AbstractA poweful paradigm is presented for defining semantics of data types which can assign sensible semantics also to data representing processes. Processes are abstractly viewed as elements of observable sort in an algebraic structure, independently of the language used for their description. In order to define process semantics depending on the observations we introduce observational structures, essentially first-order structures where we specify how processes are observed. Processes are observationally related by means of experiments considered similar depending on a similarity law and relations over processes are propagated to relations over elements of non-observable sort by a propagation law. Thus an observational equivalence is de...