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., - 5 -Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 NextLast modified: November 3, 2007