Ex Parte TERASAWA et al - Page 4


          Appeal No. 2003-0350                                                        
          Application 08/771,399                                                      



                                       OPINION                                        
                    We have carefully considered the subject matter on                
          appeal, the rejections advanced by the Examiner and the evidence            
          of obviousness relied upon by the Examiner as support for the               
          rejections.  We have, likewise, reviewed and taken into                     
          consideration, in reaching our decision, Appellants’ arguments              
          set forth in the Briefs along with the Examiner’s rationale in              
          support of the rejections and arguments in rebuttal set forth in            
          the Examiner’s Answer.                                                      
                    It is our view, after consideration of the record                 
          before us, that the evidence relied upon and the level of skill             
          in the particular art would not have suggested to one of ordinary           
          skill in the art the obviousness of the invention as set forth in           
          appealed claims 1-11, 27, 31, and 35-39.  Accordingly, we                   
          reverse.                                                                    
                    In rejecting claims under 35 U.S.C. § 103, it is                  
          incumbent upon the Examiner to establish a factual basis to                 
          support the legal conclusion of obviousness.  See In re Fine, 837           
          F.2d 1071, 1073, 5 USPQ2d 1596, 1598 (Fed. Cir. 1988).  In so               
          doing, the Examiner is expected to make the factual                         
          determinations set forth in Graham v. John Deere Co., 383 U.S. 1,           
          17, 148 USPQ 459, 467 (1966), and to provide a reason why one               


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