Ex Parte PHILLIPS - Page 3



          Appeal No. 2000-2225                                                        
          Application 08/998,617                                                      

          briefs along with the examiner’s rationale in support of the                
          rejection and arguments in rebuttal set forth in the examiner’s             
          answer.                                                                     
          It is our view, after consideration of the record before                    
          us, that claims 1-10 are directed to statutory subject matter               
          within the meaning of 35 U.S.C. § 101.  Accordingly, we reverse.            
          The examiner’s rejection states that in order for a                         
          computer-related process to be statutory, the claims must include           
          either a step that results in a physical transformation outside             
          the computer or a limitation to a practical application, or the             
          claims must incorporate any physical structure, citing In re                
          Abele, 684 F.2d 902, 214 USPQ 682 (CCPA 1982) [final rejection,             
          page 2].                                                                    
          Appellant argues that the Freeman-Walter-Abele test is                      
          not the proper test to determine whether computer-related                   
          inventions are statutory subject matter, citing State Street Bank           
          & Trust Co. v. Signature Financial Group, Inc., 149 F.3d 1368,              
          1375, 47 USPQ2d 1596, 1602 (Fed. Cir. 1998), cert denied. 525               
          U.S. 1093 (1999).  Appellant argues that a mathematical algorithm           
          is patentable as long as it is not an abstract idea.  According             
          to appellant, the only relevant and dispositive inquiry is                  
          whether the claimed invention is directed to something useful,              
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