Ex Parte Lee - Page 6

                Appeal 2007-0367                                                                               
                Application 09/782,149                                                                         

                      Nonetheless, assuming arguendo that the claims are not solely                            
                directed to an algorithm, then the next step set forth in the guidelines is to                 
                determine whether the claimed invention is directed to a practical                             
                application of an abstract idea, law of nature, or natural phenomenon.  Again                  
                the claims involve neither a law of nature nor natural phenomenon, so the                      
                issue is whether they are directed to a practical application of an abstract                   
                idea.  The guidelines indicate that either a transformation of physical subject                
                matter to a different state or thing or the production of a useful, concrete,                  
                and tangible result equates to a practical application of an abstract idea, in                 
                accordance with the test set forth in State Street Bank & Trust Co. v.                         
                Signature Finance Group, Inc., 149 F.3d 1368, 1373; 47 USPQ2d 1596,                            
                1601 (Fed. Cir. 1998).  If the claims are not directed to a practical                          
                application of an abstract idea (or they do not transform physical subject                     
                matter to a different state or thing nor produce a useful, concrete, tangible                  
                result), then the claims are nonstatutory under 35 U.S.C. § 101.                               
                      In claims 1 through 9, we find no physical subject matter being                          
                transformed, just numbers being manipulated.  Further, we find no recitation                   
                of a useful, concrete, tangible result, just a final score or number.                          
                Accordingly, claims 1 through 9 are not directed to a practical application of                 
                an abstract idea.  They are merely directed to abstract ideas that are                         
                nonstatutory under 35 U.S.C. § 101.  Additionally, although the preamble of                    
                claim 10 ties the method to the airline industry, the data being manipulated                   
                are arbitrary numbers that do not represent physical subject matter, and the                   
                result is still just a number.  Therefore, as we find no physical subject matter               
                being transformed and no useful, concrete, tangible result, claim 10 is an                     
                abstract idea that is nonstatutory under 35 U.S.C. § 101.                                      

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