Ex Parte SULLIVAN et al - Page 4



             Appeal 2006-3387                                                                                    
             Application 09/385,489                                                                              
                                              THE REJECTION                                                      
                   The Examiner relies upon the following as evidence of unpatentability:                        
                    Schultz                    US 5,056,019               Oct. 08, 1991                          
                    Jones                      US 5,832,458               Nov. 03, 1998                          
                   The Examiner rejected claims 1-32, 37-83, and 88-94 under 35 U.S.C.                           
             § 103(a) as being unpatentable over Jones in view of Schultz.                                       

                                                    ISSUE                                                        
                   Appellants contend Jones does not teach using its audit system to determine                   
             the amount of money the manufacturer owes the retailer for a trade promotion or                     
             for paying or causing payment of that amount of money from the manufacturer to                      
             the retailer (Br. 31).  Appellants further contend that Jones teaches using its system              
             to passively audit retail POS transactions, including trade promotions, and does not                
             expressly or inherently disclose capturing and storing in its database at least one of              
             (a) a predetermined payment value the manufacturer will owe the retailer for each                   
             promoted product sold by the retailer during the trade promotion, and (b) a                         
             predetermined payment value the manufacturer will owe the retailer for conducting                   
             the trade promotion (Br. 33).  Appellants contend that Schultz does not cure the                    
             deficiencies of Jones, because the Schultz system does not settle reward                            
             promotions between the retailer and the manufacturer (Br. 39).                                      
                   The Examiner admits that Jones does not expressly mention “promoted                           
             product identification and predetermined payment value” (Answer 4).  The                            
             Examiner found, however, Jones teaches that by crafting the promotion contract                      
             around performance goals evidenced by incremental sales volume increases, and                       
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