| PMI Reported To Be In Negotiations With Ruyan |
| An OfficialWire report on November 4th said Philip Morris International is in negotiations with Ruyan Group, the manufacturer of the original e-cigarette in 2005. According to an article on Quamnet.com, “Ruyan Group said that an agreement between the Company and Philip Morris International Management S.A. could not be reached on matters relating to the co-operation between them on its ‘electronic cigarettes’ by the end of the first and exclusive phase of negotiations.” It is unclear what the news could mean for the e-cigarette industry, but “Philip Morris wants in,” the report said (OfficialWire 11/4).
Can anyone shed light on this possibility? Is it a possibility? Why Ruyan? If not Ruyan then who? Or is someone just blowing a lot of smoke (vapor)? What would this do to all the competition if it became a reality? Could Marlboro one day have an electronic version? What are your thoughts? Does PMI really want in? |
Philip Morris International looking at the e-cig business?
November 6th, 2009 | Acquisitions, Current Issues, General, Regulations: FDA etc., Science, Snus, Snuff & Alternative Products in US Markets, Tobacco Harm Reduction | Lou Maiellano
11 comments ↓
There could be huge public health benefits worldwide if PMI buys Ruyan or its e-cigarette patents (as PMI has contracts with hundreds of thousands of retailers, and has could place the products alongside Marlboro cigarettes in most favorable store locations). PMI also has badly needed lobbying clout to oppose e-cigarette bans, unwarranted regulations and taxes.
The potential downside is that PMI likely would aggressively litigate against other e-cigarette manufacturers/vendors claiming patent infringement. Unlike Ruyan (which has settled patent infringement cases for relatively small amounts of money), PMI has a lot more lawyers and a lot more money.
It is important to note that PMI does not operate in the US, nor does Ruyan Group, as both operate abroad. Rather PM USA and Ruyan America operate in America.
I’ve heard that there’s an ongoing struggle between Ruyan Group and Ruyan America (which could be related to the reported negotiations with PMI).
I’ve also heard that RJR has bought NicoNovum, which makes NRT products.
Interestingly, PM recently urged the UK to regulate e-cigarette as drug-devices (i.e. like nicotine gums, lozenges, patches).
See page 40 at
http://www.e-cig.org/pdfs/2008-PM-DH.pdf
Things are getting more curious all the time. Meanwhile, increasingly more anti-smoking groups in the US are now absurdly claiming that e-cigarette vapor coud be a pulbic health hazard to nonusers, and are urging local and state officials to ban their use in all workplaces and public places where smoking is banned.
Their strategy is to redefine smoking (in local and state smokefree workplace laws) as including the use of e-cigarettes (including e-cigarettes that contain/emit no nicotine and/or no propylene glycol).
Bill,
Could you explain the patent issue you mention in your comments? I was at NACS recently and did not see Ruyan at the show. Were they there? I saw NJoy, Krave and Gamucci. I’ve heard that Ruyan has a new product and was looking for them at the show. I love the e-cig. I don’t understand why folks are so up in arms if the product is so much safer. I mean if I know that then what are these folks thinking?
VV
I heard this was all just a issue regarding the chinese not having any money!
Folks at Ruyan and other e-cigarette companies have confirmed that Ruyan has sued other e-cigarette companies (in different countries) alleging patent infringement, and that Ruyan agreed to settle in exchange for money and allow the other companies to continue marketing their products.
Although Ruyan claims that it owns all e-cigarette patents, other e-cigarette companies are selling significantly more e-cigarettes (at least here in the US) than Ruyan.
Regarding the press release / article by Tiffany Ellis at
http://www.officialwire.com/main.php?action=posted_news&rid=43286&catid=143
(which generated this posting), she’s not at the phone number listed for her, and I haven’t received a response from the e-mail I sent her (but her listed e-mail address is also suspect).
I think PMI would only be interested in getting the product and getting a hold of the patents and just shutting it down as well as all the patent violators as its the only way to protect its signature brand. Pretty puzzling that Ruyan lets folks get away with violating their patents. Are they even selling here in the US now. I never saw them at NACS.
I saw online that Ruyan is launching a new product called RAPP. Sounds extremely interesting. Seems like they have been very busy after all! Can’t wait to try it once I find out where the product is being sold? If anyone knows let me know?
A correction on my 11/11 posting, as Tiffany Ellis is available at the phone number on the press release (but the voice mail box was full and was listed under her colleague’s name).
Regarding Ruyan America, the company’s website no longer displays any e-cigarette products, and only displays a non nicotine dietary supplement that they are marketing as an alternative for cigarettes.
http://ruyanamerica.com/
Ruyan America has had an agreement with Ruyan Group to market the company’s products in the US.
Bill Godshall – Do you know anything about the patent rights regarding the electronic cigarette. I’m looking at carrying a brand but read somewhere that one of the companies has the patent on the product. Do you know who would be the patent holder?
VA Retailer
[...] http://www.tobaccotoday.info/2009/11/06/philip-morris-international-looking-at-the-e-cig-business/ [...]
Hey can someone help me understand what I’m supposed to do with my e-cig. It has a universal symbol that says it can’t be thrown in a landfill??? Found this pretty odd!
[...] is clear that Big Tobacco is in transition.” That was intriguing to me. Another posting said ‘It is unclear what the news could mean for the e-cigarette industry, but “Philip Morris wan…. If they get into the market, maybe they will call off the dog (the US government) about seizing [...]
Leave a Comment