Ex parte TAHARA - Page 7




          Appeal No. 96-0553                                                          
          Application 08/020,993                                                      


          Although correctly pointed out by appellant in the reply brief,             
          this information has everything to do with the prediction error             
          coding portion 130 and not the quantization portion 115.  Even so           
          it does indicate that processing within block 118 occurs in a               
          block-wise manner with respect to the first quantization step-              
          size computing data signal 119 with respect to each block so                
          obtained from first quantization step-size computing portion 122.           
          Thus, it is apparent to us that the determination of a broadly              
          defined claimed correlation between one of the plurality of                 
          blocks of one of said frames of video data, which is the incoming           
          frame of video data, and a corresponding block of preceded framed           
          information of video data is met by the teachings of this                   
          reference as initially introduced in Figure 3.  The preceding               
          data is the data from the code memory 123 in Figure 3 as                    
          processed by the first quantization step-size computing portion             
          122 to yield a signal 119 feeding block 118.  Overall, it is                
          clear to us that the processing occurs on a corresponding block-            
          by-block basis from the preceding frame that is to be transmitted           
          and the current incoming frame that is being processed to be                
          inputted to the picture memory portion 104 as well as into the              
          code memory 123.  The second quantization step-size signal 120 is           



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