ITC Issued A Final Ruling On Section 337: Reynolds Tobacco's Application For A Temporary Exclusion Order Was Not Approved

ITC issued a final ruling on Section 337: Reynolds Tobacco's application for a temporary exclusion order was not approved

The United States International Trade Commission (USITC) has decided not to modify, revoke or overturn the preliminary ruling of the presiding administrative judge (ALJ) on the denial of the request for interim relief. This means that Reynolds Tobacco cannot prohibit 35 companies suspected of infringing its e-cigarette patents from continuing to sell disposable e-cigarette devices and their components in the United States.

On December 18, the United States International Trade Commission (USITC) issued an announcement that the US International Trade Commission has decided not to modify, revoke or overturn the decision of the presiding administrative judge (ALJ) on the preliminary ruling ("ID", i.e., ruling No. 28) on the denial of the request for interim relief. This decision means that Reynolds (RAI Strategic Holdings, Inc. and its affiliates) has not been approved for the application of a temporary exclusion order and a cease and desist order for the import and sale of certain disposable e-cigarette devices and their components.

The investigation was filed by Reynolds Tobacco, a subsidiary of British American Tobacco, on July 22, 2024, alleging that the import and sale of certain disposable e-cigarette devices and their components by 35 companies infringed its patent rights of U.S. Patent No. 11,925,202. The companies under investigation include many companies in China, Hong Kong and the United States.

At the same time as filing the complaint, Reynolds Tobacco applied for a temporary exclusion order and a cease and desist order, attempting to prohibit these products from entering or continuing to be sold in the U.S. market during the investigation.

The U.S. International Trade Commission accepted the case and assigned the presiding administrative judge to investigate. However, due to the complexity of the case, the Commission classified the interim relief procedure as a "more complex" matter on July 29, 2024. Some defendants, such as Kimsun and Bidi Vapor, ended the investigation by reaching a consent order, but several defendants still did not appear in court to respond.

On November 19, 2024, the administrative judge issued a temporary relief ruling ("TEO"), rejecting Reynolds Tobacco's request for temporary relief. The ruling held that:

1. The patent infringement claim lacks the possibility of success;

2. There is a significant dispute over the validity of the patent;

3. The plaintiff failed to prove that failure to take relief would cause irreparable damage.

Reynolds subsequently submitted a comment document, but said it would not seek a review of the Commission's ruling.