Ex Parte Lee - Page 39



                Appeal 2006-2328                                                                                       
                Application 10/131,049                                                                                 
                Jones & Co., Inc., 324 F.3d 1346, 1354 , 66 USPQ2d 1331, 1337 (Fed. Cir.                               
                2003).  Valid prior art may be created by the admissions of the parties even                           
                absent a statutory basis in § 102.  Id.  A statement by an applicant during                            
                prosecution identifying certain matter not the work of the same inventor as                            
                “prior art” is an admission that the matter is prior art.  Id.  The USPTO has                          
                long held that derivation of an invention from the work of another can be                              
                applied as § 102(f) prior art in a rejection based on §§ 102(f)/103.  See                              
                Ex parte Andresen, 212 USPQ 100, 102-103 (Bd. Pat. App. 1981) (prior to                                
                1984 amendment to § 103); Ex parte Yoshino, 227 USPQ 52, 54 (Bd. Pat.                                  
                App. & Int. 1985) ("The amendment to section 103 in the 1984 Act implicitly                            
                provides that prior art can exist by virtue of subsection 102(f); i.e. subject                         
                matter which an applicant did not invent may have the status of prior art as to                        
                him. Manifestly, that which is prior art under subsection 102(f) can be used                           
                alone or in combination with other prior art to support a rejection under                              
                § 103.").  It is now clear that § 102(f) is a prior art provision for purposes of                      
                § 103 and § 102(f) does not refer to public activity.  See OddzOn Products,                            
                Inc. v. Just Toys, Inc., 122 F.3d 1396, 1403-04, 43 USPQ2d 1641, 1646 (Fed.                            
                Cir. 1997) ("We therefore hold that subject matter derived from another not                            
                only is itself unpatentable to the party who derived it under § 102(f), but,                           
                when combined with other prior art, may make a resulting obvious invention                             
                unpatentable to that party under a combination of §§ 102(f) and 103.                                   
                See generally 2 Chisum, Patents § 5.03[3][d] "Derivation from Another--                                
                Section 102(f)."  Of course, § 103(c) permits applicants to disqualify subject                         

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