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Philip Morris International Inc and British American Tobacco PLC on Friday said that they had reached a global settlement following months of litigation over non-smoke tobacco products. Several European cases have been ongoing between the pair over alleged patent infringements for certain vapour products and heat-not-burn cigarette technologies. In November, the UK High Court revoked a BAT heated cigarette patent, after Marlboro maker Philip Morris pursued action in the run-up to the launch of its Iluma heated tobacco technology in September. BAT, behind the Dunhill and Lucky Strike tobacco brands, has also looked to boost its ’New Categories’ division. The umbrella includes brands such as Vuse, Glo and Velo. Friday’s settlement includes provisions that the two companies resolve all ongoing infringement litigation, and prevents future claims from either party over current heated tobacco and vapour products. The settlement agreement is for a term of eight years from February 1 and is worldwide in scope. Philip Morris Chief Executive Officer Jacek Olczak said: ‘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 Philip Morris’s journey to end the sale of cigarettes.’ BAT Chief Executive Officer Tadeu Marroco added: ‘This agreement is an important step forward for BAT and all our stakeholders...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.’ Shares in Philip Morris were down 0.2% in pre-market dealings in New York on Friday. Shares in BAT were up 1.5% at 2,374.50 pence each in London on Friday afternoon. In Johannesburg, where it is also listed, the stock climbed 2.1% to R 564.32. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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