Ex parte TAKAHASHI et al. - Page 6




          Appeal No. 98-1030                                                          
          Application 08/424,115                                                      


          however, the appellants have challenged such findings, and                  
          have submitted various materials to support their position                  
          (see pages 7 through 10 in the brief).  Although the materials              
          submitted by the appellants are not all that persuasive for                 
          the reasons expressed by the examiner (see pages 7 through 9                
          in the answer), the appellants' argument that the applied                   
          references are deficient with respect to the claim limitation               
          at issue is well taken.                                                     
               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, 178 (CCPA 1967).  In making such a rejection, an 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.  In the present case, it is not disputed that the applied               
          references, and particularly Ohkuwa, fail to contemplate the                
          virtual image                                                               




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