U.S. Appeals Court Revives Phillip Morris Patent Suit

The United States Court of Appeals for the Federal Circuit (CAFC) reversed a district court’s dismissal of a Florida vape company’s patent lawsuit against tobacco company Phillip Morris.

Healthier Choices Management (HCM) filed the appeal to the CAFC after a district court ruled in Phillip Morris’s favor, dismissing the patent infringement case. HCM alleged that Phillip Morris infringed on its patent for an electronic pipe, U.S. Patent No. 10,561,170.

The CAFC reversed the district court’s dismissal of the original complaint and its denial of HCM’s motion to amend the complaint. Additionally, the appeals court vacated the award of attorneys’ fees to Phillip Morris.

The main dispute between the two companies is whether one of Phillip Morris’s products initiates a combustion reaction. HCM alleged that the product in question from Phillip Morris does induce a combustion reaction, while Philip Morris claimed that the product is combustion-less.

If the product does involve combustion, it would bolster HCM’s case that Phillip Morris infringed on its patent, according to IP Watchdog.

However, the district court agreed with Phillip Morris that an attached exhibit from HCM proved that Phillip Morris’s product does not use combustion. Thus, there was no infringement found and the case was dismissed.

The district court also denied HCM’s motion to file an amended complaint.

As a result of the district court ruling, HCM appealed to the CAFC, arguing that the district court erred in dismissing the case, denying its motion to amend its case. HCM also asked that if the case be remanded that it be assigned to a different judge, and the company contested the attorney fees that Phillip Morris was awarded.

CAFC sided with Phillip Morris and denied HCM’s request for reassignment. The case will go back to Judge Timothy C. Batten of the United States District Court for the Northern District of Georgia.