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

More Microsoft Cuts and Layoffs (Microsoft Media Mole Jordan Novet Tries to Float "Hiring Freezes" Spin After the "Headcount" Spin Failed)
As one might expect...
 
Gemini Links 15/01/2025: Abandoning Windows for GNU/Linux, SIS Progress Update
Links for the day
Links 15/01/2025: Social Control Media Spreading Lies, TikTok Banned in 4 Days
Links for the day
Microsoft Breaks Linux Again
Does it even care? It's selling Windows.
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, January 14, 2025
IRC logs for Tuesday, January 14, 2025
Links 14/01/2025: Vaccination Hesitancy Problems and Kangaroo Courts (UPC)
Links for the day
Gemini Links 14/01/2025: Introduction to GrapheneOS and Small Internet
Links for the day
Dr. Miriam Bastian From the Free Software Foundation (FSF) Gives a Talk in a Couple of Weeks at FOSDEM (Brussels, Belgium)
It's good to see people from all around the world and with very different backgrounds united around digital philosophy
Andy Farnell on Eating Your Own Dog Food
focuses on security but goes beyond that
EPO Uses the Misnomer "AI" to Attack Software Developers in Europe
The EPO is nowadays a huge pile of crimes
The European Patent Office’s (EPO) Communication on "Reform" is "Incomplete and Misleading," Says the Central Staff Committee at the EPO
This puts Europe at risk and makes it more vulnerable
[Meme] How to Lose Social Life (While Pretending to Still Have It)
Talk to people, not to microphones
Android (or AOSP) is More Free Than iOS, Both in Practice (as OEM Bundles) Both Are User-Hostile
In a perfect world, people would choose and deploy software that is entirely made up of reciprocally-licensed bits
Neuroscience of Consciousness Paper: Why Social Control Media and Proprietary Spyware Harm Your Health
"Software Freedom turns out to be good for your health"
Access to the Source Code of the Programs You're Using Matters (Even If You're Not a Coder and Cannot Fix Bugs)
Companies like Microsoft tell us that full access to all the code isn't important
Guardian Digital (linuxsecurity.com) Publishes Fake Articles About Linux and About (for) 'Linux' Foundation Openwashing
Brittany Day is at it again
Links 14/01/2025: LA Crisis and EU, UK Respond to "X.com" Threat From South African Oligarch
Links for the day
The Word About the Upcoming Talk by Richard Stallman - Scheduled for Friday This Week - Has Spread ("The Cost of Freedom," Lausanne, Switzerland)
So the word is spreading
"AI Music" is Not Music and It's Hardly "AI" Either
Synthetic garbage is a solution in search of a problem
Webspam in BetaNews
Not only is it marketing SPAM
[Meme] 13 Years a Slave of Microsoft
Might makes right?
Gemini Links 14/01/2025: The Gemtext Print Hurdle and New Game: Fill!
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, January 13, 2025
IRC logs for Monday, January 13, 2025
Links 13/01/2025: Conflicts, Prisoner Exchange, and Homes on Fire
Links for the day
Angola: Microsoft Windows Falls Below 10%
Microsoft has a really bad 2024 in Africa
[Meme] Twitter ("X") Has Been Grooming Radicals Since 2022
Musk's very own "grooming gang"
[Meme] What Free Speech Ought to Mean
It does not sound like RMS suggests anything other than quitting social control media
Gemini Links 13/01/2025: RestFest, Yule, and Deedum
Links for the day
Modern Web Browsers as Web Censorship Software
We continue to recommend Geminispace
Two Weeks From Now Dr. Richard Stallman Speaks at The Summit of Future 2025 (India)
he will be giving a "Keynote Address" in India
Microsoft is Tight With Money: It's About the Salaries ('Cost' of the Workers)
a question of cost, not skill
Google Got People Sort of Addicted to Android So It Can Cash in (Services, App Store, Advertising) Decades Later
This is not software freedom
The Free Software Foundation Reaches 370k Dollars in Funding, Due Date is January 17th When Richard Stallman is Guest of Honour in Lausanne (Switzerland)
Even fellow board members seem unaware of it
Record Lows for Windows (Microsoft) in Botswana
The market share of Vista 11 is seen as going down
Preserving Deleted Articles About Bill Gates Talking Like a Drug Dealer About Computer Users
Now it's 2025. Different challenge.
Links 13/01/2025: Disinformation, Social Control Media Actively Promoting Nazism, and Catchup With Ukraine
Links for the day
Microsoft Front Group Starts the Year by Championing Underage (or Child) Labour
the fake 'FSF'
TPM Boosters Inside Debian (TPM Isn't About Security, It is About Control Over Users and Their Machines)
We're not rushing to any conclusions
Aaron Swartz Died 12 Years Ago After a Vicious Government Campaign to Stop Him
The Aaron Swartz story is a reminder of the importance of having verifiable/verified information out there for the general public to see
Links 13/01/2025: GitLab Enshittification and Minimalism and Efficiency with Gemini Protocol
Links for the day
Links 13/01/2025: Hardware, Health, and Conflicts
Links for the day
Chatbots Are Not Data-Driven, They're Human-Censored and Rely on Wage Slaves (and Sometimes Unpaid Volunteers)
This is the Microsoft wage slavery
Microsoft Appears to Have Fallen to Only 15% in Maldives
This is a problem for Microsoft
Rumours of IBM Canada Layoffs
We'll keep a vigilant eye on this
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, January 12, 2025
IRC logs for Sunday, January 12, 2025