Star Scientific, Inc. v. R.J. Reynolds Tobacco Co.

537 F.3d 1357, 88 U.S.P.Q. 2d (BNA) 1001, 2008 U.S. App. LEXIS 18160, 2008 WL 3891543
CourtCourt of Appeals for the Federal Circuit
DecidedAugust 25, 2008
Docket2007-1448
StatusPublished
Cited by265 cases

This text of 537 F.3d 1357 (Star Scientific, Inc. v. R.J. Reynolds Tobacco Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Star Scientific, Inc. v. R.J. Reynolds Tobacco Co., 537 F.3d 1357, 88 U.S.P.Q. 2d (BNA) 1001, 2008 U.S. App. LEXIS 18160, 2008 WL 3891543 (Fed. Cir. 2008).

Opinion

MICHEL, Chief Judge.

Plaintiff-Appellant Star Scientific, Inc. (“Star”) appeals from a final judgment in favor of Defendants-Appellees R.J. Reynolds Tobacco Company (N.C.) and R.J. Reynolds Tobacco Company (N.J.) (collectively, “RJR”). The district court entered memoranda and orders: (1) holding, after a bench trial, that Star’s U.S. Patent Nos. 6,202,649 (“the '649 patent”) and 6,425,401 (“the '401 patent”) are unenforceable due to inequitable conduct; and (2) granting summary judgment of invalidity of all asserted claims of the '649 and '401 patents due to indefiniteness. See Star Scientific, Inc. v. R.J. Reynolds Tobacco Co., No. 8:01-cv-1504, 2007 WL 1890709, slip op. at 46 (D.Md. June 26, 2007) (“Inequitable Conduct Order”); Star Scientific, Inc. v. R.J. Reynolds Tobacco Co., No. 8:01-cv-1504, slip op. at 12-14 (D. Md. June 22, 2007) (“Indefiniteness Order ”).

Because the district court’s judgment as to inequitable conduct was based on factual findings that we deem clearly erroneous, we reverse the judgment of unenforceability of the '649 and '401 patents. We also reverse the grant of summary judgment as to indefiniteness because we conclude that the claim term at issue, “anaerobic condition,” is not indefinite, and we remand for *1361 further proceedings on infringement and validity.

I. BACKGROUND

A. Tobacco Curing Technology

Fresh tobacco (“green tobacco”) must be dried in a process called “curing” before it is suitable for consumption as cigarettes or other such products. Curing is done in curing “barns,” and commercial tobacco companies like RJR cure their tobacco in bulk-curing barns in which substantial quantities of harvested tobacco are cured together in large stacks. Smaller operations may use the older and long-used technology of “stick barns” in which much smaller quantities of tobacco are cured.

Four major mechanisms of curing have been used in the United States:

(1) air curing, where the tobacco is air-dried without the application of heat;
(2) radiant heat indirect-fíred curing (“radiant heat curing”), where fuel (typically oil) is burned and the hot exhaust gases are passed through pipes running through the barn such that the hot pipes radiate heat into the barn to dry the tobacco, but the exhaust gases are then expelled outside the barn;
(3) direct-fired curing, where fuel (typically propane) is burned and the hot exhaust gases themselves are blown directly into the barn to dry the tobacco; and
(4) forced air indireet-fired curing, where fuel is burned to heat clean air that is then blown into the barn to dry the tobacco, while the exhaust gases from the fuel burning are expelled outside the barn.

In the 1960s, the primary method used by American tobacco companies was radiant heat curing. By the 1970s, most companies switched to direct-fired curing, which was the predominant method used until at least the late 1990s.

Cured tobacco contains a number of hazardous chemicals, including carcinogens known as tobacco specific nitrosamines (“TSNAs”), which are not present in green tobacco. In the 1990s, researchers began to explore TSNA formation in tobacco and discovered links between TSNAs and direct-fired curing. As a result, some researchers began to investigate how curing methods could be altered to minimize TSNA formation.

B. The '649 Patent

In August 1998, Jonnie Williams of Star engaged attorney Romulo Delmendo of Su-ghrue, Mion, Zinn, Macpeak & Seas (“the Sughrue firm”) to prosecute a patent application on a tobacco curing process aimed at lowering TSNA levels. Williams, the inventor, believed that TSNAs were formed due to the presence of microbes on the tobacco leaves. According to this theory, ambient oxygen in the vicinity of the drying leaves is reduced during cure by the production of carbon dioxide as the green tobacco leaves degrade and by the oxygen-poor combustion gases blown in during direct-fired curing. The microbes thus must operate anaerobically and obtain oxygen through reduction-oxidation reactions involving nitrates also produced from leaf degradation. Those reactions produce nitrites, which in turn form TSNAs through further chemical reactions. Williams’ method sought to prevent TSNA formation by lessening the drop in oxygen levels through control of airflow, humidity and temperature inside the curing barn, thereby reducing the- microbes’ need to resort to anaerobic processes.

As part of the preparation of Williams’ patent application, Delmendo was sent a letter on August 28, 1998, by scientist and Star consultant Dr. Harold Burton (“the Burton letter”). Burton wrote to relate his recent observation that Chinese tobacco products contain very low TSNA levels. The Burton letter further stated:

*1362 Since China is a developing country, they are still use [sic] the old curing technology that was abandoned in the U.S. during the sixties. It seemed to me that the probable cause for the absence of TSNA was their use of the old [radiant heat] flue-curing techniques.

J.A. at A6237. Delmendo testified that although he was initially concerned about the information, he then spoke with Burton, analyzed the letter, and ultimately concluded that neither it nor its content was material to the contemplated patent application.

Delmendo filed with the United States Patent and Trademark Office (“PTO”) a provisional patent application, Application Serial No. 60/100,372 (“the Provisional”), on behalf of Williams on September 15, 1998. The application disclosed that some nations, including China, still utilize radiant heat curing. J.A. at A5808-09. The disclosure also stated: “It has been determined that [the radiant heat] process as applied to tobacco grown in the United States yields tobacco products with high levels of TSNA.” Id. at A5809. Williams testified that this statement was based on inferences he drew from information he received from Brown & Williamson, another tobacco company, indicating that Brazilian tobacco cured using radiant heat techniques resulted in TSNA levels of 2-3 ppm.

Shortly after the Provisional was filed, Williams received samples from two Virginia farms that still used radiant heat curing and forwarded them to Burton for measurements of TSNA content. The first, from the Jennings farm, contained 1.0 — 1.5 ppm TSNAs (“the Jennings data”). The second, from the Curran farm, contained 0.39 ppm (“the Curran data”). Unlike the Jennings data, however, the Cur-ran data was derived from a partially-cured sample; the sample was partially-cured using radiant heat curing, but Williams’ associate completed the cure using a microwave prior to Burton’s tests. 1 Williams informed Delmendo of the Jennings data over the phone but never showed him the actual data in document form. He did not inform Delmendo of the Curran data.

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537 F.3d 1357, 88 U.S.P.Q. 2d (BNA) 1001, 2008 U.S. App. LEXIS 18160, 2008 WL 3891543, Counsel Stack Legal Research, https://law.counselstack.com/opinion/star-scientific-inc-v-rj-reynolds-tobacco-co-cafc-2008.