PMI and BAT announce global patent settlement over vape and heated tobacco products

Philip Morris International Inc (PMI) and British American Tobacco (BAT) said they have reached a global settlement that resolves all ongoing patent infringement litigation between them over heated tobacco and vapor products.

The settlement includes non-monetary provisions between PMI and BAT, and prevents future claims against current heated tobacco and vapor products. The settlement also allows each party to innovate and introduce product iterations.

"We are pleased that this matter has been resolved to the mutual satisfaction of both parties,” said Jacek Olczak, PMI chief executive.

“There is a clear and growing global desire from adults who smoke to choose from a range of smoke-free products, and we believe continued reduced-risk category innovation can accelerate 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.”

Tadeu Marroco, chief executive of BAT, said: “This agreement is an important step forward for BAT and all our stakeholders. Having already built two £1bn brands in Vuse and glo, the potential for their continued impact on tobacco harm reduction is clear.

“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. By doing so, we will help build a smokeless world for the benefit of consumers, investors and society as a whole.”