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Annexure I of the CRI Guidelines 2025 adds a non-exhaustive, indicative list of examples under the four limbs of section 3(k). Examples 21 to 34 cover two of them: mathematical method (21 to 28) and business method (29 to 34). Each example applies the three-step assessment from paragraphs 4.5.1.1 and 4.5.2.1 to a short invented claim and reaches an outcome.
Of the eight mathematical method examples, four are not excluded because the calculation sits inside a larger technical process that ends in a physical effect (21 to 24), and four are excluded because the output is only a number (25 to 28). Of the six business method examples, three are not excluded because the claim solves a technical problem such as security, signal reliability or server load (29 to 31), and three are excluded because the core is a commercial scheme (32 to 34). The Guidelines are the Patent Office's guidance and do not have the force of law; the Patents Act, 1970 and the Patents Rules, 2003 as now in force prevail.
The Office revises its guidelines, so check the current version on ipindia.gov.in. The steps are explained in the mathematical method article and the business method article. If you are answering a section 3(k) objection, a patent objection reply can pair your claim with the closest example below.
How the Annexure is built
Each example gives a short invented claim and then a stepwise analysis: step 1 identifies the core objective, step 2 decides what the solution essentially is, and step 3 states the conclusion. The claims are the Office's illustrations, not granted patents. This article describes them in TaxClue's words and does not reproduce them.
Mathematical method: Examples 21 to 28
| No. | Field | Outcome in the Annexure | Deciding reason |
|---|---|---|---|
| 21 | Noise reduction in audio devices using a frequency transform and filter | Not excluded | The transform and filter are intermediate steps; the output is a cleaner signal delivered to a speaker |
| 22 | Autonomous drone navigation using a shortest-path algorithm | Not excluded | The path calculation is translated into control signals for the drone's motors to avoid obstacles |
| 23 | Enhancing magnetic resonance images with wavelet-based denoising | Not excluded | The output is an enhanced image shown on a display for diagnosis, not just a value |
| 24 | Vehicle stability control using wheel-slip calculation | Not excluded | The calculated slip drives braking and throttle control signals to the vehicle's hardware |
| 25 | Compound interest calculation | Excluded | The method automates plugging values into a formula and outputs a number; no technical process beyond the calculation |
| 26 | Statistical regression to compute correlation coefficients | Excluded | The output is a set of numbers; no larger technical process |
| 27 | Pseudo-random number generation from a seed | Excluded | The output is a number sequence; the Annexure notes it is not embedded in a technical process such as key generation in secure hardware or signal modulation |
| 28 | Solving a quadratic equation | Excluded | The output is the roots; no device control, signal processing or hardware actuation |
What separates the two groups. In 21 to 24 the final claim step is something physical or perceptible: sound from a speaker, a drone moving, an image on a display, brakes applied. In 25 to 28 the final step is "output the result". The Annexure's wording is consistent: the output is "not just a number" in the passing examples and "just a number" in the excluded ones.
Business method: Examples 29 to 34
| No. | Field | Outcome in the Annexure | Deciding reason |
|---|---|---|---|
| 29 | Securing online banking data with quantum-resistant encryption, a secure channel and multi-factor biometric authentication | Not excluded | Technical steps for encryption, transmission and authentication; online banking is only the application domain |
| 30 | A point-of-sale terminal with adaptive signal processing and an error-correction protocol | Not excluded | Technical solutions to environmental noise and data transmission errors; no business rule recited |
| 31 | Server load balancing for an e-commerce platform using predictive analytics | Not excluded | Technical monitoring, resource allocation and request routing improve infrastructure performance |
| 32 | A bank's tiered service fee based on balance and transaction volume | Excluded | The core is a scheme for revenue generation and customer management; the computer only applies the business rules more efficiently |
| 33 | A loyalty rewards programme with points, membership tiers and discounts | Excluded | A marketing and customer retention strategy; any automation is incidental |
| 34 | Dynamic surge pricing for ride fares | Excluded | A commercial strategy for revenue optimisation using rules on demand and supply |
What separates the two groups. Examples 29 to 31 all take a setting that sounds commercial (banking, payments, e-commerce) and claim a technical improvement to the system: security, reliability, load. Examples 32 to 34 take the commercial rule itself as the invention. The Annexure notes for the excluded group that the use of a computer is "incidental" and serves only to implement business rules more efficiently.
Lessons for drafting
- End the claim on the technical effect. If a calculation drives a signal, a device or an image, say so in the last step.
- Do not stop at "output the result". A number alone is the pattern the Annexure excludes.
- Claim the machinery, not the rule. For a platform, claim what changes in the servers, network or terminal, not what changes in the price or the programme.
- Name the technical problem. In 29 to 31 the Office identifies the engineering problem (security, noise, latency) first.
- Keep the description consistent with the claim. The deciding reasons in the Annexure come from what the claim recites, so the claim has to carry the technical feature.
How an objection is usually framed, and how to answer it
| Objection | Answer using the Annexure |
|---|---|
| "Claim is a mathematical method" | Show a final claim step like those in Examples 21 to 24: a control signal, a displayed image, an output to hardware |
| "Claim is a business method" | Show the improvement to the underlying system, as in Examples 29 to 31, and that business context is only the domain |
| "The system merely automates a business rule" | Identify the technical steps that go beyond standard data processing |
The Annexure is a non-exhaustive indicative list. An example is persuasive for similar facts, but each application is judged on its own substance, and the Act and Rules prevail.
A worked example (invented)
Dhara Logistics claims a method of computing an optimal delivery fee from distance, weight and time of day and sending the fee to the customer. The examiner raises the business method exclusion by reference to the pattern of Example 34. Dhara's specification also describes a routing module that compresses route data for in-vehicle devices so that updates arrive within a set time on a weak network. Dhara replaces the claim with one directed to the compression and delivery of route updates to the vehicle unit, citing the contrast between Examples 32 to 34 and Example 31. The fee rule is no longer the claimed invention.
Common lapses
- Reciting a formula in the claim and ending with "displaying the result".
- Presenting a platform improvement but claiming only the commercial rule it supports.
- Relying on a general statement that a computer "implements" the method.
- Assuming that a banking or payments claim must fail because of its field.
Need help with a section 3(k) objection on a formula or a platform claim?
The quickest route to a good reply is to find the example nearest to your claim and show the feature that makes the difference. Our team can do that comparison and prepare the response. See patent objection reply, and read next about the algorithm examples in the same Annexure.
Key takeaways
- Examples 21 to 24 pass because the calculation serves a physical or perceptible technical result.
- Examples 25 to 28 are excluded because the output is only a number.
- Examples 29 to 31 pass because they solve technical problems in security, signal reliability and server load.
- Examples 32 to 34 are excluded because the core is a fee, loyalty or pricing scheme.
- The Annexure is indicative; each application turns on its own substance.
Read next
- CRI Guidelines 2025, paragraphs 4.5 and 4.5.1: the mathematical method exclusion
- CRI Guidelines 2025, paragraph 4.5.2: the business method exclusion
- CRI Guidelines 2025, Annexure I: Examples 35 to 40 on the algorithm exclusion
- What Cannot Be Patented: Section 3
Disclaimer: Based on the manuals and guidelines published by the Office of the Controller General of Patents, Designs and Trade Marks that are named in the article, as consulted on 4 October 2026. They are guidance and do not have the force of law; the Patents Act, 1970 and the Patents Rules, 2003 as amended (including the 2024 amendment rules) prevail, and the current versions on ipindia.gov.in should be checked. This article is general information, not legal advice; check the official text before acting.