Ex Parte DIXON et al - Page 4


                 Appeal No. 2002-1367                                                          Page 4                    
                 Application No. 08/981,964                                                                              

                        promoter of the constructs of Kirsch [ ] with the 5' upstream region                             
                        of the acetoacetyl-CoA thiolase gene of Dequin [ ] or Hiser [ ] in                               
                        order to find inhibitors of sterol biosynthesis at any point along the                           
                        biosynthesis pathway as acetoacetyl-CoA thiolase is the first                                    
                        enzymes [sic] of the sterol biosynthesis pathway.                                                
                 Id. at 5.                                                                                               
                        Appellants argue that while Kirsch teaches a method for screening for                            
                 sterol biosynthesis inhibitors based on the induction of lanosterol 14-α-                               
                 demethylase, there is no suggestion of using another gene, such as the gene                             
                 encoding the acetoacetyl-CoA thiolase enzyme, in the method.  Appellants                                
                 contend that “there is no teaching or suggestion in the cited references that                           
                 feedback regulation occurred at least in part by regulation of transcription.  Such                     
                 a conclusion is apparently made with hindsight reconstruction of Appellants’                            
                 invention using the teachings of their own specification.”  Appeal Brief, pages 5-6                     
                 (emphasis in original).  Appellants argue further that “there does not appear to be                     
                 any teaching or suggestion in the cited references that it would have been                              
                 desirable to substitute the ACoAT gene promoter for the lanosterol 14-α-                                
                 demethylase gene promoter used by Kirsch [ ] at the time Appellants’ invention                          
                 was made.”  Appeal Brief, page 7.  We agree.                                                            
                        “A rejection based on section 103 clearly must rest on a factual basis, and                      
                 these facts must be interpreted without hindsight reconstruction of the invention                       
                 from the prior art.  In making this evaluation, all facts must be considered.  The                      
                 Patent Office has the initial duty of supplying the factual basis for its rejection.  It                
                 may not, because it may doubt that the invention is patentable, resort to                               







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