Let's say Company A's patent application is rejected due to prior art, a public disclosure from Company B (made within Company B's 1 year grace period). Would Company B's very similar patent application, filed just after Company A, be rejected due to Company A's rejected, published patent application being considered prior art?
The question pertains to a potentially very valuable patent application, that has been deemed patentable except for a public disclosure (prior art) from Company B.
Interestingly, Company A filed 3/15/12, the last day of "first to invent" system, Company B filed 2 months later under "first inventor to file."