Appeal No. 1998-3335
Application 08/014,867
50 USPQ2d at 1450 (citing State St., 149 F.3d at 1374-75,
47 USPQ2d at 1602). The key to statutory subject matter is
whether the claimed subject matter is applied in a "useful
way" or directed to a "practical application," which the
Federal Circuit has said requires "a useful, concrete and
tangible result." State St., 149 F.3d at 1375, 47 USPQ2d at
1602. It is not required that there be a "physical
transformation" or conversion of subject matter from one state
into another for there to be statutory subject matter. AT&T,
172 F.3d at 1358-59, 50 USPQ2d at 1452-53. As stated in State
St., 149 F.3d at 1373, 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.
Thus, it is clear that computer-implemented operations that
produce a practical application of a mathematical algorithm
constitute statutory subject matter even though there is no
transformation of subject matter outside the computer.
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