SCHAENZER et al. V. KNIGHT - Page 11




                 Interference No. 105,058                                                                                                            
                 Schaenzer v. Knight                                                                                                                 
                         Unlike a civil litigation between two private parties, an interference proceeding is                                        
                 initiated by the U.S. Patent and Trademark Office. It cannot be terminated at will by agreement                                     
                 between the parties in a manner that provides no reasonable assurance that applicable patent laws                                   
                 have been correctly applied. The parties have to demonstrate the legal soundness of the changes                                     

                 they seek. For instance, if the claims of the parties are drawn to the same patentable invention,                                   
                 the parties may not agree to "live with" or "tolerate" each other by allowing each to retain some                                   
                 claims simply by agreeing to have certain claims re-designated as not corresponding to the count.                                   
                         Here, the parties have settled the interference. Junior party filed no response to our show                                 
                 cause order and appears ready to accept entry of adverse judgment. However, before accepting                                        
                 adverse judgment, it desires to carve out its claims 3-9 from the effects of that adverse judgment                                  
                 by designating them as not corresponding to the count. If that relief is granted, the junior party                                  
                 will walk away with its claims 3-9 intact despite its having lost this interference. The senior                                     
                 party agrees to that outcome. Hence, the parties have jointly moved to have junior party's claims                                   
                 3-9 designated as not corresponding to the count.                                                                                   

                         In provoking this interference, senior party Knight had represented that claim 3 of                                         

                 Schaenzer's involved patent should be designate as corresponding to the count. It was                                               
                 represented by Knight that this claim does "not provide elements which would warrant a finding                                      
                 of separate patentability" (Exhibit 2004, at 2). Also in provoking this interference, senior party                                  
                 Knight represented that claim 4 of Schaenzer's involved patent should be designated as                                              
                 corresponding to the count because the claim would have been obvious in view of U.S. Patent                                         


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