Tag: news

  • VPR Brands Enforcing its ‘Auto Draw’ Patent

    VPR Brands Enforcing its ‘Auto Draw’ Patent

    VPR Brands has started to identify and notify over 50 vapor industry companies that are using its “Auto Draw Technology” that VPR intends to enforce its patent. These companies were prioritized, based on sales volume and popularity, according to a press release.

    vaping devices
    Credit: VPR

    VPR recently filed litigation against three of the companies: Jupiter Research, Cool Clouds Distribution and XL Vape. Additional lawsuits will continue to be filed as necessary to protect the company’s intellectual property (IP) rights, according to the release.

    “Having personally been in the vape industry since its infancy for more than 10 years and witnessing the evolution of ecig and vapor technology, it is befitting that our company owns this US utility patent for what has grown to be a multibillion-dollar market,” said Kevin Frija, CEO of VPR Brands. “The inner construction of an e-cigarette is quite simple and fairly standard, and it is obvious as to what our auto draw technology patent covers, and potential infringement is rather clear when you see it.”

    The company owns IP for one of the original patents filed for e-cigarette technology, dating back to 2009. It includes “independent claims covering electronic cigarette products containing an electric airflow sensor, including a sensor comprised of a diaphragm microphone. The sensor turns the battery on and off, and covers auto-draw, button-less e-cigarettes, cigalikes, pod devices and vaporizers using an airflow sensor. The technology is covered under electronic cigarette utility patent US 8205622,” the release states.

    “The surge of the vaping category for nicotine, cannabis and CBD in the last few years has reached billions of dollars in sales. That has created opportunities for our patented auto-draw technology, which we believe is now preferred by many, if not most consumers,” said Frija. “Infringement can be avoided by simply adding a button to the battery however the preferred option by consumers to simulate smoking is our button-less auto draw technology and we believe this is an opportune time to consider licensing, enforcement or potentially a sale of our intellectual property to one of the larger players in the space. Our Patent could be a huge windfall for the company.”

    The company may also seek a buyer for this patent in the future. “In recent years, our patented technology has surged back into popularity making our patent potentially very valuable,” ” said Dan Hoff COO of VPR. “I am happy to see our company and legal team actively litigating to enforce our intellectual property.”

  • Germany to Tax Vapor Based on Amount of Nicotine

    Germany to Tax Vapor Based on Amount of Nicotine

    Photo: Theerapan Bhumirat | Dreamstime.com

    The German government has proposed a new tax for nicotine-containing vapor products, which would be effective in summer 2022.

    The new tax is “a response to current market developments.” It would include a tax of €0.02 ($0.02) per mg of nicotine for e-liquids, effective July 1, 2022. Beginning Jan. 1, 2024, the tax would double by the end of 2026.

    “This is appropriate for reasons of fair taxation since only nicotine-containing substances in e-cigarettes are to be regarded as substitutes for cigarettes,” the draft of the proposed Tobacco Tax Modernization Act states. Authorities are also justifying the decision based on the “existing risk potential” of vapor products compared to traditional tobacco products.

    “They are not harmless consumer products and can cause serious illnesses,” the draft bill states.

    Lawmakers expect the new tax to bring in €135 million in 2022 and up to €2.9 billion by 2026.

    The German Alliance for Tobacco-free Pleasure (BfTG) says the plan “makes no sense.”

    “The tax would make smoking cheaper than vaping and make e-liquids many times more expensive,” BfTG chairman Dustin Dahlmann told ECigIntelligence, warning that it could lead to a flourishing black market and a collapsing legal industry, such as in Italy and Estonia. The BfTG believes taxation should be left at the EU level.

    Currently, vapor products are not specially taxed. They are subject to the 19 percent value-added tax, however.

    A decision is expected by the end of 2021.

  • US Post Office to Publish ENDS Mailing Rules Feb. 19

    US Post Office to Publish ENDS Mailing Rules Feb. 19

    The United States Postal Service (USPS) is scheduled to publish in the Federal Register its rules for mailing electronic nicotine-delivery system (ENDS) products tomorrow, Feb. 19. The unpublished rule states “that the prohibition on mailing ENDS will apply immediately ‘on and after’ the date of the final rule.”

    mailtruck
    Credit: F. Muhammad

    However, the Preventing Online Sales of E-Cigarettes to Children Act, which placed ENDS under the PACT Act, was enacted on December 27, 2020 and becomes effective 90 days after enactment (March 27, 2021). The USPO rule states that the agency will mail vapor products under narrowly defined circumstances:

    • Noncontiguous States: intrastate shipments within Alaska or Hawaii;
    • Business/Regulatory Purposes: shipments transmitted between verified and authorized tobacco industry businesses for business purposes, or between such businesses and federal or state agencies for regulatory purposes;
    • Certain Individuals: lightweight shipments mailed between adult individuals, limited to 10 per 30-day period;
    • Consumer Testing: limited shipments of cigarettes sent by verified and authorized manufacturers to adult smokers for consumer testing purposes;
    • Public Health: limited shipments by federal agencies for public health purposes under similar rules applied to manufacturers conducting consumer testing.

    Many business were unsure if B2B mailing would be allowed. The unpublished rules say they will be allowed. According to Azim Chowdhury, a partner at Keller and Heckman, the PACT Act has historically exempted businesses-to-business deliveries from the USPS ban. Specifically, the USPS ban does not extend to tobacco products mailed only for business purposes between legally operating businesses that have all applicable state and federal government licenses or permits and are engaged in tobacco product manufacturing, distribution, wholesale, export, import, testing, investigation, or research.

    “Companies seeking to use USPS for business-to-business deliveries must first submit an application to the USPS Pricing and Classification Service Center and comply with several other shipping, labeling, and delivery requirements,” said Chowdhury.

    The USPS rules also state that the listed exceptions cannot feasibly be applied to inbound or outbound international mail, mail to or from the Freely Associated States, or mail presented at overseas Army Post Office (APO), Fleet Post Office (FPO), or Diplomatic Post Office (DPO) locations and destined to addresses in the United States. Because of this inability, all ENDS products “in such mail are nonmailable, without exception.”

    In addition to the non-mailing provisions, the PACT Act requires anyone who sells cigarettes or smokeless tobacco to register with the ATF and the tobacco tax administrators of the states into which a shipment is made or in which an advertisement or offer is disseminated, according to Chowdhury. Retailers who ship cigarettes or smokeless tobacco to consumers are further required to label packages as containing tobacco, verify the age and identity of the customer at purchase, use a delivery method (other than USPS) that checks ID and obtains an adult customer signature at delivery, and maintain records of delivery sales for a period of four years after the date of sale, among other things.

    Excluded from the statutory definition are products approved by the U.S. Food and Drug Administration (FDA) for sale as “tobacco cessation products or for other therapeutic purposes and marketed and sold solely for such purposes.” The USPO also proposes to treat ENDS as a standalone category, “albeit one generally subject to the same restrictions and exceptions as cigarettes, consistent with the statute.”

  • Nveed Chaudhary Joins Broughton Nicotine Services

    Nveed Chaudhary Joins Broughton Nicotine Services

    Nveed Chaudhary (Photo: BNS)

    Broughton Nicotine Services has appointed Nveed Chaudhary as chief regulatory officer.

    This appointment is the latest in a series of high-profile additions to the team at the contract research organization specializing in electronic nicotine delivery systems (ENDS), as it embarks on its next phase of growth.

    Having built a leading reputation for advancing a smoke-free future by helping ENDS companies bring non-combustible products to market, the business is now also moving into modern oral nicotine products, heated tobacco products and cannabidiol products.

    “We are absolutely delighted to have brought Nveed on-board,” said Paul Moran, CEO of Broughton Nicotine Services. “He is one of a small number of experts in the industry to have developed scientific and regulatory strategies that have delivered the highly sought-after marketing order for both premarket tobacco product application (PMTA) and modified risk tobacco product (MRTP) applications. Nveed’s depth of knowledge and experience will further help Broughton’s clients shape the future of next generation nicotine products.”

    Previously head of harm reduction science at Imperial Brands and director of strategic communications at Philip Morris International, Nveed was a core team member of the successful IQOS PMTA and MRTP regulatory submissions and director for the Myblu PMTA submission program. He is a recognized expert in the nicotine sector, author of over 25 peer-reviewed publications and speaker at international lung disease and tobacco harm reduction conferences.

    “My career goal has always been to reduce the burden that lung disease has on patients, society and public health,” said Chaudhary. “To combat the harm effects caused by smoking it’s important to offer consumers high quality, rigorously tested and regulated non-combustible products.

    “Broughton Nicotine Services act as the bridge between the industry and global regulators. By applying experience and knowledge we partner with manufacturers to help them secure Marketing Orders for safer next generation products.

    “It’s clear that the business shares my drive to accelerate the creation of a smoke-free future and I’m excited to be part of the team.”

  • U.S. FDA has Processed PMTAs for 4.8 Million Products

    U.S. FDA has Processed PMTAs for 4.8 Million Products

    The U.S. Food and Drug Administration (FDA) said it received thousands of premarket tobacco product application (PMTA) submissions covering millions of tobacco products, the majority of which came in very close to the Sept. 9, 2020 deadline. The submissions varied substantially in number of tobacco products contained in each submission, size, format and organization, including paper submissions and even hard drives and CDs, according to a press release.

    Mitch Zeller
    Mitch Zeller speaking at a TMA annual meeting. Photo: Taco Tuinstra

    FDA Center for Tobacco Products (CTP) director Mitch Zeller stated as of mid-January 2021, the agency has completed the Processing step of applications for more than 4.8 million products from over 230 companies. “We have accepted applications for about 84,000 products and refused to accept applications for about 3,100 products submitted through the PMTA pathway,” wrote Zeller. “As of mid-January 2021, of the applications submitted by Sept. 9, we have filed applications for about 29,000 products and refused to file applications for about 1,650 products submitted through the PMTA pathway.”

    He also stated that several factors have slowed the agency’s progress in getting application’s into the system. Companies submitted PMTAs differently, for example some applicants provided information on one product per submission while other applicants provided information for all of the company’s products within one submission.

    “One firm submitted information on more than 4 million tobacco products within a single submission,” Zeller wrote. “The amount of content in each submission also greatly varied, with some applications including up to 2,000,000 files where each file contains multiple pages of content for FDA to review.” The letter is part of a pledge Zeller made that the agency would keep interested stakeholders updated on the agency’s progress.

    FDA is prioritizing enforcement against any ENDS product that continues to be sold and for which the agency did not receive a product application. To date, the FDA has sent warning letters to 30 firms who manufacture and operate websites selling electronic nicotine delivery system (ENDS) products, specifically e-liquids, which lack premarket authorization, according to the letter.

    The agency also stated that the likelihood of FDA reviewing all the applications by Sept. 9, 2021 is low. Because of the sheer number of applications, the agency has set aside the products with the greatest market share and will push those products through the process more quickly. “[We will] focus resources on products where scientific review will have the greatest public health impact, based on their market share, while also committing to providing an opportunity for review to all companies,” Zeller wrote. This could prove positive or negative as a quick denial would force the product off the market.

    The agency can still not confirm when it would release a list of products that are approved to be on the market. Zeller wrote that the agency continues to work on processing submissions and verifying the dates of initial marketing and current marketing status of products that submitted a timely PMTA.

    “We have already verified this information for around 86,000 products received through the PMTA pathway,” he wrote. “Due to the size and volume of the PMTA submissions and the variable quality, format and presentation of these submissions, processing these submissions and verifying this information will take more time.”

     

  • FDA Received Over 15,000 PMTAs in FY2020

    FDA Received Over 15,000 PMTAs in FY2020

    Update: The U.S. Food and Drug Administration (FDA) said it received thousands of premarket tobacco product application (PMTA) submissions covering millions of tobacco products, the majority of which came in very close to the Sept. 9, 2020 deadline. The submissions varied substantially in number of tobacco products contained in each submission, size, format and organization, according to a press release. 

    More than 15,000 premarket tobacco product applications (PMTA) were submitted to the U.S. Food and Drug Administration (FDA) during fiscal year 2020, according to data provided on the regulatory agency’s website.fda

    In August 2020, the FDA received 10,184 applications and in September 2020 it received 4,567. Prior to August, the FDA had only received 686 applications. The FDA does not distinguish how many of those products are electronic nicotine-delivery system (ENDS) devices.

    Of the 15,437 applications turned in during fiscal year 2020 (October 2019 to September 2020), 767 PMTAs were closed, according to FDA data. An application is considered closed after the FDA issues an order letter, a refuse-to-accept letter or the PMTA is withdrawn by the applicant.

    Companies that submitted a PMTA by the Sept. 9, 2020 deadline and were previously on the market before Aug. 8, 2016, can remain on the market for up to one year while the FDA reviews the PMTA. The FDA said it will release a list of the deemed new tobacco products that were subject to the Sept. 9 PMTA deadline, however, no date has set for the list’s release.

  • BAT Korea will Continue Online Vapor Marketing

    BAT Korea will Continue Online Vapor Marketing

    Recent successful digital marketing efforts reaffirmed BAT Korea’s plans to reach a wider audience for its lower-risk products by promoting them online, according to a spokesperson during “BAT Innovation Day” on Tuesday.

    “Sales promotions for Glo Pro last month took place both online and in-store and it was especially well received online and we managed to sell out the stock we prepared quicker than expected,” said Yu Jung-min, head of offline activation at BAT Korea during the online press event. “Diversifying sales channels gave us an opportunity to rebound from a recent decline.”

    The global tobacco company used the event to showcase its focus on innovation. The company also offered an industry-first virtual factory tour during the event, demonstrating the technology behind its manufacturing facility in Sacheon, South Gyeongsang Province, where the company is making its first new product of the year, the KENT Double Fresh, and its heat-not-burn (HnB) products, Glo neo sticks.

    When asked about the decision to continue to release regular tobacco products despite the company’s emphasis on its environmental, social and governance approach, Yu said sales of regular tobacco products, which account for most of its sales, are essential to ensuring investment, according to an article in The Korea Herald.

    The BAT Sacheon Factory, which opened in 2002, is now home to some 1,000 employees. BAT is the first foreign tobacco company with a production facility in the country, the company said.

    Last year, the company announced it is teaming up with LS Electric to introduce solar power generation facilities at its Sacheon factory, with construction poised to begin in March When completed, the factory is expected to generate up to 1,435 kilowatts of electricity through solar power, which will constitute a “remarkable amount of carbon reduction,” the company said.

  • New Jersey Wants to Ban Vape Sales in Pharmacies

    New Jersey Wants to Ban Vape Sales in Pharmacies

    New Jersey is one step closer to banning pharmacies in the state from selling any deemed tobacco products, including e-cigarettes.

    The Senate Health, Human Services and Senior Citizens Committee approved legislation the legislation sponsored by Senator Joe Vitale, S-1144, would prohibit the sale of all tobacco products and electronic smoking devices at pharmacies, however, department stores and food retailers licensed to operate a pharmacy on its premises or lease space to a third party to run a pharmacy would not be subject to the prohibition.

    inside CVS
    Credit: CVS

    “Pharmacies have the important responsibility of making and dispensing medicine to patients in the community and providing them with health advice to help them get well,” said Senator Vitale (D-Middlesex), who is chairman of the Senate’s health committee. “With tobacco as the leading cause of preventable death and disease in the nation, it’s antithetical that pharmacies sell tobacco products and smoking devices.”

    Research shows most smokers begin using tobacco products as minors and that pharmacies are an important point of access for young users, Senator Vitale noted in a press release. It also suggests that banning tobacco sales in pharmacies can reduce “tobacco retail outlet density,” which is associated with higher rates of youth usage as well as racial and economic disparities in tobacco use.

    The owners of any businesses caught violating the ban would be subject to a civil penalty of not less than $250 for a first violation, $500 for a second violation, and $1,000 for a third or subsequent violation.

    The bill exempts food and department stores because previous versions of the bill had stalled in the Senate Budget & Appropriations Committee because they had not included that exemption. CVS has not sold tobacco in its stores nationwide since 2014 while Wegmans stopped selling them in 2008.

  • Vape Shops Paying Price for Selling Counterfeit Products

    Vape Shops Paying Price for Selling Counterfeit Products

    A vape shop in Wyandotte County in the U.S. state of Kansas business has been ordered to pay $30,000 for selling counterfeit vaping products. Kansas Attorney General Derek Schmidt says a Vinodbhai Patel, operator of Jay Ganegh, LLC, has been ordered to pay $30,000 in penalties for selling fake e-cigarette products.

    vape shop customer
    Credit: Auremar / Dreamstime.com

    The company was ordered to pay the civil penalties in a consent judgment that was approved on Tuesday in Wyandotte Co. District Court by Judge Constance Alvery, according to an article on wibw.com. Schmidt said the defendants were also ordered to reimburse the cost of the investigation into their business.

    Schmidt said that the consumer protection judgment is the third reached by his office in the past six months that address counterfeit e-cigarette products discovered by his Tobacco Enforcement Unit. Schmidt said in October of 2020, Aaron Dune and Smoke Stax, LLC, were ordered to pay $5,000 in civil penalties and the costs of his investigation in a case filed in Sedgwick Co.

    According to the ruling, the defendants knowingly misled customers by falsely representing e-cigarette products to be authentic branded merchandise when they were not. Schmidt said the products involved in the case included both vaping hardware and e-liquids, adding that additional investigations into counterfeit vaping products remain pending.

  • SwissX Warns Shops of Selling Patent Infringing Products

    SwissX Warns Shops of Selling Patent Infringing Products

    Swissx Labs sent a cease and desist letter to hundreds of companies today demanding they stop selling Juul and other companies that manufacturer patent infringing products within 30 days. The goal is to protect the public from dangerous unapproved uses of its inventor’s IP, according to a press release.

    Credit: Bill Oxford

    The cease and desist letter demands that stores and chains remove vape products made by Juul and others from their shelves or risk being included in the massive lawsuit already underway for patent infringement. SwissX says it is concerned about the integrity of its inventor’s patent, as well as the safety of the public who may be being put in danger by infringing products.

    When the suit is done it is expected the final penalty will top infamous cases on the level of the Enron scandal, the release states. Recipients of the cease and desist letter include 7-11, Speedway, Casey’s, Cumberland Farms, Quick Stop, AMPM, Wawa, ExtraMile and other roadside favorites. Also receiving the letter are major tobacco shop chains such as the 800+ store Smoker Friendly chain. They have 30 days to comply.

    “We don’t want innocent retailers to get swept up in this,” said Rudy Delarenta, senior vice president of sales and marketing for SwissX. “That’s why we’re giving them 30 days notice to pull Juul’s infringing products. But if they refuse, we’ll do what we have to do.”