Diamond v. Diehr continues to influence decisions on business processes and methods. Relying on Diamond v. Diehr, the Federal Circuit held that patents for business systems that rely solely on mental processes do not fall within the statutory subject matter under 35 U.S.C. § 101.
At issue is U.S. Patent Application No. 09/461,742 containing independent claims covering a method and system for mandatory arbitration resolution. Both parties agreed that these independent claims do not require the use of a machine nor do they describe a process of manufacture or altering matter.

When considering whether an abstract idea is patentable, there are two classes; one in which there is no claimed practical application, and the other is where the abstract idea has practical application. As for the first type, the Federal Circuit stated that the abstract idea alone is not patentable because the claim is only directed to an idea. With respect to the second
class, the abstract idea is patentable if it is employed in a process, embodied on, transforms, or involves a statutory class (machine, manufacture, or composition of matter). As a result, mental processes alone are not patentable even if there is a practical function because they form the basic tools of scientific and technical work.

The remaining claims were directed to providing access to arbitration through the World Wide Web, software applications, telephone, television, cable, magnetic, electronic communication, and other communication means. The Federal Circuit remanded the case to the PTO to determine whether these claims, which tie the method to a machine, fall within
statutory subject matter under 35 U.S.C. § 101.