Doesn't Work
transparent organisations will be more stable and sustainable
The Harder They Try to Censor, the Bigger the Scandal (and the Impact) Will Be
We don't plan to self-censor our coverage; sometimes we just delay publication a little
Gemini Links 09/03/2025: Leasehold Derangement Syndrome, Raspberry Pi, and More
Links for the day
All-Time Low for Microsoft in Africa
it helps show how irrelevant Microsoft is becoming
French woman (frontaliere) trafficked to promote unauthorised cross border Swiss insurance
Reprinted with permission from Daniel Pocock
New York Times & Guardian reporting on Modern Slavery Act prosecution of Glodi Wabelua
Reprinted with permission from Daniel Pocock
Diana & Adrian von Bidder-Senn, EVP, Palm Sunday & Debian death on wedding day
Reprinted with permission from Daniel Pocock
The RTO (Return-to-office) Layoffs or 'Soft' Layoffs at IBM and Red Hat
There are certainly many layoffs going on there, but many are described as "resignations" or "retirements" after RTO or some other form of relocation
Under the Pen Name "John O'Donnell" (LLM Slop, Not Real Article or Author) LinuxLinks Pushes Spammy Page
it happened some hours ago.
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, March 08, 2025
IRC logs for Saturday, March 08, 2025