HERZOG et al. V. SARLES et al. - Page 3




          do.  The APJ did express to the parties that if a response to               
          the Order to Show Cause was not received within the deadline                
          (February 28, 2001), then judgment could be entered against                 
          junior party Herzog.                                                        
               On February 28, 2001, Herzog filed a paper entitled                    
          “PARTY HERZOG RESPONSE TO ORDER TO SHOW CAUSE” (paper 45).                  
          Party Herzog states that it opposes the Order to Show Cause                 
          “unless prior to entry of judgment (against junior party                    
          Herzog), claims 1-9, 11-18 and 20-49 of the involved Herzog                 
          application 09/138,159 are designated as not corresponding to               
          the count.”  (Paper 44 at 1).  Herzog, along with its response              
          to the Order to Show Cause, has filed a terminal disclaimer.                
          Herzog states that the settlement agreement establishes that                
          Party Sarles obligated to assign their involved 08/964,159                  
          application to Kaps-All at the time the invention was made.                 
          (Paper 45, para. 12 at 3).                                                  
          B.   Discussion                                                             
               Kaps-All, as the common assignee of the involved                       
          applications, was under an Order to Show Cause why adverse                  
          judgment as to the subject matter of the count should not be                
          entered against junior party Herzog.  (Paper 41).  In its                   
          response to the Order to Show Cause, Herzog agrees that                     
          judgment against it is appropriate, if we decide to designate               

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