Biden Administration Upholds Altria Infringement Ruling; IQOS Pulled From U.S. Shelves and Sales Sus
The U.S. Trade Representative upheld the International Trade Commission (ITC) ruling that Philip Morris International’s IQOS heated tobacco device infringes patents held by British American Tobacco. As a result of the ITC ruling, Philip Morris USA was ban
The U.S. Trade Representative upheld the International Trade Commission (ITC) ruling that Philip Morris International's IQOS heated tobacco device infringed on patents held by British American Tobacco.<\/span><\/div>
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As a result of the ITC ruling, Philip Morris USA is prohibited from importing PMI's IQOS 2.4, IQOS 3, and IQOS 3 Duo series heat-not-burn products. It has also been ordered to cease sales of these products, which have already been sold in the U.S.<\/span><\/div>
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Some IQOS retailers, including convenience stores, have begun displaying notices to customers that these products will be unavailable for sale starting Monday, November 29.<\/span><\/div>
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Gareth Cooper, Assistant General Counsel for British American Tobacco, stated in a statement: "Today's announcement provides a successful benchmark for our enforcement of intellectual property to ensure we can continue to innovate, which is a common practice in innovative industries." "As we have pointed out, there is no reason to overturn this policy."<\/span><\/div>
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Altria expressed disappointment over the decision. The company stated in a statement: "We still believe the plaintiff's patents are invalid, and IQOS does not infringe on these patents."<\/span><\/div>
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"The ITC's import ban prevents all consumers who switched to IQOS from using the product, reducing choices for over 20 million smokers seeking alternatives to cigarettes, ultimately harming public health."<\/span><\/div>
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When the ITC made its decision on September 30, Gregory Conley, president of the American Vaping Association, also expressed this viewpoint.<\/span><\/div>
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"Depriving them of the opportunity to switch to reduced-harm products like IQOS, the real losers in this protracted court battle may ultimately be American adult smokers," Conley said.<\/span><\/div>
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"While some may turn to e-cigarettes, snuff, or vaping devices without IQOS, too many American adults will choose to continue smoking cigarettes."<\/span><\/div>
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The U.S. Food and Drug Administration authorized the sale of IQOS in April 2019. The product first debuted in test markets in Atlanta and Richmond, Virginia, in October 2019. In the second quarter, PMI USA expanded the retail distribution of IQOS and Marlboro tobacco pods to other metropolitan areas in North Carolina and Virginia, as well as Northern Virginia and Georgia.<\/span><\/div>
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Altria may appeal to the U.S. Federal Circuit Court handling the patent litigation. Industry analysts indicate that this process could take up to a year to reach a decision, and the chances of a successful appeal are slim.<\/span><\/div>
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For Altria and Philip Morris, the worst-case scenario is that both companies will have to redesign, relocate production to the U.S., or change enough designs to avoid patent infringement claims.<\/span><\/div>
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PMI has successfully defended similar cases in the UK and elsewhere. British American Tobacco has filed lawsuits against IQOS in Poland, the Czech Republic, Bulgaria, Romania, Greece, and through the European Patent Office.<\/div>
