Ex Parte Sallaway et al - Page 4

               Appeal 2007-1807                                                                            
               Application 09/751,037                                                                      
                                                 The Invention                                             
               1.  As depicted in Figure 1, Appellants invented a network transceiver                      
                      (100) operable in either an industry-compliant mode or in a custom                   
                      mode.  The transceiver (100) includes an encoder (120), a decoder                    
                      (125) and a mode controller (130) to control the operating modes of                  
                      the transceiver.  (Specification 11-12.)                                             
               2. The controller (130) comprises an encoder portion (135) and a                            
                      decoder portion (140).  The encoder portion (135) being able to direct               
                      the encoder (120) to encode received data in either the industry                     
                      compliant mode or the custom mode.  (Id. 13.)                                        
               3. When the detector senses received data to be in a custom mode, the                       
                      decoder portion (1) directs the encoder portion to direct the encoder to             
                      encode the data in custom mode, and (2) directs the decoder to decode                
                      the received custom data. (Id.)                                                      
                                        The Prior Art Relied Upon                                          
               4. As depicted in Figure 1, Herve teaches a dual-mode ISDN/STN                              
                      visiophone terminal including an audio section (7) and a video section               
                      (1).  Each of the videophone sections is connected to a respective                   
                      CODEC segment (13, 24, 6, and 25) to encode or decode received                       
                      data according to the ISDN or STN mode of operation that the                         
                      management system (18) selected via a switch (28).  (Col. 3, ll. 19-65;              
                      col. 4, ll. 12-23.)                                                                  
                                               ANALYSIS                                                    
                      We begin our analysis by noting that independent claims 1, 9, 18 and                 
               26 require a controller comprising an encoder portion and a decoder portion                 
               wherein the decoder portion directs the encoder portion to direct an encoder                

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