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

Dances With Wolves, Wakes Up With Fleas
Small minds say "td;dr" whereas the rest say, "give me information, give me time to study it"...
Garrett Does Not Just Try to Cover Up for Himself, He's Clearly Covering Up for His Mates From Microsoft (and Admits Third Parties Fund His Litigation, With Their Legal Bills Estimates Already Approaching $1,000,000)
They have already sent us about 75 KG of legal papers. How is any judge supposed to keep up?
Richard Stallman in the United States - Part IV - Back to Switzerland
The "cancel mob" tried to "finish off" RMS 5 years ago
Dr. Richard Stallman in Ada Lovelace Lecture Series 20 Hours From Now in Lucerne School of Computer Science and Information Technology (Rotkreuz)
Well-connected and affluent corporations want everything to be controlled by them, ranging from culture to words and news
GNU/Linux Seen as Rising to 20% in Eritrea, But That's statCounter Identifying "Unknown" as GNU/Linux
What if statCounter managed to figure out what all those "unknowns" are?
 
Under IBM, Some Fedora Blog Posts Have Become LLM Slop! (Red Hat is Doomed by Slop Fanaticism)
Who would even bother reading such trash?
Lots of People Leaving IBM Today
IBM cannot be trusted
LLM Slop Rare and Scarce This Friday
We still hope that by the end of this year slop will become nearly extinct
Defending British Democracy From American Predators
We stand united and strong in the face of predators
Links 06/03/2026: LLM Prompt-injection Vulnerability in Microsoft's Proprietary GitHub, "260,000 Federal Jobs Lost"
Links for the day
It's Friday and Many People Publicly Announce Leaving IBM (Which is Engineering 'Willful' Departures to Mask RAs' Scale)
We understand from whistleblowers that IBM already destroyed Red Hat's culture
Dr. Richard Stallman (RMS), the Man Whose Mind Scares GAFAM et al, Began Speaking in Switzerland
His ideas and ideals are not obscene
Gemini Links 06/03/2026: "Setting up the Feed" and Using Molly Brown
Links for the day
Links 06/03/2026: Can't Copyright Slop in US, Microsoft Became Slop Provider for Militarism
Links for the day
Threats Issued to Daniel Pocock Having Launched the JuristGate Web Site Which Covers Financial Fraud in "Legal Insurance" Clothing
Is our world governed by laws or by rich corporations (or nations/superpowers) with well-connected lawyers/politicians?
International Women's Day: At the EPO, for Women to Become Managers They Need to Sleep With Well-connected Men and Mingle With Corrupt Men
Sunday is International Women's Day
Dr. Richard Stallman Starts His Talks in Switzerland in 8 Hours
They try to assess how many people plan to attend to ensure everyone gets a seat (without compromising the privacy/identity of those attending)
IBM Red Hat Layoffs: It's Not About "AI"
"Automation" is not "AI", it's just a generic term which can describe jobs left for machines to do, sometimes computers
Microsoft Windows Used to be Identified on Over 99% of Web Requests From Benin. Now It's Around 50%.
Or a lot less
Microsoft 'Open' 'AI' Has Severe Financial Problems, Version Inflation ("GPT-5.4") is Mindless Hype and a Misleading Distraction
In practice, both users and sponsors of ChaffGPT are fleeing
The Techrights Static Site Generator (SSG) Turns 5 Next Year
It's still under active development in our Git servers
New XBox Boss (Sharma) Implicitly Confirmed XBox (the Console) is Now Dead
Vista 11 is now also known as "XBox"
Murder as a 'Joke' to GAFAM People (Sociopathy)
When it comes to Microsoft and Salesforce, they profit from this mentality
Microsoft ‘Project Helix’ is Just a Tweet in MElon's "X"
Some "tweet" is easy, as words are cheap
Microsofters' SLAPP Censorship - Part 4 Out of 200: Rianne’s Version of Events and Narrative
today we tell Rianne's experience
EPO Staff to 'Meet' This Coming Tuesday to Plan Industrial Actions Including Upcoming Strikes
using Microsoft spyware to organise this can be an own goal because Microsoft serves the dictators, not the union that tries to topple them
Thousands of EPO Workers Rally Against EPO Management
The staff is furious to see what became of the EPC and the EPO. This is not sustainable.
In Argentina Firefox is Measured at Only 1%, Google Chrome (Proprietary) at About 90%
And it has long been that way
IBM's March 2026 Layoffs Already Happening (to Accelerate Soon in Europe and America)
We're probably seeing some of the last years of IBM and it's anything but certain that IBM can survive the coming decade
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, March 05, 2026
IRC logs for Thursday, March 05, 2026
Gemini Links 05/03/2026: Industrial Panettone, Cancel, and LLMs
Links for the day
It's Not "AI", IBM is Collapsing Due to Financial Difficulties, "All Small Country Offices Will Close"
IBM is in trouble. Insiders know it.
"AI Companies" Running Out of Money, GAFAM Layoffs Are Signs of Weakness, Not "AI Efficiency" or Novelty
In the past, this term ("AI") had another meaning and connotation
Libel/Defamation Law Does Not Exist to Cover up Crimes
The projection tactics are nothing new
Myanmar/Burma: Growing Acceptance of GNU/Linux, Big Losses for Windows
GNU/Linux has come close to 5% there
Without IBM, Microsoft Would Not Have Taken Off. Both Companies Need to be 'Taken Down'.
Maybe it's time to boycott IBM as well
'Former' Red Hat Staff Upset That Techrights Covers IBM Accounting Problems
Are we touching a sensitive subject at IBM?
Ubuntu is Controlled by a Youngster From the British Army (Background in Mass Surveillance), So One Can Expect Ubuntu to Not Respect Privacy
"Canonical is aware of the legislation and is reviewing it internally with legal counsel"
IBM Hates Computer Freedom. This Means Red Hat Too is an Enemy of Software Freedom.
A summary of Fedora's position when it comes to "attestation"
IBM Union Says Many IBM Layoffs in Europe, With Netherlands and Belgium Confirmed, Allegedly Italy Soon (200 Layoffs)
IBM's demise will harm Red Hat and already harms Red Hat, according to whistleblowers
Microsoft and Microsoft's 'Open' 'AI' Seeking Bailout From the Pentagon Means Brand Erosion
Microsoft and its offshoots growing more and more dependent on military ("defence"; "Department of War") budget
Another EPO Strike a Fortnight From Now, Local Staff Committee Munich (LSCMN) Shares 127-Page Document Explaining How Policies Impact EPO Staff
The Office is circling down the drain
Microsofters' SLAPP Censorship - Part 3 Out of 200: A More In-Depth Breakdown
presents the narrative in a less chronological and more logically coherent fashion
2026 Seems Like (Potentially) the Last Year of Slop Drowning News Sites
Sites that do so perish [...] It's getting hard to find slop in news sites which cover "Linux" because many gave up
Links 05/03/2026: New LexisNexis Data Breach Confirmed, "Goldman Sachs Head During Financial Crisis Says He “Smells” a Similar Crash Coming"
Links for the day
"Silent Layoffs" or "Forever Layoffs" at IBM and Red Hat (After Bluewashing)
Like every day (all day long) we can see people who leave IBM and say something that's based on a 'script'
Free Software Foundation (FSF) and Others Promoting String of RMS Talks, Starting Tomorrow in Lucerne School of Computer Science and Information Technology
Well done, FSF!
Links 05/03/2026: A Bet Against Substack, American Government Openly Hostile Towards Environment
Links for the day
Gemini Links 05/03/2026: Greed and Sentiments Shifting Against Slop
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, March 04, 2026
IRC logs for Wednesday, March 04, 2026
FSF Promoting Richard M. Stallman (RMS) Talk in Switzerland in Just Over a Day From Now
RMS may have more talks on the way
Why Slop Will Flop - Part IV - We've Seen the End of It
Some years ago they insisted blockchains would revolutionise everything
Android is Proprietary 'Linux' and It Becomes More Malicious Over Time, Google Only Delayed What It Planned All Along
Google is a proprietary software giant, GSoC is only a distraction and confusion
Links 04/03/2026: Scam Altman Causes Chatbot Sub Numbers to Plunge, "Stocks Drop as Inflation Risk Emerges"
Links for the day
Why Slop Will Flop - Part III - Our Relationship With Slop (and Yours)
I never - except inadvertently - "used" an LLM-based chatbot
Why Slop Will Flop - Part II - Devil in the Details
News sites or social control media sites which tolerate slop are digging their own grave
Simpler Means Faster
Do you know your bottlenecks?
Gemini Links 04/03/2026: About a Missing Symbol and "Good Manners"
Links for the day
The Register MS Takes Money From Chinese Surveillance Threat to Promote a Ponzi Scheme
"Sponsored by Huawei."
Nicaragua's GNU/Linux Usage Measured at Over 8% by statCounter
Nicaragua is a poor country, but it also has rich culture
Why Slop Will Flop - Part I - Slop Fatigue Prevalent
See, sooner or later people (audiences of colleagues) find out and as soon as they find out you are slopping, they will lose interest
Microsofters' SLAPP Censorship - Part 2 Out of 200: Detailed Timeline From 2012 (Attack on Reporters That Question Restricted Boot) to 2024 (Lawsuit Against Reporter and His Wife in Another Continent)
we reproduce a document produced 2 years ago to give people more context and more facts
Links 04/03/2026: "The EU moves to kill infinite scrolling" and a call to "Nationalize Amazon"
Links for the day
Coming Soon: Evidence of Abuse in Our IRC Network
IRC's freedom can sometimes be its 'weakness' if not properly guarded
High GNU/Linux Adoption in Brunei Darussalam
It's worth noting (or at least noticing) that Microsoft loses ground in some of the countries where the government contracts paid the most
Media Blackout Reducing or Preventing Press Coverage of Microsoft Layoffs in 2026
Worse yet, there will be gaslighting and deceit
GNU/Linux in Laptops/Desktops Still Matters, It's Likely the Only Way to Achieve Software Freedom
Software Freedom requires all sorts of things at the "OS level"
Gemini Links 04/03/2026: The Garnet Star, The Hunt, The SYN Attacks
Links for the day
The EPO's General Consultative Committee (GCC) Discussion Illuminates How Much Worse Things Have Gotten ("on Strike and Participated in the 'Meeting'")
a videoconference - not a physical meeting - discussed EPO policies
Free Software Foundation Supports Its Founder, Advertises His Talks in Switzerland
When you suppress voices, assuming the reasons for suppression are bunk, it is always bound to backfire very badly
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, March 03, 2026
IRC logs for Tuesday, March 03, 2026