The ITC's investigation into imported disposable vaping products will continue after a federal appeals court declined to halt the proceedings. Photo credit: Edward Johnson, CC4.0.
R.J. Reynolds Tobacco Co. has secured an early legal victory in its effort to challenge imported disposable vaping products after a federal appeals court declined to halt a US International Trade Commission (ITC) investigation into dozens of manufacturers, distributors, and importers.
In a July 3 decision, the US Court of Appeals for the Federal Circuit rejected an attempt to halt the ITC's ongoing Section 337 investigation, allowing the agency to continue its examination of Reynolds' allegations that certain imported disposable vaping products violate US intellectual property rights and trade laws.
The ruling does not decide whether Reynolds' claims have merit. Instead, it confirms that the Commission may continue its investigation while the underlying issues are litigated.
The dispute stems from a Section 337 complaint filed in 2024 by Reynolds and its affiliated companies against dozens of companies that manufacture, import, and distribute disposable electronic nicotine delivery system (ENDS) products. Many of the respondents are Chinese manufacturers or foreign suppliers of disposable vaping products to the US market.
The ITC initiated the investigation in July 2024 after determining that the complaint met the statutory requirements for review. The complaint was filed by R.J. Reynolds Vapor Co., R.J. Reynolds Tobacco Co., RAI Strategic Holdings Inc., and RAI Services Co., all members of the BAT Group.
According to the complaint, Reynolds alleges that certain imported disposable vaping products infringe intellectual property rights and are imported into the United States in violation of Section 337 of the Tariff Act of 1930. Although the decision leaves the investigation intact, it does not address the substantive allegations of patent infringement or unfair trade practices. Those issues will now proceed before an ITC administrative law judge and will ultimately be reviewed by the full Commission.
Section 337 investigations have become an increasingly important enforcement tool for companies in the tobacco and nicotine industries because they offer remedies unavailable in most federal district court litigation. Unlike traditional patent lawsuits, ITC proceedings do not award monetary damages.
Instead, the Commission may issue limited exclusion orders, general exclusion orders, or cease-and-desist orders that prohibit the importation or sale of infringing products in the United States. US Customs and Border Protection enforces these orders, making Section 337 investigations especially significant for products manufactured overseas.
The Reynolds ITC investigation is one of several legal and regulatory actions the company has initiated in recent years regarding disposable vaping products. In addition to federal patent litigation, the company has challenged unauthorized vaping products through regulatory proceedings and has supported broader enforcement efforts against products lacking US Food and Drug Administration marketing authorization.
The investigation also reflects a broader trend in the nicotine industry, as major manufacturers increasingly pair intellectual property litigation with regulatory enforcement to address the rapid growth of imported disposable vaping products in the United States.
The ITC proceedings will now move toward an initial determination on Reynolds' claims. If the Commission ultimately finds a violation of Section 337 and issues an exclusion order, it could reshape competition in one of the world's largest vaping markets.