Bonum Certa Men Certa

Outsourcing and Offshoring Patents for Extortion and Tax Evasion

Offshoring



Summary: Some of the latest examples of patent mischief and antitrust issues; the darker side of patents explored

THE most grotesque elements of both the European and north American patent systems would have to do with bypassing the law. Racketeering and tax evasion are apparently OK as long as patents are used to achieve these.

Apple, for example, is fast becoming like BlackBerry, which is trying to not look like a patent troll and is thus delegating the blackmail to another entity. This new report calls it outsourcing and notes that that "BlackBerry's exit from the device-manufacturing business was part of a broader turnaround strategy as the company worked to streamline its operations to focus on the more promising software and services market."

The patent extortion is now done from an external entity. Microsoft does the same thing.

As for Apple? It still does all the litigation directly, albeit it uses patents for 'legalised' tax evasion. They just make up the law. Widely used tricks of billionaires like Tim Cook are being used routinely. This is how an Apple advocacy site put it:

Reuters notes that Apple could be caught out by one provision in the bill. The bill introduces a minimum tax of around 13% on income from patents held overseas, and this could put an end to one method Apple has used to reduce its tax bill.


The original says:

The U.S. Republican tax overhaul passed by Congress this week will allow Apple Inc (AAPL.O) to bring back its $252.3 billion foreign cash pile without a major tax hit - a long-standing company goal.

Other provisions of the bill, namely the cut in the corporate tax rate from 35 percent to 21 percent, are also a big boon for Apple.

But not everything went the company’s way. A critical difference between the Senate version of the bill and the final version could actually raise the amount of cash taxes that Apple pays on profits from patents held abroad, tax experts said.


We already wrote a great deal about this (patents 'boxes' as a tool of corporate tax evasion in Ireland and elsewhere in Europe). There is even a new article about it in the Irish press.

What about those Apple fines in Europe? Or the notorious tax avoidance that Florian Müller wrote about last year? Will Apple ever pay? Will it just lobby like Microsoft did?

Qualcomm's fight with Apple was recalled by Müller at the start of the year when he wrote about the status of the case in the United States, Europe and Asia. To quote:

Ever since I can remember, no information and communications technology company has ever faced as many simultaneous and earth-spanning antitrust problems as Qualcomm: unilateral-conduct investigations by competition authoritities in the United States, Europe and Asia; thorough merger reviews of Qualcomm's proposed acquisition of NXP; and antitrust lawsuits brought by Apple in multiple jurisdictions. Then there's at least one other company (analysts believe it's Huawei) that stopped paying license fees. Some early-stage decisions made by federal judges in the Northern and Southern Districts of California didn't work out well for Qualcomm. It's losing the most momumental multi-front war any company in this industry has ever been embroiled in.

From the outside it's always easy to say: they should settle, especially since they can't realistically win. It's never a bad idea to promote peace, and here it's just impossible to imagine that all those regulators and judges and private parties are wrong and Qualcomm (plus Maureen Ohlhausen, the last woman standing in Qualcomm's corner) are right. But let's be realistic: there is so much at stake here that Qualcomm will most likely still be the first item on my list for next year's first blog post, too.


There's a legitimate antitrust element to it -- one that we covered here before.

It would be a shame if patents became famous for trolling, extortion, and anti-competitive practices. That is not what the patent system should be about.

Recent Techrights' Posts

Slopwatch: Anti-Linux Articles Published by Bots, Dominating Google News
So a lot of the Web is Microsoft chatbot-generated anti-Linux FUD
EPO Staff Representatives Confront the President Who Says 'F--king' in Front of Female Workers Over Measurable Discrimination Against Female Colleagues
Central Staff Committee versus Lukashenko's sponsor
 
They Will Never Leave Linus Torvalds Alone, Rust is Just Another Way to Cause Instability and Infighting in Linux
We already identified the Rust "community" as troublemakers more than 5 years ago and we wrote about the evidence
Moving Away From Certificate Authorities (CAs) Like Let's Encrypt Means Taking Away From the US Government the Power to 'Censor' Sites by Revoking Certificates
Gemini capsule is cheap to run and easy (easier than a Web site) to maintain. More people disillusioned and frustrated with social control media flock to it.
BetaNews' Managing Editor Wayne William Took Charge of GNU/Linux Articles and His Articles Are Real (He Actually Wrote Them)
We are frankly relieved to see that Wayne William recognised the problem and did something about it
Links 14/02/2025: Publicity Rights Violated (ByteDance), Bribes to Trump Passed via Social Control Media 'Settlements' Again
Links for the day
Gemini Links 14/02/2025: Constitution, Cosmic DE, and More
Links for the day
Links 14/02/2025: Measles Outbreak in Texas, Zelensky Warns Russia Will Attack a NATO Country
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, February 13, 2025
IRC logs for Thursday, February 13, 2025
Gemini Links 13/02/2025: gwit and Restart
Links for the day
Links 13/02/2025: Algorithm Bots and 'Teleport' Breakthrough
Links for the day
IBM Layoffs in 'RTO' Clothing Reported by Thomas Claburn
This "hey hi" (AI) nonsense is just a go-to excuse that IBM and GAFAM (and many others) use
Still Waiting for the EU to Abolish the Illegal and Unconstitutional Court Linked to EPO Corruption and Lobbyism by the Patent Litigation Industry
Sadly, all the blogs that used to talk about those issues have been infiltrated and then completely hijacked by the very perpetrators of the illegality
Social Engineering of the Free Software Movement is a Corporate Takeover With Code of Conduct (CoC) to Drive Out or Expel Dissent
Richard Stallman (RMS) covered "cancel culture"
Links 13/02/2025: Mass Layoffs at Google (Disguised as "Buyouts"), Telecoms Price Hikes as Collusion/Price-Fixing
Links for the day
[Video] Richard Stallman Questions and Answers Session in Google's YouTube or Invidious
From last night
Gemini Links 13/02/2025: Broken Watches and Naming Types
Links for the day
Corrupt Bill Gates Worming His Way Into Richard Stallman Videos in Google's YouTube
Reputation laundering riding other people's names?
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, February 12, 2025
IRC logs for Wednesday, February 12, 2025
Links 12/02/2025: Crytek Layoffs, Security Holes, and Giving Ukraine to Russia
Links for the day
Relaying GAFAM Talking Points and Lies Using GAFAM LLMs, or Slop Pasted in by Brittany Day
linuxsecurity.com is relaying slop, i.e. misinformation
Photos From This Evening's Talk by Dr. Richard Stallman in Torino, Maybe a Video Soon
The talk that Dr. Richard Stallman gave today (a few hours ago) was recorded and streamed
IlSoftware.it Covers Richard Stallman's Visit to Give Talks in Italy
The publication is in Italian, the talk was in English
Macho Patent Office
At the EPO there's always room for women in top roles
Gemini Links 12/02/2025: "Bream Gives Me Hiccups", Making Chinese Tea, and More
Links for the day
This is Why Codeberg Issues an Apology Today
This response was clear and relatively swift
The Register Studies (to Affirm) Reports of IBM Layoffs "at the Finance and Operations business unit"
something about that specific unit
Links 12/02/2025: SSL FUD, DEI Phase-out, Felonies Committed by MElon (Data Breaches)
Links for the day
Italian Media Covers Richard Stallman's English Talk Ahead of Tonight's Public Appearance
article in La Stampa
Destruction and Distortion of Information, Including Facts About Linux (Bonus: This is Destroying the Planet)
All that LLMs have going for them is hype, and moreover media that intentionally misrepresents them and their supposed capabilities
Google Seems to Have Just Killed All Instances of Invidious
YouTube is rapidly becoming just "another Neflix"
Microsoft Skype in a Freefall: About 20% Decrease in Site Traffic in 3 Months (Amid Microsoft Phasing Out Credits)
Microsoft axing more services/features may mean that now they scrape the bottom of the barrel and Skype will simply die, discontinuing service (like ICQ) in a matter of years
Gemini Links 12/02/2025: Depression, Gabbro, WikiTok, and More
Links for the day
Links 12/02/2025: Health, Security, and Monopolies
Links for the day
Gemini Protocol is Increasingly Important to the Net
Gemini Protocol will turn 6 this summer
Former EPO Manager Warns That the Illegal 'Court' for "Unitary Patents" Enables “Law Shopping”
Daniel X. Thomas opposed the very existence of the UPC, which any honest person could recognise was both illegal and unconstitutional
Like GAFAM, the EPO is Passing the Financial Pains to Staff
the EPO is operating illegally at this point
Morale at Microsoft Ruined by the Company Labelling Thousands of Workers 'Low Performers', Sacking Them on the Spot and Denying Them Basic Benefits
people laid off as "low performers" go to social control media to bemoan the label
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, February 11, 2025
IRC logs for Tuesday, February 11, 2025