PETERSBURG, Va. -- Star Scientific Inc. early Wednesday vowed to appeal two federal court rulings against the smokeless tobacco developer in its patent dispute with cigarette maker R.J. Reynolds Tobacco Co., reported the Associated Press.
In a statement, Star Scientific said it "is disappointed and frankly outraged" that the court ruled against the company Tuesday in the "inequitable conduct" bench trial, which had delayed the implementation of a prior patent ruling against Star Scientific.
In patent law, "inequitable conduct" [image-nocss] suggests that the patent-holder knowingly misrepresented itself or withheld relevant information in applying for its patent, allowing the court to deem its patent unenforceable.
"The opinion ignores significant portions of the record, distorts others and spins a tale that is unrecognizable to those who attended the trial," the Petersburg, Va., company said.
Star Scientific plans to appeal Tuesday's ruling as well as a January 19 decision against the company.
The dispute began shortly after Star Scientific said it sold its "StarCured" tobacco, which uses a process the company claims reduces cancer-causing toxins known as tobacco-specific nitrosamines, to Brown & Williamson in 1999. Soon thereafter, R.J. Reynolds announced its own system to reduce nitrosamines, Star Scientific said.
In May 2001, Star Scientific sued R.J. Reynolds for patent infringement.
Earlier this year, U.S. District Judge Marvin Garbis ruled in favor of R.J. Reynolds on the issue of whether it broke Star Scientific's patent, but held off entering the decision until he ruled on the separate "inequitable conduct" claim.
R.J. Reynolds and Brown & Williamson, formerly the second and third biggest U.S. tobacco makers, have since merged. Reynolds American, whose brands include Camel, Salem, Kool and Lucky Strike, remains the second-largest tobacco maker behind Philip Morris parent Altria Group.
Earlier this week, Star Scientific announced plans to reorganize its business into two parts: tobacco manufacturing, and intellectual property and new-product development.
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