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

Techrights Does Not Compete With LLM Slop, It Exposes the Bastards, Plagiarists and Scammers Who Do That
People like Scam Altman, still facing a lawsuit from his own sister for sexual abuse against her
Slopwatch: Planet Ubuntu Became LLM Slop and Some People Fail to See the Immorality of Plagiarism
it lessens the incentive for people to publish real articles
Microsoft Layoffs Again in Bay Area
Microsoft relies on people's false belief that being "in LinkedIn" will get you a job; well, seems like even working inside LinkedIn really sucks and you lose the job
 
The "AI" (Slop) Bubble Already Popped, But It's Not an Overnight Collapse
where Microsoft put its money
No More Steven Astorino at IBM, Chatter About Weekly/Nonstop Layoffs at IBM
What happened? Good luck guessing.
Looking at Corruption in Europe, Going Beyond the EPO
Expect a new series to kick off very soon
Slopwatch: Security SPAM and LLM Slop for SEO and FUD Purposes, Perpetually Tarnishing the Perception of Linux and (Open)SSH Security
A lot of this Fear, Uncertainty, Doubt (FUD) comes from Microsoft and its LLMs
Links 30/05/2025: Google's LLM Slop Pushers Are Killing Journalism and Shira Perlmutter Fails to Stop Bribed Regime From Legalising Plagiarism (in "AI" Clothing)
Links for the day
Links 30/05/2025: Offline Arts and "Threshold of Patience"
Links for the day
Signing Off Serious Lies With a Statement of Truth is No Joking Matter
It's not hard to see what's happening here
Links 30/05/2025: LLM Slop Already Ingests and Vomits Its Own Garbage, Facebook Exec Admits Copyrights a Concern Too
Links for the day
Mass Layoffs at Microsoft Result in More Whistleblowers From Microsoft
Microsoft's predatory pricing is further
EPO Poll: 68% Dissatisfied With Quality of Slop (Wrongly Framed as "AI") for Patent Classification
Slop does not work, it's just falsely advertised with extra hype (funded by slop pushers that sponsor the major media)
Big Crowds Gather to Learn About Software Freedom From the Man Who Started GNU/Linux in 1983
"It was a great success"
Gemini Links 30/05/2025: Fighting Against the Bad News, and Slop is Dehumanisation Disguised as "Intelligence"
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, May 29, 2025
IRC logs for Thursday, May 29, 2025
Links 29/05/2025: Chinese Cracking Against EU Institutions (Prague), More Assaults on Media and Its Funding Sources
Links for the day
EPO Workers Caution That the Officials Are Still Illegally Trying to Replace Staff With Slop (to Lower Quality and Validity of European Patents)
Nobody in Europe voted for any of this
Links 29/05/2025: US Health Deficit and Malware Disguised as Slop Generator
Links for the day
Links 29/05/2025: Turtle Roadkill, Modern 'Tech' as a Sting
Links for the day
Thanks for All the Fish, Linux Format
people who once wrote for it (or for other magazines) comment on the importance of this news
People's Understanding of the History of GNU/Linux is Changing
RMS is not a radical, he's just clever enough to see and foresee what's going on
Microsofters Were Scheming to Take Over This Entire Web Site (in Their Own Words!)
Money gets spent censoring/deplatforming people who speak about real issues; no money gets spent actually tackling those underlying issues
Bicycles for the Minds and the Story Harrison Bergeron
"The goal of having people in charge of the tools they use and that the tools should amplify ability" has long been abandoned
Links 29/05/2025: YouTube Problem and Giant Privacy Hole in Microsoft OneDrive
Links for the day
[Video] Cory Doctorow Explains DMCA: DRM in the Browser (or Webapp) Will "Make It a Felony to Protect Your Privacy While You Use It."
Pycon US Keynote Speaker Cory Doctorow
United States Courts With Sworn Testimonies Are on Our Side, We'll Present the Same Here
Chronicling what happened is a moral imperative
Serial Sloppers Ruin and Lessen the Incentive to Cover "Linux"
The Serial Sloppers (SSs) ought to be named and shamed, but almost nobody does this
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, May 28, 2025
IRC logs for Wednesday, May 28, 2025
Links 28/05/2025: 'Emulation Layers' (Measurements and Linguistics), Libraries, and Discomfort
Links for the day
Links 28/05/2025: More Arrests for Bitcoin-Connected Torture and Prosecutions for Dieselgate-Linked Executives
Links for the day
Even Microsoft (MSN) Covers Richard Stallman's Public Talk in Milan 2 Days Ago
He spoke in Spanish earlier this month (Alicante)
Gemini Links 28/05/2025: Techo-authoritarianism With Slop Plagiarism and "No Online June" (Going Offline)
Links for the day
Links 28/05/2025: GitHub MCP Exploited and MathWorks Discovers Huge Windows TCO
Links for the day
Very High Attendance Level at Richard Stallman's Talk Shows People Can Relate to His Message
Smear campaigns have their limits
Gemini Links 28/05/2025: Celsius-Fahrenheit, Endless Scrolling/Infinite Scrolling, and Trapping LLM Slop Bots
Links for the day
Prison gate backdrop to baptism by Fr Sean O'Connell, St Paul's, Coburg
Reprinted with permission from Daniel Pocock
More Photos From This Week's Milan Talk by Richard Stallman
The posts are in Italian, not English
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, May 27, 2025
IRC logs for Tuesday, May 27, 2025