Star Scientific To Appeal Patent Ruling In RJ Reynolds Suit

Source from:  DOW JONES NEWSWIRES 12/23/2009

A judge affirmed a federal jury's earlier ruling that R.J. Reynolds Tobacco Co. didn't infringe on Star Scientific Inc.'s (CIGX) patent for a method of curing tobacco that reduces the some toxins in the end product. Star is expected to file an appeal in the next two days. The company's stock rose 6 cents, or 11%, to 65 cents. But it is still down 83% this year. In June, a jury in Baltimore rejected Star's allegations that R.J. Reynolds, a unit of Reynolds American Inc. (RAI), encouraged its farmers to practice Star's curing invention without permission. Jurors ruled that RJR didn't infringe Star's patent and that the patent was invalid. Star was seeking several hundred million dollars in damages. Tuesday, a judge rejected Star's motion for a new trial. The case has been winding through the judicial system for a few years. In June 2007, a Maryland federal judge ruled that Star's patent couldn't be enforced because of how the company applied for it. The following year, Star Scientific won an appeal against R.J. Reynolds in federal appeals court, allowing a jury trial to be held. The panel's verdict dealt a significant blow to Star's fortunes. The stock's value dropped about three-quarters the day after the decision was announced and has since fallen further. In recent trading, shares in Reynolds American were up marginally. Enditem