Bonum Certa Men Certa

EPO Annual Results/Report: Revenue From Patent Applications is Apparently Down Yet Again and Work is Running Out

The inevitable effect of bad management, bad (low-quality) patents, and bad reputation

The clockwork



Summary: The latest EPO 'results' (cherry-picked numbers intended to make the management look good) reinforce expectation of Office-wide layoffs, devaluation of European Patents, decrease in patent quality, and failure to entice applicants in spite of discounts

THE EPO's annual report for 2017 is out (warning: epo.org link) and it's pretty much what we expected it to be when we wrote about it yesterday.



We are seeing many of the same themes/patterns we saw in previous EPO 'results'. Readers are encouraged to read/revisit:



The EPO habitually lies and misleads. Its claims need to be double-checked; not that it'll interest the EPO's paid "media partners". They just relay whatever claims the EPO asks them to, along with external PR agents. Expect a lot of nonsense in the media this week and next week.

One thing we have repeatedly said is that Team Battistelli gave sudden 'discounts' in order to help create an illusion, then not mention the effect of these 'discounts' on revenue at all (they even made a chart dedicated purely to distracting from that). A nearby store is having a closing down sale at the moment (starting this Monday); so obviously sales have surged (just not at the full price).

As for the supposed 'growth' in patents, remember that wrongly-granted patents would help patent trolls (SUEPO published a link to a new report about it yesterday). There are significant declines in quality (an article was published about it in Kluwer Patent Blog earlier this week) and, as expected, there's thus an increase in the number of grants (not productivity but shoddy management leading to low-quality examination).

What we can note, based on the EPO's shrewdly-constructed spin, is that in spite of big discounts the number of applications has barely grown. Revenue may be done again. If you offer a discount of 10%, for example, and 'sales' go up by only 5%, then overall it's a losing strategy. "In response to the increased workload," the EPO wrote, "the EPO further boosted its productivity and production benefiting also from internal reforms put in place in recent years to improve quality and efficiency."

What "reforms"? Like the layoffs to follow? And what "quality"? They mean timeliness, not quality.

There's a bunch of comments agreeing with Thorsten Bausch's latest complaint about quality declines. The following comment says that "timeliness has become the only quality measure at the EPO." Here's the full comment:

In my daily practice, I can only confirm the views of this blog post. For me it appears that timeliness has become the only quality measure at the EPO. And the EPO is becoming really good in providing timely examination reports. It also becomes increasingly “good” in issuing premature summons to attend O.P.. In my day-to-day work I also experience that the quality, in terms of “how accurate is the analysis and how well founded are the objections” is declining (sometimes to a ridiculous extent). I do not dare speaking of 71(3) problems and IMHO this is a minor issue (it “only” requires more caution on the attorney’s end and much of the problems really seem to have a rather technical background, which I believe can be solved).

The loss in quality occurs on a deeper level and is much more detrimental.

I can assure that this is no fuzzy belly feeling of mine, because I have observed that the same Examiners that used to provide me with a sound analysis and reasonable objections more and more tend to raise superficial objections, or object to claim sets as a whole where they previously assessed claims in groups or individually. I see more faulty objections, more alleged clarity problems, no willingness to apply a problem-and-solution approach, more ex post facto argumentation and more clearly premature invitations to O.P. that put pressure on the applicant before a reasonable exchange of arguments has been finished. My own metrics is the length of the reporting letters that I have to write to the applicants and the number of times that I am forced to complement for an insufficient analysis to provide a proper advice to the applicant. It is, to me, very apparent that Examiners do no longer get the time needed to judge each case on its true merits.

As regards the term “production” as used and implemented in the EPO’s metrics, I feel that this term is entirely unsuitable in the context of patent applications. Some applications are complex, some are not, some yield many prior art hits, some may not, but all these different applications have the product count of one (1). And the time scale to handle all these different products is all the same at the EPO.

Imposing ever increasing production targets on the Examiners will only further erode the quality of examination, will result in patents that are either unjustifiably broad or unjustifiably narrow and in the end represents a disservice for the public and applicants alike. We will experience the degradation of “deep quality” in a couple of years from now.


This is further reaffirmed by an article from 2 days ago. Hugh Dunlop and Andrew Van Den Bent-Kelly (Maucher Jenkins) said that "European Patent Office Attacks Its Examination Backlog", but at what cost? In reality, the EPO attacks its staff by draining up all the work, by rushing examiners to not do their job properly.

Last night the CCIA's Josh Landau published something to that effect too, noting that patents are "Granted In 19 Hours". A patent grant a day keeps patent quality away. How did things become this bad so quickly? The damage caused by erroneous/wrong grants can last years. It can cost millions in legal fees.

As Landau put it, "if we go all the way back to our 40 hour work week, we can figure out how many hours an examiner spends on examining each application."

It's a lot worse at the EPO, based on leaks. Here's what Landau said:

Patent examiners have an extremely hard job. They’re given a patent application—which could be anywhere from a page long up to hundreds of pages, with patent claims ranging from a couple sentences to pages of description—and expected to understand the technology behind the application, look for any possible examples of prior art, describe how the prior art anticipates or renders obvious each and every limitation of the claim, and communicate with the patent applicant about their application.

[...]

Junior Examiner Gordon spends 40 hours a week to produce 2.54 office actions. That’s 15.74 hours per office action. But Senior Examiner Allison spends 40 hours a week to produce 3.33 office actions. That’s 12.12 hours per office action. Twelve hours, to review, research, and decide if an immunotherapy patent should be granted. The average American spends 19 hours each week watching television—50% more time than a senior immunotherapy examiner is provided to determine the patentability of an application.

Experienced examiners are almost certainly better at examining patent applications than junior examiners. But can they do the same job in half the amount of time? And do they get enough time even at the start?

There’s evidence the answers are no.


So what is the EPO becoming? Just another INPI? Worse than USPTO? Thorsten Bausch previously explained that in many cases pacing down the process is desirable. He's not alone. Intellectual Property Watch published this guest post yesterday (by Michael Kahnert, legal counsel, BIO Deutschland). The EPO is failing its stakeholders and they speak out. They want applications to be dealt with properly and not in a rush:

Reducing the application process to 12 months implies that much faster work is expected from patent examiners to maintain the same quality of patent examination. In complex sectors such as biotechnology, the shortening of the patent application process would also lead to higher costs at an early stage, because of the extensive examination procedure. Especially small and medium sized enterprises (SME) in the research and development sector usually have a high need for capital to assure cashflow. Therefore, these companies will be additionally affected by a cost burden early on. To attract investors and partners, SME as well as academic institutions often cooperate to advance their research and development and share sensitive information in the process. In order to maintain the possibility of pursuing specific aspects of the patent application at a later time, more divisional applications would be necessary and cause significantly higher costs. Therefore, the proposed shortening of the patent application process leads to a disadvantage for research-driven SME.


Just remember that once patents are granted in error it muddied the well and there's no easy fix for it. This is why the legacy left by Battistelli will be a sordid mess from which the EPO will never recover. It's already running out of pending applications. This necessarily means workforce redundancies. Many senior, experienced examiners will be lost for good. What asset/s will the EPO be left with? A logo and renewal fees?

Recent Techrights' Posts

GNU/Linux up to 5% in Ireland, Not Counting Chromebooks
statCounter is an Irish
The War on Free Software Reporters - Part III - Doxing and LARPing
LARPing is an issue I've had to deal with for nearly 20 years
The Media Finally Admits (on a Regular Basis) That LLMs Suck
They could not replace medical doctors, teachers, lawyers etc.
 
In the Month of May 2024 the OSI's Blog Was Almost 100% Microsoft Lobbying, Microsoft Staff, Microsoft Proprietary Software, and Microsoft Events
Entryism complete. RIP, OSI.
An Important Goal Has Been Accomplished Already
Stubborn activists need to insist on a future where computer users actually control the computers they own
Gemini Links 02/06/2024: Delayed Disappointment
Links for the day
statCounter: GNU/Linux on More Than 1 in 5 Desktops/Laptops
Desktop Operating System Market Share Norway
Reminder: The First CEO of IBM (Owner of Red Hat) Was "Convicted on Extortion" (According to Edwin Black, Author of "IBM and the Holocaust")
Red Hat is not a liberal company
GNU/Linux Market Share in Turkey Now Exceeds 10%, According to StatCounter
StatCounter (or statCounter) shows considerable increases
GNU/Linux in Germany: The Seven Percent
The historical data shows that it wasn't always like this
Slovenia: Windows Becomes Minority Market Share This Month
It finally happened. Android is now measured as bigger than Windows.
statCounter: Bing Has Lost Market Share Since the Chatbot Hype, in Europe Yandex Nearly Exceeds Bing Now
Bing also had many layoffs (not that the media bothered covering that); we must debunk Microsoft's baseless claims and deliberate lies/hype
Microsoft Windows Falls Below 10% in Africa, Down to About 20% in Asia
The future isn't Windows
Taiwan Can Defend Its Autonomy Better by Avoiding Microsoft (Back Doors)
Maybe it's just a coincidence that GNU/Linux "took off" when Hong Kong lost its perceived independence from China
The War on Free Software Reporters - Part IV - Impersonation and Menacing Behaviour, Defamation Under One's Own Name
Such serial defamation (that went on for a very long time) is coordinated and relentless
Links 02/06/2024: Workers' Strikes and a Warming World
Links for the day
Microsoft Falls to All-Time Low of 25% in Operating Systems
If Android is counted, Windows is in trouble as it's down to all-time low of 25%
Steam Survey: GNU/Linux Up, But Canonical's Ubuntu Declining
big increases for GNU/Linux, Arch Linux gaining at Ubuntu's expense
Guardian Digital, Inc (linuxsecurity.com) Leveraging Microsoft Chatbots to SPAM for Microsoft (Googlebombing "Linux")?
Welcome to the Web in 2024. Search for "Linux" news, get Windows garbage.
Smallest Number of New Debian Developers in More Than 2 Years
Maybe Debian should recognise there's a problem instead of trying to censor - at humongous expense - those who speak about the problem
Slashdot's "Linux" Section is Reposting Press Releases for Red Hat
Is this being paid for?
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, June 01, 2024
IRC logs for Saturday, June 01, 2024
Links 01/06/2024: Microsoft Chaffbot Broken Out of Control
Links for the day
Why We're Taking Things Up a Notch
Expect about 20 articles a day this year
Sites That Cover WSL Are Helping Microsoft's Attack on GNU/Linux
Calling out the typical culprits
Plans for June
We'll try to publish Daily Links every time we have enough of these
Links 01/06/2024: Ukraine Updates, MongoDB Collapses
Links for the day
Gemini Links 01/06/2024: MNT Pocket Reform, Gemini and Content Length
Links for the day
Links 01/06/2024: WeblogPoMo2024, Pentagon’s Increasing Reliance on (i.e. Bailouts to) Microsoft
Links for the day
Twitter is (in Many Ways) Already Dead
Put an 'X' on it
Posts About Free Software, BSD, and GNU/Linux
Focus shifts have occasionally been discussed here over the years
After Softpedia Pushed Out Its Linux News Editor - and Effectively Killed the Linux Section - it Killed the Whole News Section (Altogether)
So they've killed Linux coverage, then their whole "news" section died
Their Goal is Control, Not Security (and Their Staff Advocates Fake Security or Pricey Gimmicks That Disempower the Users)
Those companies just want control, or simply domination over users (and their computers)
[Meme] The Lowest Standards of Security
No need for any qualifications
IRC Proceedings: Friday, May 31, 2024
IRC logs for Friday, May 31, 2024
Over at Tux Machines...
GNU/Linux news for the past day
Cybersecurity is a structural not behavioural problem.
Reprinted with permission from Cyber|Show
Free Software is the Future, Open Source is Just Openwashing (Proprietary With a False Marketing Twist)
Also see postopen.org
Society Has Been Destabilised by Social Control Networks
Is it time to get rid of them, if not by sanctions/bans then simply by popular boycotts?
Gemini Turns 5 This Month
As long as Geminispace exists and is accessed by enough people, Gemini Protocol will continue to matter
Links 01/06/2024: More Crackdowns in Hong Kong, Street Named After Navalny
Links for the day
The War on Free Software Reporters - Part II - Antisocial Mobs
how various GNU/Linux bloggers got "canceled" over the years
Microsoft's Share of Physical Web Servers Fell From 9.14% to 9.04% in One Month
What's interesting to us is how Microsoft continues moving down in everything measured
Links 31/05/2024: Escalations in Ukraine and Russia, National Reporter's Shield Law in US
Links for the day
Links 31/05/2024: Generating and Using Identifiers, Why Unicode
Links for the day
A 3-Year Campaign to Coerce/Intimidate Us Into Censorship: In Summary
Some high-profile examples of defamation include Linus Torvalds, Richard Stallman...
[Meme] Never "Missing Out" in FOSS Conferences
The sexists who objectify women and bully women are going to FOSS events in pursuit of sex, according to themselves
Racism, Ageism, and Ableism at IBM/Red Hat and Kyndryl
IBM's Kyndryl is now accused of "racial, age, disability discrimination"
The War on Free Software Reporters - Part I - Why Techrights Cannot be Censored (and Won't be Censored)
Microsoft remains by far the biggest culprit
In Spite of Boot-locking (Trying to Make It Hard If Not Impossible to Install BSDs and GNU/Linux on New PCs) Microsoft's Grip is Rapidly Slipping
Escaping the Microsoft prison
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, May 30, 2024
IRC logs for Thursday, May 30, 2024
Microsoft's Problem in Puerto Rico
Notice how much Windows has fallen
Gemini Links 31/05/2024: MNT Pocket Reform and Benben v0.5.0
Links for the day
"I once preached peaceful coexistence with Windows. You may laugh at my expense -- I deserve it." -Be's CEO Jean-Louis Gassée
Execution of Red Hat: But I helped promote Azure and .NET
In Many Countries Vista 11's Market Share Goes Down, Not Up (Even Microsoft-Funded Mainstream Media Admits This)
More people are moving to GNU/Linux