Ex Parte JOHNSON - Page 6




                Interference No. 104,315                                                                                                                 
                Sauer Inc. v. Kanzaki Kokyukoki Mfg. Co., Ltd.                                                                                           

                         At this time [referring to meeting notes of the November 23-25, 1987 meeting,                                                   
                         Exhibit 2388] this concept which was selected was integrated design of housing                                                  
                         and center section. However, if we are to have integral housing with center                                                     
                         section, there are many difficult problems. Everybody realized those difficulties                                               
                         and in order to find solutions. What it means here is Sauer is going to take the                                                
                         lead to find a solution.                                                                                                        
                According to Sauer, and consistent with Mr. Fujisaki's testimony, during the November 23-25,                                             
                1987 meeting, the parties jointly decided that they would pursue an IHT having a center section                                          
                that is integral to the housing as opposed to separately mounted in the housing. (Sauer Fact 80)                                         
                         18. According to Sauer, from November 26, 1987, to February 28, 1988, it worked on                                              
                two of the four concepts marked for further study at the November 1987 meeting. Sauer admits                                             
                that neither one of these concepts which it had worked on during that three month time period is                                         
                within the scope of the count in this interference. (Br. at 26)                                                                          
                                                                    Discussion                                                                           
                A. Alleged Diligence of Sauer in Reduciniz the Invention to Practice                                                                     
                         Junior party Sauer does not allege that it reduced the invention of the count to practice                                       
                prior to Kanzaki's accorded benefit date of February 3, 1988. Rather, it seeks to prevail on the                                         

                issue of priority by asserting that it had a prior conception which is coupled with reasonable                                           
                diligence from a time prior to conception of the invention by Kanzaki's inventor to Sauer's own                                          
                reduction to practice. See 35 U.S.C. § 102(g).                                                                                           
                         "The reasonable diligence standard balances the interest in rewarding and encouraging                                           
                invention with the public's interest in the earliest possible disclosure of innovation." Griffith v.                                     


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