1) The document proposes a designated tax of 1-2% on the turnover of large research companies exceeding a certain monthly threshold, with the tax funds used to speed up intellectual property application processing and dispute resolution. 2) Benefits include getting new products and services to market faster in Europe, creating incentives for companies to keep R&D in the EU, and supporting job growth. 3) The tax would be evaluated annually over 7 years, with the goal of reducing IP application processing time by 1/3 and dispute resolution time by 1/2, to determine if it achieves success.

1. Jan Softa CEO at somerco.com Date: 2013-02-07
EC member states competitiveness in R & D
Part 1: Designated tax to science
Abstract
A corner stone of the incomes in research intensive companies rely on IP rights for products and services. By
creating conditions in the EU zone for these companies to get their products and services on the market faster
their customers can benefit from them sooner than in other parts of the world. Therefore, I propose a designated
tax that will give financial conditions to speed up the processing of IP applications and to resolve IP disputes
faster.
Background
Helping geniuses! Our slogan sums up who Somerco aims to help. Somerco are a company
that target to help researchers and innovators so that these geniuses can create prosperity and
jobs in society. In order to achieve this aim, it is important to also help other professionals,
such as IP lawyers, venture capitalists, business angels and governmental officials. We are
foremost a technology company, but are open to contribute with input for how you can create
a healthy climate in R & D by developing legislative instruments with sound financial
conditions in place. Much has been done more needs to be discussed, developed and
adopted.
Introduction
FP7 and its predecessors have increasingly become an important instrument to enhance EC
member states competitiveness in R & D. It is a supplement to governmental funding, private
funding organizations, venture capital and to universities and private companies investments
in R & D. All of these are examples on how you use capital input to develop and create new
services and products. Also legislative measures has been adopted in EC and its member
states in order to pave the way for how R & D can create prosperity in society. With this draft
proposal, who focus on a designated tax, I hope to contribute with input for how to help and
protect researchers, innovators and their companies small as large.
A proposal
There are already discussions between EC and larger research intensive companies, such as
medical companies and IT companies, who has the aim to get their services and products
sooner to the market. We are mentioning larger companies in particular because they are a
key part in this proposal. I propose that those who has exceeded a turnover of ? a particular
month pay a tax of 1 2 % on their turnover for this particular month. Depending on what

2. Jan Softa CEO at somerco.com Date: 2013-02-07
member state you are, the threshold for paying the designated tax will be different, due to that
costs vary between the states. The tax level could start with 2% and when preset requirements
are achieved you decrease the tax until it is on a 1% level. These tax money has to be
designated for speeding up the time to process IP applications by hiring more staff in both the
member states Patent Offices and at the European Patent Office, other funds goes to educate
and hire more staff in courts in order to resolve IP disputes and another part of these tax
money should be available for SMEs to apply for in order to use when they need to hire IP
lawyers and their investigators in IP disputes. With this extra financial support, it is possible
to speed up these processes and also achieve a thorough evaluation of both IP applications
and to resolve IP disputes on well-based decisions.
When it concerns what SMEs who will get financial support, I suggest that the contacted IP
lawyer makes an evaluation of their case before he/she apply to get access to these funds.
Perhaps, if there is approximately a 50 % chance of winning a case they should proceed and
apply for funding.
Measure
By measuring how much these larger companies can earn for having a service or product on
the market 3 months, 6 months and in some cases years sooner you find the value of
implementing this designated tax. The statistics can be provided by these larger companies
and industry organizations and by searching for current research on the topic.
In order to get a diversified understanding of the possible benefits of a designated tax you
conduct studies and exemplify with scenarios from different companies. One way to measure
the true value of speeding up these processes is to look at companies earnings after releasing
a service or product onto the market. This can be measured in two ways. (A) To measure
earnings for one product under the first three months, six months, a year and two years after it
has been put on the market and (B) to measure earnings for their product portfolios under the
first three months, six months, a year and two years after it has been put on the market. By
comparing these companies 1 2 % turnover for the chosen tax month with the earnings they
make for being able to put their services and products sooner on the market you are able to
calculate the breakpoint for when it is becomes profitable with the designated tax. Pure
business economics could justify a one year off tax cost.
Benefits
With available economical resources and legislative mechanisms in place to speed up these
processes, EU as a whole and its member states has created a powerful incentive for
companies to keep their R& D in the EU zone. A spillover effect could be that companies
with no current presence in the EU zone find it a competitive advantage to have these
services available for their R & D departments.
On a society level, customers to these companies will have access to services and products
sooner than in other parts of the world. Society will also benefit by employing new
professionals at the patent offices and staff in the courts. The largest societal effect will be

3. Jan Softa CEO at somerco.com Date: 2013-02-07
that new jobs in R & D and manufacturing are placed in the EU zone. Especially, since all
companies can reap the rewards with the proposal. It helps the larger companies but also
SMEs, universities, research institutes and startups with a focus on science and technology.
Finding
In many countries, companies file to their tax agency in what category they are conducting
business so it is not difficult to find these companies and to check their turnover for the
chosen month for this designated tax.
Acceptance
Why would large research intensive companies be interested in discussing paying an extra tax
to subside these costs? A corner stone of their business incomes rely on IP rights and
therefore I believe they would be interested in discussing such a proposal under the condition
that the tax money are designated to help to process and to resolve IP issues faster.
The tax could be on a trial basis for seven years, with evaluations each year and if it has been
possible to decrease the time it takes to process an IP application to ⅓ and IP disputes to ½ I
believe it should be considered a success.
By involving the larger companies in the policy process from the start you create the benefit
of getting a broad acceptance for the designated tax. In particular, since themselves can
participate in the definition and development of instruments for how and when you have
achieved the preset requirements and you can decrease the tax level. They will also have the
possibility to affect what should be considered a success in the evaluation of the tax. For
instance, should it be considered a success for decreasing the time for processing an IP
application to ⅓ and IP disputes to ½ or are their aims other? Moreover, with a broad
acceptance among these companies in place it is easier to get acceptance among all
parliamentary groups.
Yours sincerely, Jan Softa CEO of Somerco Research