Ex parte SMITH et al. - Page 6




              Appeal No. 1996-3860                                                                                     
              Application 08/312,819                                                                                   



              differences between the claims and the disclosure of Sauter, one would expect the                        
              examiner to set forth a detailed statement of a rejection explaining why Sauter exactly                  
              describes the rejected claims.  This has not happened.  Accordingly, we reverse the                      
              rejection under 35  U.S.C. § 102(b) based upon Sauter.                                                   
                     The examiner has not begun to establish a credible basis for the alternative §103                 
              rejection.  The examiner stated at page 6 of the first Office action (Paper No. 4, March 6,              
              1995) that “any conceivable differences which might exist between the claimed/envisioned                 
              invention and sauter[sic] being held/seen NOT to constitute patentable differences.”                     
              Suffice it to say the Examiner’s Answer does not further explain the examiner’s position.                
                     The alternative rejection under 35  U.S.C. § 103 is reversed.                                     
              Rejection V.                                                                                             
                     Claims 12 and 15 stand rejected under 35 U.S.C. '  103 over Sauter in view                        

              of Barshay. We reverse.                                                                                  
                     Obviousness is a legal conclusion based upon underlying factual inquiries.  Graham                
              v. John Deere Co., 383 U.S. 1, 17, 148 USPQ 459, 467 (1966); In re Fritch, 972 F.2d at                   
              1265, 23 USPQ2d at 1783.                                                                                 
                     For us to review a rejection under 35 U.S.C. ' 103,  it is incumbent upon the                     


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