BAT, Philip Morris Resolve Global Patent Dispute — Update

By Anthony O. Goriainoff

British American Tobacco and Philip Morris International reached a global settlement that resolves their patent-infringement litigation regarding heated tobacco and vapor products.

London-listed BAT said on Friday that the settlement, which includes non-monetary provisions between both parties, was the best path forward for its business plan. PMI said patent protection was a critical component of the innovation which drove its strategies.

Both companies added that this deal resolved all their global patent-infringement litigations and that it encompassed all related injunctions and exclusion orders. Furthermore it prevented future claims against current heated-tobacco and vapor products and allowed for both parties to innovate and introduce product iterations.

"I am delighted that this settlement will allow BAT to focus on developing innovative solutions that provide adult consumers with a greater choice of reduced-risk products in support of our A Better Tomorrow purpose," BAT Chief Executive Tadeu Marroco said.

PMI said there was a clear and increasing desire from adults who choose to consume smoke-free product and that it believed that continued reduced-risk category innovation could speed-up the "declines in the harms associated with smoking to the benefit of consumers and public health at large, as we continue PMI's journey to end the sale of cigarettes," PMI Chief Executive Jacek Olczak said.

In 2020 BAT said it was suing PMI in the U.S., and Germany as it believed the tobacco-heating technology used in its IQOS line of products infringed its patents. Legal actions related to intellectual property were also filed in the U.K. and Japan.

Shares of BAT at 1253 GMT were up 34 pence, or 1.45% at 2,373.50 pence.

Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com

(END) Dow Jones Newswires

February 02, 2024 08:10 ET (13:10 GMT)

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