Ex parte SCHELLINGER et al. - Page 8




          Appeal No. 1999-0876                                                        
          Application No. 08/693,494                                                  


          station.  The examiner states (Answer, pages 6-7) that                      
          Connolly discloses transmitting a second random number RES1                 
          from the cordless base station to the authentication equipment              
          and that "[i]t would have been obvious . . . to move the                    
          generation of the random number from the wireless                           
          communication device of Connolly, et al to the cordless base                
          station, in order to make the wireless communication less                   
          complicated and less expensive."  As an alternative motivation              
          for modifying Connolly, the examiner asserts that "it has been              
          held that rearranging parts of an invention involves only                   
          routine skill in the art."                                                  
               As to the examiner's first attempt at modifying Connolly               
          to include a second random number generated at the base                     
          station, the examiner provides no evidence or basis in the                  
          reference for his conclusion of obviousness.  The Court has                 
          held that "[w]ith respect to core factual findings in a                     
          determination of patent-ability, however, the Board cannot                  
          simply reach conclusions based on its own understanding or                  
          experience -- or on its assessment of what would be basic                   
          knowledge or common sense."  In re Zurko,                                   



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