Ex Parte Liu et al - Page 4


                Appeal No. 2006-2541                                                                          
                Application No. 09/832,438                                                                    

                rejection pursuant to 37 CFR § 41.50(b) against claims 1, 3 through 15, 17                    
                through 29 and 31 through 42 under 35 U.S.C. § 112, second paragraph.                         
                                     Rejection of claims 1 and 3 through 14                                   
                                              under 35 U.S.C. § 101.                                          
                      Appellants argue, on pages 10 and 11 of the Brief, that independent                     
                claim 1’s recitation of calculating a profit for processing requests is a                     
                concrete and tangible result.  On page 11 of the Brief, Appellants argue that                 
                independent claim 1 recites a “practical application by allocating computing                  
                system resources based upon whether a revenue or penalty is generated by                      
                each processing request and not ‘merely manipulate an abstract idea’ as the                   
                Examiner alleges.”  Appellants, thus conclude that independent claim 1                        
                recites statutory subject matter as it recites a method which produces                        
                concrete, useful and tangible results.                                                        
                      On page 9 of the Answer, the Examiner states:                                           
                      In order for allocating to be statutory the result would require the                    
                      physical distribution of resources and not the simple act of assigning                  
                      which resources are to be operated, which may be carried out mentally                   
                      without any useful, concrete or tangible result. The Appellant's [sic]                  
                      specification lacks a definition that would otherwise state allocating to               
                      be anything other than the mental assigning of which resource to be                     
                      operated.                                                                               
                      We disagree with the Examiner’s rationale.  The standard for                            
                reviewing claims for statutory subject matter is set forth in the Interim                     
                Guidelines for Examination of Patent Applications for Patent Subject Matter                   
                Eligibility (1300 Off. Gaz. Pat. Office 142 (Nov. 22, 2005)).  The guidelines                 
                first require a determination as to whether the claims as a whole are directed                


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