O'YOUNG et al. V. POWERS et al. - Page 4




          by leaving the senior party subject to a possible subsequent                
          attack by the junior party which the senior party is prepared to            
          defend at this time.  In other words, the time for O'Young to               
          establish priority vis-a-vis Powers is now--not at some time in             
          the future.                                                                 
               O'Young says that it has made no determination on the merits           
          that Powers is the first inventor.  O'Young was under no                    
          obligation to do so as a condition precedent to filing a request            
          for an adverse judgment.  However, entry of an adverse judgment             
          based on a request for entry of a judgment is considered by the             
          United States Patent and Trademark Office (USPTO) as a judgment             
          on the merits.  Upon entry of an adverse judgment, insofar as the           
          United States Patent and Trademark Office (USPTO) is concerned in           
          connection with the examination of the Powers application,                  
          O'Young is not a prior inventor vis-a-vis Powers and the USPTO is           
          free to issue a patent to Powers notwithstanding the O'Young                
          patent.  Likewise, upon entry of an adverse judgment, the                   
          estoppel provisions of 37 CFR § 1.658(c) [Rule 658(c)] would                
          apply to O'Young, e.g., in reissue proceeding seeking to reissue            
          the O'Young patent involved in the interference.                            
               Entry of an adverse judgment based on a request for entry of           
          an adverse judgment is discretionary--Rule 662(a) says the board            
          "may" enter an adverse judgment.  Based on the record before us,            
          we are not entirely sure whether O'Young would have requested               
          entry of an adverse judgment had O'Young understood the                     
          consequences of its request.  Nevertheless, in view of Texaco's             

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