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Instead, the court states the “true issue before us” is “whether Applicants are 
seeking to claim a fundamental principle (such as an abstract idea) or mental process,” 
maj. op. at 7, and answers “yes.”  With respect, that is the wrong question, and the 
wrong answer.  Bilski’s patent application describes his process of analyzing the effects 
of supply and demand on commodity prices and the use of a coupled transaction 
strategy to hedge against these risks; this is not a fundamental principle or an abstract 
idea; it is not a mental process or a law of nature.  It is a “process,” set out in successive 
steps, for obtaining and analyzing information and carrying out a series of commercial 
transactions for the purpose of “managing the consumption risk costs of a commodity 
sold by a commodity provider at a fixed price.”  Claim 1, preamble. 
Because the process Bilski describes employs complex mathematical 
calculations to assess various elements of risk, any practicable embodiment would be 
conducted with the aid of a machine—a programmed computer—but the court holds 
that since computer-implementation is not recited in claim 1, for that reason alone the 
process fails the “machine” part of the court’s machine-or-transformation test.  Maj. op. 
at 24.  And the court holds that since Bilski’s process involves the processing of data 
concerning commodity prices and supply and demand and other risk factors, the 
process fails the “transformation” test because no “physical objects or substances” are 
transformed.  Maj. op. at 28-29.  The court then concludes that because Bilski’s Claim 1 
fails the machine-or-transformation test it ipso facto preempts a “fundamental principle” 
and is thereby barred from the patent system under Section 101: an illogical leap that 
displays the flaws in the court’s analysis. 
2007-1130 
 
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