Tobacco Giants Pivot to High-Tech Nicotine Alternatives

Mar.31.2022
Tobacco Giants Pivot to High-Tech Nicotine Alternatives
Big tobacco companies shift focus to high-tech nicotine alternatives; patents and legal battles heat up in the nicotine market.

Warren Buffett once described the tobacco industry as effortless money-making: spend one cent to make a cigarette, sell it for one dollar. Those days are long gone.

 

As heated tobacco, e-cigarettes, and nicotine pouches gain popularity, companies such as Philip Morris International and British American Tobacco are shifting their focus from simple cigarettes to high-tech, rechargeable devices.

 

The explosive growth of inventions offering nicotine without smoking, which have the most harmful impact, has sparked a lot of controversy over who owns the technology. Tobacco companies, once competing for top marketing executives, are now pursuing top patent lawyers.

 

Following Russia's invasion of Ukraine, Big Player has announced plans to withdraw from Russia, potentially escalating tensions. Russia is not only the world's fourth-largest cigarette market but also a significant region for heating tobacco products. This means that the company may try to compensate by pursuing growth in other regions.

 

According to a detailed patent review, a total of 73,758 patents related to electronic cigarettes, heated tobacco, and smokeless products were published in the decade leading up to 2020. The report was authored by Roya Ghafele, founder of the intellectual property consulting firm OxFirst, and commissioned by the Smoke-Free World Foundation, which is funded by Philip Morris.

 

A spokesperson reported that Philip Morris International submitted over 20 times more patents for smoke-free innovations between 2018 and 2020 than they did in the two years prior to that. Meanwhile, British American Tobacco claimed to have submitted over 350 patents related to new categories in 2021, a significant increase from the approximately 50 submitted in 2015. Typically, patent applications are submitted in the early stages of research and development, and receiving a patent grant gives the holder exclusive rights to commercialize their invention for a certain period of time.

 

Ghafele stated, "Tobacco companies are newcomers in the patent field, and leading companies are quickly retaining talent from other industries because they realize that a lack of intellectual property awareness could pose a risk to their business in the future.

 

Philip Morris has hired attorneys from Rui Sheng International Law Firm to represent them in litigation, including automobile manufacturers, technology companies, and winners in the decades-long battle over artificial blood vessels. Reynolds has hired lawyers at Zhongda to defend Alphabet Inc.'s Google and Johnson & Johnson in patent cases involving autonomous driving cars and semiconductor technology.

 

The industry is catching up on 50 years of innovation vacuum and suddenly someone started innovating with products aimed at reducing smoking - everyone is entering this field," said Jacek Olczak, CEO of Philip Morris in an interview. "More and more people are investing in innovation, which is a good thing. The effectiveness of patents is a separate issue, which we are studying.

 

Philip Morris was barred from importing its IQOS heated tobacco sticks into the United States last year following a legal battle with British American Tobacco. The company has repeatedly argued that this is a public health issue because the IQOS is the only heated non-burning product approved for sale in the US.

 

Reynolds American Inc., a subsidiary of BAT, filed a lawsuit in April 2020 alleging that Philip Morris and Altria had copied patent technology developed for its Vuse product. Since then, both companies have made additional patent infringement claims in US courts and requested that the US Patent and Trademark Office revoke the other company's patents.

 

The electronic cigarette that vaporizes nicotine is widely believed to have been invented in China twenty years ago. At that time, pharmacist Han Li was attempting to find a less harmful way to satisfy nicotine cravings. In 2013, he ultimately sold his company's patent to Imperial Brands Plc, triggering a series of patent infringement disputes.

 

After Juul Labs Inc. introduced nicotine salts to the world, which are absorbed more quickly into the bloodstream, competitors began selling similar e-cigarettes.

 

Advancing a Lawsuit in Advance

 

As companies venture into the smokeless category, which includes nicotine pouches and medical therapy, more lawsuits are looming. The segment's search for alternative electric heating methods means these companies are facing patent minefields in every expansion area.

 

Swedish Match AB attempted to shut down competitors of nicotine pouch manufacturers, which are similar to small tea bags placed on top of gum, although its lawsuit against Dryft Sciences LLC, a closely held company, failed. Kretek International Inc. sold its Dryft nicotine pouch business to BAT in 2020, which is sold under the Velo brand. Swedish Match is appealing the ruling.

 

For all the right reasons, the tobacco industry has been innovating on the margins to lower risk," said Jason Carignan, CEO of Dryft in an interview. "It feels like these predatory tactics are preventing consumers from accessing the low-risk nicotine alternatives they deserve.

 

According to Ghafele of OxFirst, if innovation is to help reduce the risks associated with nicotine products, the industry needs to "conceptualize intellectual property in a different way.

 

The industry should "move away from patents solely existing to prevent others from using your technology and shutting them down when they do, towards thinking about how patents can be used to build bridges and more positive things," said Rockefeller.

 

(Source: bloomberg.com)

 


Disclaimer

This article is provided solely for professional research, industry discussion, and informational purposes. Any references to brands, companies, products, technologies, or policies are made for factual reporting and analytical purposes only, and do not constitute endorsement, recommendation, promotion, or advertising by 2Firsts.

Nicotine-containing products, including but not limited to cigarettes, e-cigarettes, heated tobacco products, and nicotine pouches, carry significant health risks. Readers are responsible for complying with all applicable laws and regulations in their respective jurisdictions, including age restrictions and access limitations.

The information contained in this article should not be regarded as investment, legal, medical, regulatory, or commercial advice. While 2Firsts strives to ensure the accuracy and reliability of its content, it does not assume liability for any direct or indirect loss arising from errors, omissions, inaccuracies, or reliance on the information contained herein.

This article is not intended for individuals below the legal age for accessing tobacco or nicotine-related information in their jurisdiction.

 

Copyright Notice

This article is either original content produced by 2Firsts or content reproduced, translated, summarized, or adapted from third-party sources with attribution where applicable. The intellectual property rights of the original content remain with 2Firsts or the respective original rights holders.

No individual or organization may copy, reproduce, distribute, republish, modify, translate, or otherwise use this content without prior authorization. Any unauthorized use may result in legal action.

For copyright-related inquiries, corrections, or removal requests, please contact: info@2firsts.com.

 

AI-Assisted Translation and Editing Notice

Portions of this article may have been translated, edited, or reviewed with the assistance of artificial intelligence tools to improve efficiency and readability. Due to the limitations of AI-assisted translation and editing, discrepancies, omissions, or inaccuracies may exist when compared with the original source.

Where applicable, readers are advised to refer to the original source for the most complete and accurate information. If you identify any errors or believe that any content infringes upon your rights, please contact us at info@2firsts.com, and we will review and address the matter promptly.

Malaysia Police Seize RM12.7 Million in Illegal Vapes and Cigarettes as Probe Points to Sea Shipments From China
Malaysia Police Seize RM12.7 Million in Illegal Vapes and Cigarettes as Probe Points to Sea Shipments From China
Police in Malaysia’s Selangor state seized illegal vape products and contraband cigarettes worth about RM12.7 million (approximately $3 million) in two enforcement operations. According to New Straits Times and The Star, the vape-related operation uncovered 131,036 boxes of vape products, 4,900 bottles of e-liquid and 25,510 vape devices, valued at about RM9.4 million. Police said preliminary investigations indicated that some illegal vape products entered Malaysia through sea shipments from China before moving through storage and distribution networks.
Aug.10
2FIRSTS EXCLUSIVE|China Breaks Up $6.8 Million Illegal Hookah Tobacco Operation as Market Expands
2FIRSTS EXCLUSIVE|China Breaks Up $6.8 Million Illegal Hookah Tobacco Operation as Market Expands
Chinese authorities have dismantled an illegal hookah tobacco operation worth more than 46 million yuan ($6.8 million), detaining five foreign suspects and seizing over 500,000 boxes of tobacco paste. The case comes as hookah expands across China’s nightlife sector and attracts overseas operators, including former vaping entrepreneurs. It also raises a central regulatory question: whether waterpipe tobacco will follow China’s private-sector e-cigarette licensing model or be reserved for the state tobacco system, as with nicotine pouches, in the years ahead.
Jul.31
EU Trade Department Faces Scrutiny Over Contacts With Tobacco Industry
EU Trade Department Faces Scrutiny Over Contacts With Tobacco Industry
European Ombudswoman Teresa Anjinho has opened an inquiry into how the European Commission’s Directorate-General for Trade handles interactions with the tobacco industry. The case follows a complaint from a civil society organisation that alleges regular, unnecessary and non-transparent contacts between DG TRADE and tobacco industry representatives, raising questions over compliance with the EU’s obligations under the WHO Framework Convention on Tobacco Control. The inquiry remains ongoing, and the Ombudswoman has not reached any finding of maladministration.
Aug.24
China’s Zhengzhou Tobacco Research Institute develops end-to-end heated tobacco analysis to trace aerosol compound origins
China’s Zhengzhou Tobacco Research Institute develops end-to-end heated tobacco analysis to trace aerosol compound origins
The Zhengzhou Tobacco Research Institute of China National Tobacco Corporation has filed a patent application for an end-to-end method to analyze the migration and transformation of chemical compounds in heated tobacco products. Using GC-Orbitrap/MS non-targeted analysis, the method compares tobacco substrate and aerosol samples to distinguish compounds transferred directly from the substrate from those newly formed during heating, while also calculating transfer rates. In an example involving nine heated tobacco products, the patent identified 17 newly formed thermal decomposition compounds and 38 transferred compounds.
Aug.13
Product | IVG Pro 15K Enters European Retail Channels, Expanding High-Capacity Pod System Segment
Product | IVG Pro 15K Enters European Retail Channels, Expanding High-Capacity Pod System Segment
UK vape brand IVG has introduced the IVG Pro 15K, a high-capacity pod system combining a 2ml prefilled pod with a 10ml refill container to deliver up to 15,000 puffs. Unlike conventional high-puff disposable vapes, the IVG Pro 15K adopts a reusable device structure, reflecting a broader shift in the European vape market toward longer-use-cycle products and reusable hardware ecosystems.
Jul.14
China Tobacco Regulator Deputy Head Visits Laos as Both Sides Strengthen Cooperation on Illegal Tobacco Trade
China Tobacco Regulator Deputy Head Visits Laos as Both Sides Strengthen Cooperation on Illegal Tobacco Trade
China’s official Xinhua News Agency reported that Liu Sanjiang, deputy head and Party group member of China’s tobacco regulator, led a delegation to Laos from July 31 to Aug. 2, 2026, for discussions with Lao authorities on combating cross-border illegal tobacco trade. The two sides discussed areas including law enforcement cooperation, information sharing and efforts to address tobacco-related illegal activities such as counterfeiting and smuggling. The visit highlights cooperation between Chinese and Lao authorities on illicit tobacco control.
News
Aug.05