From Section 7:
Obviously, what keeps recognition from being thus vacuous is its being beholden somehow to what is ostensibly being recognized, yet in such a way that the criteria of correctness are induced from above. — Haugeland
So I can't plan out a chess match in my head, and then say that, every time my phone rings, another move in that match has taken place, and then say that my phone is playing chess against itself, because my supposed pattern recognition here is not at all beholden to the phone; the game would proceed the same way if I applied this method to anything else that happens repeatedly. A little further on in the same section, we have this:
[actual cases of pattern recognition are] the concrete way in which recognition holds itself to its object.
Anyone else smell Wittgenstein here?
...there is a way of grasping a rule which is not an interpretation, but which is exhibited in what we call "obeying the rule" and "going against it" in actual cases." — Wittgenstein
Haugeland is saying, I think, that a pattern exists when there is a set of rules that govern what something should do, and how we're supposed to respond when it does (or doesn't) do what it's supposed to do. We follow these rules by responding the way we're supposed to.
The whole thing is a bit fishy, though. I get the same vague sense from this paper as I do from Dennett, Heidegger, and, to a lesser extent, Wittgenstein - namely, the sense that I've been hoodwinked somehow. It's very subtle, but there's a gap in it somewhere.
I think that the sleight-of-hand here is in the whole assumption of pragmatism - namely, the idea that the ultimate test of something's validity is whether or not it's
useful. It seems to underlie everything in this paper (and most of Dennett's work), but I never see it satisfactorily defended. I can't point exactly to where the chink in the armor is here, not yet anyway - I will have to study this some more.