KT&G caught in e-cigarette patent lawsuit, battles iMTEK over 6 key technologies

The patent dispute between KT&G and iMTEK has continued for one year and seven months, with both sides fighting over six e-cigarette technology patents.

According to Naver on October 22, the court battle between KT&G and e-cigarette design manufacturer iMTEK has been ongoing for one year and seven months. In March 2022, KT&G filed a patent ownership transfer lawsuit against iMTEK. Although the two sides held additional discussions after the litigation began, they failed to narrow their differences, and a large-scale public legal battle has now unfolded. 

According to industry sources, the Seoul Central District Court heard key points regarding the background and focus of the case. KT&G alleges that iMTEK independently applied for the patent technology, which should be regarded as the outcome of contract-based services. 

The patent technologies that KT&G is seeking to have transferred from iMTEK include six items in total, such as a fluid atomizer heater structure, an electrically heated aerosol generator atomizer, a particulate generation device, and an electronic cigarette electro-thermal aerosol generator. KT&G argues that these technologies, developed during the contract periods signed from 2016 to 2018, should belong to KT&G under the terms of those contracts. 

However, iMTEK countered that the agreements were signed under terms that were unilaterally favorable to KT&G. The two parties signed annual technical development service contracts, but the specific detailed agreements differed. For example, the 2017 contract stipulated “joint ownership with payment of subsequent costs,” but starting in 2018 it changed to “effectively all rights belong to KT&G.” 

iMTEK stated that “there is absolutely no evidence proving any negotiated outcome derived from technical guidance, and as a result, the ODM procurement transaction was also cut off.” It further argued that “KT&G bears the burden of proving that the technology development was carried out according to its instructions, but it failed to submit relevant documents such as technical guidance materials.” 

The patent rights dispute between KT&G and iMTEK has already lasted three years. Although both sides held discussions, they failed to reach a satisfactory agreement and ultimately went to court. The next hearing is expected to take place in January 2024.