Ex Parte Gady et al - Page 3

              Appeal 2006-1399                                                                       
              Application 10/666,712                                                                 
                    speed range if the rotational speeds of the first and second axle output         
                    shafts are different from each other by a predetermined amount; and              
                          (d)   activating the clutch mechanism to couple the first and              
                    second axle output shafts together during a wheel slippage condition             
                    once the rotational speeds of the first and second axle output shafts are        
                    within the common rotational speed range.                                        
                    The Examiner relies on the following prior art reference to show                 
              unpatentability:                                                                       
                          Yasuda                 6,115,663               Sep. 5, 2000               
                    The rejections as presented by the Examiner are as follows:                      
           1.       Claims 34 and 35 are rejected under 35 U.S.C. § 112, ¶ 1, as failing to          
              comply with the written description requirement.                                       
           2.       Claims 15 to 23 and 25 to 35 are rejected under 35 U.S.C. § 102(e) as            
              being anticipated by Yasuda.                                                           
           3.       Claim 24 is rejected under 35 U.S.C § 103(a) as unpatentable over.               
              Yasuda.                                                                                
                    The Examiner contends that the Appellants’ disclosure does not                   
              disclose a transfer case wherein the second axle output shaft is only coupled          
              to the first axle during a wheel slippage condition.                                   
                    The Appellants contend that their Specification discloses that the               
              coupling of the second axle output shaft to the first axle output shaft occurs         
              only during a wheel slippage condition.                                                
                    The Examiner contends that Yasuda discloses each and every element               
              of claims 15 to 23 and 25 to 35.                                                       
                    The Appellants contend that Yasuda does not disclose a controller that           
              compares the rotational speeds of the first and second axle output shafts to           
              each other and generates a control signal to bring the rotational speeds of the        

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