Case 1:20-cv-00393-LO-TCB Document 846-6 Filed 01/21/22 Page 1 of 6 PageID# 22831
`Case 1:20-cv-00393-LO-TCB Document 846-6 Filed 01/21/22 Page 1 of 6 PagelD# 22831
`
`EXHIBIT 6
`EXHIBIT6
`(PUBLIC)
`(PUBLIC)
`
`

`

`Case 1:20-cv-00393-LO-TCB Document 846-6 Filed 01/21/22 Page 2 of 6 PageID# 22832
`
`
`
`
`
`RAI Strategic Holdings, Inc.
`and
`R.J. Reynolds Vapor Company
`v.
`Altria Client Services LLC,
`Philip Morris USA, Inc.,
` and Philip Morris Products S.A.
`
`
`Civil Action No. 1:20-cv-00393-LO-TC
`
`Amended and Supplemental Opening Expert Report
`of Paul K. Meyer
`
`TM Financial Forensics, LLC
`April 26, 2021
`
`
`
`CONFIDENTIAL BUSINESS INFORMATION – SUBJECT TO THE PROTECTIVE ORDER
`
`

`

`Case 1:20-cv-00393-LO-TCB Document 846-6 Filed 01/21/22 Page 3 of 6 PageID# 22833
`Case 1:20-cv-00393-LO-TCB Document 846-6 Filed 01/21/22 Page 3 of 6 PagelD# 22833
`
`(“Pros”) including long battery life, small device, and sleek design, all of which I
`
`understand are enabled by RJRV’s use of the technology claimed in the ’545 Patent.
`
`Figure 14: VUSE Ciro Review*”
`
`VAPINGDAILY
`
`BEST VAPES v
`
`v
`
`REVIEWS v
`
`Home/Best Electronic Cigarettes
`
`Works with: &
`
`The Vuse Ciro: A Small and Noteworthy E-
`Cigarette
`
`2Yby Thanush Poulsen
`escola wate)
`
`Review Score: 89/100
`
`Price Range: $14.99-$23.98
`Battery Capacity:
`21
`Nicotine:
`1.5 percent
`E-liquid Capacity:
`
`4
`
`422. Finally, I understand that the parties agree that JUUL practices the 545 Patent. For
`
`example, Reynolds admitted in response to a request for admission “that JUUL makes,
`
`uses, sells, offers for sale, and/or imports into the United States and has made, used,sold,
`
`offered for sale, and/or imported into the United States one or more Products that practices
`
`one or more claims of the 545 Patent as those claims are construed andasserted by
`Defendants.”®° Reynolds also stated in a responseto an interrogatory that JUUL “utilizes
`
`pulse width modulation to operate a lithium ion battery within its manufacturer’s
`
`619 https://vapingdaily.com/best-electronic-cigarettes/vuse-ciro-review/: DEF_PUB_EDVA000026007-015 (at 008)
`(Annotations added).
`20 RAI Strategic Holdings, Inc. and R.J. Reynolds Vapor Company’s Objection and Responsesto Altria Client
`Services LLC, Philip Morris USA,Inc., and Philip Morris Products S.A.’s Third Set of Requests for Admission
`(Nos. 108-115), January 4, 2021: pp. 4-7. See also, RAI Strategic Holdings, Inc. and R.J. Reynolds Vapor
`Company’s First Supplemental Responsesto Altria Client Services LLC, Philip Morris USA,Inc., and Philip Morris
`Products S.A.’s Third Set of Requests for Admission (Nos. 108-111), March 29, 2021: pp. 2-6.
`
`CONFIDENTIAL BUSINESS INFORMATION —
`
`139 of 178
`
`SUBJECT TO PROTECTIVE ORDER
`
`

`

`Case 1:20-cv-00393-LO-TCB Document 846-6 Filed 01/21/22 Page 4 of 6 PageID# 22834
`Case 1:20-cv-00393-LO-TCB Document 846-6 Filed 01/21/22 Page 4 of 6 PagelD# 22834
`
`specifications, and practices the ’545 patent as Defendants construe andassert the claims
`of that patent, including, for example, claim 1.67! Further, I understand from Mr.
`McAlexanderthat the JUUL device practices the ’545 Patent.°? That both parties agree
`
`that the current E-Vapor market leader (JUUL) uses the technology claimed in the ’545
`
`Patent is further evidence that the ’545 patented technology is fundamentally important
`and valuable to consumers.©? Moreover, if Reynolds did not take a license to the ’545
`
`Patent and was unable to use the technology claimed in the 545 Patent, it would not be
`
`able to achieve the benefits described above.
`
`423. Reynolds has also asserted that MarkTen, MarkTen XL, MarkTen Elite, and Green
`
`Smoke “used pulse width modulation to operate lithium ion batteries within their
`manufacturers’ specifications, and practiced one or more claims of the 545 patent.”®* I
`
`also understand from Mr. McAlexander that MarkTen, MarkTen XL, and MarkTen Elite
`
`practiced the 545 Patent.°° Again, that Reynolds believes that Nu Mark used the
`
`technology claimed in the °545 Patent is further indication that the ’545 patented
`
`technology is fundamentally important and valuable.
`
`424.
`
`Inconclusion, as discussed above, the technology claimedin the ’545 Patent is important,
`
`valuable, and a significant improvementoverthe prior art. Accordingly, Georgia-Pacific
`
`factors 9 and 10 place very significant upward pressure on the royalty for the 545 Patent,
`ni,I case th
`
`61 RAT Strategic Holdings, Inc. and R.J. Reynolds Vapor Company’s Objection and Responsesto Altria Client
`Services LLC, Philip Morris USA, Inc., and Philip Morris Products S.A.’s Seventh Set of Interrogatories (Nos. 27-
`28), January 4, 2021: pp. 7-8. November20, 2020 letter from John M. Michalik to Jennifer Koh, Esq, re: RAI
`Strategic Holding, Inc. v. Altria Client Services LLC, No: 1:20-cv-00393-LO-TCB(E.D.Va.).
`
`2 Based on discussions with Mr. McAlexander.
`: ALTRIA_IQOS_EDVA0000019177-232 (at 202):
`623 «
`
`: ALTRIA_IQOS_EDVA0000018233-280 (at 264); *
`
`: ALTRIA_IQOS_EDVA0000018408-478 (at 458).
`
`RAI Strategic Holdings, Inc. and R.J. Reynolds Vapor Company’s Objection and Responsesto Altria Client
`Services LLC, Philip Morris USA, Inc., and Philip Morris Products S.A.’s Seventh Set of Interrogatories (Nos. 27-
`28), January 4, 2021: pp. 7-8. See also November 20, 2020letter from John M. Michalik to Jennifer Koh, Esq,re:
`RAI Strategic Holding, Inc. v. Altria Client Services LLC, No: 1:20-cv-00393-LO-TCB(E.D. Va.). Based on
`discussions with Mr. McAlexander. See also, RAI Strategic Holdings, Inc. and R.J. Reynolds Vapor Company’s
`First Supplemental Responseto Altria Client Services LLC, Philip Morris USA,Inc., and Philip Morris Products
`S.A.’s Seventh Set of Interrogatories (No. 28), March 29, 2021: pp. 4-6; RAI Strategic Holdings, Inc. and R.J.
`Reynolds Vapor Company’s Objections and Response to Altria Client Services LLC, Philip Morris USA,Inc., and
`Philip Morris Products S.A.’s Fifth Set of Requests for Admission (Nos. 264-287), April 2, 2021: pp. 7-11.
`5 Based on discussions with Mr. McAlexander.
`
`CONFIDENTIAL BUSINESS INFORMATION —___
`
`140 of 178
`
`SUBJECT TO PROTECTIVE ORDER
`
`

`

`Case 1:20-cv-00393-LO-TCB Document 846-6 Filed 01/21/22 Page 5 of 6 PageID# 22835
`Case 1:20-cv-00393-LO-TCB Document 846-6 Filed 01/21/22 Page 5 of 6 PagelD# 22835
`
`Figure 22: Screenshot of Vibe on RJRV’s Website®”
`
`AUTO-DRAW
`
`The device starts
`vaporizing as soon
`as you beginto
`
`draw.
`Figure 23: Screenshot of Vibe on VapingDaily.com™ The Vibe is also automatic andfeatures a button-less design.
`
`457. Third-party industry websites have also touted the benefits of the technology claimed in
`
`the ’374 Patent. For example, as shown in Figure 23, VapingDaily.com highlighted
`
`“automatic” puff detection in and the “button-less” design of the VUSESolo and Vibe.
`
`458. Finally, I understand that Reynolds contends that the “JUUL Device”practices the ’374
`
`Patent. For example, Reynolds admitted in response to a request for admission “that
`
`679 https://vusevapor.com/devices: DEFPUB_EDVA000026098-100 (at 100) (Annotations added). The VUSE
`website similarly advertises “draw-activated vaping” for
`the Ciro: https://vusevapor.com/ciro-complete-kit:
`https://vusevapor.com/ciro-complete-kit: DEFPUBEDVA000026087-090(at 088).
`680 https://vapingdaily.comybest-electronic-cigarettes/vuse-solo-review/: DEFPUB_EDVA000026060-078 (at 066)
`(Annotations added).
`
`CONFIDENTIAL BUSINESS INFORMATION —
`
`154 of 178
`
`SUBJECT TO PROTECTIVE ORDER
`
`

`

`Case 1:20-cv-00393-LO-TCB Document 846-6 Filed 01/21/22 Page 6 of 6 PageID# 22836
`
`JUUL makes, uses, sells, offers for sale, and/or imports into the United States and has
`made, used, sold, offered for sale, and/or imported into the United States one or more
`Products that practices one or more claims of the ’374 Patent as those claims are construed
`and asserted by Defendants.”681 Reynolds also stated in a response to an interrogatory
`that “JUUL Device[s] … use capacitive pressure sensors to control the puff activation of
`the devices, and practice one or more claims of the ’374 Patent.”682 That Reynolds
`contends the current E-Vapor market leader (JUUL) used the technology claimed in the
`’374 Patent is further evidence that the ’374 patented technology is important and
`valuable.
`
`459. Additionally, I understand that “Reynolds has asserted the MarkTen Elite . . . practiced
`or practice one or more of the asserted claims of the . . . ’374 patent[].”683 That Reynolds
`asserted that Nu Mark used the technology claimed in the ’374 Patent is further evidence
`that the technology claimed in the ’374 Patent is important and valuable.
`
`460. Additionally, I understand from Ms. Ehrlich that there are multiple features of the ’374
`Patent that the FDA will consider in evaluating the VUSE PMTAs, which may improve
`Reynolds’ chances of receiving PMTA authorization.684
`
`461. I understand Reynolds has identified two allegedly non-infringing alternatives to using
`the technology claimed in the ’374 Patent. Specifically, I understand that Reynolds
`contends that they could have designed around the claims of the ’374 Patent by using
`(1) “a device that did not detect the rate and direction of a ‘blow’ or exhale”, or (2) “a
`pressure sensor that acts as a unidirectional air-conduction contact switch or a sensor[]
`
`
`681 RAI Strategic Holdings, Inc. and R.J. Reynolds Vapor Company’s Objection and Responses to Altria Client
`Services LLC, Philip Morris USA, Inc., and Philip Morris Products S.A.’s Third Set of Requests for Admission
`(Nos. 108-115), January 4, 2021: pp. 7-10.
`682 RAI Strategic Holdings, Inc. and R.J. Reynolds Vapor Company’s Objection and Responses to Altria Client
`Services LLC, Philip Morris USA, Inc., and Philip Morris Products S.A.’s Seventh Set of Interrogatories (Nos. 27-
`28), January 4, 2021: pp. 7-8. November 20, 2020 letter from John M. Michalik to Jennifer Koh, Esq, re: RAI
`Strategic Holding, Inc. v. Altria Client Services LLC, No: 1:20-cv-00393-LO-TCB (E.D. Va.).
`683 November 20, 2020 letter from John M. Michalik to Jennifer Koh, Esq, re RAID Strategic Holding, Inc. v. Altria
`Client Services LLC, No: 1:20-cv-393-LO-TCB (E.D. Va.).
`684 Based on discussions with Ms. Ehrlich. See also December 18, 2020 Deficiency Letter from the FDA to RJRV
`for the use of Vuse Solo and Ciro: RJREDVA_001655321-336 (at 321-324); March 17, 2021 Reynolds’ Response
`to December 18, 2020 FDA Deficiency Letter and Appendix A: RJREDVA_001655369-609 (at 425-428).
`
`CONFIDENTIAL BUSINESS INFORMATION – 155 of 178
`SUBJECT TO PROTECTIVE ORDER
`
`
`
`
`
`
`
`
`