Ex parte YUAN - Page 3




          Appeal No. 98-0600                                                          
          Application 08/541,441                                                      

                    magnetic shield members spaced from each of said                  
               side surfaces and at a distance G between said                         
               shield members wherein said distance S is less than                    
               half of said distance G for preventing signal loss                     
               caused by said shields shunting away incoming                          
               transition flux from said magnetic medium; and                         
                    a dielectric layer disposed within said gap,                      
               said dielectric layer extending from said sensing                      
               surface to separate said sensing surface from said                     
               surface of said magnetic medium on which data                          
               signals are recorded which are to be read out by                       
               said transducer.                                                       
                                                                                     
                                       Opinion                                        
               The rejection of claims 1, 2, and 4-7 cannot be                        
          sustained.  A reversal of the rejection on appeal should not                
          be construed as an affirmative indication that the appellants’              
          claims are patentable over prior art.  We address only the                  
          positions and rationale as set forth by the examiner and on                 
          which the examiner’s rejection of the claims on appeal is                   
          based.                                                                      
               The examiner has the initial burden to present a factual               
          basis supporting the conclusion of prima facie obviousness.                 
          As is stated by the Court of Customs and Patent Appeals in In               
          re Warner, 379 F.2d 1011, 1017, 154 USPQ 173, 178 (CCPA 1967):              
                    A rejection based on section 103 clearly must                     
               rest on a factual basis, and these facts must be                       
               interpreted without hindsight reconstruction of the                    
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