By Timothy S. Donahue
Top Takeaways:
- Appeal denied: The Federal Circuit rejected efforts to halt Reynolds’ ITC case targeting disposable vape imports
- Import focus: Reynolds alleges certain importers are circumventing U.S. trade restrictions through imported disposable vapes
- Investigation continues: The decision allows the underlying Section 337 case to move forward before the ITC
R.J. Reynolds Tobacco Co. scored a procedural victory Thursday when the U.S. Court of Appeals for the Federal Circuit rejected a challenge to derail an ongoing U.S. International Trade Commission investigation into imported disposable vaping products.
The ruling allows Reynolds’ claims that certain imported vape products violate U.S. trade law to proceed before the ITC. The Federal Circuit declined to disturb the Commission’s authority to proceed with the investigation, leaving the underlying dispute intact.
The case stems from a Section 337 complaint filed in 2024 by Reynolds and affiliated companies against dozens of manufacturers, distributors, and importers of disposable vapor products, many of whom are based in China. Reynolds alleges that the products infringe intellectual property rights and are being imported into the United States in violation of trade laws.
The ITC formally launched the investigation in July 2024. According to the agency’s notice, the complaint was filed by Reynolds affiliates, including R.J. Reynolds Vapor Co., R.J. Reynolds Tobacco Co., RAI Strategic Holdings, and RAI Services Co.
Thursday’s ruling does not resolve the merits of Reynolds’ claims. Instead, it allows the ITC proceeding to continue as the agency evaluates allegations regarding imported disposable vaping devices.
The dispute is one of several legal actions Reynolds is pursuing against disposable vape manufacturers and distributors as the company seeks to protect its position in the U.S. vapor market. The company has also been involved in separate patent litigation and regulatory challenges involving vaping products.
The ITC has become an increasingly important venue for tobacco and nicotine companies because it can issue exclusion orders that block products from entering the United States. Unlike traditional federal court litigation, Section 337 investigations focus on imported goods and can result in import bans enforced by U.S. Customs and Border Protection.
A successful outcome for Reynolds could potentially restrict the importation of certain disposable vaping products, while an unfavorable outcome could strengthen the position of competing manufacturers and importers.
The ITC investigation will now continue toward a determination on the underlying allegations.
