Jury Hears Closing Arguments In Tobacco-Patent Case
June 15 2009 - 5:26PM
Dow Jones News
Lawyers for Star Scientific Inc. (STSI) and R.J. Reynolds
Tobacco Co. made their final bid Monday to sway jurors in a
high-stakes case involving Star's patent claim to a new
tobacco-curing method that substantially reduces the formation of
certain cancer-causing toxins.
Star, which is seeking several hundred million dollars from RJR
for patent infringement, said its patented method for reducing
certain toxins in cured tobacco, known as tobacco specific
nitrosamines, was a revolution in the tobacco industry.
"Nobody could believe it," Star lawyer Richard McMillan said in
his closing argument to jurors. "It was completely surprising to
the industry."
McMillan said RJR, a unit of Reynolds American Inc. (RAI), "got
wind" of the small company's patent and encouraged its farmers to
practice Star's invention without permission.
McMillan told the jury that Star was a different kind of tobacco
company, one dedicated to making products that are less harmful to
tobacco users. "We need to have our patent rights respected if
we're going to have an impact in the future," he said. "That's just
a fact."
RJR lawyer Richard Kaplan said his company had invented its own
tobacco-curing method that reduced the toxins and didn't need to
copy Star's.
"Star is taking credit for the hard work and diligent efforts of
other people," he said.
Kaplan said RJR had been looking at the toxin problem for years
and invested substantial time and money coming up with a
solution.
He called Star's tobacco-curing method unconventional and
prohibitively expensive.
Kaplan also argued that Star's patent was not valid, saying it
wasn't specific or tangible enough for anyone to understand the
invention or how to practice it.
Monday's closing arguments, which took place in a small federal
courtroom packed with spectators, concluded four weeks of trial
proceedings. The case was submitted to the jury late in the
afternoon.
The outcome could go a long way to determining Star's fortunes.
If it prevails, it hopes to reach lucrative licensing agreements
with other tobacco companies. If the jury decides that RJR
infringed Star's patents, the case will proceed to a second trial
phase to determine how much RJR owes in damages.
U.S. District Court Judge Marvin Garbis, who has presided over
the trial, said Monday that Star and RJR haven't found a single
point of agreement throughout the whole trial. Garbis said the
sides were still arguing Sunday night and into the wee hours of
Monday morning on the proper jury instructions to guide the
deliberations.
"It has been a struggle of Titanic proportions," Garbis
said.
-By Brent Kendall, Dow Jones Newswires; 202-862-9222;
brent.kendall@dowjones.com