Ex Parte SPIEGEL - Page 9




          Appeal No. 2004-0575                                                        
          Application 09/206,005                                                      


          Looking at the test set forth in Pfaff v. Wells Electronics                 
          Inc., 119 S. Ct. 304, 311-12, 48 USPQ2d 1641, 1646-47, (U.S.                
          1998), we note that the on-sale bar under 35 U.S.C. § 102(b)                
          applies when two conditions are satisfied before the critical               
          date, i.e., the product must be the subject of a commercial offer           
          for sale and the invention must be ready for patenting.  On page            
          6 of the brief, appellant indicates that he “does not dispute               
          that the invention was ready for patenting before the November              
          17, 1994 critical date,” apparently based on Mr Kargula’s formal            
          drawing attached as Exhibit C of the § 132 declaration (drawing             
          EXP-1964-MS), which essentially shows all details of the                    
          transmission cooler-bypass unit in the exact same manner as                 
          Figure 1 of the present application.  However, appellant does               
          dispute that the transfer of 10 or 12 cooler-bypass units for               
          $7000 to Ford constitutes a commercial offer for sale.                      
          According to appellant,                                                     
                    Contrary to the Examiner’s assertion, the materials in            
               the Spiegel declaration are not consistent with a sale                 
               (p.4).  The Spiegel declaration and the exhibits clearly               
               show that no contractual offer was in place, as required by            
               Group One, Ltd. v. Hallmark Cards, 254 F.3d 1041 (Fed. Cri.            
               2001).  Group One and Pfaff both specifically require that             
               the offer must meet the level of an offer for sale in the              
               contract sense, one that would be understood as such in the            
               commercial community.  Group one, 254 F.3d at 1046.  If the            
               offer cannot be made into a binding contract by simple                 

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