Ex parte KLINE et al. - Page 5




          Appeal No. 1996-0910                                                        
          Application 08/118,368                                                      


          date.  The appellants’ counsel is on record as explaining that              
               Boeing (the assignee of the present application)                       
               contracted with a supplier (Ingersoll Milling                          
               Machine Co.) to build and deliver to Boeing the                        
               first two HAL Cell systems according to Boeing                         
               specification #L-2433 which had earlier been sent                      
               out for competitive bidding by the machine tool                        
               builders.  . . .  [T]he inventors are employees of                     
               Boeing” [Paper No. 14, pages 1 and 2].                                 





               The appellants, relying on the Walter and Kline                        
          declarations, take the position on appeal that                              
               Boeing could have built in-house the first machine                     
               system intended for production use, but instead                        
               elected to have an outside contractor (Ingersoll                       
               Milling Machine Co.) build this complex machine for                    
               Boeing.  If Boeing had elected to build the first                      
               production machine in-house, the on-sale issue would                   
               not have occurred.  But because Boeing elected to                      
               have an outside contractor build the first machine                     
               system, there was a sale (a non-public sale) of the                    
               machine system.  Applicants contend that the private                   
               sale was an experimental sale because the machine                      
               system was in an experimental mode until it had met                    
               all the required Boeing qualification tests and                        
               became a qualified machine [main brief, Paper No.                      
               18, page 2].                                                           
               Both the examiner and the appellants have characterized                
          the transaction between Boeing and Ingersoll as a “sale” of                 

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