Ex parte NAGAO - Page 5




          Appeal No. 95-0792                                                          
          Application No. 07/828,092                                                  


          § 102 rejection or the 35 U.S.C. § 103 rejections.                          
               With respect to the mathematical algorithm exception, the              
          Federal Circuit in State Street Bank & Trust Co. v. Signature               
          Financial Group, Inc., 149 F.3d 1368, 1373, 47 USPQ2d 1596,                 
          1600 (Fed. Cir. 1998) first identified the judicially created               
          three categories that are not patentable (laws of nature,                   
          natural phenomena and abstract ideas) citing Diamond v. Diehr,              
          450 U.S.                                                                    
          175, 185, 209 USPQ 1, 7 (1981).  The opinion went on to note                
          "the                                                                        
          mathematical algorithm is unpatentable only to the extent that              
          it represents an abstract idea" and is thus not "useful."                   
          State                                                                       
          Street Bank 149 F.3d at 1373 & n.4, 47 USPQ2d at 1600-01 &                  
          n.4.  Later in its opinion, the court returned to this issue:               
          "[T]he mere fact that a claimed invention involves inputting                
          numbers, calculating numbers, outputting numbers, and storing               
          numbers, in and of itself, would not render it nonstatutory                 
          subject matter, unless, of course, its operation does not                   
          produce a ‘useful, concrete and tangible result.’"  State                   


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