throbber
ESTTA Tracking number:
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`ESTTA1372351
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`Filing date:
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`07/20/2024
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`IN THE UNITED STATES PATENT AND TRADEMARK OFFICE
`BEFORE THE TRADEMARK TRIAL AND APPEAL BOARD
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`Proceeding no.
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`92084729
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`Party
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`Correspondence
`address
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`Submission
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`Filer's name
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`Filer's email
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`Signature
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`Date
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`Attachments
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`Defendant
`Fire Lyfe LLC
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`LILLIAN TAYLOR STAJNBAHER
`240 E PALMETTO PARK RD #300B
`BOCA RATON, FL 33432
`UNITED STATES
`Primary email: Legal@LillianTaylor.com
`Secondary email(s): admin@lilliantaylor.com
`954-319-3153
`
`Motion to Suspend for Civil Action
`
`Lillian Taylor Stajnbaher
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`Lstajnbaher@tmdi.law, admin@lilliantaylor.com, legal@lilliantaylor.com
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`/lilliantaylorstajnbaher/lths/072024/
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`07/20/2024
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`FIRE LYFE REPLY to OPPOSITION to MOTION to SUSPEND v2.pdf(174100
`bytes )
`EXHIBIT A to Rply Mn2Suspend Cigarette Market.pdf(737221 bytes )
`EXHIBIT B 2Rply Mn2Suspend Jiang and Firelyfe Booths.pdf(504827 bytes )
`Exhibit C 2Rply Mn2Suspend Consumer Confusion.pdf(504931 bytes )
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`UNITED STATES PATENT AND TRADEMARK OFFICE
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`BEFORE THE TRADEMARK TRIAL AND APPEAL BOARD
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`Petitioner,
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`v.
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`Respondent.
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`OSF IP LLC
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`FIRE LYFE INC.
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`Cancellation No.: 92084729
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`RESPONDENT’S REPLY TO PETITIONER'S OPPOSITION TO
`MOTION TO SUSPEND PROCEEDINGS
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`Respondent FIRE LYFE INC submits this Reply to Petitioner's Opposition to Respondent's
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`Motion to Suspend Proceedings. For the reasons set forth below, Respondent respectfully requests
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`that the Board grant the motion to suspend proceedings.
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`
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`I.
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`THE PARTIES ARE THE SAME
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`The Petitioner herein and the Defendants in the District Court matter are sufficiently related to
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`warrant a suspension, the former being the alter-ego of the latter.
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`The recognition of an alter-ego is an equitable tool used to vindicate the rights of those damaged
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`by the abuse of the corporate form. Successor Agency to Former Emeryville Redevelopment
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`Agency v. Swagelok Co. (N.D.Cal. 2019) 364 F. Supp. 3d 1061. Generally, the alter-ego or single-
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`enterprise doctrine, will be applied to two related corporations when: (1) there is such a unity of
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`interest and ownership that the separate personalities of the corporations no longer exist, or are
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`merged, so that one corporation is a mere adjunct of the other or the two companies form a single
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`enterprise, and (2) inequitable results will follow if the corporate separateness is respected, and
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`the acts in question are treated as those of one corporation alone. Tran v. Farmers Group, Inc.
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`(2002) 140 Cal.App.4th 1202.
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`
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`Relevant to determining whether unity of interest exists in a case, such that the corporations’
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`separate personalities are nonexistent, include factors such as identical directors and officers,
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`commingling of assets, identical equitable ownership in the two entities, as well as where the
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`corporations are organized and controlled, and that one corporation’s affairs are so conducted as
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`to make it merely an instrument, agent, conduit, or adjunct of the other. Shaoxing County Huayue
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`Import & Export v. Bhaumik (2011) 191 Cal.App.4th 1189; Brooklyn Navy Yard Cogeneration
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`Partners, L.P. v. Superior Court (1997) 60 Cal.App.4th 248; McLaughlin v. L. Bloom Sons Co.
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`(1962) 206 Cal.App.2d 848.
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`
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`Jiang, a defendant in a California district court case, is both the founder and CEO of his co-
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`defendant ONLY SMOKE FIRE LLC, and founder and CEO of OSF IP LLC. The latter was
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`formed only days after receipt by the attorney for both Jiang and ONLY SMOKE, of notice of the
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`pending district court suit. Jiang transferred his ownership of trademark registrations to OSF IP
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`LLC thereafter. The activities of OSF IP LLC — marketing and exploiting the FIRE mark for
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`vapes, goods closely related to those of FIRE LYFE — are identical to the activity complained of
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`in the District Court. Upon being served, rather than affirmatively defending that the FIRE LYFE
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`GLOBAL registrations were null and void within the already pending matter, the instant petition
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`to cancel was filed. Thus, Petitioner herein is but an alter ego of Jiang and ONLY SMOKE FIRE
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`LLC, adding expense and unnecessary complexity to an already pending matter, to harass, delay,
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`and economically oppress.
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`II. THE GOODS ARE HIGHLY RELATED
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`The District Court matter was filed because Petitioner introduced vaping device, which are so
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`highly related to Respondent’s registered goods, cigarette, cigars, cigarillos, hemp rolling papers,
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`and other smoker’s articles, that not only is there a likelihood of confusion between
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`Defendants Jiang and ONLY SMOKE FIRE devices, and FIRE LYFE GLOBAL’s goods under
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`15 U.S.C. § 1052(d), but actual confusion has and continues to result. Articles and studies have
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`established that a significant number of smokers transition to vaping. This migration links the two
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`categories directly, as consumers who used to purchase cigarettes and other smoking products are
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`now buying vaping devices and e-liquids. These studies highlight factors such as shared consumer
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`base, similar product usage, and overlapping market dynamics that underscore the relationship
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`between smoking and vaping products. These connections are critical in understanding how the
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`marketing, regulation, and legal considerations for one category can impact the other. In proof
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`thereof, Exhibit A, an Article about these developments in the Cigarette Market, is attached hereto
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`and incorporated.
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`Petitioner and the Defendants in the District Court matter marketed FIRE and ONLY SMOKE
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`FIRE products at the same trade show where Respondent had already marketed, and established
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`consumers. This trade show was particularly focused on tobacco and nicotine products.
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`Petitioner’s entry into and continuation of marketing at the same trade show with the same name,
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`leading to consumer confusion. Exhibit B, attached hereto and incorporated, demonstrates the
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`presence of both parties at the same trade show.
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`Respondent consistently received customer reports expressing confusion and disbelief due to
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`Petitioner's prominent use of the FIRE mark. Exhibit C, demonstrating actual consumer confusion,
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`is attached hereto and incorporated.
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`Registrant is entitled to have protection of its registrations extend to the natural scope of
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`expansion. See In re Iolo Technologies, LLC, 2015 TTAB LEXIS 288 (TTAB 2015) (finding that
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`tobacco and electronic cigarettes are related goods).
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`III. JUDICIAL ECONOMY WILL BE SERVED BY SUSPENSION
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`Petitioner argues that a suspension will not serve judicial economy, while the instant petition was
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`filed during pendency of the district court case, segregating issues that could have been an decided
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`in the same matter, into separate matters. It is Petitioner, thus, that has exacerbated and
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`compounded the use of judicial resources through filing this petition. Further, it is Petitioner’s
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`reliance upon a fraudulently procured renewal that gave rise to the need to amend to add the fraud
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`claim in the initiating District Court matter.
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`The Board’s well-settled policy is to suspend when parties are involved in a civil action that could
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`be dispositive or have bearing upon a Board case. Holy Spirit Association for Unification of World
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`Christianity v. World Peace and Unification Sanctuary Inc. 2019 US Dist Lexis 122744, 2019 WL
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`3297469, citing General Motors Corp. Cadillac Club Fashion 22 USPQ2d 1933, 1937 (1992). It
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`is FIRE LYFE GLOBAL’s activity and status at the time of the filing of the complaint that is
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`determinative of infringement, not Mr. Jiang’s maneuver to effect a nunc pro tunc shield with a
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`third party’s alleged rights (See Morehouse Mfg. Corp. v. J. Strickland & Co., 407 F.2d 881
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`(CCPA 1969); and in particular, rights that were (1) abandoned and (2) initially arose well after
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`the priority date to which Respondent is entitled, having been granted permission from the first
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`common law user in interstate commerce, in or around the turn of the century. More than likely,
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`the instant Petition will become moot as a result of the District Court’s action, infringement not
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`being activity that gives rise to standing. Blue Athletic Assn. Inc. v. Nordstrom, Inc. 97 USPQ2d
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`1706 (2020); PHC v. Pioneer Health 75 F.3d 75 (1996).
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`
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`Further, the view of the TTAB is not binding upon the federal courts as any Board result found
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`unsatisfactory is subject to review on appeal; whereas the Court may bind the TTAB. Buti
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`v. Peros S.R.L. 139 F.3d 98, 105 (2d Cir 1998); Trademark Act § 21, 15 U.S.C. § 1071, TBMP §
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`901.
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`IV. CONCLUSION
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`For the reasons stated above, under the alter-ego theory, Petitioner is essentially identical to Jiang
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`and ONLY SMOKE FIRE LLC. This conclusion is supported by factors such as shared ownership,
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`the immediate establishment of OSF IP LLC following notification of litigation, and continuation
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`of the same objectionable use of FIRE after actual notice served and received of actual confusion.
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`Said use of the FIRE trademark indicates intentional infringement on the Respondent’s rights,
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`activity over which the TTAB has no authority to remedy. Suspending the proceedings would
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`enhance judicial efficiency by consolidating integrally related issues in one court, avoiding
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`duplicate use of resources, consistent with Board policy and established legal principles.
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`Consequently, Respondent respectfully asks the Board to approve the Motion to Suspend
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`proceedings until the district court case is resolved.
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`TRADEMARKS DOMESTIC INTERNATIONAL INC
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`By:
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` /lilliantaylorstajnbaher/lths/072024/
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`
`
`LILLIAN TAYLOR ŠTAJNBAHER
`CAL. BAR NO. 126753
`240 W Palmetto Park Road, Suite 320
`Boca Raton, Florida 33432
`Tel: 954-319-3153
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`CERTIFICATE OF SERVICE
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`The undersigned hereby certifies that the foregoing “RESPONDENT’S REPLY TO
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`PETITIONER'S OPPOSITION TO MOTION TO SUSPEND PROCEEDINGS” was served on
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`counsel of record for Petitioner via email on the below date.
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`Date: July 20, 2024
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`TRADEMARKS DOMESTIC INTERNATIONAL INC
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`By:
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` /lilliantaylorstajnbaher/lths/072024/
`
`
`
`LILLIAN TAYLOR ŠTAJNBAHER
`CAL. BAR NO. 126753
`240 W Palmetto Park Road, Suite 320
`Boca Raton, Florida 33432
`Tel: 954-319-3153
`
`
`
` Attorney for Respondent,
` FIRE LYFE INC.
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`EXHIBIT A
`https://tobaccotactics.org/article/e-cigarettes/
`E-cigarettes
`
`This page was last edited on 02 February 2023, at 3:55 am.
`
` CiteCite
`
`As the harms from conventional products have become better
`understood, and tobacco control measures have been put in
`place, the cigarette market – from which tobacco companies
`make most of their profits – has started to shrink. To secure the
`industry’s longer-term future, transnational tobacco companies
`(TTCs) have invested in, developed and marketed various newer
`nicotine and tobacco products.11
`
`Since the early 2000s TTCs have developed interests in e-
`cigarettes (also known as electronic delivery systems, or ENDS),
`heated tobacco products (HTPs), snus and nicotine pouches. 
`Companies have referred to these types of product as ‘next
`generation products’ (NGPs) although terminology changes over
`time.
`
`•• See the Product Terminology page for more details,
`including terms favoured by the industry.
`
`This page gives an overview of TTCs interests in e-cigarettes,
`which have been acquired, developed and sold by these
`companies since 2012. Products produced by other companies
`which do not have links to TTCs are not covered on
`TobaccoTactics.
`
`We link to further pages giving more detailed information about
`each company’s products, market share and business strategy,
`including methods used to promote their products around the
`world. We also point to examples of lobbying activity conducted
`
`

`

`by, and on behalf of, tobacco companies, in order to influence
`regulation around e-cigarettes.
`
`•• For answers to some frequently asked questions about e-
`cigarettes see E-cigarettes: The Basics
`
`There is ongoing scientific and policy debate about the role of
`these products in tobacco control, with concerns around long
`term health effects, marketing to youth, and how this
`diversification may help the industry to build credibility with
`policy makers.11 22 Products are often publicly linked to tobacco
`companies’ harm reduction strategies. However, research
`updates on, and analysis of, the potential health benefits/risks
`of e-cigarettes are outside the scope of TobaccoTactics.
`
`Image 1: Transnational tobacco companies’ main tobacco and
`
`e-cigarette brands (Images source: IMB, PMI, BAT and JTI
`
`corporate websites, accessed October 2022)
`
`Tobacco Companies Enter the
`
`

`

`E-cigarette Market
`
`Tobacco companies began buying existing e-cigarette brands
`and developing their own e-cigarette products from 2012. At the
`time, the global e-cigarette market was highly fragmented and
`dominated by independent  companies, with the Financial Times
`estimating in June 2013 that the market was worth $3 billion.33
`
`Tobacco companies were well placed to take advantage of this
`fast growing market, as they had established distribution points
`and the resources to cover the costs of marketing. They were
`also in a position to meet the financial and legal demands that
`would likely come with any future regulation of e-cigarettes (see
`below).33
`
`In 2012 and 2013 there was a flurry of tobacco company
`investment in e-cigarettes, both in the United Kingdom (UK)
`and in the United States (US), a trend which continued in
`subsequent years.
`
`•• For a diagram showing the tobacco industry’s entry into
`the e-cigarette market see E-cigarettes: Industry
`Timeline.
`
`By 2018, British American Tobacco (BAT), Imperial Brands,
`Japan Tobacco International (JTI), and to a lesser degree Philip
`Morris International (PMI), all had their own ‘flagship’ e-
`cigarette brands, and were expanding their global markets. In
`the same year, Altria bought a minority stake in US e-cigarette
`manufacturer JUUL Labs. Market research company
`Euromonitor International estimated that the e-cigarette
`market had quadrupled in value, from under US$5 billion in 2013
`to more than US$20 billion in 2019.44 55
`
`British American Tobacco
`
`

`

`British American Tobacco (BAT) launched Vype in July 2013.
`This e-cigarette was originally developed by CN Creative, a
`start-up acquired by BAT in December 2012 and later merged
`into Nicoventures.66 77 After forming a ‘strategic partnership’
`with US tobacco company Reynolds American Inc (RAI) in 2014,
`BAT acquired the whole company and its Vuse range of e-
`cigarettes in 2017. For more information, see Reynolds
`American Inc.
`
`BAT went on to acquire more independent e-cigarette
`companies, and developed a range of products under the Vype
`and Vuse brands. In 2020, BAT began consolidating the two
`brands as Vuse.88 99 1010  In 2022 it launched a “disposable” product
`Vuse Go (see below).
`
`•• For detailed information on BAT’s e-cigarettes and tactics
`see E-cigarettes: British American Tobacco and E-
`cigarettes: BAT’s Vype and Vuse.
`
`Imperial Brands
`
`Imperial Brands‘ subsidiary Fontem Ventures acquired
`Dragonite in August 2013, previously owned by Hon Lik, the
`Chinese pharmacist who claims to have invented the e-
`cigarette. In July 2014, as part of Reynolds’s acquisition of
`Lorillard, Imperial bought blu.1111
`
`Lorillard was the third largest cigarette manufacturer in the US
`at the time it acquired the e-cigarette company ‘blu ecigs’ in
`2012.1212 In 2013, it entered the UK market by taking over ‘Skycig’,
`a leading independent brand, which was then rebranded as ‘blu
`ecigs’.1313 1414 When Reynolds acquired Lorillard, blu was sold to
`Imperial to avoid antitrust concerns.1111 1515
`
`In February 2015, Imperial launched its own e-cigarette ‘Jai’ in
`Europe.1616 However blu became Imperial’s flagship brand.
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`

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`•• For more on Imperial’s e-cigarettes and tactics see E-
`cigarettes: Imperial Brands.
`
`Japan Tobacco International
`
`Japan Tobacco International (JTI) bought UK e-cigarette brand
`E-lites in June 2014 from Zandera.1717 1818 1919
`
`After acquiring US e-cigarette company ‘Logic’ in July 2015, E-
`Lites was rebranded as Logic, and this became JTI’s flagship
`brand.2020 2121
`
`•• For more on JTI’s e-cigarettes and tactics see E-cigarettes:
`Japan Tobacco International.
`
`Philip Morris International
`
`Philip Morris International (PMI) was the last of the
`international tobacco companies to enter the e-cigarette
`market. It announced in December 2013, that it was teaming up
`with Altria to market electronic cigarettes and other tobacco
`products it described as “reduced risk”.2222 PMI gained the right
`to exclusively sell Altria’s e-cigarettes outside the United States.
`In 2014, PMI acquired UK company Nicocigs, the owner of the
`‘Nicolites’ brand.2222 2323 After rebranding ‘Nicolites’ as ‘Nicocig’,
`PMI went on to develop its own e-cigarette IQOS Mesh, which
`went on sale in the UK in 2018, alongside IQOS Heated Tobacco
`Products.2424 2525 2626
`
`Mesh was relaunched as VEEV in 2020. In 2022, PMI launched a
`“disposable” e-cigarette called VEEBA (see below).  However,
`PMI’s interests in e-cigarettes are relatively minor compared to
`its interests in HTPs.
`
`•• For more on PMI’s e-cigarettes see E-cigarettes: Philip
`
`

`

`Morris International.
`
`Altria
`
`Altria launched ‘MarkTen’, produced by its subsidiary Nu Mark,
`in the US in 2014.2727 2828 2929 Altria acquired independent US e-
`cigarette company Green Smoke in 2014.3030 3131
`
`Both brands were discontinued in December 2018 and Altria
`announced that it had bought a 35% stake in market leader
`JUUL Labs, at the time a leading player in the US e-cigarette
`market, for US$12.8 billion. By June 2022, this investment was
`reported to be worth only US$450 million.3232
`
`•• For more on Altria’s e-cigarette interests see E-cigarettes:
`Altria and JUUL Labs.
`
`Patent Claims
`
`In March 2014, Imperial Brands’ Fontem Ventures launched legal
`proceedings over patents in California against nine of its US
`rivals including the top three Lorillard‘s Blu Ecigs, NJOY and
`Logic, and BAT’s Nicoventures. According to the Financial Times
`the lawsuit showed that “big tobacco” was becoming
`increasingly aggressive in the battle for the fast-growing e-
`cigarette market: “patents are expected to play an increasingly
`crucial role as big tobacco companies vie with smaller rivals to
`gain market share.”3333 3434
`
`Fontem Ventures also instigated lawsuits against Altria
`subsidiary Nu Mark, and RJ Reynolds (BAT). Most of these cases
`had been settled out of court by 2017.3535 3636 3737 3838
`
`E-cigarette company JUUL Labs filed multiple complaints of
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`

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`patent infringement in the US courts, in October and November
`2018, mainly against companies in China and Uruguay.3939 4040 In
`December 2018, Altria acquired a 35% share in JUUL Labs, who
`subsequently dropped the infringement claims in April 2019.4141
`
`The Global Market
`
`According to Euromonitor International, between 2014 (after
`the first transnational companies entered the market) and 2018
`the value of the global e-cigarette market more than doubled
`from US$6.8 billion to over US$15.5 billion. By 2021, it had risen
`to nearly US$22.8 billion.4242 (NB all figures quoted here are by
`current value and rounded)
`
`The biggest markets by far remained the US and Western
`Europe. In the US the value of the market grew from US$2.6
`billion in 2014, to over 9.6 billion in 2019, although it then fell
`significantly in 2020 to around 7.8 billion in 2021. The Western
`European market grew from US$2.3 billion to US$6.5 billion by
`2021. The UK is the largest of the markets in the region, worth
`over UK£2.6 billion (US$2.9 billion) in 2021.4242
`
`The value of the market in the Asia-Pacific region, a key target
`of tobacco companies,  nearly doubled to US$1.4 billion between
`2014 and 2018. After growing rapidly to US$2.2 billion in 2019, it
`doubled again to US$4.4 billion in 2021, making it the fastest
`growing regional market in terms of value. Markets grew more
`slowly in Eastern Europe, and the Middle East. The much
`smaller market in Latin America rose to $US120 million in 2021,
`nearly doubling in two years.4242
`
`Market size is clearly affected by national laws governing the
`sale of e-cigarette products. (See below for information on
`regulation) However, the existence of regulation restricting or
`banning the sale of e-cigarettes does not necessarily mean that
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`

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`tobacco company products are not available to purchase in a
`particular country – see for example BAT’s sales of Vype in
`Mexico.
`
`Euromonitor International puts BAT’s share of the global e-
`cigarette market (by value) at around 17.5% (in 2016, before its
`acquisition of RAI, it had been 3.5%). JTI and PMI’s market share
`fell from 2014 and Imperial’s from 2016 (see Table 1).4242 4343 PMI’s
`overall share remains the lowest of all the transnational
`companies (0.2%)
`
`Company
`
`2014 2015 2016 2017 2018 2019 2020 2021
`
`BAT (including RAI from 2017)
`
`(https://tobaccotactics.org/wiki/e-
`
`1.6
`
`2.9
`
`3.5
`
`11.4 10
`
`10
`
`16.1 17.4
`
`cigarettes-british-american-tobacco)
`
`RAI
`
`Imperial Brands
`
`9.6
`
`6.3
`
`6.5
`
`-
`
`-
`
`-
`
`-
`
`-
`
`(https://tobaccotactics.org/wiki/e-
`
`0.3
`
`4.7
`
`4
`
`3.9
`
`3.3
`
`3
`
`3.1
`
`2.8
`
`cigarettes-imperial-tobacco)
`
`JTI
`
`(https://tobaccotactics.org/wiki/e-
`
`cigarettes-japan-tobacco-
`
`international)
`
`Altria
`
`4.1
`
`3.3
`
`2.8
`
`3.2
`
`2.9
`
`2.2
`
`2.2
`
`1.5
`
`(https://tobaccotactics.org/wiki/e-
`
`1.1
`
`1.5
`
`1.8
`
`2.5
`
`2.4
`
`0.3
`
`-
`
`-
`
`cigarettes-altria)
`
`PMI
`
`(https://tobaccotactics.org/wiki/e-
`
`cigarettes-philip-morris-
`
`international)
`
`JUUL Labs
`
`1.3
`
`0.9
`
`0.6
`
`0.4
`
`0.3
`
`0.2
`
`0.2
`
`0.2
`
`(https://tobaccotactics.org/wiki/juul-
`
`-
`
`-
`
`0.6
`
`4.1
`
`19.1 27.7 17.1 14.4
`
`labs)
`
`Others (independent companies)
`
`82
`
`80.4 80.3 74.4 61.7 56.4 61.2 63.8
`
`

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`Table 1: Tobacco Company % Shares of the Global Market, by
`retail value, 2014-2021 (source Euromonitor International)55 4343
`
`Between 2015 and 2019 tobacco companies lost a significant
`slice of the market to the new competitor JUUL Labs, whose
`global share rose rapidly to nearly 28% in 2019 (see Table 1).4242 4343
`In the US the rise of JUUL was even more marked, with the
`company gaining share from both independent e-cigarette
`companies, and tobacco companies.  By 2019, JUUL held over
`50% of the US market. It had gained over 15% of the market in
`Ukraine, but little across western Europe, where it began
`withdrawing from markets in 2020.4242 4343  Faced with regulatory
`challenges, especially in the US, JUUL’s share of the market
`started to decline in 2020. For more information, see JUUL Labs.
`
`Overall independent (non-TTC) e-cigarette companies have
`maintained the larger share of the global market. However, this
`fell from over 80% in 2014 to just over 56% in 2019. The market
`share of independent companies began rising again in 2021,
`likely benefiting from the withdrawal of JUUL from some
`markets. Since 2017, Chinese manufacturer RELX Technology,
`has held a rapidly increasing share of the global market, nearly
`doubling each year to 9% in 2021. This gives it the third largest
`share of any company, after BAT and JUUL.4242 4343
`
`New “Disposables”
`
`In 2021, the company with the next largest share after RELX in
`2021, was EVO Brands which held a 1.7% share of the global
`market. EVO manufactures disposable Puff Bars. These single
`use products have proved controversial owing to evidence of
`increasing youth use and concerns around their environmental
`impact.4444 4545 4646 4747 Although widely on sale, EVO’s products have
`not yet received market authorisation in the US and are facing
`enforcement action by the FDA.4343 4848
`
`

`

`JTI has been selling disposable e-cigarettes in the US since
`acquiring the Logic brand in 2015.2020 4949 However it was not until
`2022 that BAT and PMI launched new disposable products,
`within two months of each other: Vuse go and Veeba.
`
`BAT’s VUSE Go
`
`BAT launched its “disposable” e-cigarette under the VUSE brand
`in the UK in May 2022. It was marketed in fruit, mint and
`tobacco flavours, and sold “at a premium price”.5050 BAT stated
`that this was its “fastest concept to market delivery to date.”5151
`
`PMI’s VEEBA/ VEEV Now
`
`According to Euromonitor data, US company Kaival Brands held
`a similar share to EVO in 2021 (1.6%).4343 In July 2022, PMI signed
`a deal with a newly established Kaival subsidiary to develop and
`market PMI’s VEEBA disposable product outside the US, initially
`in Canada.5252 5353 4444 5454 In mid-2023, PMI rebranded VEEBA as
`VEEV NOW.5555
`
`According to market analysis in Tobacco Reporter the value of
`the global disposable market was estimated to be $6.34 billion in
`2022 and projected to triple in the next 10 years.4444 It is likely
`that increased sales of single use e-cigarettes will also impact
`the market for other nicotine products.4747 5656
`
`Imperial’s blu bar
`
`Imperial launched its blu bar disposable for the UK market in
`November 2022, only a few months after PMI and BAT launched
`theirs, to “meet the rapidly growing demand in this category”5757
`
`

`

`Image 2: UK Singer Lily Allen paid by BAT to promote Vype
`
`on social media, triggering complaints to the UK Advertising
`Standards Authority (Image source: PR Week5858 )
`
`According to analysis in Tobacco Reporter the value of the
`global market for single use “disposable” products was
`estimated to be $6.34 billion in 2022, and projected to triple in
`the next 10 years.4444 It is likely that increased sales of single use
`e-cigarettes will also impact the market for other nicotine
`products.4747 5959
`
`•• For more information see E-cigarettes: Tobacco Company
`Interests in Single Use Products
`
`

`

`Marketing Strategies
`
`Tobacco companies use a wide range of marketing tactics to
`promote their products, ranging from traditional media
`advertising, price promotions and point of sale displays.
`However, as e-cigarette advertising has become more restricted
`companies have been forced to become more creative. Pop-up
`stores and events, music festivals and collaborations with artists
`(see Image 2) and designers have all been used to help market e-
`cigarettes, with widespread online promotion via social media,
`paid celebrities and influencers.5858 6060 This has led to the
`companies being criticised for targeting young people, rather
`than adult smokers looking to quit.5858 6161 6262 6363
`
`The same criticism has been levelled at JUUL Labs. In
`September 2018, the US Food and Drug Administration (FDA)
`wrote to JUUL Labs, Fontem Ventures (Imperial), Altria,
`Reynolds American Inc. (RAI) and JTI, giving the companies 60
`days to provide a written plan to “address the rate of youth use”
`of their products.6464
`
`E-cigarette Regulation
`
`Regulation of e-cigarettes varies widely across the world, from
`full bans (e.g. India); only being available on prescription (e.g.
`Australia); and to being freely sold as a consumer good (e.g.
`Europe, US).
`
`The Policy Scan Project, by the Institute for Global Tobacco
`Control (at Johns Hopkins University) tracks and reports
`regulatory approaches to e-cigarettes around the world.
`
`The Global Centre for Good Governance in Tobacco Control
`(GGTC) also publishes information on e-cigarette regulation.6565
`
`

`

`For detailed, up to date information at country level, see the
`searchable database on the Tobacco Control Laws website,
`published by the Campaign for Tobacco Free Kids (CTFK).
`
`For countries that are parties to the WHO Framework
`Convention on Tobacco Control (FCTC) progress towards
`implementation of relevant articles, including newer products,
`is detailed in the FCTC implementation database.6666
`
`Information on current e-cigarette regulation can also be found
`on relevant pages of government websites (see Relevant Links
`below). See this page for information on the situation in 2014,
`when there was little regulation in place.
`
`Lobbying Regulators
`
`Article 5.3 of the World Health Organization Framework
`Convention on Tobacco Control (WHO FCTC), designed to
`protect public health policies from commercial and other vested
`interests, applies to the whole tobacco industry irrespective of
`the type of products they are attempting to sell. Tobacco
`companies are spending considerable amounts of time, effort
`and money lobbying decision-makers concerned with laws and
`regulations around e-cigarettes.6767
`
`As with lobbying on tobacco products, tactics include:
`
`•• Direct lobbying of politicians and policy makers in formal
`meetings.6868 6969 See for example the UK All-Party
`Parliamentary Group for Vaping (E-Cigarettes)
`
`•• Submissions to government consultations.7070 7171 7272 7373
`
`•• Meetings and discussions at political and ‘social’ events
`(sometimes sponsored by tobacco companies).7474 7575
`
`

`

`•• Employing professional lobbyists.7676
`
`•• Setting up and joining existing trade associations, to lobby
`on companies’ behalf.7777 7878 See also The UK Vaping
`Industry Association (UKVIA) and other E-cigarette
`Trade Associations with Tobacco Industry Members.
`
`•• ‘Astroturfing’ – setting up fake grass roots campaigns.7979
`See for example Imperial Brands’ use of the EU Citizens’
`Initiative.
`
`Can E-cigarettes Help
`Advance Public Health?
`
`Globally, there is an ongoing debate about whether e-cigarettes
`are a threat or an opportunity to public health. Some public
`health experts believe that e-cigarettes are an essential
`alternative to smoking tobacco that can help smokers quit.
`Others argue that e-cigarettes could be a route into nicotine
`addiction and point out that their long-term safety has not yet
`been proven. There are also those that believe that e-cigarettes
`may offer public health benefits but that e-cigarettes should be
`regulated, particularly when it comes to the marketing of such
`products.
`
`While acknowledging that there are many unknowns about e-
`cigarettes and that these products are not harmless, many
`experts in tobacco control and public health will agree that
`vaping e-cigarettes is less harmful to the health of an individual
`smoker than smoking cigarettes. For e-cigarettes to have a
`positive impact on population-level health, a significant number
`of smokers need to switch completely to e-cigarettes (so not
`dual-using these products with cigarettes), and the product
`cannot act as a ‘gateway’ into nicotine addiction for youth and
`
`

`

`non-smokers, or undermine existing proven tobacco control
`measures. The difficulty is that a growing share of the global e-
`cigarette market these days is held by the tobacco industry,
`which has a history of using newer products to stem the decline
`in cigarette sales and promote these products to any potential
`customer.8080 8181
`
`What the Industry Says: It’s All About Harm
`Reduction
`
`The tobacco industry has long argued that products like e-
`cigarettes should be made easily available to smokers, to offer
`them a ‘less harmful’ alternative to smoking.8282 In its 2018 “Next
`Generation Products” report, Imperial wrote that particularly e-
`cigarettes (or ‘vapour products’ as they refer to it) were creating
`“…a huge global public health opportunity”.8383 BAT, somewhat
`misleadingly, claimed that there is ‘growing scientific consensus’
`on the issue. In its 2018 Sustainability Report, the company
`stated:
`
`“There is growing consensus among public health
`
`bodies and academics that vapour products e-
`
`cigarettes can have a significantly reduced risk profile
`
`compared to smoking. Public Health England in the UK
`
`estimates these products are ‘95% less harmful than
`
`smoking’… Other third-party science and research
`
`supporting the significantly reduced-risk potential of
`vapour products continue to grow”.8484
`
`A study by researchers from the University of Bath’s Tobacco
`Control Research Group found that these products, and the
`associated harm reduction narrative, serve to “…‘renormalize’
`an industry that is determined to be seen as a responsible
`business with a legitimate product…”.8282 The study also found
`that the products and narrative are used as tools to initiate
`dialogue with scientists, public health experts, politicians and
`
`

`

`policy makers, re-framing themselves as ‘part of the solution’
`rather than being the problem.8282 Therefore, the tobacco
`industry is using e-cigarettes and other newer products as a
`way to try and re-enter the policy arena from which it has
`increasingly, and successfully, been excluded in line with Article
`5.3 of the WHO Framework Convention on Tobacco Control.
`
`What Industry Documents Show: It’s All
`About Profit
`
`Despite positioning itself as ‘the solution to the tobacco
`problem’ it is worth noting that the core of the global tobacco
`industry’s business remains unchanged. E-cigarettes on

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