UPDATE: RJ Reynolds Wins Patent Case Against Star Scientific
June 16 2009 - 6:40PM
Dow Jones News
A federal jury ruled Tuesday for R.J. Reynolds Tobacco Co. in a
high-stakes dispute with Star Scientific Inc. (STSI) over Star's
patent claim for a new method of curing tobacco in a way that
reduces certain cancer-causing toxins.
Star was seeking several hundred million dollars from RJR, a
unit of Reynolds American Inc. (RAI), alleging that the nation's
second-largest tobacco company encouraged its farmers to practice
Star's invention without permission.
But after a four-week trial, a jury in Baltimore sided with
Reynolds, ruling that RJR did not infringe Star's patent and that
the patent was invalid.
August Borschke, chief patent lawyer for R.J. Reynolds, said the
company was pleased with the verdict.
The jury "saw what we have known all along, that Star's patents
are invalid, and they should not have been issued in the first
place," Borschke said. "The jury also confirmed R.J. Reynolds did
not infringe Star's patents in any event."
A spokeswoman for Star couldn't immediately be reached for
comment.
The jury verdict dealt a significant blow to Star's fortunes.
Star's shares tumbled more than 80% in after-hours trading, to 77
cents.
The verdict is an important marker in the case but likely will
not be the last word in the dispute. Star is expected to appeal the
ruling.
-By Brent Kendall, Dow Jones Newswires; 202-862-9222;
brent.kendall@dowjones.com