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Star Scientific, Inc. (STSI) Reports Successful Appeal of Patent Infringement Lawsuit with RJ Reynolds

Star Scientific, Inc. (NASDAQ: STSI), a technology-oriented tobacco company that is engaged in the development of dissolvable smokeless tobacco products, recently announced that the United States Court of Appeals for the Federal Circuit issued its opinion on the company’s appeal of rulings by the U.S. District Court in its patent infringement lawsuit against RJ Reynolds Tobacco Company, Inc. (RJR).

A bench trial was held in early February, 2005 on RJR’s defense claim of inequitable conduct by Star Scientific. On June 26, 2007, the district court ruled that Star committed inequitable conduct in the prosecution of its patents. Star Scientific filed a notice of appeal with the U.S. Court of Appeals for the Federal Circuit the following day.

Most recently, a three-judge panel unanimously ruled that the lower court’s ruling, deciding Star Scientific had engaged in inequitable conduct, was “clearly erroneous,” and also reversed the district court’s grant of summary judgment holding Star’s patents indefinite. As a result of the company’s success in its appeal, the case will be remanded to the U.S. District Court of Maryland for further proceedings.

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