On Wednesday local time, the US International Trade Commission ruled that Philip Morris International Inc (PM.US) and partner Altria Group Inc (MO.US) would be banned from importing IQOS heating tobacco sticks to the US after losing a legal dispute with British American Tobacco PLC (BTI.US), Zhitong Financial APP learned. In addition, the agency said in a notice posted on its website that Philip Morris International Inc and Altria Group Inc infringed two patents owned by British American Tobacco PLC subsidiary Renault USA.
It is reported that the import ban and the order to stop the sale of any imported products will take effect within 60 days unless the Biden administration overturns the ban on public policy grounds.
Philip Morris International Inc became a pioneer in the substitute market with his IQOS products, making competitors scramble to catch up. It is the only heated non-combustible product allowed to be sold in the United States, which is sold by Altria Group Inc in the United States. The device was also approved by the US Food and Drug Administration last year to reduce the risk of consumers being exposed to harmful chemicals in cigarettes for sale, giving Philip Morris International Inc an edge over competitors.
Philip Morris International Inc said the company planned to appeal the decision of the US International Trade Commission. A spokesman for Altria Group Inc said the two companies are working together on contingency plans. A spokesman for Altria Group Inc said: "We still believe that Renault's patents are invalid and IQOS does not infringe these patents."
Kaelan Hollon, a spokesman for Renault USA, said: "the infringement of our intellectual property rights will damage our investment and innovation capabilities, which will have an impact on the health of our business, so we will vigorously defend our intellectual property rights around the world."
It is understood that British American Tobacco PLC, the parent company of Renault USA, has taken similar legal action against Philip Morris International Inc in a few international markets. However, the British and Greek courts sided with Philip Morris International Inc in these disputes.
In this regard, Bank of America Corporation Securities analyst Lisa Lewandowski said that in view of Philip Morris International Inc's success in previous litigation, Philip Morris International Inc or Altria Group Inc is not expected to settle with British American Tobacco PLC.
As of press time, Philip Morris International Inc was down 2.01% at the beginning of the day, Altria Group Inc was down 2.50%, and British American Tobacco PLC was down 2.20%.