Ex Parte HALL et al - Page 6



          Appeal No. 2003-2092                                                        
          Application 09/046,285                                                      

          assure that the requisite findings are made, based on evidence of           
          record, but must also explain the reasoning by which the findings           
          are deemed to support the agency’s conclusion.”  In re Lee, 277             
          F.3d 1338, 1344, 61 USPQ2d 1430, 1434 (Fed. Cir. 2002).  With               
          these principles in mind, we commence review of the pertinent               
          evidence and arguments of Appellants and Examiner.                          
               Appellants argue that Zdepski and Tsukagoshi fail to                   
          disclose or suggest for each of at least some of the video                  
          blocks, accumulating a sum of the number of bits in the varying             
          bits coefficients encoded from the block and output from the                
          encoder, comparing the sum to a predefined block limit value and            
          terminating the outputting of the varying bit coefficients                  
          encoded from the block to prevent the accumulated sum from                  
          exceeding the predefined block limit as recited in Appellants’              
          independent claims 1 and 6.  See page 4 of Appellants’ brief and            
          reply brief.  The Examiner states that these limitations are                
          found in Zdepski in column 7, lines 7 through 12.  See pages 4              
          and 5 of the Examiner’s answer.                                             
               We note that Appellants’ claim 1 recites:                              
                    A method for encoding digital video picture data,                 
               comprising the steps of: . . . terminating the outputting of           
               the varying bit coefficients encoded from the block to                 
               prevent the accumulated sum from exceeding the predefined              
               block limit value, and if all of the coefficients encoded              
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