Frank E. Paulik and Robert G. Schultz v. Nabil Rizkalla and Charles N. Winnick

796 F.2d 456, 230 U.S.P.Q. (BNA) 434, 1986 U.S. App. LEXIS 20303, 55 U.S.L.W. 2108
CourtCourt of Appeals for the Federal Circuit
DecidedJuly 21, 1986
DocketAppeal 86-824
StatusPublished
Cited by2 cases

This text of 796 F.2d 456 (Frank E. Paulik and Robert G. Schultz v. Nabil Rizkalla and Charles N. Winnick) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Frank E. Paulik and Robert G. Schultz v. Nabil Rizkalla and Charles N. Winnick, 796 F.2d 456, 230 U.S.P.Q. (BNA) 434, 1986 U.S. App. LEXIS 20303, 55 U.S.L.W. 2108 (Fed. Cir. 1986).

Opinion

FRIEDMAN, Circuit Judge.

This is an appeal from a decision of the Patent and Trademark Office Board of Patent Appeals and Interferences (Board) which, on remand from this court’s decision in Paulik v. Rizkalla, 760 F.2d 1270, 226 USPQ 224 (Fed.Cir.1985), again awarded priority in this interference proceeding to Rizkalla. We vacate and remand.

I

A. The following facts pertinent to the issue before us were stated in our prior decision:

Rizkalla’s patent application has the effective filing date of March 10, 1975, its parent application. Paulik’s patent application was filed on June 30, 1975....
The Board held and Rizkalla does not dispute that Paulik reduced the invention of the count to practice in November 1970 and again in April 1971.
On about November 20, 1970 Paulik submitted a “Preliminary Disclosure of Invention” to the Patent Department of his assignee, the Monsanto Company
Despite occasional prodding from the inventors, and periodic review by the patent staff and by company management, this disclosure had a lower priority than other patent work____
In January or February of 1975 the assignee’s patent solicitor started to work toward the filing of the patent application; drafts of the application were prepared, and additional laboratory experiments were requested by the patent solicitor and were duly carried out by an inventor____
The Board then held that Paulik’s four-year delay from reduction to practice to his filing date was prima facie suppression or concealment under the first clause of section 102(g), that since Paulik had reduced the invention to practice in 1971 and 1972 he was barred by the second clause of section 102(g) from proving reasonable diligence leading to his 1975 filing, and that in any event the intervening activities were insufficient to excuse the delay. The Board refused to consider Paulik’s evidence of renewed patent-related activity.

Paulik, 760 F.2d at 1271-72; 226 USPQ at 224-25.

On appeal to this court, we held that [t]here is no impediment in the law to holding that a long period of inactivity need not be a fatal forfeiture, if the first inventor resumes work on the invention before the second inventor enters the field.
*458 ... There is no authority that would estop Paulik from relying on his resumed activities in order to predate Rizkalla’s earliest date. We hold that such resumed activity must be considered as evidence of priority of invention. Should Paulik demonstrate that he had renewed activity on the invention and that he proceeded diligently to filing his patent application, starting before the earliest date to which Rizkalla is entitled — all in accordance with established principles of interference practice — we hold that Paulik is not prejudiced by the fact that he reduced the invention to practice some years earlier. .

Id. at 1272-73, 226 USPQ at 225-26 (Fed.Cir.1985).

We also held that the Board did not abuse its discretion when it excluded, based on 37 C.F.R. § 1.251(b), certain evidence that Paulik sought to introduce during the rebuttal period, because it was not rebuttal evidence. We also upheld the Board’s decision not to consider a piece of evidence that Paulik had not timely served or moved.

The concluding paragraph of our opinion stated:

Having established the principle that Paulik, although not entitled to rely on his early work, is entitled to rely on his renewed activity, we vacate the decision of the Board and, in the interest of justice, remand to the PTO for new interference proceedings in accordance with this principle.

Paulik, 760 F.2d at 1276, 226 USPQ at 228.

B. Following the remand the Board granted Rizkalla but not Paulik the opportunity to seek reopening of his testimony period to take testimony relating to priority, but Rizkalla declined to do so. Paulik sought reconsideration, stating that the ruling was inconsistent with our decision. Paulik requested that both parties be given “a period in which to file respective motions to reopen their respective testimony periods for the purposes of taking priority testimony.” Paulik asserted that our decision remanding the case for “new interference proceedings” required “that the parties to the interference be given equal opportunity to present further evidence in their behalf.” It stated that under our remand “[n]ew proceedings including new assignment of priority testimony periods and briefs for both parties prior to setting a new Final Hearing are appropriate____”

The Board denied reconsideration. On the basis of the record in the prior interference proceedings, it again awarded priority to Rizkalla.

The Board interpreted our opinion as saying that Paulik “stands in the same position as if he had never actually reduced the invention to practice in 1970 and 1971.” The Board also found that other than the “suppressed actual reductions to practice,” the record was devoid of evidence demonstrating that Paulik had reduced his invention to practice prior to Rizkalla’s filing date. The Board thus held that Paulik was the first to conceive, but the last to reduce to practice. Under “established interference law,” the Board concluded that Paulik could be accorded priority of invention only if he could “establish the exercise of reasonable diligence during the sixteen-week critical period of from just prior to [Rizkalla’s filing date] until his own filing date____”

Based upon its examination of the evidence, the Board ruled that because there was a four-week period beginning before and running until after the filing of Rizkalla’s application, during which there was no activity in connection with Paulik’s patent application, Paulik had not shown due diligence during the period from just prior to Rizkalla’s filing date to Paulik’s filing date. According to the Board, under 35 U.S.C. § 102(g) and “established interference law,” Paulik, as the first to conceive and the last to reduce to practice, would be entitled to priority only by showing reasonable diligence during that entire period.

II

A. In our prior decision we recognized that we were deciding “a question not previously treated by this court or, indeed, in *459 the historical jurisprudence on suppression or concealment.” Paulik, 760 F.2d at 1273, 226 USPQ at 226. For that reason we did not merely vacate the Board’s decision and remand the case for further proceedings, but directed the Board to conduct “new interference proceedings in accordance with this principle,” namely, “that Paulik, although not entitled to rely on his early work, is entitled to rely on his renewed activity — ” Id. at 1276, 226 USPQ at 228.

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796 F.2d 456, 230 U.S.P.Q. (BNA) 434, 1986 U.S. App. LEXIS 20303, 55 U.S.L.W. 2108, Counsel Stack Legal Research, https://law.counselstack.com/opinion/frank-e-paulik-and-robert-g-schultz-v-nabil-rizkalla-and-charles-n-cafc-1986.