Bonum Certa Men Certa

EPO and Microsoft Collude to Break the Law -- Part XIV: When is a Conflict of Interest Not a Conflict of Interest?

Previous parts:



Bill Gates and Campinos



Summary: Could the EPO's increasing reliance on Microsoft involve a conflict of interest?

If Lewis Carroll's Humpty Dumpty had ever managed to visit the bizarre "Wonderland" of the EPO he might have been tempted to formulate a new riddle along the lines of: "When is a conflict of interest not a conflict of interest?"



"To begin with there is Microsoft's chequered history of data protection infractions, anti-trust violations and US FCPA investigations."The answer, it seems, is: "When it involves the EPO".

At any rate, this kind of paradoxical "logic" fits the bill when it comes to the EPO's increasing reliance on Microsoft as a provider of IT products and services.

The casual observer looking at the situation from the outside might reasonably conclude that there are a whole host of legitimate concerns including strong indications of an irreconcilable conflict of interest.

To begin with there is Microsoft's chequered history of data protection infractions, anti-trust violations and US FCPA investigations.

But even if one were inclined to ignore all that, there is a more fundamental problem.

To put it in a nutshell: due to the company's position as a significant player in the global IP arena, Microsoft's role as a key IT provider to the EPO seems to be tainted by an inherent conflict of interest.

The situation might not be so precarious if Microsoft was simply a purveyor of computing hardware or a vendor of client-end data processing software for on-site data processing under the control of the EPO.

But the company's role at the EPO has now expanded far beyond that to the provision of cloud-based data processing services, including the processing of much if not all of the EPO's internal communications via Outlook, Microsoft Teams and Skype for Business.

What we have here could be described in simple terms as the large-scale export of operational data, including internal e-mail and video-conferencing communications, from the EPO to an external data processing infrastructure owned by and operated under the control of Microsoft.

It doesn't need an MBA from the Harvard Business School to realise that placing such sensitive internal operational data directly into the hands of a significant player in the global IP arena is a highly questionable undertaking.

Based on its track record to date, EPO management will undoubtedly defend its actions by arguing that Microsoft can be trusted to "do the right thing".

Microsoft will undoubtedly "do the right thing". The only question here is "the right thing for whom?"

Remember that we are talking here about a private for-profit business corporation with a well-documented track record of engaging in anti-competitive practices and other ethically dubious activities. Can any sane person be realistically expected to trust a company with such an egregious track record of data protection infractions, anti-trust violations and US FCPA investigations?

There should be more than enough warning signs here to set off alarm bells in the competent centres of oversight and governance. However, going by Steve Rowan's recent communiqué, nobody in the upper echelons of EPO management seems to be particularly worried.

Unfortunately, past experience over the last decade and a half has shown that the EPO doesn't deal with conflict-of-interest situations very well.

The rot seems to have really set in (for good) back in 2009 when the Administrative Council voted to appoint its then Chairman, Battistelli, as the executive head of the Office. At the time in question, Battistelli was an elected representative for a political party in France, which should have automatically disqualified him from holding such a position in an international organisation. But the Administrative Council remained oblivious to this glaring conflict of interest.

According to the internal EPO rumour mill, Battistelli had his successor as Chair of the Administrative Council, the Danish delegate Jesper Kongstad, quite literally "in his pocket". Kongstad reportedly received a secret "emolument" from Battsitelli's HR department in the form of the equivalent of an EPO principal director's salary -- a generous monthly tax-free sum of five-figure proportions.

One of Battistelli's first moves as President of the Office was to procure the abolition of the independent Audit Committee which reported directly to the Administrative Council.

It's highly ironic that one of the intended functions of the Audit Committee was to advise the Administrative Council about potential conflicts of interest. Now that it has been disbanded, there is no longer anybody around to warn the Council.

Given this background, it's not really surprising that the increasing reliance of the EPO on Microsoft as an IT provider hasn't generated any visible concern in the ranks of the organisation's senior management and governance bodies.

Microsoft bribe
Did "foreign corrupt practices" play a role in the award of EPO contracts to Microsoft? The opacity of the tendering process makes it difficult to give an answer to such questions.



Another remarkable aspect of the present case is the total opacity of the process that led to the award of the contract or contracts for cloud computing services to Microsoft.

It's not clear how much these contracts are worth and whether they were put out to public tender, or whether they were allocated by "direct award".

We also don't know who exactly was responsible for the internal vetting of these procurement decisions, although it seems fair to assume that they were ultimately approved and signed off by the President of the Office, António Campinos.

Whether or not Campinos was properly advised in the matter is of course a completely different question.

Readers of Techrights may recall that back in 2015, reports were circulating ([1] and [2]) about a programme of "closer cooperation" between the EPO's senior management and some of its leading corporate applicants, in particular Microsoft.

This arrangement attracted a lot of criticism at the time and many people quite rightly questioned whether it was appropriate for the EPO to be engaging in what amounted to a favourable treatment of large multinational corporations like Microsoft.

The recent expansion of Microsoft's business relationship with the EPO has caused some people to speculate about whether the latest developments might not have been influenced by a further programme of "enhanced cooperation" involving "foreign corrupt practices".

It is important to emphasise that there is currently no hard evidence of any "kickbacks" or "slush funds" operated by Microsoft at the EPO. For the moment, any such suggestions are based purely on speculation.

On the other hand, Microsoft's well-documented track record in other jurisdictions means that such speculation cannot be dismissed as completely off the wall.

Cxcel issue
The EPO is plagued by an entrenched culture of opacity and non-accountability which makes a credible investigation into suspected irregularities almost impossible



However, the problem here is that the EPO is plagued by such a deeply entrenched culture of opacity and non-accountability that if these procurement decisions had in fact been tainted by corruption, it is highly unlikely that this would ever be investigated and exposed, especially if any members of the senior management were involved.

It is doubtful whether the EPO's internal investigative procedures are really fit for purpose in such cases, and there is no external anti-corruption agency which would be competent to take appropriate action.

To sum up, we are left with a situation in which procurement decisions have been made at the EPO which effectively place sensitive internal operational data directly into the hands of an external IT service provider based in the US and subject to the laws of that jurisdiction -- including the US CLOUD Act of 2018.

In addition to this, the IT service provider in question happens to be a significant player in the global IP game.

At the same time, none of those who bear the ultimate responsibility for these procurement decisions seem to have the slightest concern about what appears to be a clear-cut case of a conflict of interest.

As Lewis Carrol's Alice might have said, "curiouser and curiouser!"

In the final part of the series we will consider whether the EPO's increasing reliance on cloud computing services hosted by Microsoft has effectively led to a sell-out of the organisation's "digital sovereignty".

Recent Techrights' Posts

EPO Strike a Week From Now, After That Strikes Can Become Permanent
A week from tomorrow there will be another strike
Your Site Should Implement Its Own Search (Before It's Too Late)
GAFAM was never trustworthy
 
Streisand Effect and Justice
This weekend this site has served over 8 million Web requests
Gemini Links 22/03/2026: "Woman of Tomorrow" and "First Steps in Geminispace"
Links for the day
SLAPP Censorship - Part 19 Out of 200: They Were Ill-prepared for Tough Questions in Cross-Examination
Very ill-prepared for the deteriorating situation caused by their clients' past behaviour towards many people, including high-profile figures who offered to testify
The Media Sold Out to Slop Bros
If you wish for the hype to stop, then stop participating in it
The Only Non-IBM Staff in Fedora Council/Leadership Attacks Booting Freedom (Just Like the Master Wants)
Last week IBM laid off almost 1,000 people in Confluent and the media didn't write anything about it, so don't expect anyone in what's left of the media to comment on Fedora's demise and silent layoffs at Red Hat
Just Like a Founder of XBox Said, Microsoft XBox is Collapsing, Management Continue to Jump Ship
Nowadays Microsoft tries to promote this idea that Windows is XBox and XBox is Windows
Links 22/03/2026: Slop Triggers Emergency at Meta, Energy Prices Rise Sharply
Links for the day
Links 22/03/2026: Microsoft 'Open' 'AI' in Legal Trouble (Plagiarism, Distortion, Misrepresentation); Facebook/Meta Kills Off "Horizon Worlds"
Links for the day
Racism Dressed Up as "Choice"
Racism is rampant at IBM
Probably an All-Time Record
Our investment in our own SSG is paying off
Gemini Links 22/03/2026: LLM Slop Attacks USENET, Announcing Pig (New Game in Gemini Protocol)
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, March 21, 2026
IRC logs for Saturday, March 21, 2026
SLAPP Censorship - Part 18 Out of 200: Third Parties Funding Attacks on the Messengers, Lawsuits Against GAFAM-Critical Voices That Uphold Real National Security
Women are like kryptonite to them
Never Trust People Who Write Their Own Wikipedia Pages (Vanity Pages About Themselves) or Ask Friends to Do So. Also: Jono Bacon is Married to Microsoft.
We'd hardly be the first to point out Wikipedia isn't what it seems
No Tolerance for Attacks on Family Members
Being a Free software activist ought not lead to "collateral damage" like attacks on family members, including doxing
Sirius Open Source is Just a Zombie Firm With Shell Entities
Many companies fake their health and their size
Communities Can Only Survive When Trust Prevails
PCLinuxOS is still a vibrant and authentic community
Techrights Was Always a Community Site
The harder we're attacked, the more people participate in the site
Maintenance Reminder
We'll carry on publishing
Behind the PR Smokescreen and Microsoft-Sponsored Chaff, Microsoft Layoffs in "AI" Alleged This Month
In an age when ~1,000 simultaneous layoffs aren't enough to receive any media coverage, what can we expect remaining publishers to tell us about Microsoft layoffs in 2026?
EPO "Cocaine Communication Manager" - Part VIII - Mobbing and Silencing of Dissenting Staff
that's the very cornerstone of functional democracies with real opposition parties
Bluewashing at Confluent: Some Workers to Leave Within 3 Months (IBM Mass Layoffs)
Is the "era of AI" an era when none of the media will mention over 800 layoffs? [...] There's a lesson here about the state of the contemporary media, not just IBM and bluewashing
Microsoft OpenAI, Drowning in Debt and Forced to Make Significant Cuts (as Reports Reveal This Month), Does Hiring Disguised as "Takeovers" to Fake Value or Alleged Potential
Remember what happened to Skype last year
Reader Shares Recent Memes on Slop and 'Coding' by LLMs
"just some funny memes I thought were relevant to current coverage."
Slop Does Not Replace Art, It Contaminates Everything With Reckless Nonsense
many Computer Scientists do not want programs to get contaminated by slop
Coders Don't Just Reject 'Vibe Coding' Because They're "Luddites", They Just Know the True Cost of Slop
if some programmer says slop sucks, don't rush to assume selfishness or defence of one's occupation
When Nobody Else Covers the News
There's an obvious "media blackout" regarding the mass layoffs
Links 21/03/2026: David Botstein Dies, Slop as Censorship Apparatus
Links for the day
Links 21/03/2026: Metastablecoin Fragmentation and Crescent Moon
Links for the day
Gemini Links 21/03/2026: Historic Ada Docs; The Lurking LLM on the SmolNet
Links for the day
HSBC the Latest Failed Bank Using Slop as Excuse for Its Financial Failure
"HSBC is planning on cutting as many as 20,000 jobs in the near future as the company allies with AI revolution."
Invitation to General Assembly After 1,200 EPO Workers Participated in the Demonstration 3 Days Ago
"the strike of 19 March was also very well followed."
A/Prof Susan G Kleinmann, Enkelena Haxhija & Debian-private risk to MIT
Reprinted with permission from Daniel Pocock
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, March 20, 2026
IRC logs for Friday, March 20, 2026
SLAPP Censorship - Part 17 Out of 200: A Long Track Record of Online Abuse, Then Choosing a Low-Cost Law Firm to Muzzle People Who Have Illuminated This Abuse for Over a Decade
Censorship by targeting ISPs and webhosts isn't unprecedented
Plagiarism in "Linux" Clothing (LLM Slop in linuxiac.com, LinuxTeck.com, and linuxsecurity.com)
The net effect of those slopfarms is very negative
Links 20/03/2026: Facebook Weaponised Politically, Openwashing by LF and NVIDIA, Encyclopedia Britannica Sues Microsoft Proxy for Plagiarism
Links for the day
The EPO's Local Staff Committee Munich (LSCMN) Explains to the Administrative Council (AC) How Bad Things Have Become at Europe's Second-Largest Institution, Biggest Patent Office, and Corruption/Cocaine Hub (Jobs Sold to Friends)
We'll say a bit more tomorrow
IBM's Red Hat Diversity: Only 3 Women (Out of 11 Leaders)
For comparison's sake, the FSF is about 50% female
Symptom of Publishers Dying: They Move to Adopt Slop. Symptom of Software Companies Dying: They Move to Adopt Slop ('Vibe').
It'll always fail. It's hype. It's a bubble.
Under IBM, Red Hat Replaces Code With LLM Slop, Fedora is Slopware
Not even hiding it, those things are in plain sight
Gemini Links 20/03/2026: Depictions of Culture and The Social Smolnet
Links for the day
SimilarWeb Was Never a Reliable Yardstick for Traffic
5RB may need some "house-cleaning"
Strangulation, suffocation, Jonathan Carter & Debian toxic culture confirmed
Reprinted with permission from Daniel Pocock
Reports or Hearsay Suggest Ogilvy Broke Up With IBM and Insiders Report Mass Layoffs in "Infrastructure" (Might Impact Red Hat Entrants)
hearsay in Social Control Media
Scheduled Server Maintenance Tomorrow Night
Starting 9PM
None of the Above (NotA) & Debian snubbing Sruthi Chandran
Reprinted with permission from Daniel Pocock
Links 20/03/2026: Cryptography Pioneers Win Turing Award and BMG Sues Anthropic for Copyright Infringement
Links for the day
Even Uganda Understands That Journalists Never Belong in Prison
"Ugandan authorities must respect the spirit of this ruling and abandon any measures that seek to jail Ugandans for the free flow of ideas."
Inaction Helps Your Enemies
Without freedom, there's nothing else left
Windows Down From 99% to ~50% in Republic of Seychelles (République des Seychelles)
Windows fell by a lot
"systemd is essentially a corporate IBM/Redhat project and corporations of course will comply"
Microsoft and IBM care about users' freedom like Cheeto Lump cares about the US Constitution
Confluent Insiders: IBM Laid Over Over 800 at Confluent, Not Just 800
For the record, the layoffs at Confluent won't be over. After the bluewashing there will be "IBM RAs" impacting Confluent folks, aside from PIPs
The Layoffs at IBM Carry on (Shades of Enron)
Is IBM another Enron?
"IBM boss Arvind Krishna... financial package valued at $38 million in calendar 2025 - equivalent to the average collective pay of 765 Big Blue workers."
continues to ruin the company to enrich himself while pretending he has a strategy
Gemini Links 20/03/2026: Digital Identity Bifurcation and a "Return to Gemini"
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, March 19, 2026
IRC logs for Thursday, March 19, 2026