British American Tobacco (BAT) won the first round of a legal trade battle with Philip Morris International (PMI) over heat-not-burn technology patents.
An initial determination reached by an International Trade Commission (ITC) judge found that PMI’s IQOS device infringes two patents owned by BAT’s subsidiary, Reynolds American Inc. In its original complaint, Reynolds alleged that PMI infringed three patents – two for an electronically-powered device with a heater to generate aerosol and one for a control body.
The next step will now be a review by the full commission. The investigation is scheduled to complete by September 15. The finding that IQOS violated the patents may lead to an import ban on IQOS to the US.
PMI called the initial determination “one step in a long process that does not have an immediate effect” and argued that even if a patent violation is found, it is not in the public’s interest to keep IQOS out of the US.
Reynolds, on the other hand, argued that PMI is overstating the benefits and popularity of IQOS when compared to “literally thousands” other potentially reduced risk products, saying PMI’s argument is “built on hopeless speculation and unsubstantiated conjecture” and “insufficient to override patent rights.”
The company went on to say, “Reynolds agrees that smokers should have choice, but they are not entitled to every conceivable choice if one of them infringes Reynolds’ patents.”