BAT Sues PMI Over Alleged IQOS Technology Patent Infringement
BAT has filed two U.S. patent infringement claims against PMI, alleging that IQOS uses its patented heating blade technology. The company is seeking damages and an import ban on the products.
British American Tobacco (BAT) has filed two patent infringement claims against PMI in the U.S., one through the International Trade Commission (ITC) and the other in the Virginia federal court. The tobacco company claims it is seeking damages for losses incurred and an import ban on the products.
The lawsuits in Germany and the U.S. are based on allegations regarding the heating blade technology used in IQOS, which is an earlier version of the technology currently used in BAT's global tobacco heating devices. British American Tobacco plans to launch its glo series products in Germany this year, while PMI began selling IQOS in the U.S. in 2019, which is the only HnB device approved for sale in the country.
A spokesperson for British American Tobacco, Will Hill, said: “If we win, unless they agree to obtain our patent license, Philip Morris will be able to obtain an ITC exclusion order to block IQOS from entering the U.S.”
“We have seen media reports that British American Tobacco has filed a lawsuit, but we have not had the opportunity to assess their allegations. However, we can say that we will vigorously defend ourselves.”
As other HnB products struggle, IQOS market share increases
In 2019, PMI reported a 44.2% increase in IQOS shipments, reaching 59.7 billion units, with a 40.7% increase in the last quarter of this year, reaching 17.1 billion units.
Excluding the U.S., the tobacco giant's IQOS market share increased by 1.4 percentage points to 5%. By the end of 2019, there were an estimated 13.6 million IQOS users, of which 9.7 million were former smokers who had used the device.
