Tobacco.org

• Patents - Star Scientific Breaks New Ground, Plans FDA Filing for Approval of First 'Modified Risk' Tobacco Product; Nominates Curtis Wright, MD, MPH for FDA Advisory Committee ($$) 

Star Scientific, Inc. (NASDAQ:STSI) makers of low-nitrosamine smokeless tobacco products, announced that the company will utilize a novel, patented method for cultivation, curing and preparation of tobacco to formulate dissolvable smokeless tobacco products. This new curing process was the subject of a patent application filed in December, 2008. Its use has resulted in tobacco leaf with significantly lower levels of tobacco-specific nitrosamines (TSNAs) than previously achieved using the StarCured curing process: the International Agency for Research on Cancer previously has reported on the low levels of nitrosamines in Star's products. The company believes that this novel process, as...

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• The aim of the Tobacco Act should be to stop the use of tobacco products  

The Government proposes changing the aim of the Act on Measures to Reduce Tobacco Smoking so that it will be to stop the use of tobacco products. According to the proposal, the display of tobacco products and their trademarks in retail sale facilities will be forbidden in the future. Accordingly, tobacco products may not be sold or otherwise supplied to persons under 18 years, and also the import and possession of tobacco products by them is to be forbidden. Persons selling tobacco products should be aged at least 18 years.

The prohibitions against smoking are proposed to be extended to apply e.g. to facilities used by children and young people and to vehicles, joint facilities of housing real estates, events organised outdoors, and hotel rooms. According to the law proposal the import, sale and other supplying of snuff will be forbidden, but a maximum of 30 packets containing 30 grams snuff may be imported for one's own use. In addition, the sale of tobacco products from automatic vending machines is to be forbidden.

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Trade Commission Blocks Cigarette Smuggling into U.S. 

The International Trade Commission (ITC) last week issued a General Exclusion Order that requires U.S. Customs and Border Protection (CBP) to deny entry into the U.S. of illegally imported Marlboro, Virginia Slims and Parliament cigarette, which infringe on Philip Morris USA's (PM USA) trademarks, the nation's largest cigarette maker stated.

"We're pleased that the ITC granted the General Exclusion Order, which should be a helpful tool for law enforcement in addressing illicit Internet cigarette sales and reinforces that preventing these imports is a priority," Joe Murillo, vice president and associate general counsel for Altria Client Services, said in a statement on behalf of PM USA.

In March 2008, PM USA filed a complaint with the ITC to stop foreign-based Internet sellers from selling cigarettes bearing PM USA's trademarks. PM USA named 13 respondents who operate Web sites and identified an additional 177 sites that sell Marlboro and other PM USA brand cigarettes intended for sales overseas, to U.S. customers.

The ITC launched an investigation, and an administrative law judge subsequently determined the foreign Internet sellers are unlawfully importing cigarettes into the U.S., according to the statement.

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Cuba: an Enriching Encounter with Readers at a Cuban Cigar Factory  

Cigar makers gave their opinions about the work of Cuban media while hand-rolling, shaping and packing their product according to varieties and brands, such as H.Upmann ( name given to the center years ago), Montecristi, Hoyos de Monterrey and Partagás, which are very prestigious all over the world. They also referred to the way journalists reflect — or don´t— everyday problems in the newspapers and called them to be more critical when approaching these issues. They also talked about the need to improve the quality of the Cuban newspapers, when it comes to printing and distribution.

The meeting enriched our background knowledge. Thanks to readers at the cigar factories, cigar makers are regular “listeners” of the news we read them from the newspapers. “We read newspapers, magazines, books, foreign and national publications every day. All the departments listen to us through a local audio system. Cigar makers pay close attention to every piece of news and are severe critics of these materials,” said Gricel Valdés-Lombillo Pérez, who has played this role for nearly two decades. . . .

No wonder, the UNESCO Intergovernmental Committee for the Preservation of the Immaterial Heritage will evaluate late in September the Cuban experience of people employed as cigar factory readers

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• Cuba Seeks World Heritage Designation for Cigar-Factory Readers 

They're called "cigar-factory readers" and for almost 150 years they have entertained the workers who hand-roll cigars in factories all over Cuba.

The Cuban government has suggested that these unique readers be designated as part of the world's Intangible Cultural Heritage that the U.N. Educational, Scientific and Cultural Organization will vote on, together with another 110 candidates, at a the meeting to be held in Abu Dhabi beginning next Monday. . . .

The readers nowadays are state employees with an enviable status: they read 90 minutes a day and spend the rest of the time preparing new readings or debating with the workers the meaning of what they have heard.

Amid the sweet cigar aromas and standing on a platform with a microphone heard throughout the factory, Jesus Pereira, 44, entertains his fellow-workers by reading to them in three sessions: the first two obligatorily dedicated to the press and the third to novels or self-help books.

It is Thursday and today it is time to read "40 Tips about Sex,"

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• Int'l Trade Comm. stops import of fake cigarettes 

The International Trade Commission is requiring U.S. Customs & Border Protection to stop the import of counterfeit products illegally bearing the trademarks owned by Philip Morris USA.

The nation's No. 1 tobacco company says the order will help stop Internet-based cigarette vendors from illegally importing Marlboro and other brands made abroad without permission and selling them in the United States.

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Star Scientific Reports on Status of Patent Reexamination Requested by RJ Reynolds Tobacco Prior to Jury Trial 

Star Scientific, Inc. (Nasdaq: STSI) reported that the company's counsel has received a notice of a first office action, or "Non-Final Detailed Action" from the US Patent & Trademark Office (PTO) as part of the patent reexamination process initiated by RJ Reynolds in January, 2009. As the company previously reported, RJR requested that the PTO find invalid Claims 4, 12 and 20 of the "649" process patent the Office granted in March, 2001. RJR also requested that the PTO find invalid Claim 41 of the "401" process patent issued by the PTO in July, 2002. Statistics published by the PTO regarding reexamination show that 92% of reexamination requests are granted. Granted requests must cite a "substantial new question of patentability" that is identified by reviewing the information submitted by the requestor (RJR). It is typical, therefore, as in this case, for the first office action from the PTO to reject patent claims.

However, PTO statistics also show that almost 90% of patents are maintained following "ex parte" reexaminations. Because Reynolds filed its reexamination request on an ex parte basis, it may no longer participate in the reexamination process nor any possible appeals. Star anticipates that its legal team will submit detailed information and input to the patent re-examiners on or before November 11, 2009, which will be its first response to the PTO. The Company looks forward to having the opportunity to respond on the merits to the first office action.

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Rum and cigars at stake in family's bid to win compensation from Cuba 

But now a court in Miami may hand two of Cuba's most prized assets – the trademarks for Havana Club rum and Cohiba cigars – to the family of a man executed on the island half a century ago.

Bobby Fuller, a former US marine who owned a sugar plantation in Cuba, was shot by firing squad in October 1960, less than 24 hours after his arrest and trial for alleged disloyalty to Castro's communist revolution.

In 2007 his brothers and sisters were awarded a $100m settlement for wrongful death against the Castro regime by a Miami court.

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• Trademark wars: US goods carry famous Cuba brands 

Washington's 47-year-old trade embargo has kept Cuban products out of the U.S. — but hasn't prevented companies from using the communist island's brand names.

As the U.S. and Cuba consider better ties, such trademark issues would have be settled before any easing of the embargo. The fight between Bacardi and the Cuban government for the Havana Club name already has played out in the U.S. courts and Congress for more than a decade — and is now before Spain's high court. . . .

The thought of competing with Cuba is already keeping executives at Swedish Match North America up nights. The Richmond, Virginia-based company owns General Cigar Inc., which has sold Dominican Republic-made Cohiba cigars in the U.S. since 1997.

"It's not the brand that's going to make the difference, it's whether it's Cuban or not," said Gerry Roerty, the company's vice president and general counsel. And smokers are willing to pay a premium for Cuban, he said.

Cohiba was founded in Cuba to make cigars for Castro and visiting dignitaries. Today it is the flagship of 27 premium brands produced by Habanos, equally owned by the government and Madrid-based Altadis SA, which was acquired last year by Britain's Imperial Tobacco Group PLC.

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• Ruyan protects patents abroad 

Ruyan Group Holdings Ltd, the inventor of electronic cigarettes, hailed a US regulatory agency's warning against other brands of e-cigarettes as good news in its fight against copycats.

Scott Fraser, vice president of Ruyan Group, said the announcement by the US Food and Drug Administration (FDA) will help Ruyan protect its intellectual property rights to its e-cigarette brand.

The FDA on July 22 reported that a laboratory test of e-cigarette samples of other brands found that they contained carcinogens and toxic chemicals such as diethylene glycol, an ingredient used in antifreeze.

The two American brands tested by FDA are Njoy and Smoking Everywhere. The former has been named in an IPR lawsuit initiated by Ruyn Group. . . .

"The FDA is doing its job. They are concerned about consumer safety, and we support that," Fraser said.

"As the inventor, we also consider the safety of customers the top issue, and we are always testing our product," he said. "We understand the test results (of the other brands). The two copycats infringed on intellectual property. It is not surprising." . . .

The company has filed eight lawsuits against copycat factories operating mostly in Zhejiang and Guangdong provinces. Many of the companies also sell counterfeit MP3s and cell phones, Ruyan has alleged.

Ruyan holds 16 patents on its e-cigarette.

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Star Scientific seeking new trial  

Petersburg-based Star Scientific Inc. has asked a judge to throw out a June jury verdict that its patents for reducing carcinogens in cigarettes were invalid. . . .

"We believe the verdict was contrary to the evidence presented on both infringement and validity, and that the company will be vindicated at the conclusion of the judicial process," Star's chairman and president, Paul Perito, said in a statement yesterday.

Reynolds spokesman David Howard said the company expected Star's motion for a retrial. "The bottom line is, we stand by the unanimous decision of the 12-member jury in this case, and are confident that decision will be upheld on appeal," he said.

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UPDATE 2-Star Scientific seeks to overturn Reynolds verdict  

* Star Scientific files motion asking for a new trial

* Star says willing to take case to appeals court

* Star shares close up 2 cents at $1.01

* Reynolds shares close down 24 cents at $38.87 (Adds comment from R.J. Reynolds, byline; updates stock movement)

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Star Scientific Files Motion for Judgment/New Trial in Patent Infringement Lawsuit against RJ Reynolds, Announces Retention of Carter G. Phillips, Esquire as Appellate Counsel 

Star Scientific, Inc. (Nasdaq: STSI) announced that its trial counsel has filed a motion for Judgment as a Matter of Law and In the Alternative, for a New Trial, with the US District Court in Maryland. The motion requests the Court to set aside the June 16th jury verdict that was reached at the conclusion of the trial of Star's patent infringement lawsuit against RJ Reynolds Tobacco Company (RJR), and to grant Star a new trial. The motion will be available on the Star Scientific website, http://www.starscientific.com.

(Logo: http://www.newscom.com/cgi-bin/prnh/20090317/STARSCIENTIFICLOGO )

If the motion is denied, the next step will be for Judge Garbis to enter final judgment, which will effectively close out the case at the District Court level. Star then can immediately file a notice of appeal with the US Court of Appeals for the Federal Circuit. The company has retained Carter G. Phillips, Esquire, managing partner of the Washington, DC office of Sidley Austin, to head up the Federal Circuit appeal.

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Jury Rules in Favor of R.J. Reynolds Tobacco Company in Patent Suit 

R.J. Reynolds Tobacco Company is very pleased with today's jury verdict in favor of the company in a patent infringement lawsuit brought by Star Scientific, Inc. (Star) in the U.S. District Court for Maryland - Northern Division. The jury ruled the patents in question, involving a method of treating tobacco to substantially prevent the formation of tobacco-specific nitrosamines (TSNAs), were invalid and not infringed.

"Certainly, we are pleased with the jury's decision," said August Borschke, chief patent counsel for R.J. Reynolds. "The jury carefully evaluated all of the evidence presented and came to the right conclusion. They saw what we have known all along, that Star's patents are invalid, and they should not have been issued in the first place. The jury also confirmed R.J. Reynolds did not infringe Star's patents in any event."

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Baltimore Federal Jury Rejects Star's Patent Infringement Claims Against R.J. Reynolds 

The jury verdict was a wipeout for Star: Jurors not only found its patents invalid but also said Reynolds did not infringe. It doesn't get much more resounding than that, folks. Star's shares, according the The Wall Street Journal's account of the verdict, fell more than 80 percent after the jury ruled. . . .

McMillan told the Litigation Daily on Wednesday that Star will file posttrial motions asking Judge Marvin Garbis to reverse the verdict, and, if those are not successful, will appeal. The Crowell & Moring partner said Reynolds based its case on whether the tobacco farmers that Star alleged to infringe its patents used an earlier curing method developed by a Reynolds scientist. "We moved at the outset to strike that and focus on the relevant issues we were trying, which were whether the farmers did in fact perform each element of the [Star] patents," McMillan said. "We think there were an extraordinary number of errors made by the trial judge."

Given Star's history with Judge Garbis, we'd put odds against him tossing the jury verdict.

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