Bonum Certa Men Certa

“The Stupidest [Patent/Tax] Policy Ever”

Ask her what she thinks of the status quo

Mariana Mazzucato
By Alex Taffetani. Own work, CC BY 3.0.



Summary: It's pretty clear that today's European patent system has been tilted grossly in favour of super-rich monopolists and their facilitators (overzealous law firms and 'creative' accountants) as opposed to scientists

Economists sometimes speak negatively and critically about today's patent systems, seeing how far patent scope has come and how much litigation this incurs. Only those with very deep pockets can endure and pursue real justice. The USPTO has been compelled to stop that, partly owing to 35 U.S.C. €§ 101. The European Patent Office (EPO), on the other hand, persists like there's no tomorrow and the sky is the limit when it comes to patent grants. António Campinos and Battistelli measure nothing but "products"; "quality" has come to mean speed (or pendency).



"This is often being done in Europe by companies that aren't even European!"Patents have moreover become an "asset" for legal departments and law firms, not scientists. Just check who's best served by them, especially in Europe.

In a new article/interview an economist called Mariana Mazzucato spoke of loopholes for tax evasion -- basically tricks that have made it "legal" for large companies with patent monopolies to not pay tax on large transactions. This is often being done in Europe by companies that aren't even European! To quote some bits: [via]

But a narrative of innovation that omitted the role of the state was exactly what corporations had been deploying as they lobbied for lax regulation and low taxation. According to a study by Mazzucato and economist Bill Lazonick, between 2003 and 2013 publicly listed companies in the S&P 500 index used more than half of their earnings to buy back their shares to boost stock prices, rather than reinvesting it back into further research and development. Pharmaceutical company Pfizer, for example, spent $139bn (€£112bn) on share buybacks. Apple, which had never engaged in this type of financial engineering under Jobs, started doing so in 2012. By 2018, it had spent nearly one trillion dollars on share buybacks. “Those profits could be used to fund research and training for workers,” Mazzucato says. “Instead they are often used on share buybacks and golfing.”

That posed an urgent, more fundamental problem. If it was the state, not the private sector, which had traditionally assumed the risks of uncertain technological enterprises that led to the development of aviation, nuclear energy, computers, nanotechnology, biotechnology and the internet, how were we going to find the next wave of technologies to tackle urgent challenges such as catastrophic climate change, the epidemic of antibiotic resistance, the rise of dementia? “History tells us that innovation is an outcome of a massive collective effort – not just from a narrow group of young white men in California,” Mazzucato says. “And if we want to solve the world’s biggest problems, we better understand that.”

[...]

Soon, she became a regular visitor at Whitehall, advising both Cable and Willetts on policies such as the Small Business Research Initiative, which funded small and medium enterprises, and the patent box, which reduced the rate of corporate tax on income derived from patents (which she calls “the stupidest policy ever”).

Mazzucato knew that to influence politicians she would need to do more than just criticise. “The reason progressives often lose the argument is that they focus too much on wealth redistribution and not enough on wealth creation,” she says. “We need a progressive narrative that's not only about spending, but investing in smarter ways.”


Patent policy as it currently stands needs reforming, but the EPO goes in the opposite direction. What it means by "reform" is making it worse, or making it more favourable to lawyers at the expense of scientists. Or programmers... after all, software patents are being granted in Europe in defiance of the law and against the will of actual programmers!

Notice how law firms refuse to speak out against software patents. They're complicit. Quiet this weekend at IP Kat, as usual, except the article "2019 updates to the EPO Guidelines for Examination" -- one of the latest such articles which we've mentioned lately (this blog is not the first to break down these changes).

"The exclusion of computer programs from patentability," a section further down the bottom, speaks of "the [guidelines'] section relating the patentability of artificial intelligence and machine learning." Rose Hughes speaks of what comes into effect in just over a fortnight from now:

The updated version of the EPO Guidelines for Examination is now available (here). The new guidelines come into force on 1 November 2019. The guidelines, as the name suggests, are a guide to the current case law and practise of the EPO and are not legally binding (see IPKat herefor a full discussion of legal precedent at the EPO and the role of the guidelines). The 2019 update to the guidelines incorporates some of the significant developments in the established case law of the Boards of Appeal. One key change to the guidelines this year is an update to the assessment of novelty of selection inventions. Other updates include clarification of the definition of “substance or composition” and a new section on the criteria of reasonable expectation in an assessment of obviousness for biotechnology inventions.

[...]

The patentability of software is another hot topic at the moment, and subject to its own referral to the EBA (IPKat: The patentability of computer simulated methods - another referral to the Enlarged Board of Appeal). The 2019 guidelines include some updates to the section relating the patentability of artificial intelligence and machine learning. In particular, the guidelines now clarify that “[t]erms such as ‘support vector machine’, ‘reasoning engine’ or ‘neural network’ may, depending on the context, merely refer to abstract models or algorithms and thus do not, on their own, necessarily imply the use of a technical means. This has to be taken into account when examining whether the claimed subject-matter has a technical character as a whole (Art. 52(1), (2) and (3))”.


But EPO created loopholes for these words and terms, e.g. buzzwords ("hey hi") and hype ("blockchains"), not to mention vague nonsense like "technical effect". So the EPO gets to pretend that it obeys the law while in practice breaking it with impunity. It's being justified using pseudo-novelty and obfuscation.

Things ought to change. But will they? Who has more 'lobbying' power? Captured media of the litigation 'industry' keeps gaming the news and setting up events with stacked panels. People like Mariana Mazzucato would not be invited.

Recent Techrights' Posts

Garrett Announces LibreLocal Instance in Northampton, Massachusetts (USA)
his message was the only one last month
Attacks on Techrights Make Techrights Stronger and Attract More Whistleblowers to Techrights
The harder they attack us, the more productive we become
An American War on GNU/Linux, Software Freedom, and British Investigative, Science-Based Reporting - Part III - Very Strong Legal Basis for an Appeal
The case is now being escalated to a Foreign Secretary and former Deputy Prime Minister
No Slop Found in RSS Feeds, Only in Google News
No slopfarm will survive for very long, certainly it'll go bust as soon as readers (if it had any) know what it is
 
Gemini Links 10/03/2026: Woods in UK, Slop Laziness, and "Small Technology and Small Economic"
Links for the day
Microsofters' SLAPP Censorship - Part 8 Out of 200: Gross Misuse of UKGDPR to Protect the Agenda of American Back Doors (Mass Surveillance)
Responding to bunk claims regarding UKGDPR and claims of 'analytics' in our sites
Links 10/03/2026: Oil Prices Rising, South Korean/US Military Assets Redirected
Links for the day
Links 10/03/2026: Rust Rewrites by Slop "20,171 Times Slower", "You MUST Review LLM-generated Code"
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, March 09, 2026
IRC logs for Monday, March 09, 2026
The Register MS Has Just Taken Money From Google (Where the Former Chief Editor Now Works) for Femmewashing and Ponzi Scheme Promotion
now The Register MS not only promotes a Ponzi scheme but also bags money to pretend Google respects women
People at IBM Are Still Smart Enough to Understand What's Really Going on
"I would never refer someone to work at IBM that I liked! I hope all of you have reviewed IBM on Glassdoor."
European Patent Office (EPO) to "Eventually Eliminate the Tasks Performed by Formalities Officers"; EPO Run by People Without Experience in Patents
full paper
RMS is 73 Next Week
Richard Matthew Stallman (RMS) turns 73 exactly 7 days from now
Iran & FSFE: blackmailing women, from football to the French Government (CNIL)
Reprinted with permission from Daniel Pocock
Police investigations, lawsuits & Debian leader election candidate shortage
Reprinted with permission from Daniel Pocock
Richard Stallman (RMS) Has Defeated Cancel Culture, a Mostly American Phenomenon
RMS is talking now
Links 09/03/2026: Many Security Breaches and a Pandemic of Censorship
Links for the day
People Who Work or Worked at IBM Hate It
bluewashing is only the first step
Richard Stallman (RMS) Talks in 30 Minutes, Next Stop Bern (Last Stop)
We assume he'll travel back to Boston after that
IBM's Fedora as a Booster of Slop Disguised as Code or Computer Programs
Maybe we should also stop seeing a doctor and instead ask chatbots about symptoms?
Richard Stallman (RMS) Talk Five Hours From Now
there is growing recognition for what he really did for everybody
What the Solicitors Regulation Authority (SRA) and Action Fraud UK Have in Common
Don't let London become the world's "crime capital"
EPO Strike 10 Days From Now, Planning Assembly Tomorrow, Last Couple of Strikes Had High Participation Rates (1,500-1,600 Staff Went on Strike)
The next strike is in 10 days' time and then there will be another strike
Dr. Andy Farnell on How GAFAM, NVIDIA and Others Lie to People Via the Sponsored Media to Prop Up Lies Under the Guise of "AI"
Lots of key aspects are covered
Links 09/03/2026: GAFAM Outsourcing, "MAGA Political Meddling" in EU, Indonesia Bans Social Control Media for Children Under 16
Links for the day
Using Slop (and Slop in Articles) to Attack Copyleft 'on Budget'
This article is pure BS from an anti-GPL and anti-RMS 'activist'
Why The Register MS Sold Out to Microsoft: They're Losing Lots of Money, The Register MS is Bleeding to Death, Based on Its Own Financial Records
With over 6 million pounds in debt (nearly 10 million US dollars) we guess it's likely some other company will take over the site (if it deems it worthwhile)
Microsofters' SLAPP Censorship - Part 7 Out of 200: Like With the Serial Strangler From Microsoft, Misuse of UK-GDPR to Try to Hide Embarrassing Facts
They do and say really bad things, then allege it's a "privacy violation" to mention those things
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, March 08, 2026
IRC logs for Sunday, March 08, 2026
Gemini Links 09/03/2026: Exponentials and Tailscale
Links for the day
Sloppyleft
Article by Alexandre Oliva
Hard to Replace 'Human Touch'
The reason many people insist on using GNU
Richard Stallman Gives Talk in 20 Hours at Ostschweizer Fachhochschule Campus in Rapperswil-Jona
The talk is in English
The Slop Companies Gamble at Our Economy's Expense and They Know It's a Losing Bet (So It's a de Facto Robbery)
The crash of this bubble isn't just inevitable, it's already happening and receding sporadically because of false announcements about money that does not actually exist (to "buy time")
Suppressing Speech by Blackmail, the Iran Story
When Debian wanted to stage a seemingly legitimate election it needed to have more than one candidate running; so eventually the female partner of a geek rose to the challenge (had no coding skills at all, no technical history in Debian) and lost to the "incumbent German"
Too Focused on Buzzwords the Media is Paid to Saturate the Collective Mind With
Just because companies do really bad things in the digital realm does not imply "AI" or follow from "AI"
Discrimination and Prejudice Against Female Journalists
we can shame people who attack a reporter on the grounds of gender
An American War on GNU/Linux, Software Freedom, and British Investigative, Science-Based Reporting - Part II - Trying to Put People in Prison for Committing the Act of Journalism
This is abuse of process
Attack on Copyright and Copyleft by Code Conversion Is Nothing New, It Predates Slop (Code Produced by LLMs) by Several Decades
Even back in the 90s many people converted programs from one language to another. That could invalidate copyleft (and copyright), which already existed
Almost a Slopless Weekend for "Linux"
Let's hope slop will come to an end or sites will cease linking to slop
Insiders Explain Why IBM is Dying and the Inherent Culture Problem
There are many ways to shave this IBM cat
Links 08/03/2026: Microsoft Lost $400 Million on "Project Blackbird" and Half the States Sue Over Illegal Tariffs
Links for the day
Links 08/03/2026: Cisco Holes Again and "Blatant Problem With OpenAI That Endangers Kids"
Links for the day
Activism/Journalism in Our Blood
one must fight for one's principles
Gemini Protocol in Its Prime
What's particularly neat about Gemini Protocol is that it's fast and cheap
Microsofters' SLAPP Censorship - Part 6 Out of 200: Intentionally Misnaming Women, People Who Offered to Testify That They Too Had Been Subjected to Similar Abuse
Today it is International Women's Day
Even Fedora Leadership Cannot Figure Out the Microsoft Kill Switch/Back Door, 'Secure' Boot
It does not actually enhance security
Bruce Perens: Richard Stallman "Has Achieved His Goal"
Stallman's next talk is tomorrow
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, March 07, 2026
IRC logs for Saturday, March 07, 2026