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Two Reynolds American Inc. business units face a combined $14.05 million in damages from of a federal jury verdict in a patent-infringement lawsuit involving Reynolds’ top-selling electronic cigarette Vuse.

The initial damages were $10.9 million and later expanded by another $3.16 million .

The jury verdict was rendered Wednesday in the Eastern District Court of Virginia. The lawsuit, filed in April 2020, went to the jury June 8.

Philip Morris Products SA is an affiliate of Philip Morris International Inc., commonly identified corporately as PMI.

The lawsuit involves PMI’s accusations of R.J. Reynolds Vapor Co. infringement involving its Vuse Alto and Vuse Solo e-cigarette products. The other defendant is RAI Strategic Holding Inc.

The PMI U.S. electronic-cigarette patents are: a compact heater designed to increase vaporization efficiency; and a leakage preventer for the liquid used in e-cigarettes.

The jury reviewed six primary claims and 14 dependent claims.

For Vuse Alto, the jury determined Reynolds infringed on one independent and one dependent claim for the compact heater. The jury approved $8 million in damages for those infringements.

For Vuse Solo G2 product, the jury determined Reynolds infringed on one independent and two dependent claims for the leakage preventer.

However, the jury determined Reynolds did not infringe on two sets on one independent and three dependent claims for Vuse Alto involving the leakage preventer.

The jury found that Reynolds did not prove “by clear and convincing evidence” that the Philip Morris leakage preventer patent claims were “invalid as obvious.”

The jury awarded $2.76 million in damages for the leakage preventer patient infringements.

Reynolds said in a statement that “we are pleased that the jury found that Vuse Alto does not infringe” the leakage preventer patent.

“We are disappointed, however, by the jury findings that the same patent was infringed by Vuse Solo and that the (compact heater) was infringed by Vuse Alto.

“We intend to vigorously defend the issues remaining before the court, and, as necessary, appeal the decision to the U.S. Court of Appeals for the Federal Circuit for further review.

PMI said in a statement the jury’s findings of patent infringement “is yet another demonstration of PMI’s position as the clear innovation leader in new technologies that can help smokers switch to better alternatives.”

“This ruling rejects an attempt by BAT to free-ride on our hard work and investment.”

The federal lawsuit in Virginia is one of at least three patent lawsuits involving British American Tobacco Plc/Reynolds and PMI/Altria Group Inc.

In September, the U.S. International Trade Commission issued a final determination of a violation of the Tariff Act of 1930 by Philip Morris USA Inc. and Altria Client Services LLC as it related to two BAT product patents.

The complaint, filed in April 2020, focuses on three heat-not-burn technology patents held by BAT. The patents were issued by the U.S. Patent and Trademark office between November 2012 and December 2019.

An additional two patents are involved in a separate legal proceeding before the patent and trademark office.

As a result, PM USA has been barred from importing PMI’s IQOS 2.4, IQOS 3, IQOS 3 Duo heat-not-burn traditional cigarette products, as well as ordered to halt future sales of those products — marketed as Marlboro HeatSticks — already in the U.S.

In May 2020, Altria filed a lawsuit in U.S. District Court for the Middle District of N.C. that alleges Reynolds Vapor is infringing on nine patents with its Vuse electronic cigarette and Velo nicotine smokeless products.

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