Altria Challenges R.J. Reynolds in Court Over Vape Royalties Dispute

The parent company of Philip Morris is contesting an effort by R.J. Reynolds Vapor Co. to avoid paying royalties on a pod-style vape product. According to Altria, R.J. Reynolds’ recent sublicense agreement with Juul is insufficient to exempt it from ongoing royalty obligations. This dispute was brought before a North Carolina federal court, where Altria characterized R.J. Reynolds’ sublicense as an “after-the-fact” attempt to circumvent payment terms. For further details, the full legal argument is available here.