Ex Parte Grandy - Page 7



          Appeal No. 2005-1016                                                        
          Application No. 10/326,780                                                  

          ground of rejection pursuant to this paragraph shall not be                 
          considered final for judicial review."                                      
               37 CFR § 41.50(b) also provides that the appellant, WITHIN             
          TWO MONTHS FROM THE DATE OF THE DECISION, must exercise one of              
          the following two options with respect to the new ground of                 
          rejection to avoid termination of the appeal as to the rejected             
          claims:                                                                     
                    (1) Reopen prosecution.  Submit an appropriate                    
               amendment of the claims so rejected or new evidence                    
               relating to the claims so rejected, or both, and have                  
               the matter reconsidered by the examiner, in which event                
               the proceeding will be remanded to the examiner. . . .                 
                    (2) Request rehearing.  Request that the                          
               proceeding be reheard under § 41.52 by the Board upon                  
               the same record. . . .                                                 
               Should the appellant elect to prosecute further before the             
          examiner pursuant to 37 CFR § 41.50(b)(1), in order to preserve             
          the right to seek review under 35 U.S.C. §§ 141 or 145 with                 
          respect to the affirmed rejection, the effective date of the                
          affirmance is deferred until conclusion of the prosecution before           
          the examiner unless, as a mere incident to the limited                      
          prosecution, the affirmed rejection is overcome.                            
               If the appellant elects prosecution before the examiner and            
          this does not result in allowance of the application, abandonment           
          or a second appeal, this case should be returned to the Board of            

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