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Tobacco Giants BAT and PMI Reach Global Settlement on Patent Disputes

Tobacco Giants BAT and PMI Reach Global Settlement on Patent Disputes
British American Tobacco (BAT) and Philip Morris International Inc (PMI) have successfully resolved all ongoing patent infringement litigation related to heated tobacco and vapour products. The global settlement includes non-monetary provisions and addresses all relevant injunctions and exclusions. This agreement marks a significant milestone in the tobacco industry, ensuring the continued availability of these products to consumers worldwide.
The multiple ongoing patent infringement disputes related to their cigarette alternatives. This protracted legal battle has impacted both companies.
BAT, the manufacturer of Vuse vapes and Glo heated tobacco devices, faced a significant financial setback after losing a patent infringement case against PMI. In contrast, PMI encountered an import restriction for its flagship heated tobacco device, IQOS, in the United States due to a separate legal dispute.
Under the non-monetary, worldwide settlement, which spans eight years, the key provisions that have been agreed upon include the dismissal of all pending patent infringement cases, preventing future claims against current products, and PMI requesting the block on importing its IQOS devices to be rescinded.
“Patent protection is a critical component of the innovation driving BAT’s strategies and the company welcomes this settlement as the best path forward for its business plans,” BAT said in a statement.
The settlement also grants both parties the opportunity to innovate and introduce new product iterations. BAT remains dedicated to advancing reduced-risk products through ongoing innovation, furthering the cause of Tobacco Harm Reduction.
“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. I am delighted that this settlement will allow BAT to focus on developing innovative solutions that provide adult consumers with a greater choice of reduced-risk products in support of our A Better Tomorrow purpose. By doing so, we will help build a smokeless world for the benefit of consumers, investors and society as a whole,” Tadeu Marroco, Chief Executive of BAT, stated.