the panel, however, we sua sponte ordered en banc review. Oral argument before the
en banc court was held on May 8, 2008. We affirm the decision of the Board because
we conclude that Applicants' claims are not directed to patent-eligible subject matter,
and in doing so, we clarify the standards applicable in determining whether a claimed
method constitutes a statutory "process" under § 101.
I.
Applicants filed their patent application on April 10, 1997. The application
contains eleven claims, which Applicants argue together here. Claim 1 reads:
A method for managing the consumption risk costs of a commodity sold by
a commodity provider at a fixed price comprising the steps of:
(a) initiating a series of transactions between said commodity provider
and consumers of said commodity wherein said consumers
purchase said commodity at a fixed rate based upon historical
averages, said fixed rate corresponding to a risk position of said
consumer;
(b) identifying market participants for said commodity having a counter-
risk position to said consumers; and
(c) initiating a series of transactions between said commodity provider
and said market participants at a second fixed rate such that said
series of market participant transactions balances the risk position
of said series of consumer transactions
′892 application cl.1. In essence, the claim is for a method of hedging risk in the field of
commodities trading. For example, coal power plants (i.e., the "consumers") purchase
coal to produce electricity and are averse to the risk of a spike in demand for coal since
such a spike would increase the price and their costs. Conversely, coal mining
companies (i.e., the "market participants") are averse to the risk of a sudden drop in
demand for coal since such a drop would reduce their sales and depress prices. The
claimed method envisions an intermediary, the "commodity provider," that sells coal to
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