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Star Scientific, Inc. (CIGX) Message Board

  • ajmorgan921 ajmorgan921 Oct 12, 2012 11:06 AM Flag

    Star settlement

    I've been trying to post a link to an article and yahoo simply won't let me. So go to GOOGLE and search the following key words, "Reynolds Star settlement". Read tobaccolawblog.

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    • gotmilk124@ymail.com gotmilk124 Oct 12, 2012 12:35 PM Flag

      Yeah.. No news here.. Still waiting.. MO lawsuit? RJR royalties? BDL sale? Remember Star still produces arriva and stonewall.. Probably not giving up tobacco IP despite blogs reporting they are getting out of tobacco business... Options abound.. Don't see any news on this front for a while.. Though A Star PR announcing the settlement would have been appropriate.. Obviously even without the terms.. Though, reviewing other stipulated dismissals via the ADR route shows that the settlement agreement is generally part of the motion to dismiss.. That way its enforceability is part of the record..

      • 1 Reply to gotmilk124
      • milk agreed, except for "Probably not giving up tobacco IP despite blogs reporting they are getting out of tobacco business."

        I think the Aug 6th announcement was a sign of either Star is done with tobacco or they will split the company. Only way to split the company would be to have an RJR revenue stream as right now tobacco revenue from ariva and stonewall are next to zippo.

        Timing of any news is anyone's best guess. I think that by Stars Nov 10-q or even RJRs in 10 days we could have at least a hint if not full news of what happened. If not by then, then my best guess is deal is still being worked and we would all of a sudden have a 8-k.

    • that story is dated sept 25

      Sentiment: Strong Buy

      • 3 Replies to morgana3661
      • mine says Oct 2, 2012,

        Star Scientific and R. J. Reynolds have settled their long-running litigation over Star’s patents covering a curing process that prevents the formation of some cancer-causing chemicals in tobacco. The settlement leaves in place a federal appeals court decision that Star’s patents are not invalid and so removes a potential cloud over the validity of the patents. Star thus can now seek to enforce the patent against other tobacco manufacturers whom it believes are using its patented curing process. [Read more →]

        October 2, 2012

      • Morgana- Just found the article, was posted on Oct. 2 2012. Got this from troutman sanders tobacco law, under lawsuits/court decisions.

        Sentiment: Strong Buy

      • Or since they seem to want out of the tobacco business, they sold the patents to Reynolds which would give them a huge advantage over the othr tobacco companies. I seriously doubr Star walked away with nothing. JMHO

        Sentiment: Hold

    • is this it
      Star Scientific’s Settlement with R. J. Reynolds Leaves Star Free to Enforce Tobacco Curing Patents
      by Troutman Sanders Tobacco Law Team

      Star Scientific and R. J. Reynolds have settled their long-running litigation over Star’s patents covering a curing process that prevents the formation of some cancer-causing chemicals in tobacco. The settlement leaves in place a federal appeals court decision that Star’s patents are not invalid and so removes a potential cloud over the validity of the patents. Star thus can now seek to enforce the patent against other tobacco manufacturers whom it believes are using its patented curing process.

      The Star patents address the environment in tobacco barns during the curing process. The heating systems used in many tobacco barns creates an anaerobic, or oxygen-free, environment that can lead to the formation of certain carcinogens known as TSNAs. The Star patents claim a curing method that sustains oxygen in the curing environment and so prevents the formation of TSNAs.

      Star had agreements with Brown & Williamson to cure low-TSNA tobacco using Star’s patented method. R.J. Reynolds terminated those contracts when it acquired Brown & Williamson and instead used its own process, which involved retro-fitting curing barns with heat exchangers that reduced the amount of exhaust gases in the curing environment. Star sued Reynolds in 2001 alleging that the Reynolds process infringed its patents. After several years of litigation, the case was finally tried to a jury in 2009, which found that Reynolds did not infringe the patents and that the patents were invalid. In 2011, though, the appeals court reversed the finding of invalidity but upheld the ruling that Reynolds did not infringe the patents.

      The settlement between Star and Reynolds occurred while the case was on appeal to the U.S. Supreme Court. While the details of the settlement are unknown, it presumably allows Reynolds to continue to use its curing process without fear of future infringement suits by Star. By ending the appeal, the settlement also leaves in place the appeals court decision rejecting Reynolds’ claims that the patents were invalid and so unenforceable. Star can now assert its patents against other tobacco manufacturers in the U.S., and it may be difficult for those manufacturers to challenge the patents’ validity.

      Sentiment: Strong Buy

      • 2 Replies to cigx1967
      • Yes, thank you!

      • Thanks, cigx and aj,

        This is good news and it is only a tiny window. Star is free with now a NEED for the BIGT indistry to have to deal with them...or RAI if the deal with Star allows them to be the ones to run and pay royalties.

        "The settlement between Star and Reynolds occurred

        while the case was on appeal to the U.S. Supreme Court.

        While

        the details

        of the settlement
        are unknown, [KEY THEY ARE STILL UN KNOWN BUT THEIR IS A SETTLEMENT]

        it presumably allows Reynolds to continue to use its curing process

        {I believe this helps RAI to counter potential lawsuits for them being accused of using an inferior curing process thus opening them to claims of knowingly increasing cancer risk, thus not an implication that the case is nothing for Star]

        without fear of future infringement suits by Star.

        By ending the appeal,

        the settlement also leaves in place

        the appeals court decision

        rejecting Reynolds’ claims

        that the patents were invalid and so unenforceable.

        Star

        can

        now assert its patents

        against other tobacco manufacturers in the U.S.,

        and

        it may be difficult

        for those manufacturers to challenge the patents’ validity."

 
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