Ex Parte TEDESCO et al - Page 15




          Appeal No. 2004-0403                                                        
          Application 09/100,684                                                      

          e.g., transformation of electrical signals into a different state           
          or signal within a computer.  A machine-implemented claim starts            
          out with a presumption of being statutory subject matter.  State            
          Street simplifies analysis of machine-implemented claims.  It               
          appears that all that is necessary for a machine claim or a                 
          machine-implemented process claim to be statutory subject matter            
          is that the data that is transformed is representative of or                
          constitutes physical activity or objects, so that the result has            
          some practical utility.  With a non-machine-implemented method,             
          no implied transformation by a machine can be relied on to make             
          the method "useful" or "concrete and tangible."                             
               To the extent that the State Street test applies to non-               
          machine-implemented process claims, the test is interpreted as a            
          restatement of existing legal principles.  The terms "concrete              
          and tangible" are interpreted to mean that the abstract idea or             
          principle has been applied to subject matter that falls within              
          one of the categories of inventions of § 101, either physical               
          structure (machines, manufactures, or compositions of matter) or            
          steps that transform physical subject matter to a different state           
          or thing (a process).  We do not think the phrase "concrete and             
          tangible" was intended to mean "anything definite and requiring             
          physical action" without regard to the nature of the subject                
          matter of § 101.  The term "useful" is interpreted to mean that             
          the subject matter within one of the § 101 categories satisfies             

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