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As explained here by George,

In the U.S. a restriction requirement can be issued by an examiner who feels a claim set covers more than one invention. One criteria they can use is to assert “ undue search burden” and identify claims as falling into two different class/subclass groupings.

Now, if USPTO rejects a submission for that clause what are the available legal actions the applicant can take? If applicant splits and re-submit multiple patents would that cost them extra money?

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A restriction requirement is not a rejection. It does require a response selecting among the options presented by the examiner as to which claims the applicant chooses to have examined in the present pending application. No fee is required as long as the time to file is met.

In the response you can argue that the restriction is improper (traversing). You might win that argument but nonetheless you need to make an election as part of the response.

The potential new fees would be to file one or more divisional applications later to claim the non-elected inventions but you get one invention examined for the original application fee.

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