Star Scientific plans appeal over patent |
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Wed, 27 Jun 2007 15:10
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NEW YORK (AP) - Star Scientific Inc. early Wednesday vowed to appeal two federal court rulings against the smokeless tobacco developer in its patent dispute with cigarette maker R.J. Reynolds Tobacco Co.In a statement, Star Scientific said it 'is disappointed and frankly outraged' that the court ruled against the company Tuesday in the 'inequitable conduct' bench trial, which had delayed the implementation of a prior patent ruling against Star Scientific.In patent law, 'inequitable conduct' suggests that the patent-holder knowingly misrepresented itself or withheld relevant information in applying for its patent, allowing the court to deem its patent unenforceable.'The opinion ignores significant portions of the record, distorts others, and spins a tale that is unrecognizable to those who attended the trial,' the company said.Star Scientific plans to appeal Tuesday's ruling as well as a Jan. 19 decision against the company.The dispute began shortly after Star Scientific said it sold its 'StarCured' tobacco, which uses a process the company claims reduces cancer-causing toxins known as tobacco-specific nitrosamines, to Brown & Williamson in 1999. Soon thereafter, R.J. Reynolds announced its own system to reduce nitrosamines, Star Scientific said.In May 2001, Star Scientific sued R.J. Reynolds for patent infringement.Earlier this year, U.S. District Judge Marvin Garbis ruled in favor of R.J. Reynolds on the issue of whether it broke Star Scientific's patent, but held off entering the decision until he ruled on the separate 'inequitable conduct' claim.R.J. Reynolds and Brown & Williamson, formerly the second and third biggest U.S. tobacco makers, have since merged. Reynolds American, whose brands include Camel, Salem, Kool and Lucky Strike, remains the second-largest tobacco maker behind Philip Morris parent Altria Group.Earlier this week, Star Scientific announced plans to reorganize its business into two parts: tobacco manufacturing, and intellectual property and new product development.Shares of Star Scientific shed 10 cents, or 11 percent, to 80 cents in early trading. The stock has ranged between 75 cents and $5.33 over the past year.Meanwhile, Reynolds American shares added 52 cents to $64.22.--------------------Questions or comments about this story should be directed to reporter Adam Schreck at 212-621-7190.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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Star Scientific to appeal RJ Reynolds patent ruling 