The Utah Department of Commerce recently announced enforcement action against three e-cigarette companies for alleged violations of state consumer protection laws.  A copy of the Department’s press release is attached here:  14-08-27_dcp-e-cigarette

Bryan Haynes, Troutman Sanders tobacco practice partner, will be attending the ECIG Vegas Industry Conference from September 24-25 in Las Vegas, Nevada. Bryan will be a panelist during the September 24th morning session entitled “The Deeming Regulations: Expectation vs. Reality.”

While patent litigation in the e-cigarette industry has garnered significant attention, the growing number of companies and brands competing in this market raises a host of issues with other types of intellectual property—issues that have already swept across industries that similarly involve a reusable base product and high-margin refill supplies, such as coffee machines and pods, razors and blades, and printers and ink cartridges. 

Troutman Sanders tobacco team partner Bryan Haynes was interviewed for a September 1st France 24 television report titled “US tobacco giants want lion’s share of e-cigarette business.”  The report describes the impact of e-cigarettes on the American tobacco market, and how the major tobacco companies are entering that market.

On August 14, 2014, R.J. Reynolds Tobacco Company (“RJR”) and Santa Fe Natural Tobacco Company, Inc. (“Santa Fe”) sued the United States Department of Agriculture (the “USDA”), among others, in the United States District Court for the District of Columbia.  In their two-count complaint, RJR and Santa Fe allege violations of the Fair and Equitable Tobacco Reform Act (the “FETRA”) and the Administrative Procedure Act (the “APA”).

In 2013, the Texas legislature introduced and approved House Bill 3525, which imposed a 55-cent-per-pack fee on cigarettes manufactured by companies that did not participate in the Texas tobacco Settlement Agreement.  The Texas Small Tobacco Coalition and Global Tobacco, Inc. filed a lawsuit challenging the fee against the Texas Attorney General and Comptroller. 

The saga of plaintiff Timothy Sheridan, named inventor of U.S. Patent No. 7,415,982 for a “Smokeless Pipe,” continues.  In the latest chapter, Sheridan filed a pro se complaint for patent infringement against the United States government in the Court of Federal Claims on August 4, 2014, alleging that the government somehow prevented Sheridan from enforcing the ‘982 patent.  Underlying that allegation is Sheridan’s contention that all currently marketed e-cigarettes and vaporizers infringe the ‘982 patent.

The Food and Drug Administration’s (“FDA”) proposed deeming regulations raise concerns for cigar manufacturers with product labels that include descriptors such as “light,” “mild,” “medium” or “low.”  In 2009, the Tobacco Control Act banned these descriptors for cigarettes.  The stated rationale for the ban was the assertion that many consumers believed that descriptors such as “light” or “mild” meant that certain cigarettes were less harmful than other cigarettes.

On August 4, 2014, thirteen Members of Congress signed a letter calling on the Food and Drug Administration (“FDA”) to expand the regulations on e-cigarettes to include more stringent rules regarding alleged youth exposure to the products.  The signatories state: “While FDA’s proposed rule sets the stage for future regulations, strong regulatory actions on marketing to children, e-cigarette flavors, and online sales cannot wait. FDA has an existing mechanism to protect children now—without waiting years to implement new regulations to accomplish these goals.”

On August 8, 2014, a group of Attorneys General from 29 states submitted comments in response to the Food and Drug Administration’s (“FDA”) Notice of Proposed Rule deeming certain tobacco products subject to the Food, Drug, and Cosmetic Act.  In their letter, the group of Attorneys General stated that “[w]hile the Proposed Rule addresses some of our concerns, it fails to address matters of particular concern, such as characterizing flavors, the marketing of e-cigarettes, and the sale of tobacco products over the Internet.”  As a result, the group of Attorneys General advocates, among other things, that the FDA should do the following: