algorithm exception
algorithm exception. Patents. The general rule that an abstract mathematical function, such as an algorithm, cannot be patented. • The exception was first articulated by the U.S. Supreme Court in Gottschalk v. Benson, 409 U.S. 63, 93 S.Ct. 253 (1972). The rule was undermined by State St. Bank & Trust Co. v. Signature Fin. Group, 149 F.3d 1368 (Fed. Cir. 1998). In that case, the court decided that a machine’s transformation of numerical data into a calculated share price was a sufficient and practical application of a mathematical algorithm, formula, or calculation because the final share price was “a useful, concrete and tangible result.” — Also termed mathematical-algorithm exception.
