Ex Parte SULLIVAN et al - Page 5



             Appeal 2006-3387                                                                                    
             Application 09/385,489                                                                              
             having recourse to a valid third party audit of the performance achieved, both                      
             retailer and manufacturer have a clear and current factual record to use in resolving               
             payment disputes (Answer 4).  The Examiner thus determined that it would have                       
             been inherent to track the performance that would help manufacturers determine                      
             how much money they owed to the retailers, because manufacturers would have to                      
             know the products that are in promotion and the payment value of the product for                    
             settlement (Answer 4).  The Examiner further found that Schultz teaches a central                   
             management firm which audits and tracks all POS data obtained from retail stores                    
             to settle all rewards promotions between retailers and manufacturers (Answer 5).                    
             The Examiner determined that it would have been obvious to use the central                          
             management firm of Schultz to perform all settlement between manufacturers and                      
             retailers of the Jones system in order to make the system more fraud proof                          
             (Answer 6).                                                                                         
                   The issue before us is whether Appellants have shown that the Examiner                        
             erred in finding claims 1-32, 37-83, and 88-94 unpatentable over Jones and                          
             Schultz.                                                                                            

                                            FINDINGS OF FACT                                                     
                   We find the following facts by a preponderance of the evidence:                               
                   Jones teaches a system and method that electronically audits and tracks the                   
             results of the retailer’s efforts while monitoring and recording all POS transactions.              
             Each transaction record empirically establishes the incremental sales volume                        
             increase of a particular product promoted to support the trade promotion settlement                 

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