Ex Parte Dutta - Page 10



           Appeal No. 2005-1636                                                                      
           Application No. 09/726,272                                                                

                 With respect to claims 48, 60 and 72, which are argued as                           
           a single group, appellant argues that Pettitt fails to teach the                          
           claimed steps (brief, page 19).  The examiner responds by                                 
           explaining how the collective teachings of Pettitt and Robinson                           
           teach the claimed invention (answer, pages 21-22).  Appellant                             
           responds by repeating the argument from the brief (reply brief,                           
           page 12).                                                                                 
           We will sustain the examiner’s rejection of claims 48,                                    
           60 and 62.  Pettitt teaches that the LCH 14 pays the provider a                           
           royalty and debits the account of the distributor (column 5,                              
           lines 29-36).  In order for the provider to receive a royalty,                            
           the provider must have transmitted a royalty amount for the                               
           digital work provided.  Although Pettitt does not specifically                            
           recite that the royalty is “calculated” based on a “royalty                               
           rate,” the artisan would have found it obvious to base the                                
           royalty in Pettitt on a royalty rate.  Although Pettitt discloses                         
           debiting the account of the distributor, since the distributor                            
           sends the digital work to the reseller (merchant), the                                    
           distributor would clearly collect a similar amount from the                               
           reseller.  We note that claim 48 does not recite which of the                             
           various entities within the distribution system is performing the                         
           claimed steps.                                                                            
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