BAT Sues PMI on Grounds That IQOS Technology Infringed its Patents

One of the world’s main tobacco companies, British American Tobacco (BAT) has just sued its competitor Philip Morris International Inc (PMI) in the United States and Germany, alleging that the tobacco heating technology used in PMI’s HnB device IQOS, has infringed its patents.

Diane Caruana

May 25, 2020

BAT said that in the US, it filed two patent infringement claims against PMI, one via the International Trade Commission (ITC) and one in the Virginia federal court. The tobacco company claims it is seeking compensation for the damages caused and an injunction on importing the product.

BAT is saying that the heating blade technology used in IQOS, is an earlier version of the technology currently being used in BAT’s glo.

Both the lawsuits in Germany and the US, are based on the accusation that the heating blade technology used in IQOS, is an earlier version of the technology currently being used in BAT’s glo tobacco heating devices. BAT had planned to launch its glo range in Germany this year, and PMI started selling IQOS in the US in 2019, with the latter being the only HnB device approved for sale in the country.

“If we win we may be able to get an ITC exclusion order blocking the importation of IQOS into the U.S. by Philip Morris unless they agree to take a license to our patents,” said BAT spokesman Will Hill.

“We have seen media reports that BAT has filed legal actions but have not had the opportunity to evaluate its allegations. We can say, however, that we will vigorously defend ourselves,” responded Philip Morris.

IQOS Market Share Increases as Other HnBs Struggle

In 2019, PMI posted a 44.2% increase in iQOS shipments, to 59.7bn units, with a 40.7% rise to 17.1bn units in the last quarter of the year.

Excluding the US, the tobacco giant has witnessed a market share increase in IQOS markets by 1.4 percentage points to 5%. At the end of 2019, it was calculated that there were a total of 13.6m IQOS users, of whom 9.7m were former smokers who had switched to the device.