Ex parte DONNER - Page 10




          Appeal No. 96-2552                                                          
          Application 08/161,816                                                      

          205 USPQ 397, 409 (CCPA 1980).  It appears from the examiner's              
          arguments that the examiner did not afford any weight to the                
          physical aspects of the claims.  Nevertheless, since we                     
          reverse the rejection for other reasons, it is not necessary                
          to decide the case on this issue.                                           
               Third, the analysis that the claims do not recite a                    
          "practical application having a physical transformation in the              
          industrial arts" ([Second] Sup. Examiner's Answer, page 1) has              
          been modified by State Street.  The Federal Circuit noted that              
          a "practical application" was "a useful, concrete and tangible              
          result."  State Street, 149 F.3d at 1373, 47 USPQ2d at                      
          1600-01.  The Court further stated, id., 47 USPQ2d at 1601:                 
                    Today, we hold that the transformation of data,                   
               representing discrete dollar amounts, by a machine                     
               through a series of mathematical calculations into a                   
               final share price, constitutes a practical application of              
               a mathematical algorithm, formula, or calculation,                     
               because it produces "a useful, concrete and tangible                   
               result"--a final share price momentarily fixed for                     
               recording and reporting purposes and even accepted and                 
               relied upon by regulatory authorities and in subsequent                
               trades.                                                                
          Although this statement is made with respect to mathematical                
          calculations, it is manifestly intended to apply to the                     
          analysis of other "abstract ideas."  Thus, a "process" no                   
          longer requires a physical transformation of something to a                 
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