Page 605 - Encyclopedia of Business and Finance

eobf_P 7/5/06 3:18 PM Page 582

Patents

Patents certificates from different countries for many of the same compounds, a necessity for international production and distribution.
© CHARLES E. ROTKIN/CORBIS

processes. The term machine, as used in the statute, needs that will not operate to perform the intended purpose
no explanation; the term manufacture refers to articles would not be called useful; therefore, the inventor would
that are made and includes all manufactured articles. The not be granted a patent. Recent interpretations of the
term composition of matter relates to chemical composi- statute by the courts have defined the limits of the field of
tions, which may include mixtures of ingredients as well subject matter that can be patented. Thus the courts have
as new chemical compounds. These classes of subject mat- held that the laws of nature, physical phenomena, and
ter taken together include practically everything that is abstract ideas are not patentable subject matter.
made by humans and the processes for making them. A patent may only be granted for the creation of a
Consequently, the Atomic Energy Act of 1954 excludes new machine, manufacture, and so on—not for the mere
the patenting of inventions useful solely in the utilization idea or suggestion of the new machine. A complete
of special nuclear material or atomic energy for atomic description of the actual machine or other subject matter
weapons. The patent law further specifies that the subject for which a patent is sought must be filed with the U.S.
matter must be useful. The term useful, in this context, Patent Office.
refers to the condition of the subject matter having a use- The U.S. Patent Office administers the patent laws as
ful purpose and also being operable. That is, a machine they relate to the granting of patents for inventions and

582 ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION