R.J. Reynolds Vapor Co. (RJRV) has petitioned the U.S. Patent and Trademark Office for a review of six claims relating to the basic functionality of e-cigarettes in a patent assigned to Philip Morris Products, reports Law Street Media.
RJRV argues that the patent describes an approach that dates from 1990 and has “become accepted in view of its comparatively easy technical realizability in combination with its convincing functionality.’”
According to the filing, there are disadvantages in the prior technology that the asserted patent claims to fix, such as the increasing contamination of the vaporizing unit throughout its life, a fluid leak, and that due to its design, the e-cigarette’s length cannot be shortened.
RJRV takes issue with the patent’s six claims on the basis that to a person having ordinary skill in the field, it would have been obvious to combine previous inventions to overcome the claimed deficiencies.
RJRV requests the cancellation of the claims as unpatentable.
It’s not the first time that Reynolds and Philip Morris have quarreled about intellectual property. In June 2020, Philip Morris International filed counterclaims against Reynolds for patent infringement in the federal court action that RJR commenced against PMI and Altria, PMI’s IQOS distributor in the U.S., on April 9, 2020 in the Eastern District of Virginia.
The United States Postal Service (USPS) has published its guidance for mailing vaping products on the Federal Register. The notice provides some clarity on USPS policy and outlined potential exceptions, which could include legal hemp and its derivatives. Until the final rule is issued, ENDS are not subject to the Prevent All Cigarette Trafficking (PACT) Act. The USPS also says that it will not review any exemption applications before the rule is finalized. The agency did, however, state that it has attempted to streamline the application process.
The USPS makes reference to possibly exempting cannabis products. Other exceptions include intrastate shipping within Alaska and Hawaii, shipment between businesses engaged in tobacco product manufacturing, distribution, wholesale, export, import, testing, investigation, or research, shipments by individuals for noncommercial purposes (including return of goods to manufacturer), limited shipments by manufacturers to adult smokers for consumer testing, and limited shipments by federal agencies for public health purposes.
Credit: Bruce Emmerling
When filing for exemption status for mailings related to possibly exempt situations such as legal hemp and CBD products, business-to-business and research, the USPS guidance suggests that applicants create a spreadsheet that contains the following data elements with respect to each sender and recipient address that they intend to identify in their exemption application:
Business or governmental entity name.
Address.
The Postal Service retail or business mail acceptance office(s) where each intended sender would tender shipments.
The Postal Service retail office(s) where each intended recipient would retrieve shipments.
A description of the business or governmental entity (e.g., battery manufacturer, retail store, wholesale distributor, testing laboratory).
For each permit or license, the issuing jurisdiction; the permit or license number; the expiration date (if any); and the activity covered by each current permit or license (e.g., general business operations; sale or manufacture of tobacco products or ENDS).
For each sender or addressee engaged in testing, investigation, or research, the entities authorizing the conduct of such activities; the expiration date (if any) of such authorization; and a brief statement of the subject of each authorization (e.g., health effects of flavor substances, medical effects of cannabidiol (“CBD”), battery safety testing).
The brand name and a description of each product intended to be shipped by each sender or to each addressee.
Whether any identified products or other intended shipments from each sender or to each addressee contain lithium batteries, nicotine, CBD, or tetrahydrocannabinol (“THC”).
For products containing nicotine or THC, the intended quantity of the product per shipment and the concentration of nicotine or THC.
For products containing CBD with a THC concentration not exceeding 0.3 percent, whether the CBD derives from hemp.
“If any of the relevant exceptions are ultimately made available for [electronic nicotine delivery systems (ENDS)], then, given the highly decentralized nature of the ENDS industry relative to the industries historically covered by the PACT Act, the Postal Service anticipates receiving ENDS-related exception applications at a rate several orders of magnitude above the historic norm,” the guidance reads. “The Postal Service has not yet determined whether and to what extent those exceptions will be extended to ENDS. Early acceptance of applications would pose significant administrative challenges for the very Postal Service personnel who are developing the final rule amid substantial public comment under a tight timeframe.
Credit: blr60
“The Postal Service understands that those concerns are heightened by Congress’s decision to make ENDS nonmailable immediately upon publication of the final rule, rather than applying the 30-day notice period that typically follows a final rule under the Administrative Procedure Act. Therefore, this document is intended to clarify the state of the exception application process in advance of the final rule and to provide guidance to mailers interested in availing themselves of any exceptions that may ultimately be made available.”
Creating spreadsheets listing every address is an arduous task, according to many vaping industry businesses, however it’s just one of the requirements placed on business owners when the federal government placed electronic nicotine-delivery system (ENDS) products under the PACT Act rules. Among other requirements, the PACT Act also stipulates that manufacturers register with the Bureau of Alcohol, Tobacco, Firearm and Explosives (ATF), as well as file monthly reports with state tobacco tax administrators.
Effective March 28th, 2021, recipients of all vaping product(s) purchased online are required, by law, to present ID and sign for their delivery. Many states are expecting businesses to start filing monthly reports on May 10 and the USPS is expecting to post the final rule and officially end the mailing of ENDS products to consumers on April 27. The rules are also having an impact internationally. The U.K. Vaping Industry Association (UKVIA), for example, has expressed “deep concern” about the measures, saying that U.K. business are affected.
Research and Markets has published a new report on the world’s largest potential market for heat-not-burn (HNB) products, China.
The report provides an overview of China National Tobacco Corp. (CNTC) subsidiaries’ HNB marketing activities from 2017 to 2020.
The report reviews all HNB products that were officially released in domestic and foreign markets as well as cooperation ties in the Chinese HNB market.
China Tobacco has a market of 300 million smokers with a significant part active HNB users. The domestic HNB sector is dominated by CNTC. It has launched HNB products in Sichuan, Yunnan, Guangdong, Anhui, Hubei, Heilongjiang and other provinces, and has been actively engaged in overseas markets. CNTC HNB brands are presented in many foreign markets, mostly in Asia countries and eastern Europe.
Most HNB devices are promoted with dedicated consumables. HNB devices are either produced at own facilities of CNTC subsidiaries or are OEM versions developed by third-party manufacturers. The CNTC subsidiaries with the largest number of HNB devices in the domestic market are based in Sichuan, Yunnan and Guangdong.
The report includes a brief review of HNB electronic devices produced in cooperation with major Chinese hardware manufacturers. There is also a brief description of companies engaged in the Chinese HNB market, and a complete list of HNB products with release dates and corresponding references in domestic and foreign markets, a map of presence of CNTC HNB brands in foreign markets and a timeline of CNTC HNB products by release date.
Turning Point Brands (TPB) has announced an $8.7 million strategic investment in Docklight Brands, a pioneering consumer products company with brands including Marley Natural cannabis and Marley CBD. In addition, TPB has obtained exclusive U.S. distribution rights for Docklight’s Marley CBD topical products. The investment into Docklight Brands’ Series A offering comes with certain follow-on investment rights.
As a result of this transaction, Turning Point Brands now has access to two iconic names in cannabis: Bob Marley and Zig-Zag. The Marley CBD skincare line, which includes after-sun, hand cream, lip balm, balm and roll-on products, combines tropical botanicals with hemp-derived CBD and is currently available nationwide in the U.S. in over 12,000 stores including select 7-Eleven, Circle K, Safeway and Dollar General locations, with additional availability expected through TPB’s partner network.
The company’s investment into Docklight will also support the growth of the broader Marley CBD line, including Marley Mellow Mood teas, Marley wellness shots and Marley chocolate squares as well as Marley Natural THC products, which are produced and sold under license agreements in Canada, Jamaica and select U.S. states.
“Our goal is to build an expansive portfolio of the most innovative brands in the cannabis industry and to distribute these products across our vast partner network,” said Larry Wexler, CEO of Turning Point Brands, in a statement.
We are confident our strategic relationship with Turning Point Brands will greatly enhance both the visibility and availability of the Marley products across TPB’s extensive distribution network.
“We reach consumers where they are most comfortable, selling products to distributors, selling to stores directly and interfacing with consumers one-on-one via e-commerce. Adding Marley products to our portfolio alongside our legacy Zig-Zag brand marks yet another milestone as we continue to leverage our brands and expand our distribution infrastructure.”
“Given our shared focus on branded products, we are excited to expand the reach of the iconic Bob Marley brand. We are confident our strategic relationship with Turning Point Brands will greatly enhance both the visibility and availability of the Marley products across TPB’s extensive distribution network,” said Damian Marano, CEO of Docklight Brands.
The U.S. House of Representatives on April 19 passed legislation that would allow banks to serve cannabis companies in states where it is legal, reports Reuters.
The bill clarifies that proceeds from legitimate cannabis businesses would not be considered illegal and directs federal regulators to craft rules for how they would supervise such banking activity.
Banks have generally been unwilling to do business with companies that sell marijuana or related products, fearing they could run afoul of federal laws.
That has left companies in the marijuana industry with few options, including relying on just a handful of small financial institutions or doing business in cash.
Thirty-six states have legalized medical cannabis while 17 states now allow adult use, according to the National Conference of State Legislatures.
Lawmakers voted 321-101 to approve the bill and send it to the Senate.
The legal cannabis is expected to increase more than 200 percent by 2025. According to research by Euromonitor International, global market research company, the market will rise from $30 billion in 2020 to over $90 billion in 2025 as consumers increase their usage in diverse parts of their lives, according to Euromonitor International.
Shane MacGuill
In a recent white paper, Breaking Stereotypes: Getting to Know the Cannabis Consumer, Euromonitor explores six adult cannabis consumer archetypes making up the emerging legal cannabis consumer base in 2021. “Cannabis user profiling is also relevant for cannabis-adjacent FMCG industries as more global consumers have access to cannabinoid-infused products,” says Shane MacGuill, senior industry manager for Nicotine and Cannabis at Euromonitor. “Cannabinoid consumers report drinking less alcohol, smoking less and taking fewer consumer health products across markets.”
The report, lists the six archetypes as:
The Seasoned Consumer: Long time regular consumers who use cannabis to enhance their well-being. 24% of these consumers suffer from high or extreme stress while 64% are strongly in favour of recreational legalization.
The Casual Social: Younger, newer consumers leveraging cannabinoid products as part of their wider lifestyles. 75% of them take vitamins or health supplements at least monthly, while 61% are strongly in favor of recreational legalization.
The Dabbler: Occasional cannabis users, familiar and comfortable with the substance but unlikely to see it as a key part of their lifestyle. 68% are in favor of its legalization for medical use while 45% believe legal cannabis should be at least as widely available as tobacco and alcohol.
The Canna-curious: A broad consumer group with an interest in adult-use cannabis consumption if legalized in their countries but with limited knowledge about cannabinoid products. 56% are in favor of legalization for medical use, while only 43% support adult-use liberalization.
The Unsparked: Consumers who are outwardly negative towards cannabis use but express enough uncertainty that many could be persuaded to engage further. 18% of these consumers believe that cannabis is unsafe, while 8% see cannabis as something that enhances a user’s lifestyle (8%).
The Naysayer: Strongly against adult use – only 8% in favor of legalization – they are not an immediate target for producers and brand owners. 51% state that they either have no or low levels of daily stress – the least stressed of all profiles.
Seasoned cannabis consumers are established, long-standing and often traditionalist cannabis users “who will form the backbone of the legal industry” as it evolves, according to MacGuill, who quthored the report, adding that companies need to understand and address the priorities of this group without alienating newer consumers whose product and brand priorities are often divergent
“As legalization expands and the normalization of cannabinoid use continues, organizations need to understand the motivations of the modern cannabis consumer and look beyond typical stereotypes,” MacGuill states. “The legal cannabis industry must mirror the views and values of its consumers, given its history and the nature of its often counter-cultural evolution. Industry players can only achieve this with a nuanced segmentation and holistic understanding of participants in the sector.”
California-based vaping company Kandypens was ordered to stop targeting youth in its marketing and pay $1.2 million for past violations, Los Angeles County City Attorney Mike Feuer said. Feuer’s office had sued Kandypens in 2018 for marketing its vaping devices and e-liquids at young people through social media and by placing their products in music videos featuring artists like DJ Khaled and Justin Bieber, according to CBS News.
“Tobacco products including flavored e-liquids, hook kids and pose a threat to their health,” Feuer said in a statement. “The message from this victory to the vaping industry is clear: don’t sell or market to kids – we’ll hold you accountable.”
The lawsuit had alleged Kandypens targeted young consumers on YouTube and Instagram, and did not restrict access to its social media advertisements to people 21 and over, and had paid to get their products into the music videos of artists who have a large following of young people, in violation of the state’s Unfair Competition Law, the Stop Tobacco Access To Kids Enforcement, or STAKE, Act; and Proposition 65.
An investigator with the City Attorney’s Office was able to purchase a tobacco products from the Kandypens website while posing as a teenage customer using a fake email account and a prepaid gift card. Feuer alleges the company did not ask for a date of birth or verify the age of the customer, in violation of the STAKE Act.
The Canadian federal government tabled its annual budget yesterday and the legislation includes lawmaker’s intention to introduce a new excise tax framework in 2022. The Vaping Industry Trade Association (VITA) says the excise tax, when combined with a 70 percent reduction in maximum nicotine content and anticipated flavor restrictions, will create a once in a lifetime opportunity for the illicit market to grow and increase access points for youth.
“Taxation of vaping products in a way that is proportionate to the harm reduction value of vaping is not something that the industry is fundamentally opposed to. Indeed, if revenues are used to increase enforcement actions against anyone selling vaping products to minors, there could be significant support from our sector”, said Allan Rewak, VITA’s executive director. “What we are concerned about is that this tax, when combined with broad flavor bans and restrictive nicotine caps will make the legal and highly regulated vape market uncompetitive with a growing illegal one.”
According to a press release, VITA claims that vaping products are for adult smokers seeking to reduce their risk, “not nonsmokers and never youth.” Evidence has shown consistently that effective vaping products are one of the best means to transition heavy smokers away from cigarettes.
“The Illicit market doesn’t care about reducing risk for adult smokers, they don’t care about age gating or checking ID, and they don’t care about the quality and safety of the products they sell”, said Daniel David, VITA’s president. “I’m really concerned that this tax, when combined with flavor bans and unrealistic nicotine caps will create an opportunity for criminals to prey on our children while making it harder for those of us trying to help adult smokers reduce their risk to stay in business.”
The release also states that VITA believes that the government should utilize all revenue generated from this new taxation regime to empower increased enforcement action against anyone selling vape products to minors, while also reconsidering actions that would reduce the effectiveness of vaping products for adult smokers.
Bantam Vape announced that its e-liquid products are now available for purchase through Avail Vapor’s specialized brick-and-mortar locations, as well as on its e-commerce website, www.availvapor.com. Avail will offer a wide selection of Bantam’s products including Sour Strawberry and Kiwi Berry, according to a press release.
“Bantam is known for our artisanal flavors that are built from scratch using only high-quality ingredients, as well as our commitment to compliance and transparency,” said Bantam director of sales Michelle Gottlich. “Joining with an established leader in the vaping category like Avail poses an exciting opportunity as we continue to expand our retail and online presence; and most importantly, gives our consumers greater access to our products.”
All of Bantam’s flavors are backed by science, manufactured in certified clean rooms and undergo rigid testing and analysis, “resulting in smooth, clean-tasting e-liquids, making Bantam Vape your coil’s best friend,” the release states. Additionally, the brand’s premarket tobacco product application (PMTA) submission to the U.S. Food and Drug Administration (FDA) is queued for formal scientific review.
“We recognize that Bantam, like Avail, is dedicated to providing consumers with products that echo our principals of exceptional quality and flavors,” said Justin Murphy, Avail’s vice president of retail operations and marketing. “We are excited to stock the variety of flavors, nicotine level options and reliable quality of merchandise that the Bantam brand offers.”
Germany planned e-cigarette tax is a health policy disaster that will destroy jobs and boost black market sales without generating significant additional revenues, according to the country’s e-cigarette Trade association VdeH.
Under the plans, e-liquids will attract a tax of €4 per 10 mL bottle from July 1, 2022. On Jan. 1, 2024, the tax will increase to €8 plus VAT, i.e. €9.52 per 10 mL bottle. Based on an average sales price of about €5 per bottle, this amounts to a tripling of the retail price, says VdeH.
On April 21, the VdeH plans to protest the plans by projecting statements from scientists and consumers supporting its position on a 20 x 35 meter “hydro shield” at the Reichstag waterfront in Berlin.
“The planned excessive taxation means that the 95 percent less harmful e-cigarette will soon be more expensive than conventional cigarettes,” says Michal Dobrajc, managing chairman of the VdeH in a press note. “With 11 million smokers still in Germany, the e-cigarette is the greatest health policy opportunity we have–we must use it. The planned tax would have exactly the opposite effect.”
The tax plans, which fail to consider the expected market slump of 50 percent when calculating tax revenue, would take the level of vapor product taxation in Germany to five times the EU average, according to the VdeH.
The law would not only shift consumption back to more harmful tobacco cigarettes, but also sacrifice the entire industry to the black market, the trade group cautions.
d increase access points for youth.
