Ex parte GOODWIN - Page 4




               Appeal No. 1997-0344                                                                                               
               Application 08/326,992                                                                                             


                                                           OPINION                                                                

                      It is our view, after consideration of the record before us, that the examiner has failed to make           

               out a prima facie case of obviousness under 35 U.S.C. § 103.  In reaching our conclusion                           



               on the issue raised in this appeal, we have carefully considered appellant’s specification and claims, the         

               applied references, and the respective viewpoints of appellant and the examiner.  As a consequence of              

               our review, we find that the examiner has failed to meet his burden of adequately showing that Swartz in           

               view of Hunt and Blanford taught or would have suggested the combination of features of claims 1 to                

               14 on appeal of a price maintenance system and method.  Accordingly, we will reverse the examiner’s                

               decision rejecting claims 1 to 14 on appeal as being obvious under 35 U.S.C. § 103.                                

                      In rejecting claims under 35 U.S.C. § 103, it is incumbent upon the examiner to establish                   

               a factual basis to support the legal conclusion of obviousness.  See In re Fine, 837 F.2d 1071, 1073, 5            

               USPQ2d 1596, 1598 (Fed. Cir. 1988).  In so doing, the examiner is expected to make the factual                     

               determinations set forth in Graham v. John Deere Co., 383 U.S. 1, 17, 148 USPQ 459, 467 (1966),                    

               and to provide a reason why one having ordinary skill in the pertinent art would have been led to                  

               modify the prior art or to combine prior art references to arrive at the claimed invention.  Such reason           

               must stem from some teaching, suggestion or implication in the prior art as a whole or knowledge                   

               generally available to one having ordinary skill in the art.  Uniroyal Inc. v. Rudkin-Wiley Corp., 837             


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