Star Scientific Seeks to Overturn Reynolds Verdict

Source from:  Reuters 07/08/2009

Tobacco company Star Scientific Inc is seeking a reversal of a jury ruling that absolved a unit of Reynolds American Inc of violating a patent for a process that reduces cancer-causing agents in tobacco. The company said on Tuesday it may take the case to the federal appeals court if U.S. District Judge Marvin Garbis did not set aside the Maryland jury's verdict and either rule in Star's favor in the patent case or grant a new trial. Last month, the jury found that the R.J. Reynolds, the maker of Camel cigarettes, had not infringed on Star Scientific's patent for a tobacco curing process that would inhibit "microbial nitrate reductase activity" that can lead to cancer-causing nitrosamines in tobacco. Star Scientific first sued R.J. Reynolds in 2001. In June 2007, a Maryland district judge ruled that Star Scientific's patents were unenforceable because of the way in which the company applied for the patent. More than a year later, Star Scientific won an appeal against R.J. Reynolds in the U.S. Court of Appeals for the Federal Circuit, which sent the case back to the lower court for a trial. A Reynolds spokesman could not be reached for comment. Star Scientific's shares were up 11 cents, or 11 percent, to $1.10 in morning trading on the Nasdaq while Reynolds shares were down 14 cents, at $38.97 on the New York Stock Exchange. Enditem