Ruyan Asserts Patent Rights to E-cigarette in Key China Court Ruling

February 23, 2009

Illicit Chinese Manufacturer Ordered to Pay Damages and Destroy Inventory; Action against Other Chinese Manufacturers Initiated


MINNEAPOLIS – February 23, 2009 – Ruyan America, Inc. announced today that its China-based joint venture partner, Ruyan Group Holdings, Ltd., has successfully asserted its intellectual property rights to the essential technology and design of the electronic cigarette in a recent legal proceeding in China.

In a decision rendered by a court in the People’s Republic of China in January of 2009, Ruyan prevailed in a lawsuit against e-Cig, a China-based illicit manufacturer of electronic cigarettes and accessories. As a result of the decision, e-Cig was required to pay compensation to Ruyan for damages, destroy all of its existing stock of inventory and agree to never engage in the electronic cigarette business again. The ruling was the first of what Ruyan expects to be a series of such decisions as it has initiated similar actions against other illegal China-based manufacturers.

William Bartkowski, President of Ruyan America, Inc., commented, “We are pleased with this recent development and hope that these actions and decisions will go a long way toward clearing up the confusion and ambiguity in the U.S. with respect to this product category and these products.” Bartkowski also noted that Ruyan America, Inc. has recently resolved litigation against some U.S. companies that Ruyan alleged were making safety claims that were either unsupported or in conflict with actual test results. He stated that further litigation is this area is now being planned.

Established in 2003 as Beijing SBT Ruyan Technology & Development Co., Ltd, Ruyan is the original inventor of the atomization technology that allows electronic cigarettes, pipes and cigars to vaporize nicotine and non-nicotine solution-mixtures.

Beginning in 2003, the Company completed applications to the Chinese Patent Office for the “Ruyan” brand of products; since then, the company has made constant improvements to the overall construction of its patent system. Thus far, Ruyan has obtained 15 invention, utility and design patents in China. Additionally, the company has registered patents in more than 50 countries, regions and territories around the globe, including in the United States of America and the European Union.

Moreover, unlike the illicit manufacturers of the electronic cigarette and its associated products, Ruyan has had extensive tests conducted by independent labs and research organizations to verify that its products do not contain harmful tobacco-related chemicals and are therefore safe for normal use. Over the last four years, several respected independent research institutions have conducted reviews of Ruyan electronic cigarette products, including The Institute of Radiology & Radiation Medicine of the Academy of Military Medical Science of China; The Tianjin Center for Disease Control & Prevention, The Chinese Center for Disease Control & Prevention, and Health New Zealand Ltd, headed by Dr. Murray Laugesen. In addition to these safety tests, BJ SBT has conducted over 40 product and components tests with an accredited PONY laboratory for every component used in Ruyan products.

Ruyan America, Inc. is a U.S.-based joint venture partner of Ruyan Holdings Ltd. of Hong Kong. Ruyan America’s Chairman, Mr. Hon Lik, is the inventor and patent holder or applicant with respect to pending patents of the E-cigarette and the atomizing technology that is critical to it, the E-cigar and the E-pipe. These products, varieties of replacement cartridges and their accessories are designed, manufactured and sold for the cigarette alternative/smoking substitution market. They allow smokers to satisfy their need for tobacco in places and situations where they otherwise cannot smoke by law, regulation or common courtesy. Additional information about the company and its products can be found at ruyanamerica.com.

Warning: some Ruyan products contain nicotine and be advised that nicotine is addictive. The Ruyan products have not been evaluated by the US FDA. They are not intended to be drug products that diagnose, treat, cure or mitigate any disease or condition. Do not use these products if you are underage; if you are a non-smoker, if you have a demonstrated allergy or sensitivity to nicotine or any combination of inhalants, or if you are pregnant or nursing.
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