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Tag: licensing

  • China Scrutinizing Vape Industry

    China Scrutinizing Vape Industry

    China’s e-cigarette industry is entering a new round of regulatory tightening, with multiple draft policies recently opened for public consultation, according to China Business Network. Last week, the State Tobacco Monopoly Administration (STMA) released draft rules on credit management for e-cigarette manufacturers and wholesale enterprises, proposing a formal credit system that covers information collection, ratings, public disclosure, penalties for dishonesty, and credit restoration. Under the draft, companies would be graded A to D, with lower-rated firms facing stricter scrutiny on capacity expansion, investment approvals, and even licensing. This follows a STMA draft policy in December aimed at maintaining a dynamic balance between supply and demand, reinforcing total capacity control, and largely prohibiting new capacity additions except under tightly defined conditions.

    Together with earlier moves — including the solicitation of 2026 national e-cigarette standards and the State Council’s December call for tougher crackdowns on tobacco-related illegal activities — the measures signal a push toward more standardized, compliance-driven industry governance. Industry observers say the policies build on the regulatory framework established in 2021, when e-cigarettes were brought under tobacco-style supervision, and are intended to curb disorderly competition, raise compliance thresholds, and accelerate industry consolidation.

  • Judge Seals Docs in Juul Case

    Judge Seals Docs in Juul Case

    On Tuesday (Feb. 25), a federal judge in North Carolina granted requests by R.J. Reynolds Vapor Co. and Philip Morris’ parent company, Altria, to seal documents in their ongoing royalty dispute, keeping details of their licensing agreements with the vape brand JUUL confidential.

    “The court ruled that the agreements contained sensitive business information — including financial terms, licensing strategies and negotiation details — that could harm competitive standing, and all six motions to seal were granted,” Andrea Keckley wrote for Law360.

    The court found that an amendment to a licensing agreement between Altria and JUUL and a copy of a licensing agreement between the two were confidential and that disclosing them would “harm the party’s competitive standing or otherwise harm its business interests.” The filings stem RJR’s bid for relief against a $95 million judgement after a jury sided with Altria in a 2022 patent infringement case. The defense has argued that it should receive relief because a deal with Juul sublicensed the asserted patents.

    “Ultimately, however, this court need not decide whether the documents or hearing are protected by the First Amendment’s right of access, because even assuming the First Amendment standard applies, movants have put forth compelling interests in sealing the order and the proposed sealing is narrowly tailored such that the First Amendment right of access has been overcome,” U.S. District Judge William Lindsay Osteen Jr wrote. “Although this court has considered less drastic alternatives to sealing, the parties have already redacted their filings so as to allow public access to as much information as possible without compromising sensitive business information,” he wrote. “It is this court’s view that the parties’ proposed redactions reflect the least drastic alternative at this time.”