Clear The Air News Tobacco Blog Rotating Header Image

E-cig patent lawsuits heading to mediation

http://www.journalnow.com/business/business_news/local/e-cig-patent-lawsuits-heading-to-mediation/article_92efcac8-a014-5aa6-bacd-34eb1e22be55.html

One set of patent-infringement lawsuits addressing electronic cigarette technology is heading to mediation, according to legal filings Thursday.

Fontem Ventures BV and Fontem Holdings BV, owned by Imperial Brands Plc of England, is suing NuMark LLC, a subsidiary of Altria Group Inc. of Richmond. NuMark has filed a counter suit.

Fontem and NuMark have chosen Lex Brainerd of San Francisco as the mediator.

Fontem has filed at least three similar lawsuits against R.J. Reynolds Vapor Co., which makes top-selling e-cig Vuse.

In a separate filing Thursday, Reynolds Vapor Co. and the Fontem companies have asked to have until Jan. 12 to agree on a mediator.

Other leading U.S. e-cig companies sued by Fontem include: ITG Brands LLC, which makes blu eCigs; NJoy Inc., Ballantyne Brands LLC of Charlotte, maker of the Mistic brand; and Vapor Corp.

A federal judge in the Central Circuit of California agreed Aug. 8 to R.J. Reynolds Vapor Co.’s request to transfer the lawsuits to the Middle District of North Carolina so that the cases can be heard closer to the defendants. The transfer was completed Oct. 26.

Reynolds Vapor manufactures Vuse, which owns a 37.3 percent market share, at its Tobaccoville plant.

The Fontem companies are suing for what they call unlawful use of seven patented technologies. They focus their claims on patents for rechargeable e-cigs, cartridge refill packs, batteries and disposable e-cigs. Fontem said it obtained patents on its technology in February 2013.

Reynolds claims it has developed internal e-cig technology.

Fontem accuses Reynolds of patent infringement in its Vuse solo rechargeable digital vapor cigarettes and its Connect power units.

For example, Fontem repeats the legal accusation it made against Lorillard Inc. that Reynolds Vapor is in infringement with its cartridge technology, in particular when it says it does not allow another e-cig product to be used with Vuse products.

Fontem is suing for an undisclosed amount of damages because of “irreparable harm” done to the companies, including lost market share and lost profits on infringing sales.

Altogether, the Fontem companies have been a party in 89 complaints just in the Central Circuit court, including 15 that are open. The filings began March 5, 2014, with undisclosed settlements reached in some lawsuits.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>