ITC’s recent ruling may challenge NJOY’s growth in the US market. Photo credit: Lindsay Fox, CC 2.0.
The US International Trade Commission (ITC) ruled in favor of Juul Labs in a patent dispute, ordering a ban on imports of NJOY vaping devices and cartridges, some of which are produced in China and Malaysia. The decision follows Juul’s claims that NJOY’s ACE devices infringed on its vaporizer technology patents.
According to a statement from Juul, the court order prohibits Altria and NJOY from importing and selling the infringing ACE devices until the patents expire in 2034 and 2037.
Juul’s chief legal officer, Tyler Mace, praised the ruling to "protect our US-developed innovations against those who seek to import copycat products, principally from China.".
“The ITC’s decision is currently under a 60-day review period by the Office of the US Trade Representative, which could reject the ITC’s decision,” Altria said in a statement. “If the trade representative does not reject the ITC’s decision, the exclusion order and cease-and-desist orders would take effect on March 31, or earlier if the trade representative notifies the ITC of approval before the 60 days elapse.”
Altria stated that the final exclusion and cease-and-desist orders could be challenged in the US Court of Appeals for the Federal Circuit. However, the company noted that such an appeal would likely not delay the enforcement of the orders, meaning the ban on importing and selling NJOY’s ACE devices would remain in effect during the legal process. The company emphasized that NJOY “continues to work on its product solution that addresses all of the patents at issue in the event the ITC’s decision is not rejected by the trade representative.”
Altria previously held a 35% stake in Juul after investing US$12.8 billion in 2018. However, the company ended its partnership in 2023 and soon after acquired NJOY for roughly US$2.75 billion. Following the acquisition, Juul initiated legal action against Altria at the ITC over patent infringement. Altria responded with its own patent lawsuit against Juul later that year, a case that remains unresolved.
The ruling may hinder NJOY’s expansion in the US market. In the fourth quarter, the company experienced a 15.3% year-over-year increase in overall shipments, surpassing 46 million for 2024. NJOY’s market share in the US multi-outlet and convenience channel also grew to 6.4% during the same period. Additionally, the brand earned the first US marketing approval for a menthol-flavored e-cigarette from the Food and Drug Administration (FDA) in June.