Ex parte KATZ - Page 4




          Appeal No. 95-0633                                                          
          Application 07/728,426                                                      


          examiner’s answer were filed in 1994.  The Board remanded                   
          this case to the examiner in 1995 for consideration of the                  
          applicability of the Commissioner’s published “Examination                  
          Guidelines for Computer-Implemented Inventions.”  On remand,                
          the examiner determined that the rejection under 35 U.S.C. §                
          101 was still proper, and the case is now before us for                     
          decision on the merits.                                                     
          The examiner’s rejection applies the two-step test which                    
          is now commonly referred to as the Freeman-Walter-Abele test.               
          See In re Freeman, 573 F.2d 1237, 197 USPQ 464 (CCPA 1978) as               
          modified by In re Walter, 618 F.2d 758, 205 USPQ 397                        
          (CCPA 1980).  The test has been thus articulated:                           
                        First, the claim is analyzed to                              
                         determine whether a mathematical                             
                         algorithm is directly or indirectly                          
                         recited.  Next, if a mathematical                            
                         algorithm is found, the claim  as a                          
                         whole is further analyzed to determine                       
          whether the algorithm is “applied in any manner                             
          to physical elements or process steps,” and,                                
          if it is, it “passes muster under § 101.”                                   
          In re Pardo, 684 F.2d 912, 915, 214 USPQ 673, 675-76 (CCPA                  
          1982)                                                                       
          (citing In re Abele, 684 F.2d 902, 214 USPQ 682 (CCPA 1982)).               
          Although the examiner applied the Freeman-Walter-Abele test in              
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