Philip Morris and BAT resolve all disputes over vapes and heated tobacco devices

The tobacco firms’ global settlement ends all litigation over their cigarette alternatives | Agreement is ‘non-monetary’ and may see ITC ban on Philip Morris products rescinded.

Tobacco giants Philip Morris International (PMI) and British American Tobacco (BAT) have settled a litany of patent infringement claims relating to their cigarette alternatives.

The pair have been in multiple disputes for several years, which have proven to be costly and damaging to both parties.

In their global settlement, announced on Friday, February 2, the companies have agreed to dismiss all pending patent infringement cases. This includes non-monetary provisions and is effective for eight years.

The settlement encompasses all related injunctions and exclusion orders, and prevents future claims against current products, including iterations of the products at issue.

According to filings with the US Securities and Exchange Commission (SEC), both parties will also request that the block on PMI’s IQOS imports into the US—imposed in September 2021—is rescinded.

Hot conflict

The companies had locked horns over BAT’s Vuse vapes and glo heated tobacco devices, launched in 2013 and 2015 respectively; and PMI’s flagship device range IQOS, launched in 2014, which heat real tobacco instead of burning it.

Previous judgments include Philip Morris winning $10 million from RJ Reynolds, a subsidiary of BAT; and BAT losing against PMI at the UK’s High Court, when Justice Meade invalidated two of its e-cigarette patents.

In a statement, PMI’s CEO, Jacek Olczak, said: "We are pleased that this matter has been resolved to the mutual satisfaction of both parties.

“There is a clear and growing global desire from adults who smoke to choose from a range of smoke-free products, and we believe continued reduced-risk category innovation can accelerate declines in the harms associated with smoking to the benefit of consumers and public health at large—as we continue PMI’s journey to end the sale of cigarettes."

Tadeu Marroco, chief executive of BAT, said: “This agreement is an important step forward for BAT and all our stakeholders. Having already built two £1 billion brands in Vuse and glo, the potential for their continued impact on Tobacco Harm Reduction is clear.”

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