Tobacco giants Philip Morris International Inc. and British American Tobacco Plc settled a series of patent suits that clears a path for both firms to bring their cigarette alternative products to US and European markets.
The accord ends legal challenges preventing PMI from bringing its IQOS heated tobacco product to the key US market, and now allows BAT to offer its rival Glo product to some European markets.
The two companies have been battling for years in a series of patent disputes regarding alternative cigarette products that include vapes, heated tobacco and nicotine pouches.
Both PMI and BAT have said they have spent tens millions on research and development of nicotine products that they say are safer than cigarettes.
In a joint statement, the companies said the settlement includes “non-monetary provisions that resolve all ongoing global patent infringement litigation, encompassing all related injunctions and exclusion orders.”
The deal also prevents future claims against current heated tobacco and vapor products, the companies said.
While continuing to sell billions of cigarettes each year, the biggest tobacco firms are battling to earn market share with the next generation of nicotine users with the latest alternative products.
BAT shares rose as much as 1.7% in London. The stock has lost 23% in the past year.
Both companies report their financial results next week.