In the Gottschalk v. Benson case of 1972, the United States Supreme Court ruled that an algorithm cannot be patented. The case was brought to court by two inventors who had developed a method for converting binary-coded decimal (BCD) numerals into pure binary form on general-purpose digital computers. They sought patent protection for their invention but were denied by the Commissioner of Patents, leading them to appeal in federal courts which initially sided with them. However, upon reaching the Supreme Court, it was decided that while they had indeed invented a useful and new process within computer technology, it could not be patented as it was essentially just a mathematical formula or law of nature - things which are considered unpatentable abstract ideas under US patent laws. This decision set important precedent regarding software patents and intellectual property rights in computing technology.

In the dissenting opinion for Gottschalk v. Benson, Justice William O. Douglas argued that the majority's decision to deny a patent for an algorithm used in computer programming was too broad and could potentially stifle innovation in the burgeoning field of technology. He contended that while mathematical formulas as abstract entities should not be patented, their application to solve specific problems or improve technological processes should be eligible for protection under patent law. According to him, denying patents on this basis would discourage inventors from developing new applications of these algorithms and hinder progress in computer science and related fields.