Ex parte KATO - Page 14




          Appeal No. 1999-2018                                                         
          Application 08/571,204                                                       

          residuums of claim 4 as the first and second inter picture                   
          distances, respectively, of claim 2.  However, claim 4 is                    
          not at issue as argued.                                                      
               Because Sugiyama uses the forward prediction error and                  
          the backward prediction error (corresponding to Appellant's                  
          Ef and Eb), which are a measure of distance, to select a                     
          predictive coding mode, Sugiyama anticipates the first and                   
          second steps of claim 2.  No other differences have been                     
          argued.  See 37 CFR § 1.192(c)(8)(iii).  For this additional                 
          reason, the anticipation rejection of claims 1-4 and 6-8 is                  
          sustained.                                                                   

               Obviousness                                                             
               The Examiner states that when Sugiyama is read                          
          narrowly, it may not show the use of motion compensation and                 
          motion vector estimation and applies Wai (EA7).  Appellant                   
          argues that Wai does not cure the deficiency of Sugiyama                     
          with respect to the step of selecting a predictive coding                    
          mode based upon inter picture distance values in claim 2                     
          (Br12-13).                                                                   
               Because Appellant does not argue any limitation in                      
          claim 2 other than the step of selecting a predictive coding                 
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