It all comes together. In order to get a settlement, I believe that RJR delcared that they would call it even for the past. Cover their own legal bills, but they will be willing to enter into a marketing agreement with STSI moving forward. I believe RJR wanted star to first announce that they will not go after RJR again!!! As per STSI's 10Q, star wants to move on to focus on ANATABLOC so.
Why a gag order? Star wants a licensing deal, and so does RJR. The challenge is, would RJR be able to raise the money???
2 Weeks ago RAI (parent company of RJR) announces their 10Q quarterly earning. 2 days later they had a huge bond offering and raised billions . Now on Monday, Nov 12th at 9 am RJR is having a conference call to discuss their "company's performance and plans." ISN'T THAT WHAT THEY DID ON THEIR QUARTERLY CONFERENCE CALL 2 WEEKS AGO?????
What I believe:
Under their gag order they agreed to the settlement options just declosed by star. Star announces to their investors today that they will NOT go after RJR for infrindgement again. (They will go after other companies though.) Now that the appeals court validated their patents, they will be looking for licensing agreements (as per their 10Q).
This offical news about a bad settlement comes out after the closing bell on a friday, hence the market will kill STAR on Monday. But, it shows STAR kept its word and formally announced RJR is safe from infridgement. Now I believe that on their conference call, RAI will announce their royalty deal with STSI at 9 am on Monday before the shorts can kill STSI......
There is something in the Star 10 Q which caught my eye, and it suggests that there's more to the "settlement".
Under Note 9, Miscellaneous Income, Star speaks to the issue of fees to litigation counsel and states, quote ...
"The company had previously entered into a contingent fee arrangement with counsel regarding this litigation. The resulting fee from the arrangement is $1.3 million" ... although the Company anticipates negotiating the final amount of any fees payable to its litigation counsel in connection with the settlement of the RJR litigation."
Does that mean 1) that litigation counsel is going to voluntarily reduce what is owed to them by agreement with Star; 2) that there are more fees to be owing pursuant to the litigation, suggesting that there is more negotiating to be done.
There is no way the lawyers are going to renegotiate their fee unless there's a carrot attached to that negotiation, and that they believe the carrot is real.
I caught that too. It doesn't sound like STAR's deal with RAI is completely sealed and disclosed. Guess we'll see if that's true Mon morning. Here's hoping for the best longs!
Sentiment: Strong Buy
RJR does not want Star selling the patents to some other company with greater resources that will go after RJR all over again, if not with the old patents, then with the BDL patents
Therefore RJR has made sure this will not happen...we just don't know how exactly, not yet
I expect we find out Monday, and I expect it will be good news for stakeholders in Star
Agree, there's something in hand behind the scenes, but, with the confidentiality agreement in place no doubt RJR cannot openly disclose any agreement with STSI at least not until the agreement goes to term and who knows when that is?
I think you smoked to much BDL... That is the single most logically challenged post I have ever read.. Don't ask me why either because I will tell you and then I will feel bad..
Just to be clear.. You actually think there is going to be a license and royalty agreement for Star Cured and RJR?
The good news is you probably missed the Monday pps action as well.. Won't be that bad... Get out of the weeds and we the forrest bud..
well you are so kind to spare my feelings, but what part of "we just don't know how exactly" do you not understand?
RJR leaving itself open to further litigation if Star sells the patents makes no sense, therefore they must have taken steps to insure that won't happen--maybe that means license/royalty, maybe not, but in any case it means they did something about it
Given your poor reading comprehension, you are not exactly in a position to critique my logic, but go ahead--can't wait to read more of your thoughts
" we continue to pursue means of collecting royalties for our curing technology through licensing arrangements and through monitoring of the curing practices of industry participants other than RJR that may infringe on our tobacco curing patents which were affirmed by the United States Court of Appeals for the Federal Circuit. "
Seems like RJR is off the hooks friend. No licensing deal with them HENCE the "other than RJR" language. Sorry. nice try, it sounded good.
something can happen on the new star patent that put nicotine under detectable level.But only FDA can open this door. I think that Star have closed because of a few interest in the old patent.
In any case only the announcement of a possible deal with another tobacco company will recover the most of short action.