On February 2nd, in the Eastern Time Zone of the United States, both Philip Morris International (PMI) and British American Tobacco (BAT) announced on their respective official websites that they have resolved their intellectual property dispute regarding heated tobacco and e-cigarette products.
British American Tobacco (BAT) and Philip Morris International (PMI) have announced a settlement agreement that includes non-monetary terms between the two companies. This agreement resolves all ongoing global patent infringement lawsuits, including any related injunctions and exclusions, and prevents future claims against current heated tobacco and vaping products. The settlement also allows both parties to continue innovating and launching improved versions of their products. Both companies are committed to ongoing innovation in the reduced-risk product space, furthering efforts to reduce the harm caused by tobacco.
These two international tobacco companies have been embroiled in a multifaceted patent war. BAT's e-cigarette brand VUSE and heat-not-burn tobacco device brand GLO suffered a defeat in one case, being ordered to pay millions of dollars; while PMI was prohibited from introducing its flagship heat-not-burn tobacco device IQOS into the United States due to another lawsuit.
PMI CEO, Jacek Olczak, expressed satisfaction with the resolution, stating, "We are pleased that both parties are content with the outcome. Adult smokers worldwide consistently display a desire for a range of smoke-free products, and we believe that continued innovation in reduced-risk alternatives can expedite the reduction of smoking-related harms, benefiting consumers and public health as a whole. Meanwhile, we will remain committed to phasing out the sale of traditional cigarettes as part of PMI's journey.
BAT CEO Tadeu Marroco has expressed his satisfaction with the recent agreement, stating, "This agreement is a significant step forward for BAT and all our stakeholders. With the successful development of our billion-pound brands VUSE and GLO, the potential for reducing tobacco harm is evident. I am pleased that this settlement will allow BAT to focus on developing innovative solutions to provide adult consumers with reduced-risk products and contribute to our 'A Better Tomorrow' mission. By doing so, we will help build a smoke-free world for consumers, investors, and society as a whole."
2FIRSTS has invited Chinese e-cigarette legal expert Counsellor Tang Shunliang to provide a professional analysis of the background and potential impact of the patent settlement between PMI and BAT. An article providing this analysis will be published later. Stay tuned.
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