Case 1:20-cv-00393-LO-TCB Document 1316-2 Filed 06/11/22 Page 1 of 7 PageID# 33401
`Case 1:20-cv-00393-LO-TCB Document 1316-2 Filed 06/11/22 Page 1 of 7 PagelD# 33401
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`EXHIBIT 2
`EXHIBIT 2
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`Case 1:20-cv-00393-LO-TCB Document 1316-2 Filed 06/11/22 Page 2 of 7 PageID# 33402
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`Case Clip(s) Detailed Report
`Wednesday, June 08, 2022, 7:31:01 PM
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`PMI v. RJR EDVa Trial
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`Figlar, James (Vol. 01) - 06/24/2021
`1 CLIP (RUNNING 00:04:55.711)
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`Figlar,J_062421_ALL_TRIMMED
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`15 SEGMENTS (RUNNING 00:04:55.711)
`JF-ALL2-FINAL
`1. PAGE 6:20 TO 6:21 (RUNNING 00:00:00.810)
` 20 Q. Can you please just state your
` 21 full name and address for the record.
`2. PAGE 6:22 TO 6:22 (RUNNING 00:00:01.549)
` 22 A. James Neil Figlar. I'm currently
`3. PAGE 7:03 TO 7:05 (RUNNING 00:00:08.690)
` 03 Q. And who's your employer?
` 04 A. My employer was R.J. Reynolds. I
` 05 retired just late last year at the end of 2020.
`4. PAGE 132:21 TO 133:01 (RUNNING 00:00:06.427)
` 21 Q. Does Reynolds keep track of Philip
` 22 Morris and Altria patents?
` 00133:01 A. Yes.
`5. PAGE 133:03 TO 133:10 (RUNNING 00:00:24.592)
` 03 A. And not to just -- yes, Altria, we
` 04 look at the full patent landscape, depending on
` 05 the category. So, S'mores in there, NJoy, all
` 06 the big players, all the manufacturers, we keep
` 07 a close eye on the patent literature, and it's
` 08 very active. Reynolds has lots of patents as
` 09 well. So, I mean, we're all active in patenting
` 10 technology.
`6. PAGE 133:11 TO 133:13 (RUNNING 00:00:06.237)
` 11 Q. So Reynolds was aware of all the
` 12 patents asserted in this case before the case
` 13 was filed then, correct?
`7. PAGE 133:16 TO 134:02 (RUNNING 00:00:29.455)
` 16 A. I mean, in terms of the -- the
` 17 specific ones, probably so. We've probably seen
` 18 them. We've probably seen all of these patents,
` 19 yeah.
` 20 Q. These specific patents you mean?
` 21 A. In all likelihood they were known
` 22 to or had been seen by people at Reynolds.
` 00134:01 Q. How many people at Reynolds review
` 02 competitor patents?
`8. PAGE 134:05 TO 134:17 (RUNNING 00:00:42.576)
` 05 A. I don't know how many people are
` 06 actively doing it on a daily basis, but you have
` 07 part of Reynolds' legal team looks at that. I
` 08 know we have at least two lawyers that are
` 09 in-house lawyers for Reynolds that are in
` 10 patents. And then plus we have outside counsel
` 11 that provides information.
` 12 And then typically what happens,
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`CONFIDENTIAL
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`Case 1:20-cv-00393-LO-TCB Document 1316-2 Filed 06/11/22 Page 3 of 7 PageID# 33403
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`Case Clip(s) Detailed Report
`Wednesday, June 08, 2022, 7:31:01 PM
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`PMI v. RJR EDVa Trial
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` 13 and what used to happen at least on a monthly
` 14 basis, is every time there's a new iteration of
` 15 patent publications, the lawyers would compile
` 16 it and send it out to the scientists and people
` 17 like myself and others --
`9. PAGE 135:06 TO 135:15 (RUNNING 00:00:23.320)
` 06 A. There is a process and an email
` 07 goes out and you have the opportunity to open up
` 08 that file and look at all the patents that have
` 09 issued in that month by all the competitors in
` 10 the category. And that's all it is, just an
` 11 information sharing exercise, is what I'm
` 12 talking about.
` 13 Q. Understood. Who sends out that
` 14 email?
` 15 A. In-house, in-house counsel.
`10. PAGE 137:06 TO 137:08 (RUNNING 00:00:09.512)
` 06 Q. Who received this email?
` 07 A. Most -- a lot of people in R&D
` 08 working on technology.
`11. PAGE 137:14 TO 137:22 (RUNNING 00:00:27.488)
` 14 Q. And this is just something the
` 15 legal team would just send out on their own
` 16 every month?
` 17 A. I mean, it was simply just what
` 18 published in the US Patent and World Patent
` 19 literature on that basis, based on our product
` 20 category. So it was literally the abstracts of
` 21 the patents.
` 22 Q. Okay. And why would they send it?
`12. PAGE 138:07 TO 139:05 (RUNNING 00:01:00.775)
` 07 A. Again, this is not an evaluation.
` 08 This is simply -- it was like broadcast news.
` 09 Here's what came out of the patent offices, WTO
` 10 and US Patent Office. Here are the abstracts,
` 11 here's the categories. Our patents would be in
` 12 there and everybody else in the industry is what
` 13 I'm talking about.
` 14 So on a quarterly basis you would
` 15 get this report. It was just a compilation of
` 16 the abstracts of the patents, so that people had
` 17 an awareness of what was happening in the
` 18 business.
` 19 I mean, a lot of them, most of the
` 20 patents actually is about how to make a better
` 21 cigarette maker, how to make a new flywheel spin
` 22 faster for cigarette makers and things like
` 00139:01 that, but it covered the whole category. So
` 02 that's how you become aware of what's happening
` 03 from a patent perspective.
` 04 Q. And why do you think this email
` 05 was circulated within Reynolds?
`13. PAGE 139:10 TO 139:16 (RUNNING 00:00:27.025)
` 10 A. Again, it is information as a
` 11 technology development company you need to be
` 12 aware of. Where are people, what are we getting
` 13 cleared, what are people doing? It's a good
` 14 place to get ideas on where the industry is
` 15 going, where technology is going. It's
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`CONFIDENTIAL
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`Case 1:20-cv-00393-LO-TCB Document 1316-2 Filed 06/11/22 Page 4 of 7 PageID# 33404
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`Case Clip(s) Detailed Report
`Wednesday, June 08, 2022, 7:31:01 PM
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`PMI v. RJR EDVa Trial
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` 16 important to be up to date on patents.
`14. PAGE 213:14 TO 213:15 (RUNNING 00:00:07.071)
` 14 Q. How much money do you estimate
` 15 Reynolds spent on the PMTA for the Alto?
`15. PAGE 214:02 TO 214:07 (RUNNING 00:00:20.184)
` 02 A. Okay. In terms of our overall
` 03 budget over the course of the last five years,
` 04 it has been in the hundreds of millions of
` 05 dollars for all of Vuse products. So a portion
` 06 of that, certainly tens of millions. Tens of
` 07 millions for Alto, for sure.
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`TOTAL: 1 CLIP FROM 1 DEPOSITION (RUNNING 00:04:55.711)
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`CONFIDENTIAL
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`Case 1:20-cv-00393-LO-TCB Document 1316-2 Filed 06/11/22 Page 5 of 7 PageID# 33405
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`Case Clip(s) Detailed Report
`Wednesday, June 08, 2022, 7:34:02 PM
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`PMI v. RJR EDVa Trial
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`Figlar, James (Vol. 01) - 06/03/2022
`1 CLIP (RUNNING 00:01:46.880)
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`Figlar,J_060322_ALL_TRIMMED
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`9 SEGMENTS (RUNNING 00:01:46.880)
`JF-ALL4-FINAL
`1. PAGE 30:10 TO 30:16 (RUNNING 00:00:17.521)
` 10 Q And as you sit here today, your best
` 11 recollection as of the end of 2020 is Reynolds
` 12 spent, you know, 10- to $20 million on the Ciro,
` 13 Vibe, and Alto PMTAs --
` 14 A Each.
` 15 Q -- is that fair?
` 16 A Each.
`2. PAGE 56:20 TO 57:02 (RUNNING 00:00:09.680)
` 20 Q I'm just asking you that -- just
` 21 confirming, the Ciro, the Vibe, and the Solo,
` 22 those have all been cleared for sale by the FDA,
` 00057:01 correct?
` 02 A Correct. Alto has not, that is correct.
`3. PAGE 58:12 TO 58:15 (RUNNING 00:00:10.655)
` 12 Now, if the FDA decides it's not going to
` 13 clear the Alto for sale in the U.S., then Reynolds
` 14 will have to take that product off the market,
` 15 correct?
`4. PAGE 58:18 TO 58:18 (RUNNING 00:00:02.715)
` 18 A That would be the law, correct.
`5. PAGE 60:01 TO 60:03 (RUNNING 00:00:07.749)
` 00060:01 Q So absent FDA authorization, Reynolds
` 02 cannot keep the Vuse products on the market,
` 03 correct?
`6. PAGE 60:06 TO 60:19 (RUNNING 00:00:42.346)
` 06 A No. No. They don't have authorization
` 07 now. They have the -- FDA has not rendered a
` 08 decision on Alto. The FDA says they will not
` 09 exercise enforcement discretion on products that
` 10 were legally sold in the United States if the
` 11 companies have submitted a lawful PMTA by the
` 12 deadline, September 2020.
` 13 Reynolds did that so, therefore, the
` 14 agency is not going to exercise enforcement
` 15 discretion until they render a decision on the
` 16 application. They have not rendered a decision on
` 17 the application so, therefore, Reynolds can
` 18 continue to sell that product until such a
` 19 decision is made.
`7. PAGE 65:13 TO 65:14 (RUNNING 00:00:04.998)
` 13 Q Would you consider the Vuse products in
` 14 this case successful products?
`8. PAGE 69:09 TO 69:09 (RUNNING 00:00:00.651)
` 09 A Yes.
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`CONFIDENTIAL
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`Case 1:20-cv-00393-LO-TCB Document 1316-2 Filed 06/11/22 Page 6 of 7 PageID# 33406
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`Case Clip(s) Detailed Report
`Wednesday, June 08, 2022, 7:34:02 PM
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`PMI v. RJR EDVa Trial
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`9. PAGE 73:12 TO 73:15 (RUNNING 00:00:10.565)
` 12 Q And you also learned that the Vuse
` 13 products in this case continue to be profitable
` 14 today, correct?
` 15 A That is my understanding, yes.
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`TOTAL: 1 CLIP FROM 1 DEPOSITION (RUNNING 00:01:46.880)
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`CONFIDENTIAL
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`page 2
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`Case 1:20-cv-00393-LO-TCB Document 1316-2 Filed 06/11/22 Page 7 of 7 PageID# 33407
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`Case Clip(s) Detailed Report
`Wednesday, June 08, 2022, 7:24:03 PM
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`PMI v. RJR EDVa Trial
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`Figlar, James (Vol. 01) - 09/25/2020
`1 CLIP (RUNNING 00:01:49.451)
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`Figlar,J_092520_ALL_TRIMMED
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`5 SEGMENTS (RUNNING 00:01:49.451)
`JF-ALL-FINAL
`1. PAGE 49:04 TO 49:15 (RUNNING 00:00:42.024)
` 04 Q Why -- why did Reynolds submit a PMT for the
` 05 Solo and the Vibe?
` 06 A Well, one, because, you know, the Deeming
` 07 Rule came down in 2016. We did not have any vapor
` 08 products on the product. In fact, there were
` 09 virtually -- as far as I could ever find, there were
` 10 really no vapor products on the market in 2007 which
` 11 would have been a grand -- which would have allowed
` 12 then a grandfathered status which would then open up
` 13 the SE path, and so, therefore, the only path
` 14 available for vapor products really is the PMTA
` 15 path. So that's the path we had to go down.
`2. PAGE 50:17 TO 50:18 (RUNNING 00:00:10.046)
` 17 Q Okay. So how much money did Reynolds spend
` 18 on the Solo PMT?
`3. PAGE 50:21 TO 51:07 (RUNNING 00:00:30.060)
` 21 A Over the -- over the course of the years,
` 22 over $35 million, for sure. Really in a very short
` 00051:01 time frame. That's our oldest set of products.
` 02 Those are the products that have been on the market
` 03 the longest, and we certainly had collected an awful
` 04 lot of information on there but certainly well over
` 05 $35 million, I think. If my memory is right, it's
` 06 right around 35 or $37 million I think is the way
` 07 we've tallied it up at this point.
`4. PAGE 51:18 TO 51:19 (RUNNING 00:00:06.801)
` 18 Q Okay. And how much did Reynolds spend on
` 19 the PMT for the Vibe?
`5. PAGE 51:22 TO 52:03 (RUNNING 00:00:20.520)
` 22 A For Vibe, if my memory serves, probably
` 00052:01 close to 11 or $12 million because we're able to use
` 02 some bridging from Solo for that application, which
` 03 the FDA allows in their guidance.
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`TOTAL: 1 CLIP FROM 1 DEPOSITION (RUNNING 00:01:49.451)
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`CONFIDENTIAL
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`page 1
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