Ex Parte TEDESCO et al - Page 5




          Appeal No. 2004-0403                                                        
          Application 09/100,684                                                      

          without receiving the minimum amount due from the customer."                
          This implies, but leaves it indefinite, that the offer was an               
          offer to pay at least a portion of the amount due if the                    
          individual becomes a customer of the third party.  Claim 28 is              
          considered indefinite and/or incomplete without qualification of            
          the nature of the offer.                                                    
               Claims 22-26 and 28-30 are rejected under 35 U.S.C. § 101 as           
          being directed to nonstatutory subject matter.  Our                         
          interpretation of these claims is that they do not expressly or             
          implicitly require performance of any of the steps by a machine,            
          such as general purpose digital computer.  Structure will not be            
          read into the claims for the purposes of the statutory subject              
          matter analysis even though the steps might be capable of being             
          performed by a machine.                                                     
               Statutory subject matter requires two things: (1) it must be           
          in the "useful arts," U.S. Const., art. I, § 8, cl. 8, which is             
          equivalent to the modern "industrial" or "technological arts,"              
          defined by Congress in the four categories of "process, machine,            
          manufacture, or composition of matter" in 35 U.S.C. § 101; and,             
          if it is, (2) it must not fall within one of the exceptions for             
          "laws of nature, physical phenomena and abstract ideas."  Under             
          the most recent Federal Circuit cases, transformation of data               
          by a machine (e.g., a computer) is statutory subject matter                 
          provided the claims recite a "practical application, i.e.,                  

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