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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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