British American Tobacco (BAT) and Philip Morris International (PMI) have recently finalized a global settlement to resolve their patent-infringement litigation concerning heated tobacco and vapor products. This agreement, which encompasses non-monetary provisions between both parties, has been deemed as the optimal path forward for BAT's business plan. PMI emphasizes that patent protection is a crucial element driving its innovative strategies.
The settlement conclusively resolves all global patent-infringement litigations, along with related injunctions and exclusion orders, for both tobacco giants. Moreover, it not only prevents any future claims against their current heated-tobacco and vapor products but also fosters an environment conducive to innovation and the introduction of product iterations.
BAT's Chief Executive, Tadeu Marroco, expressed his satisfaction with the settlement, stating, "I am delighted that this agreement will allow BAT to focus on developing innovative solutions that offer adult consumers a wider selection of reduced-risk products in line with our A Better Tomorrow purpose."
PMI acknowledges the growing demand among adults for smoke-free alternatives and believes that continued innovation in the reduced-risk category can expedite the decline of smoking-related harms, benefiting consumers and public health. PMI's Chief Executive, Jacek Olczak, added, "As we advance PMI's journey to end the sale of cigarettes, we remain committed to reducing the potential harms associated with smoking."
Previously, in 2020, BAT filed lawsuits against PMI in the U.S. and Germany, alleging patent infringement in connection with PMI's IQOS line of products. Legal actions relating to intellectual property were also initiated in the U.K. and Japan.
Shares of BAT saw a rise of 34 pence or 1.45% at 2,373.50 pence as of 1253 GMT.
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