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.

Italy and Greece Oppose Ireland’s Nicotine Product Bill, Raising EU Regulatory Concerns
Italy and Greece Oppose Ireland’s Nicotine Product Bill, Raising EU Regulatory Concerns
Italy and Greece have opposed Ireland’s proposed nicotine product regulations, arguing that the measures could affect EU market coordination and the free movement of products. Ireland plans to introduce stricter rules covering nicotine products including vapes and nicotine pouches, with measures involving packaging, marketing and sales controls. The dispute highlights differences among EU member states between stronger public health protections and maintaining regulatory consistency within the bloc’s single market.
Jul.29
Tasmania Reports Annual Enforcement Results: 5.5 Million Illegal Cigarettes and Nearly 30,000 Vapes Seized, With IGET Products Visible in Official Images
Tasmania Reports Annual Enforcement Results: 5.5 Million Illegal Cigarettes and Nearly 30,000 Vapes Seized, With IGET Products Visible in Official Images
Tasmania reported its 2025/26 illicit tobacco enforcement results on July 14, with authorities seizing about 5.5 million illegal cigarettes, more than 2,500 kilograms of loose tobacco and nearly 30,000 vapes.
Jul.15
Product | ZAR Launches Coffee AirPouch, Expanding Pouch Format Into Caffeine Products
Product | ZAR Launches Coffee AirPouch, Expanding Pouch Format Into Caffeine Products
ZAR has introduced Coffee AirPouch, a nicotine-free caffeine pouch product that extends the brand’s AirPouch format into the functional consumer category. Each pouch contains 50mg of natural caffeine and features a coffee flavor, highlighting how pouch-based products are expanding beyond traditional nicotine applications into broader lifestyle and energy-use scenarios.
Market
Jul.13 by 2Firsts Perspectives
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
Product | Vapsolo Launches Sixer 180K, Introducing a 6-in-1 Architecture for Disposable Vapes
Product | Vapsolo Launches Sixer 180K, Introducing a 6-in-1 Architecture for Disposable Vapes
Vapsolo has launched the Sixer 180K, a flagship disposable vape built around a 6-in-1 architecture featuring six independent e-liquid tanks and six dedicated mesh coils. Alongside a claimed up to 180,000 puffs, the new device reflects a broader shift in disposable vape development from increasing puff counts toward modular hardware design and multi-flavor user experience.
Jul.03
U.S. FDA: Youth E-Cigarette Prevention Campaign Prevented About 444,000 Initiations and Reduced Illegal Vape Sales
U.S. FDA: Youth E-Cigarette Prevention Campaign Prevented About 444,000 Initiations and Reduced Illegal Vape Sales
The U.S. Food and Drug Administration (FDA) said its youth e-cigarette prevention campaign, “The Real Cost,” prevented about 444,000 U.S. youth from starting e-cigarette use between 2023 and 2024 and blocked more than $42 million in unauthorized e-cigarette sales that would have been used by youth.
Market
Jun.25