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What patentese means by inventive technical step is changes to or creation of algorithms.

"schemes, rules and methods for performing mental acts, playing games or doing business, and programs for computers" are excluded from patentability by the European Patent Convention Article 52, paragraph 2.

I think that the argument used is that an algorithm can be implemented in hardware, at which point it is no longer a "program for a computer" and thus avoids that clause.

This doesn't work before the UKPO (aka UKIPO) as any software application can be implemented in hardware. It might meet the letter of the law as drafted but avoids the intention.

Let me replace the quatation marks for you:

"schemes, rules and methods for performing mental acts, playing games or doing business," and programs for computers;

This how the patent lawyers interpret this clause. Companies I worked for pays £xxxx to their employees for patents. I've sat in some of the commitees which decides a patent is worth pursuing. My experience is the inventive step almost always involves some tweaking in existing algorithms.

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