BAT and Philip Morris settle patent disputes about cigarette alternatives

Tobacco giants Philip Morris International (PMI) and British American Tobacco (BAT) said on Friday they had agreed to resolve a multitude of current patent infringement disputes relating to their cigarette alternatives.

The cigarette makers have been fighting a multifront patent dispute that has hurt both sides.

BAT, which makes Vuse vapes and Glo heated tobacco devices, was ordered to pay PMI millions of dollars after losing one case, while PMI has been blocked from importing its flagship heated tobacco device IQOS into the US as part of another.

Under the nonmonetary, worldwide settlement, which lasts for eight years, the companies have agreed to dismiss all pending patent infringement cases, according to statements and filings from the companies. It also prevents future claims against current products.

A PMI filing with the Securities and Exchange Commission added that under the agreement the parties would also request the block on IQOS imports into the US to be rescinded — a key win for PMI as it looks to bring the device to this critical market in 2024.

“We are pleased that this matter has been resolved to the mutual satisfaction of both parties,” PMI CEO Jacek Olczak said.

“This agreement is an important step forward for BAT and all our stakeholders,” BAT CEO Tadeu Marroco said, adding that it would allow the company to focus on innovation.

The agreement allows both companies to introduce future iterations of their products, they added in separate statements.

Shares in BAT briefly spiked after the news. They were up 1.4% at 12.35pm GMT on Sunday. PMI’s stock was flat in thin, pre-market trading. 

Reuters