HERZOG et al. V. SARLES et al. - Page 6




          overcome rejections made between the Sarles and Herzog                      
          applications.  Indeed, a terminal disclaimer does not overcome              
          a 35 U.S.C. § 103(c) rejection .  A terminal disclaimer has no2                                             
          effect for a rejection available under 35 U.S.C. § 103(c),                  
          since the basis for refusing more than one patent is priority               
          of invention and not an undue extension of patent term.                     
               This interference was declared to resolve the question of              
          priority.  At the time the Sarles application was filed, the                
          application was assigned to WRD Corporation.  At the time the               
          Herzog application was filed, the application was assigned to               
          Kaps-All.  Now, the involved Sarles and Herzog applications                 
          are said to be commonly assigned to Kaps-All.  That evidence                
          makes a prima facie demonstration that the inventions were not              
          owned by the same entity at the time either the Herzog or                   
          Sarles invention was made.                                                  
               Herzog now submits that the settlement agreement between               
          Sarles and Herzog establishes that Sarles was obligated to                  
          assign its involved application to Kaps-All Packaging Systems               

               2    35 U.S.C. 103(c) provides:                                        
               Subject matter developed by another person, which                      
          qualifies as prior art only under subsection (f) or (g) of                  
          section 102 of this title, shall not preclude patentability                 
          under this section where the subject matter and the claimed                 
          invention were, at the time the invention was made, owned by                
          the same person or subject to an obligation of assignment to                
          the same person.                                                            
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