Ex parte DOWNING et al. - Page 7




          Appeal No. 96-1227                                                          
          Application 08/134,853                                                      


          business forms in the methodology of the above combined                     
          references in the long grain direction” (answer, page 4).                   
               Rejections based on 35 U.S.C. § 103 must rest on a                     
          factual basis.  In re Warner, 379 F.2d 1011, 1017, 154 USPQ                 
          173, 177-78 (CCPA 1967).  In making such a rejection, the                   
          examiner has the initial duty of supplying the requisite                    
          factual basis and may not, because of doubts that the                       
          invention is patentable, resort to speculation, unfounded                   
          assumptions or hindsight reconstruction to supply deficiencies              
          in the factual basis.  Id.                                                  
               The above limitations in claim 26 relating to the “long                
          grain direction” are disclosed in the appellants’                           
          specification (see page 3) as solving the problem of form                   
          wrinkling caused by the application of sealing forces in the                
          direction perpendicular to the long grain direction of the                  
          form.  This problem and the appellants solution thereto are                 
          further discussed in the 37 CFR  § 1.132 declaration of David               
          G. Wagner filed on December 20, 1994 (Paper No. 24).  Neill,                
          Klar and Gerlach do not make any mention of the long grain                  
          direction of the respective packaging materials disclosed                   
          therein, and certainly do not appreciate that grain direction               
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