Bonum Certa Men Certa

More Patents Would Mean More Tax Evasion for Large Corporations and More Taxes/Duties on Society

Money in post



Summary: The EPO's love-affair with abstract (e.g. software) patents is good news for those to whom quality/enforceability of patents doesn't matter, only volume (for cross-licensing, shakedown and tax evasion purposes)

THE 'plague' which is patent maximalism has truly invaded Europe and a cabal of clueless officials, very few of whom have any background whatsoever in the sciences, would only listen to large law firms, not local businesses that actually produce things. This is a problem. Policy is being shaped to increase the volume of litigation rather than innovation. Evidence-based studies aren't taken into account; instead it's all dogma. It's a 'brain virus'. The patent microcosm profits from it.



"Examiners at the EPO are smart enough to see what the management is doing. It's pressuring staff and compelling the examiners to grant software patents or risk getting sacked (a very high risk now that there are slow-motion layoffs)."As readers may very well know, 35 U.S.C. €§ 101 at the U.S. Patent and Trademark Office (USPTO) means that software patents are virtually if not practically verboten (courts would not tolerate these) and software patents in Europe aren't allowed or at severely restricted -- a simple fact that doesn't seem to bother former banker António Campinos, whose experience in this domain is about as limited as Battistelli's.

Nowadays the EPO allows patenting of software provided you use buzzwords. So says Marks & Clerk's Darren Hau (paid-for placement in Lexology), coming from a firm of software patents boosters. Hours ago he wrote:

In its annual update of the “Guidelines for Examination”, the European Patent Office (EPO) has provided further guidance for its examiners in relation to the patentability of inventions relating to mathematical methods and computer programs. This updated guidance is of particular relevance to inventions relating to the fast-growing field of Artificial Intelligence (AI). In part 1 of this article, we provide a summary of the key points from the updated guidelines that are relevant to AI inventions. Part 2 will follow, in which we will provide an in-depth assessment of the impact of the new guidelines on the patentability of AI inventions.

By way of background, the patentability of computer implemented inventions at the EPO has long been governed by the general principle of requiring a non-obvious technical solution to a technical problem, as established by the EPO Boards of Appeal in T0641/00 (COMVIK).

[...]

In summary, a claim to an AI algorithm based upon a mathematical or computational model on its own is likely to be considered non-technical. A simple recitation of a type of artificial intelligence model being employed, such as, a neural network, a support vector machine, or reasoning engine alone in the claims is unlikely to overcome such objections. However, restriction of the claim to a specific technical purpose and/or a specific technical implementation may impart technical character onto the AI algorithm and thus the invention may be considered patentable by the EPO.


Examiners at the EPO are smart enough to see what the management is doing. It's pressuring staff and compelling the examiners to grant software patents or risk getting sacked (a very high risk now that there are slow-motion layoffs).

"The more patents they get, the more 'tax returns' (or exemptions) they can get. Therein lies the recipe for a perfect blunder if not plunder."Who benefits from these patents? Certainly not Europe. Certainly not programmers, either. But it's all about law firms and their foreign clients, which include patent trolls from other continents.

Also in the week's early news there's this is a reminder that France facilitates tax evasion using patents or what's euphemistically being called "patent boxes"; this is costing billions to the British economy (lost tax), as revealed quite recently in annual figures, and it benefits rich corporations, not small ones. This new article has the details and from its relevant part:

Let’s be honest: France never was famous for its tax attractiveness. Its patent box regime, though quite modern when first enacted in the 1960’s, grew a bit rusty and rigid as compared to those adopted by our EU partners.

It turned out to be non-compliant with the latest OECD recommendations and, more specifically, with its conclusions under Action 8 of the BEPS action plan.

The latter advocated for the implementation of the so-called “nexus” approach, which correlates the benefit of the reduced tax rate applicable to profits derived from licensing, sublicensing, or selling patents and like assets to R&D expenses borne to create them. Surprisingly, such approach was absent from the French regime.

We, together with other tax practitioners and companies, strongly advocated for a thorough revision of the patent box regime. The current draft, unfortunately, suggests rather prudent changes and amendments.

First (and without much surprise), the draft bill proposes to adopt the nexus approach. Direct references to the OECD talks are made in the preparatory work of the bill. Going forward, the reduced rate will be directly correlated to the amount of R&D expenses borne by French taxpayers.

Luckily this regime will continue to coexist with the French R&D tax credit. In addition, the French government suggests expanding the scope of the regime to profits derived from the license or sale of IT software.

Up to now, these flows touching upon software fell out of the ambit of the French patent box regime (which, as its name suggests, was limited to patents and similar intangible property). Yet, patentable inventions would now be excluded from such regime.

One will regret that this regime was not modernized, notably by lowering the rate. The regime will quite certainly remain at 15%, whereas most EU countries have adopted IP tax regimes subject to 10% rates or lower.


So in the name of "tax attractiveness" they basically give tax cuts to the rich and then dress that up as "patents", saying that it's something to do with "R&D" -- a lie so commonplace that anyone with a clue would likely giggle rather than nod. The more patents they get, the more 'tax returns' (or exemptions) they can get. Therein lies the recipe for a perfect blunder if not plunder.

Recent Techrights' Posts

Biggest "AI Companies" (Meta, Alphabet, Microsoft) Borrowed (Additional Debt) About $100,000,000,000 in a Year
Who will be held accountable for all this?
In 2009 Microsoft Was Valued at ~150 Billion Dollars, Now They Tell Us Microsoft Lost ~1,000 Billion Dollars in Value. Does That Make Sense?
Or Microsoft lost 700 billion dollars in "value" in less than two weeks
Microsoft Stock Crashed When Alleged Vista 11 Numbers Disclosed
And last summer Microsoft indicated that it had lost 400 million Windows users
It's Not About Speed, It's About the Message (or Its Depth)
Better to write news than to just link to news if there's commentary that the news may merit
Mobbing at the European Patent Office (EPO) - Part IV - EPO Can Get Away With Murders, Suicide Clusters, and Systematic and Prolonged Bullying by 'Team Campinos' ("Alicante Mafia" as Insiders Call It)
Nobody in the Council or the EU/EC/EP gives a damn as long as laws are broken to fabricate 'growth'
Jeff Bezos Isn't Just Killing the Washington Post, He's Killing Thousands of News Sites/Newsrooms (in Dozens of Languages) That Rely on It for Many Decades Already
Not just slopfarms; even the Ukraine-based reporters are culled by Bezos, who's looking to please the dictators of the world
Central Staff Committee Confronted António Campinos for Giving His Cocaine-Addicted Friend Over 100,000 Euros to Do Nothing, Just Pretend to be Ill, While Cutting the Salaries of Everybody Else
"On the agenda: Amicale framework & Financial assistance for courses"
 
Links 07/02/2026: More White House Racism, "Europe Accuses TikTok of Addictive Design"
Links for the day
Silent Mass Layoffs: It's Not the Revolution, It's the Loophole and the Hack ("Low Performers" or "Underperformers")
Layoffs by another approach
Mark Shuttleworth (MS) Pays Salaries to Microsoft (MS) Employees
Canonical selling Microsoft
Links 07/02/2026: Windows TCO Rising, Lousy Patents Invalided
Links for the day
Microsoft Leadership: Stop Taxing Us, Tax Only Poor People
Does Microsoft create jobs?
In Case You've Missed It (ICYMI), Google's Debt More Than Doubled in a Year
Wait till it "monetises" billions of GMail users with slop
PIPs and Silent Layoffs at IBM (and Red Hat) Still Going on, It's "Forever Layoffs" (to Skirt the WARN Act)
American workers out
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, February 06, 2026
IRC logs for Friday, February 06, 2026
Stressful Times for Team Campinos ("Alicante Mafia") at Europe's Second-Largest Institution
Keep pushing
Growing Discrimination in the European Patent Office (EPO)
it's a race to the bottom, basically
Converting FOSDEM Talk on Software Patents in Europe Into Formats That Work for "FOS" and Don't Have Software Patent Traps
transcoded version of the video
Google News Drowning in (or Actively Promoting) Slopfarms Again
LLM slop is a nuisance
Gemini Links 07/02/2026: "Choosing a License for Literary Work" and "Social Media Is Not Social Networking (Anymore)"
Links for the day
Gemini Links 06/02/2026: Git and Email Patches; MNT Pocket Reform
Links for the day
Geminispace Net Growth in 2026 About a Capsule a Day
A pace like this means net gain of ~300 per year, i.e. about the same as last year
Benjamin Henrion Warned About the Illegal and Unconstitutional Unified Patent Court (UPC) in FOSDEM 2026
Listen to Benjamin Henrion
Economies Crashing Not Because of Slop Improving 'Efficiency' (That's a False Excuse) and 'Expensive' (Read: Qualified) Workers Discarded in Race to the Bottom
Actual cocaine addicts are pushing out moral people
IBM's CEO Speaks of Layoffs, Resorts to Mythical (False) Excuses
This has nothing to do with slop
Links 06/02/2026: Voter Intimidation and Press Shutdowns in US, Web Traffic Warped by LLM Sludge
Links for the day
Does Linux Torvalds Regret Having Dinners With Bill 'Russian Girls' Gates?
See, the rules that govern the Linux Foundation and its big sponsors aren't the same rules that apply to all of us
IBM: Cheapening Code, Cheapening Staff, Cheapening Everything
IBM's management runs IBM like it's a local branch of McDonald's. IBM is a junk company with morbid innards.
GNU/Linux Measured at 6% in One of the World's Largest Nations
Democratic Republic Of The Congo
Linux Foundation Operative Says We and Our Software All "Owe an Enormous Debt of Gratitude" to a Software Patents Reinforcer
The only true solution is to entirely get rid of all software patents
How to Win Lawsuits in 5 Simple Steps
Keep issuing threats every week and send 60 kilograms of legal papers to the target
More Than 99% of "AI" Companies Aren't AI, They're Pure BS
We need to discard those stupid debates about "AI" and reject media that gets paid to participate in such overt narrative control (manipulation like The Register MS)
AI Used to Save Lives, Now "AI" is a Grifting Scheme That Burns the Planet and Will Crash the Economy
What the media calls "AI" (it gets paid to call it that) is the same stuff that could instead be dubbed "algorithms"
Living in Freedom When 'False Flag Operations' Like EFF Get Captured by Billionaires to Take Freedom Away
There are many ways to think of Software Freedom
Amutable is a Microsoft Siege Against Freedom in GNU/Linux, Just Like the People Who Brought You 'Secure Boot' Controlled by Microsoft
Do whatever is possible to avoid Amutable and its "products"
Growing Focus on Publication
Over the past ~10 days we always served more than a million Web hits per day
"Going to be a large number of Microsoft layoffs announced soon"
Everybody knows a giant wave of layoffs is coming Microsoft's way
End of the 'GPU Bubble' and NVIDIA Finally Admits It Won't Bail Out Microsoft OpenAI Anymore
circular financing (financial/accounting fraud)
Corrupt Media Won't Hold Accountable Rich People for Role in Pedophilia
Journalistic misconduct or malpractice is a real thing
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, February 05, 2026
IRC logs for Thursday, February 05, 2026
EPO Management ("Alicante Mafia") Not Properly Sharing Information on Scale of Strikes by EPO Staff
disproportionate (double) deductions in salaries against people who participate in strikes, which are protected by law
Gemini Links 06/02/2026: Slop/Microslop, Home Assistant, and Valid Ex Commands
Links for the day
Blackmail evidence: Debian social engineering exposed in ClueCon 2024 talk on politics
Reprinted with permission from Daniel Pocock
Bitcoin crash: opportunity or the end game?
Reprinted with permission from Daniel Pocock
Changes at the Solicitors Regulation Authority (SRA)
SRA is basically a waste of money
Claims That IBM Will Lay Off 20% (or 15%) of Its Workforce This Year Unless It Finds a Way to Push Them All Out by Threats, Shame, Guilt
Where are the articles about IBM layoffs?
IBM Isn't a Serious Company Anymore, It's a Ponzi Scheme Operated by a Clique and It Misuses Companies It Acquires to Prop Up or Legitimise the Scheme
IBM seems like it's nothing but a "Scheme"
Google News Drowning in Slop About "Linux" (Slopfarms Galore)
Google should know better than to link to any of these slopfarms, but today's Google is itself a pusher of slop
Links 05/02/2026: EU Commission Gutting Net Neutrality
Links for the day
Gemini Links 05/02/2026: NixOS Books and Monochrome Emojis
Links for the day
Links 05/02/2026: Canadian Government Uses US LLMs to Override Expert Opinions, NVIDIA Troubles Due to Enablement of Mass Plagiarism ('Piracy') Misleadingly Obscured as "Hey Hi"
Links for the day
Explaining the Letter From JUDGE SYKES FRIXOU, Threatening Me Around the Time GNOME's Nat Friedman Lost His CEO Job at Microsoft GitHub and His Best Friend Got Arrested for Strangulation
this letter (with annotation) is critical
Linuxiac Not Rehabilitated, It's Still Full of LLM Slop (Part of a Trend)
The Web as a resource/source of information is perishing
"Sponsored by Azul" to Write Fake 'Article' About Azul, Quoting Azul Itself
The "journalism" industry [sic] became so utterly corrupt
JuristGate is for sale: three billion Swiss francs for a domain name
Reprinted with permission from Daniel Pocock
Like Microsoft and IBM, the 'Alicante Mafia'-Governed EPO Does PIPs Nowadays (at the EPO, It's "Professional Incompetence Procedure")
So "PIPs" are definitely in the EPO and we saw letters sent to staff
Time for Change, More New Articles, Less Curation
The oligarchy wants to gut the real press and replace media with slop and social control media (or social control media with slop in it, i.e. their own voices, mechanised)
Gemini Links 05/02/2026: Coercion, Antibiotics, and LVDT Project
Links for the day
Almost 1,600 EPO Employees Went on Strike Last Week
There is another strike coming 2.5 weeks from now
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, February 04, 2026
IRC logs for Wednesday, February 04, 2026