Philip Morris (NYSE:PM) and British American Tobacco (NYSE:BTI) have reached an agreement to settle ongoing patent infringement lawsuits regarding heated tobacco and vapor products.
Under the terms of the non-monetary settlement, both companies have agreed to drop their respective lawsuits without admission of guilt and have requested the International Trade Commission to rescind the order limiting Philip Morris (PM) heat-not-burn imports into the U.S. The terms of the settlement are for eight years and is worldwide.
The two companies have also agreed not to sue each other on a perpetual, royalty-free basis or on a royalty-bearing basis regarding patents on existing heat-not-burn products and eVapor products. British American Tobacco (BTI) and Philip Morris (PM) are also permitted to introduce future versions of their products.
Shares of Philip Morris (PM) are lower in premarket trade, while British American Tobacco (BTI) is higher by 0.6%.