Ex Parte Liu et al - Page 7


                Appeal No. 2006-2541                                                                          
                Application No. 09/832,438                                                                    

                      In response the Examiner, states on page 10 of the Answer that Smith                    
                teaches allocating resources based upon demand and Pappalardo teaches                         
                improving service levels by penalizing service providers if the agreed upon                   
                service level is not met.  Further, on pages 10 and 11 of the Answer:                         
                      Examiner notes that Smith discloses allocating servers and resources                    
                      on an as-needed basis to the web sites and applications of the business                 
                      in response to the immediate demand for Internet access to those web                    
                      sites and applications. Examiner further notes that "as-needed' is                      
                      interpreted to mean many reasons. For example, the fundamental                          
                      principle of business is to maximize profit. The greater demand for                     
                      Internet access in Smith would generate additional profit for the                       
                      service provider and therefore allocating resources to meet the greater                 
                      demand would maximize profit. Moreover, Smith discloses that the                        
                      business is not locked into a given capacity, according to their service                
                      level agreement, therefore it is not necessary for the business to waste                
                      scarce financial resources by scaling its service capacity in order to                  
                      handle a small number of peak access times. When the service                            
                      provider allocates resources to meet the greater demand by the                          
                      business, the service provider increases profit by charging for the                     
                      additional resources (Para. 13-16).                                                     
                Further, the Examiner states, on page 11 of the Answer, that Smith is not                     
                relied upon to teach allocating resources based upon whether each request                     
                received generates revenue or penalty.  Rather, on pages 12 and 13 of the                     
                Answer, the Examiner states that Pappalardo teaches penalties, credits to the                 
                user, if service level agreements are not met and that service providers                      
                allocate resources in order to meet service level agreements in order to                      
                refrain from issuing credits to customers.  The Examiner concludes on page                    
                13 of the Answer, that:                                                                       
                      [T]he Smith reference discloses calculating profit for the service                      
                      provider and allocating resources to maximize profit (Paras. 13-16);                    

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