Ex parte SCHWARZ - Page 17




          Appeal No. 1998-3281                                                        
          Application 08/650,500                                                      


               The rejection of claims 3 through 15, 17 through 20 and 22             
          as being unpatentable under 35 U.S.C. § 103 from the disclosure             
          in Beach, is reversed.  We have made a new ground of rejection              
          under 37 C.F.R. § 1.196(b), including a rejection of claim 16 and           
          21, claims previously indicated as allowable by the examiner.               
               This decision contains a new ground of rejection pursuant to           
          37 C.F.R. § 1.196(b) (amended effective Dec. 1, 1997, by final              
          rule notice, 62 Fed. Reg. 53,131, 53,197 (Oct. 10, 1997), 1203              
          Off. Gaz. Pat. & Trademark Office 63, 122 (Oct. 21, 1997)).  37             
          C.F.R. § 1.196(b) provides that, "A new ground of rejection shall           
          not be considered final for purposes of judicial review."                   
               37 C.F.R. § 1.196(b) also provides that the appellant,                 
          WITHIN TWO MONTHS FROM THE DATE OF THE DECISION, must exercise              
          one of the following two options with respect to the new ground             
          of rejection to avoid termination of proceedings (§ 1.197(c)) as            
          to the rejected claims:                                                     
                    (1) Submit an appropriate amendment of the claims                 
               so rejected or a showing of facts relating to the                      
               claims so rejected, or both, and have the matter                       
               reconsidered by the examiner, in which event the                       
               application will be remanded to the examiner. . . .                    















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