Ex parte TEH et al. - Page 9




          Appeal No. 1999-1793                                                         
          Application 08/161,798                                                       

          available frequency-units."  Therefore, we find Veldhuis does not            
          disclose "a first bit allocation step for determining an initial bit         
          allocation for each of said available frequency-units by using an            
          approximate mathematical model using said counted number of available        
          frequency-units" (emphasis added)                                            
               Claim 5 lastly recites "a second bit allocation step for                
          determining further bit allocation for each of said available                
          frequency-units based on psychoacoustic criteria."  As disclosed, the        
          second step of allocating bits "based on psychoacoustic criteria"            
          uses psychoacoustic criteria only in the sense that a psychoacoustic         
          weighting factor F is used in reducing the variance of the unit              
          (specification, p. 9, step [4]); thus, the allocation of bits "based         
          on psychoacoustic criteria" can be interpreted broadly as very               
          indirectly based on some psychoacoustic criterion.  In Veldhuis, the         
          blocks (p;m) having the greatest need of quantizing bits G'(p;m) are         
          allocated further bits by jumping to the next level i in figure 10           
          (step 9-11 in fig. 9; col. 15, lines 58-63).  The need of bits               
          G'(p;m) is assigned a value of G'(p;m)/D, with D>1, so as to evenly          
          distribute the numbers of quantization bits saved over the                   
          blocks (p;m) having a value of C(p;m)="1" (col. 15, line 63 to               
          col. 16, line 1).  The value D is not disclosed to be "based on              

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