Ex parte KOSTEK et al. - Page 5




          Appeal No. 95-1276                                                          
          Application 07/839,969                                                      


          adjacent receivers in the data handling sub so as not to be                 
          subject to interference by the weathering layer and other strata            
          between the data handling sub and the earth’s surface (Answer at            
          page 11).  However, the examiner does not have a factual basis              
          for this statement.                                                         
                    A rejection based on 35 U.S.C. § 103 must rest on a               
          factual basis, with the facts being interpreted without hindsight           
          reconstrution of the invention from the prior art.  In making               
          this evaluation, the examiner has the initial duty of supplying             
          the factual basis for the rejection he advances.  He may not,               
          because he doubts that the invention is patentable, resort to               
          speculation, unfounded assumptions or hindsight reconstruction to           
          supply deficiencies in the factual basis.  See In re Warner, 379            
          F.2d 1011, 1017, 154 USPQ 173, 178 (CCPA 1967).                             
                    As such it is the examiner’s duty to establish a                  
          factual basis for concluding that Lygas teaches or suggests the             
          placement of the receiver in the data handling sub.  The examiner           
          has not met this burden.  We have reviewed the disclosures of               
          Lord, Cox, Ely, Hoyle, Schuster and Moser but these references do           
          not cure the deficiencies of Lygas in this regard.  For example,            
          while Cox, Ely, Hoyle, Schuster and Moser disclose downhole                 
          logging tools which include transmitters and receivers, these               

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