Ex Parte Harris - Page 22

              Appeal 2007-0325                                                                                         
              Application 09/780,248                                                                                   

         1    an indicator of the risk of ventricular tachycardia.”  Arrhythmia Research Tech. v.                      
         2    Corazonix Corp., 958 F.2d 1053, 1060, 22 USPQ2d 1033, 1039 (Fed. Cir. 1992).                             
         3    Likewise, in State Street, the court held that “the transformation of data … by a                        
         4    machine … into a final share price, constitutes a practical application of a                             
         5    mathematical algorithm … a final share price momentarily fixed for recording and                         
         6    reporting purposes and even accepted and relied upon by regulatory authorities and                       
         7    in subsequent trades.”  State Street Bank & Trust Co. v. Signature Fin. Group Inc.,                      
         8    149 F.3d 1368, 1373, 47 USPQ2d 1596, 1601 (Fed. Cir. 1998).                                              
         9        In contrast, claims 5-7 and 28-32 accept bids, determine who the bidders are,                        
        10    and define rules.  “[T]there is nothing physical about bids per se.  Thus, the                           
        11    grouping or regrouping of bids cannot constitute a physical change, effect, or                           
        12    result.”  In re Schrader, 22 F.3d 290, 293-94, 30 USPQ2d 1455, 1458 (Fed. Cir.                           
        13    1994).  Thus, these claims are directed toward no more than the idea of conducting                       
        14    an auction with auction rules and bids.  They produce no useful, concrete and                            
        15    tangible result because they are not instantiated within a physical embodiment that                      
        16    results in the transfer of property of an actual auction.  Even the almost gratuitous                    
        17    references to a network in claims 28-32 do no more than attempt to exalt form over                       
        18    substance in introducing a term that creates the illusion of physicality in some                         
        19    embodiments, but even to convey a representation of an abstraction over an                               
        20    electronic network is still no more than manipulating an abstraction, and societal                       
        21    networks of auction houses (e.g. Christies, from 1766), that convey bids are too                         
        22    notoriously old and well known to so narrowly construe this term.                                        
        23        Thus, claims 5-7 and 28-32 fail to claim statutory subject matter.                                   




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