Ex Parte Herzog et al - Page 7



           Appeal 2007-1787                                                                        
           Application 10/742,187                                                                  
           The question of obviousness is resolved on the basis of underlying factual              
           determinations including (1) the scope and content of the prior art, (2) any            
           differences between the claimed subject matter and the prior art, and (3) the level     
           of skill in the art.  Graham v. John Deere Co., 383 U.S. 1, 17-18, 148 USPQ 459,        
           467 (1966).  See also KSR, 127 S.Ct. at 1734, 82 USPQ2d at 1391 (“While the             
           sequence of these questions might be reordered in any particular case, the              
           [Graham] factors continue to define the inquiry that controls.”)  The Court in          
           Graham further noted that evidence of secondary considerations “might be utilized       
           to give light to the circumstances surrounding the origin of the subject matter         
           sought to be patented.”  383 U.S. at 18, 148 USPQ at 467.                               
                 In KSR, the Supreme Court emphasized “the need for caution in granting a          
           patent based on the combination of elements found in the prior art,” id. at 1739, 82    
           USPQ2d at 1395, and discussed circumstances in which a patent might be                  
           determined to be obvious.  In particular, the Supreme Court emphasized that “the        
           principles laid down in Graham reaffirmed the ‘functional approach’ of Hotchkiss,       
           11 How. 248.”  KSR, 127 S.Ct. at 1739, 82 USPQ2d at 1395 (citing Graham, 383            
           U.S. at 12 (emphasis added)), and reaffirmed principles based on its precedent that     
           “[t]he combination of familiar elements according to known methods is likely to be      
           obvious when it does no more than yield predictable results.”  Id.  The Court           
           explained:                                                                              
                       When a work is available in one field of endeavor, design                   
                       incentives and other market forces can prompt variations                    
                       of it, either in the same field or a different one.   If a                  
                       person of ordinary skill can implement a predictable                        
                       variation, §103 likely bars its patentability.   For the same               
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