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Yes. If an amendment and/or argument (in response to either final or non-final office action) fails to overcome a rejection a Decision of Rejection will be issued. At this stage, applicants have two options if they wish to keep the application alive:
You may submit a counterargument (an appeal brief) via a Trial/Appeal against the examiner’s decision (See Section 7 on the Appeals System.) An applicant may also optionally file claim amendments at this stage, but the conditions are more restrictive than for office actions: i.e., (i) cancellation of claims, ii) further restriction of claimed elements (i.e., limitation of claim(s) to components defined in claim(s) before the amendment), iii) correction of errors; and/or iv) clarification of ambiguous recitations (that have been rejected in the office action) .) (See also OTHER Q2: Amendments - Scope, timing and cost.)
Any cancelled claims may be revived by making divisional applications during the time period for requesting the Appeal (see below, and Section 5 on Divisional Applications.)
Divisional applications can be filed with or without filing an Appeal against the Decision of Rejection.
If you only file a divisional(s) without an Appeal, the parent application will effectively lapse.
Claims in the divisional application could be any claims cancelled when filing an Appeal for the parent (as mentioned above), and/or, in principle, new claims that are supported in the original disclosure, etc.
Timeframe for filing Appeal and Divisionals
Appeal briefs, optional amendments and/or divisionals can be filed within 4 months of the transmitting date of the Decision of Rejection (non-extendable) for overseas applicants. (Note that this option is not available for divisionals filed before April 1, 2007.) Applications cannot currently be kept alive once this period expires.
U.S. attorneys should note that the concept of Decision of Rejection is different to anything in the U.S. system. It should not be considered as the equivalent of an Advisory Action.
There are two main advantages of filing a divisional at this stage.