Ex Parte George - Page 8

            Appeal Number: 2007-0133                                                                         
            Application Number: 10/223,466                                                                   

            abstract idea.”  State Street, 149 F.3d at 1373.  In Arrhythmia, the Court held “the             
            transformation of electrocardiograph signals” “by a machine” “constituted a                      
            practical application of an abstract idea.”  Id.  Likewise, in State Street, the Court           
            held that “the transformation of data” “by a machine” “into a final share price,                 
            constitutes a practical application of a mathematical algorithm.”  Id.  Thus, while              
            Diehr involved the transformation of a tangible object - curing synthetic rubber –               
            the Federal Circuit also regards the transformation of intangible subject matter to              
            similarly be eligible, so long as data or signals represent some real world activity.            
            We view this “data transformation” test as an appropriate way to evaluate subject                
            matter eligibility.                                                                              
                The Federal Circuit has never held or indicated that a non-machine                           
            implemented process involving no transformation can qualify as a “process” under                 
            § 101.  In fact, confronted with such claims, it has rejected them consistently.  See            
            In re Schrader, 22 F.3d 290 (Fed. Cir. 1994); In re Grams, 888 F.2d 835 (Fed. Cir.               
            1989) (rejecting claims to method of evaluating a system that incorporated a                     
            mathematical algorithm, where the only physical step was a data gathering step                   
            that was not tied to the algorithm); In re Maucorps, 609 F.2d 481, 484 (CCPA                     
            1979); In re Meyer, 688 F.2d 789, 796 (CCPA 1982); see also In re Alappat, 33                    
            F3d 1526, 1543 (Fed. Cir. 1994) (en banc) (“Maucorps dealt with a business                       
            methodology for deciding how salesmen should best handle respective customers                    
            and Meyer involved a ‘system’ for aiding a neurologist in diagnosing patients.                   
            Clearly, neither of the alleged ‘inventions’ in those cases falls within any § 101               
            category.”)                                                                                      
                In Schrader, the court affirmed the 101 rejection of a method of competitively               
            bidding on a plurality of related items, relying in part on the Freeman-Walter-                  


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