JONES DAY
`
`NORTH POINT • 901 LAKESIDE AVENUE • CLEVELAND, OHIO 44114.1190
`
`TELEPHONE: +1.216.586.3939 • FACSIMILE: +1.216.579.0212
`
`DIRECT NUMBER: (216) 586-7499
`DMAIORANA@JONESDAY.COM
`
`April 9, 2020
`
`JP393414:dlh
`629000-850001
`
`VIA EDIS
`
`The Honorable Lisa R. Barton
`Secretary to the Commission
`U.S. International Trade Commission
`500 E Street S.W.
`Washington, DC 20436
`
`Re:
`
`Certain Tobacco Heating Articles and Components Thereof
`
`Dear Secretary Barton:
`
`In accordance with the Commission's Temporary Change to Filing Procedures dated
`March 16, 2020, Complainants, RAI Strategic Holdings, Inc., R.J. Reynolds Vapor Company,
`and R.J. Reynolds Tobacco Company (collectively "Complainants") are e-filing the following
`documents in support of Complainants' request that the Commission commence an investigation
`pursuant to Section 337 of the Tariff Act of 1930, as Amended:
`
`A non-confidential Complaint with both non-confidential and confidential
`1.
`exhibits, pursuant to Commission Rule 210.8(a)(l)(i);
`
`2.
`210.8(b);
`
`A non-confidential Statement of Public Interest, pursuant to Commission Rule
`
`Certified copies of the involved United States Patent Nos. 9,839,238 ("the '238
`3.
`patent"), 9,901,123 ("the '123 patent"), and 9,930,915 ("the '915 patent") listed as Exhibits 1-3
`in the Complaint, pursuant to Commission Rules 210.S(a)(l)(i) and 210.12(a)(9)(i);
`
`Certified copies of each of the assignments for the '238, '123 and '915 patents
`4.
`listed as Exhibits 4-6 in the Complaint, pursuant to Commission Rules 210.S(a)(l)(i) and
`210.12(a)(9)(ii);
`
`Certified copies of the prosecution histories of the '238, '123 and '915 patents
`5.
`listed as Appendices A, C and E in the Complaint, pursuant to Commission Rules 210.8(a)(l)(i)
`and 210.12(c)(l);
`
`AMSTERDAM • ATLANTA • BEIJING • BOSTON • BRISBANE • BRUSSELS • CHICAGO • CLEVELAND • COLUMBUS • DALLAS • DETROIT
`
`DUBAI • DUSSELDORF • FRANKFURT • HONG KONG • HOUSTON •
`
`IRVINE • LONDON • LOS ANGELES • MADRID • MELBOURNE
`
`MEXICO CITY • MIAMI • MILAN • MINNEAPOLIS • MOSCOW • MUNICH • NEW YORK • PARIS • PERTH • PITTSBURGH • SAN DIEGO
`
`SAN FRANCISCO • SAO PAULO • SAUDI ARABIA • SHANGHAI • SILICON VALLEY• SINGAPORE • SYDNEY• TAIPEI • TOKYO • WASHINGTON
`
`

`

`,JONES DAY
`
`The Honorable Lisa R. Barton
`April 9, 2020
`Page2
`
`Reference documents identified in the prosecution histories of the '238, '123 and
`6.
`'915 patents listed as Appendices B, D and Fin the Complaint, pursuant to Commission Rules
`210.8(a)(l)(i) and 210.12(c)(2);
`
`A letter of certification, pursuant to Commission Rules 201.6(b) and 210.5(d),
`7.
`requesting confidential treatment of infonnation appearing in Confidential Exhibits 7, 40, 42, 44,
`and 49 to the verified non-confidential Complaint.
`
`Because we are filing this complaint electronically, Physical Exhibits 1 to 7, and original
`certified copies of the '238, '123 and '915 patents and file histories are available upon request.
`
`Please contact me if you have any questions about this request. Thank you for your
`attention to this matter.
`
`Respectfully submitted,
`
`David M. Maiorana
`
`

`

`JONES D.r\..Y
`
`NORTH POINT • 901 LAKESIDE AVENUE • CLEVELAND, OHIO 441 14. 1 190
`
`TELEPHONE: +1.216.586.3939 • FACSIMILE: +1.216.579.0212
`
`DIRECT NUMBER: (216) 586·7499
`DMAIORANA@JONESDAY.COM
`
`April 9, 2020
`
`JP393414:dlh
`629000-850001
`
`VIA EDIS
`
`The Honorable Lisa R. Barton
`Secretary to the Commission
`U.S. International Trade Commission
`500 E Street S.W.
`Washington, DC 20436
`
`Re:
`
`Certain Tobacco Heating Articles and Components Thereof
`
`Dear Secretary Barton:
`
`Jones Day represents Complainants, RAI Strategic Holdings, Inc., R.J. Reynolds Vapor
`Company and R.J. Reynolds Tobacco Company (collectively "Complainants") in its action
`pursuant to Section 337 of the Tariff Act of 1930, as Amended.
`
`Pursuant to Commission Rules 201.6(b) and 210.5(d), Complainants respectfully request
`confidential treatment of Confidential Exhibits 7, 40, 42, 44, and 49 to the Complaint.
`
`The information for which confidential treatment is sought is propriety and not otherwise
`publicly available. Specifically, Confidential Exhibits 7, 40, 42, 44, and 49 contain proprietary
`commercial information regarding the tobacco heating articles at issue, Complainants' patented
`technology and its infringement by the proposed Respondents, as well as Complainants'
`investments and employment activities made in furtherance of its domestic industry under 19
`U.S.C. § 1337(a)(3).
`
`The Commission has routinely held that this type of information qualifies as confidential
`business information pursuant to Rule 201.6(a) because:
`
`1)
`
`It is not publicly available;
`
`Unauthorized disclosure of such information could cause substantial harm
`2)
`to the competitive position of Complainants; and
`
`The disclosure of such information could impair the Commission's ability
`3)
`to obtain inforn1ation necessary to perform its statutory function.
`
`AMSTERDAM • ATLANTA • BEIJING • BOSTON • BRISBANE • BRUSSELS • CHICAGO • CLEVELAND • COLUMBUS • DALLAS • DETROIT
`
`DUBAI , D0SSELDORF • FRANKFURT • HONG KONG • HOUSTON •
`
`IRVINE • LONDON • LOS ANGELES • MADRID • MELBOURNE
`
`MEXICO CITY • MIAMI • MILAN • MINNEAPOLIS • MOSCOW • MUNICH • NEW YORK • PARIS • PERTH • PITTSBURGH • SAN DIEGO
`
`SAN FRANCISCO • SAO PAULO • SAUDI ARABIA • SHANGHAI • SILICON VALLEY• SINGAPORE •SYDNEY• TAIPEI • TOKYO • WASHINGTON
`
`

`

`,JONES DAY
`
`The Honorable Lisa R. Barton
`April 9, 2020
`Page2
`
`Please contact me if you have any questions concerning this request. Thank you for your
`attention to this matter.
`
`Respectfully submitted,
`
`~
`
`David M. Maiorana
`
`-----------------------------------------·-···"··-·-- ···-······-
`
`·····-·······
`
`

`

`UNITED STATES INTERNATIONAL TRADE COMMISSION
`WASHINGTON, DC
`
`In the Matter of
`
`CERTAIN TOBACCO HEATING
`ARTICLES AND COMPONENTS
`THEREOF
`
`Inv. No. 337-TA-
`
`COMPLAINANTS' STATEMENT ON PUBLIC INTEREST
`
`Pursuant to U.S. International Trade Commission ("Commission") Rule 19 C.F.R. §
`
`210.S(b), Complainants RAI Strategic Holdings, Inc. ("RAI"), R.J. Reynolds Vapor Company
`
`("RJRV"), and R.J. Reynolds Tobacco Company ("RJR T") (collectively, "Complainants")
`
`respectfully submit this Statement on Public Interest with respect to the remedial orders they
`
`seek against proposed Respondents Altria Client Services LLC ("ACS"), Altria Group, Inc.
`
`("AGI"), Philip Morris USA, Inc. ("PM USA"), Philip Morris International Inc. ("PMI''), and
`
`Philip M01ris Products S.A. ("PMP") ("Proposed Respondents").
`
`Complainants seek a permanent, limited exclusion order, specifically directed to
`
`Proposed Respondents and their agents, prohibiting from entry into the United States certain
`
`tobacco heating articles and components thereof that infringe one or more of U.S. Patent No.
`
`9,839,238 ("the '238 patent"), U.S. Patent No. 9,901,123 ("the' 123 patent"), and U.S. Patent
`
`No. 9,930,915 ("the '915 patent") (collectively, "the Asserted Patents"). Complainants also seek
`
`a cease and desist order pursuant to 19 U.S.C. § 1337(£). The Commission's grant of these
`
`remedial orders will serve the public interest.
`
`I.
`
`THE REQUESTED REMEDIAL ORDERS ARE IN ACCORD WITH THE
`PUBLIC INTEREST
`
`There is a strong public interest in protecting intellectual property rights. Certain
`
`Baseband Processor Chips and Chipsets, Transmitter and Receiver (Radio) Chip, Power Control
`
`

`

`Chips, & Products Containing Same, Including Cellular Telephone Handsets, Inv. No. 337-TA-
`
`543, USITC Pub. 4258 (Nov.2011). As the Commission has noted, "protection of intellectual
`
`property rights in the United States provides foreign and domestic businesses alike with a climate
`
`of predictability that fosters investment, innovation, and the exchange of technology and
`
`associated intellectual property rights." Certain Digital Televisions and Certain Products
`
`Containing the Same and Methods of Using the Same, Inv. No. 337-TA-617, Comm'n Op., at 17
`
`(April 2009). The public interest in protecting intellectual property rights can only be precluded
`
`in the rarest circumstances. Certain Baseband Processor Chips, Comm'n Op., at 153-54 (June
`
`2007). Here, the strong public interest in protecting Complainants' intellectual property rights
`
`outweighs any alleged adverse impact on the public.
`
`A.
`
`How The Articles Potentially Subject To The Requested Remedial Orders
`Are Used In The United States
`
`The infringing products are tobacco heating articles and components thereof, including
`
`disposable tobacco sticks, marketed as "the IQOS® system." Proposed Respondents are
`
`authorized by FDA to import, offer for sale, and sell the products in the United States and have
`
`done so since approximately October 2019.
`
`The IQOS® system is part of a category known as "potentially reduced-risk products."
`
`Some such products, like IQOS®, include tobacco; these are commonly known as "tobacco
`
`heating products." Other such products include a nicotine-containing liquid, and are commonly
`
`known as "electronic nicotine delivery systems" or "ENDS." Still other such products include
`
`oral tobacco and nicotine products.
`
`The infringing IQOS® system is a tobacco heating product with three components: a
`
`holder, disposable tobacco sticks, and a charger. The IQOS® holder is an electrically powered
`
`and rechargeable unit that holds and heats the disposable tobacco sticks during use to generate a
`
`2
`
`

`

`nicotine-containing aerosol. The IQOS® holder includes a casing or housing, control electronics,
`
`a battery, and a heating blade. The IQOS® holder has an end for receiving the tobacco stick, and
`
`it heats the disposable tobacco stick using a ceramic blade, which is pushed into the tobacco stick
`
`by the act of inse1iing the tobacco stick into the holder.
`
`The user turns on the device by a pushbutton switch, which causes the battery to produce
`
`and supply electrical current to the heating blade, heating the aerosol forming materials in the
`
`tobacco stick, generating an inhalable nicotine-containing aerosol for the user. The temperature
`
`of the heating blade is reported not to exceed 350°C, which heats the tobacco below the level of
`
`combustion, producing an aerosol.
`
`B.
`
`Identification Of Any Public Health, Safety, Or Welfare Concerns Relating
`To The Requested Remedial Orders
`
`Public health, safety, and welfare concerns do not bar Complainants' requested relief.
`
`There is belief among public health officials (and Complainants and Proposed Respondents) that
`
`ENDS products may be a potentially reduced-risk alternative to traditional combustible
`
`cigarettes. (See FDA Finalizes Enforcement Policy on Unauthorized Flavored Cartridge-Based
`
`E-Cigarettes That Appeal to Children, Including Fruit and Mint, January 2, 2020,
`
`https://www.hhs.gov/about/news/2020/01/02/fda-finalizes-enforcement-policy-unauthorized(cid:173)
`
`flavored-caiiridge-based-e-cigarettes.html; How FDA is Regulating E-Cigarettes, Ned Sharpless,
`
`M.D., Acting FDA Commissioner, July 10, 2019, https://www.fda.gov/news-events/fda-voices(cid:173)
`
`perspectives-f da-leadership-and-experts/how-f da-regulating-e-cigarettes.) Certain complainants
`
`currently sell ENDS products in the U.S. market, as do multiple other companies. Thus, there
`
`are ENDS products in the U.S. currently available to adult American smokers looking for a
`
`potentially reduced-risk alternative to traditional cigarettes. If the Commission grants
`
`Complainants' requested reliefregarding the IQOS® system, adult American smokers looking for
`
`3
`
`

`

`potentially reduced-risk alternatives could turn to Complainants' ENDS and other products on
`
`the market at that time, as discussed below.
`
`One or more Proposed Respondents have stated publicly that ENDS products have the
`
`potential to be reduced-risk alternatives to traditional cigarettes. For example, proposed
`
`Respondent AGI invested $12.8 billion in JUUL Labs, Inc., a U.S. ENDS products company.
`
`AGI stated that the deal "will accelerate JUUL's mission to switch adult smokers toe-vapor
`
`products." (See http://investor.altria.com/file/Index?KeyFile=396 l 69695.) Thus, the availability
`
`in the U.S. of Complainants' ENDS and other products belies any argument by Proposed
`
`Respondents that Complainants' requested relief would harm the public interest by denying adult
`
`smokers access to a potentially reduced-risk alternative.
`
`C.
`
`Identification Of Like Or Directly Competitive Articles That Complainants,
`Their Licensees, Or Third Parties Make Which Could Replace The Subject
`Articles If They Were Excluded
`
`Were the Commission to exclude Proposed Respondents' infringing tobacco heating
`
`products and components thereof from entry into the U.S., there are several non-infringing
`
`ENDS products available in the U.S. that are directly competitive with the Accused Products.
`
`These products include Complainants' VUSE® products: VUSE® Vibe, VUSE® Solo, VUSE®
`
`Alto, and VUSE® Ciro. (www.vusevapor.com). Complainants' Eclipse® product is another
`
`alternative available in the U.S. Like IQOS®, Eclipse® is a tobacco heating product that heats
`
`but does not burn the tobacco. Several oral tobacco and nicotine products are also available in
`
`the U.S., including, but not limited to, Camel® Snus, Grizzly® Snuff, Kodiak® Snuff,
`
`(www.northerner.com/us), VELO® nicotine pouches, REVEL nicotine lozenges, and Nicorette®
`
`Gum (www.nicorette.com/products/nicorette-gum.html).
`
`Such products would continue to be available to adult American smokers looking for a
`
`potentially reduced-risk alternative to traditional combustible cigarettes. Should the Commission
`
`4
`
`

`

`enter an exclusion order in this Investigation, a variety of ready replacement products would
`
`remain on the market for public consumption, and so no public harm would result.
`
`D. Whether Complainants, Their Licensees, And/Or Third Parties Have The
`Capacity To Replace The Volume Of Articles Subject To The Requested
`Remedial Orders In A Commercially Reasonable Time In The United States
`
`Complainants have sold and will continue to sell potentially reduced-risk alternatives to
`
`traditional smoking products in the U.S., unaffected by Complainants' requested relief.
`
`Complainants have the manufacturing capacity to replace the volume ofIQOS® products subject
`
`to the Complainants' requested relief. Complainants will be able to replace the infringing
`
`products subject to the requested remedial orders in the U.S. within a commercially reasonable
`
`time.
`
`E.
`
`How The Requested Remedial Orders Would Impact Consumers
`
`Complainants' requested relief will only potentially affect those consumers who
`
`specifically use the infringing IQOS® System. The Centers for Disease Control and Prevention
`
`estimates that only 13.7% of the U.S. adult population currently smoke traditional combustible
`
`cigarettes. Cigarette Smoking Among US. Adults Hits All-Tilne Low,
`
`https://www.cdc.gov/media/releases/2019/pl 114-smoking-low.html (Nov. 14, 2019). Thus, the
`
`overall impact on U.S. consumers would be relatively small. In any event, Complainants have
`
`the capacity to replace the infringing products in the United States with other potentially
`
`reduced-risk and other tobacco and nicotine products. The requested remedial orders in this
`
`matter will not significantly impact U.S. consumers.
`
`II.
`
`CONCLUSION
`
`For the foregoing reasons, there are no public interest concerns that should preclude the
`
`issuance of Complainants' requested remedies in this Investigation.
`
`5
`
`- - - - - - - - - - - - -~ -~ - - - - - - - - - - - - - - - - - - - - - -
`
`

`

`Dated: April 9, 2020
`
`Respectfully submitted,
`
`David M. Maiorana
`Ryan B. McCrum
`JONES DAY
`901 Lakeside Avenue
`Cleveland, OH 44114
`Tel: (216) 586-3939
`Fax: (216) 579-0212
`Email: dmaiorana@jonesday.com
`Email: rbmccrum@jonesday.com
`
`Stephanie E. Parker
`JONES DAY
`1420 Peachtree Street, N.E.
`Suite 800
`Atlanta, GA 30309
`Tel: (404) 521-3939
`Fax: (404) 581-8330
`Email: separker@jonesday.com
`
`Anthony M. Insogna
`JONES DAY
`4655 Executive Drive
`Suite 1500
`San Diego, CA 92121
`Tel: (858)314-1200
`Fax: (844) 345-3178
`Email: aminsogna@jonesday.com
`
`John J. Normile
`JONES DAY
`250 Vesey Street
`New York, NY 10281
`Tel: (212) 326-3939
`Fax: (212) 755-7306
`Email: jjnormile@jonesday.com
`
`Counsel for Complainants
`RAJ Strategic Holdings, Inc.,
`R.J. Reynolds Vapor Company, and
`R.J. Reynolds Tobacco Company
`
`6
`
`

`

`UNITED STATES INTERNATIONAL TRADE COMMISSION
`WASHINGTON, DC
`
`
`
`
`Inv. No. 337-TA-____
`
`In the Matter of
`
`CERTAIN TOBACCO HEATING
`ARTICLES AND COMPONENTS
`THEREOF
`
`VERIFIED COMPLAINT OF RAI STRATEGIC HOLDINGS, INC., R.J. REYNOLDS
`VAPOR COMPANY, AND R.J. REYNOLDS TOBACCO COMPANY
`UNDER SECTION 337 OF THE TARIFF ACT OF 1930, AS AMENDED
`
`
`COMPLAINANTS
`RAI Strategic Holdings, Inc.
`401 North Main Street
`Winston-Salem, NC 27101
`Tel: (336) 741-2000
`
`R.J. Reynolds Vapor Company
`401 North Main Street
`Winston-Salem, NC 27101
`Tel: (336) 741-2000
`
`R.J. Reynolds Tobacco Company
`401 North Main Street
`Winston-Salem, NC 27101
`Tel: (336) 741-5000
`
`COUNSEL FOR COMPLAINANTS
`David M. Maiorana
`Ryan B. McCrum
`JONES DAY
`901 Lakeside Avenue
`Cleveland, OH 44114
`Tel: (216) 586-3939
`
`Stephanie E. Parker
`JONES DAY
`1420 Peachtree Street, N.E.
`Suite 800
`Atlanta, GA 30309
`Tel: (404) 521-3939
`
`(Listing of Counsel Continues on Next Page)
`
`PROPOSED RESPONDENTS
`Altria Client Services LLC
`6601 W. Broad Street
`Richmond, VA 23230
`Tel: (804) 274-2200
`
`Altria Group, Inc.
`6601 W. Broad Street
`Richmond, VA 23230
`Tel: (804) 274-2200
`
`Philip Morris USA, Inc.
`6601 W. Broad Street
`Richmond, VA 23230
`Tel: (804) 274-2000
`
`Philip Morris International Inc.
`120 Park Avenue
`New York, NY 10017
`Tel: (917) 663-2000
`
`Philip Morris Products S.A.
`Quai Jeanrenaud 3
`2000 Neuchâtel
`Switzerland
`Tel: 41-58-242-00-00
`
`
`
`
`
`
`
`

`

`Anthony M. Insogna
`JONES DAY
`4655 Executive Drive
`Suite 1500
`San Diego, CA 92121
`Tel: (858) 314-1200
`
`John J. Normile
`JONES DAY
`250 Vesey Street
`New York, NY 10281
`Tel: (212) 326-3939
`
`
`
`
`
`
`
`
`
`

`

`
`
`I. 
`II. 
`
`III. 
`
`IV. 
`
`
`
`
`
`TABLE OF CONTENTS
`
`
`
`Page
`
`INTRODUCTION ............................................................................................................. 1 
`THE PARTIES................................................................................................................... 3 
`A. 
`Complainants ......................................................................................................... 3 
`B. 
`Respondents ........................................................................................................... 3 
`1. 
`Altria Client Services LLC ........................................................................ 3 
`2. 
`Altria Group, Inc. ....................................................................................... 4 
`3. 
`Philip Morris USA, Inc. ............................................................................. 4 
`4. 
`Philip Morris International Inc. .................................................................. 5 
`5. 
`Philip Morris Products S.A. ....................................................................... 5 
`THE TECHNOLOGY AND PRODUCTS AT ISSUE ..................................................... 5 
`A. 
`The Technology ..................................................................................................... 5 
`B. 
`The Accused Products ............................................................................................ 6 
`1. 
`FDA Authorization .................................................................................... 7 
`2. 
`Actual Sales for Importation, Sales After Importation into the
`United States .............................................................................................. 8 
`The IQOS® Holder ..................................................................................... 8 
`3. 
`The IQOS® Disposable Tobacco Sticks ..................................................... 9 
`4. 
`The IQOS® Charger ................................................................................. 10 
`5. 
`Operation and Manufacture of the IQOS® System .................................. 10 
`6. 
`Respondents’ Instructions for Use of the IQOS® System ........................ 11 
`7. 
`THE PATENTS AT ISSUE ............................................................................................. 12 
`A. 
`U.S. Patent No. 9,839,238.................................................................................... 13 
`1. 
`Identification of the Patent and Ownership by Complainant ................... 13 
`2. 
`Non-Technical Description of the ’238 Patent ........................................ 14 
`3. 
`Foreign Counterparts to the ’238 Patent .................................................. 15 
`U.S. Patent No. 9,901,123.................................................................................... 15 
`1. 
`Identification of the Patent and Ownership by Complainant ................... 15 
`2. 
`Non-Technical Description of the ’123 Patent ........................................ 16 
`3. 
`Foreign Counterparts to the ’123 Patent .................................................. 17 
`U.S. Patent No. 9,930,915.................................................................................... 17 
`
`B. 
`
`C. 
`
`-i-
`
`
`
`

`

`TABLE OF CONTENTS
`(continued)
`
`
`
`V. 
`VI. 
`
`Page
`Identification of the Patent and Ownership by Complainant ................... 17 
`1. 
`Non-Technical Description of the ’915 Patent ........................................ 18 
`2. 
`Foreign Counterparts to the ’915 Patent .................................................. 18 
`3. 
`Licensees Under the Asserted Patents ................................................................. 18 
`D. 
`SPECIFIC INSTANCES OF UNLAWFUL IMPORTATION AND SALE ................... 19 
`UNFAIR ACTS OF RESPONDENTS ............................................................................ 23 
`A. 
`Infringement ......................................................................................................... 23 
`1. 
`Direct Infringement .................................................................................. 23 
`2. 
`Indirect Infringement ............................................................................... 24 
`Evidence of Infringement .................................................................................... 27 
`1. 
`The ’238 Patent ........................................................................................ 27 
`2. 
`The ’123 Patent ........................................................................................ 28 
`3. 
`The ’915 Patent ........................................................................................ 28 
`VII.  HARMONIZED TARIFF SCHEDULE INFORMATION ............................................. 28 
`VIII.  THE DOMESTIC INDUSTRY ....................................................................................... 28 
`A. 
`Economic Prong ................................................................................................... 29 
`B. 
`Technical Prong ................................................................................................... 30 
`PHYSICAL SAMPLES ................................................................................................... 30 
`RELATED LITIGATION ............................................................................................... 31 
`RELIEF REQUESTED .................................................................................................... 32 
`
`B. 
`
`IX. 
`X. 
`XI. 
`
`
`
`
`
`
`-ii-
`
`
`
`

`

`
`
`
`Ex. No.
`1
`2
`3
`4
`5
`6
`
`7
`8
`
`9
`10
`
`11
`12
`13
`14
`15
`16
`17
`18
`19
`
`20
`21
`
`22
`23
`24
`25
`26
`27
`28
`29
`
`30
`31
`
`
`
`
`
`EXHIBIT LIST
`
`Description
`Certified Copy of U.S. Patent No. 9,839,238
`Certified Copy of U.S. Patent No. 9,901,123
`Certified Copy of U.S. Patent No. 9,930,915
`Certified Copy of Recorded Assignments for U.S. Patent No. 9,839,238
`Certified Copy of Recorded Assignments for U.S. Patent No. 9,901,123
`Certified Copy of Recorded Assignments for U.S. Patent No. 9,930,915
`Licensing Agreements relating to U.S. Patent Nos. 9,839,238, 9,901,123 and
`9,930,915 (CONFIDENTIAL)
`FDA PMTA Authorization Summary of IQOS® System
`Atlanta Business Chronicle article dated May 1, 2019, entitled “Altria Chooses
`Atlanta To Test Market New FDA-Approved Tobacco Product”
`Altria/Philip Morris Press Release re FDA Authorization of IQOS®
`Investor’s Business Daily article dated July 19, 2019, entitled “Best Dividend
`Stocks: Philip Morris, with 5.2% Yield, Bets Big On IQOS”
`Public Version of Section 3 (Product Description) of MRTPAs on IQOS®
`IQOS User Guide (Section A3.4.1 of PMTAs on IQOS®)
`IQOS Quick Start Guide (Section A3.4.2 of PMTAs on IQOS®)
`IQOS User Guide (Section A3.4.3 of PMTAs on IQOS®)
`FDA Marketing Order Letter re IQOS® System Holder and Charger
`FDA Marketing Order Letter re MarlboroTM HeatSticks
`FDA Marketing Order Letter re MarlboroTM Fresh Menthol HeatSticks
`FDA Marketing Order Letter re MarlboroTM Smooth Menthol HeatSticks
`Philip Morris’s Presentation to Tobacco Products Scientific Advisory Committee
`on the IQOS Heating System, dated January 24, 2018
`Philip Morris’s Website re Making Heated Tobacco Products
`Photographic Images of IQOS® System (including IQOS® holder, charger,
`cleaning tool, and MarlboroTM Heat Sticks)
`Photographic Images of Pack of 20 MarlboroTM HeatSticks
`Photographic Images of Pack of 20 MarlboroTM Fresh Menthol HeatSticks
`Photographic Images of Pack of 20 MarlboroTM Smooth Menthol HeatSticks
`Clinical Trial NCT01967719
`Clinical Trial NCT01989156
`Clinical Trial NCT02396381
`Clinical Trial NCT02649556
`November 18, 2016 Philip Morris Letter to the Food and Drug Administration
`with Modified Risk Tobacco Product Application
`FDA Press Release re Authorization of IQOS®
`-iii-
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`Ex. No.
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`32
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`33
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`34
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`35
`
`36
`37
`38
`39
`
`40
`41
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`42
`43
`
`44
`45
`46
`47
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`48
`49
`50
`51
`52
`53
`54
`55
`56
`
`57
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`
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`Description
`Wall Street Journal article dated April 30, 2019, entitled “FDA Clears Philip
`Morris International Heat-Not-Burn IQOS Device For Sale In U.S.”
`CNBC article dated April 30, 2019, entitled “FDA Clears Philip Morris’ IQOS,
`Altria Plans To Start Selling Heated Tobacco Device In The US This Summer”
`Receipt dated October 7, 2019 for purchasing the IQOS® system from the
`IQOS® store at Lenox Square in Atlanta, Georgia
`Receipt dated October 7, 2019 for purchasing the IQOS® system from the
`IQOS® store at Lenox Square in Atlanta, Georgia
`Receipt dated October 8, 2019 for purchasing the IQOS® system from the
`IQOS® store at Lenox Square in Atlanta, Georgia
`IQOS® User Guide
`IQOS® Quick Start Guide
`Infringement Claim Chart for U.S. Patent No. 9,839,238
`Domestic Industry Claim Chart for U.S. Patent No. 9,839,238
`(CONFIDENTIAL)
`Infringement Claim Chart for U.S. Patent No. 9,901,123
`Domestic Industry Claim Chart for U.S. Patent No. 9,901,123
`(CONFIDENTIAL)
`Infringement Claim Chart for U.S. Patent No. 9,930,915
`Domestic Industry Claim Chart for U.S. Patent No. 9,930,915
`(CONFIDENTIAL)
`List of Foreign Counterparts to U.S. Patent No. 9,839,238
`List of Foreign Counterparts to U.S. Patent No. 9,901,123
`List of Foreign Counterparts to U.S. Patent No. 9,930,915
`Altria Group, Inc.’s Second Quarter 2019 Earnings Call Transcript (July 30,
`2019)
`Declaration of Nicholas Gilley (CONFIDENTIAL)
`Photographic Images of the VUSE® Vibe Device Vapor Pen
`Photographic Images of the VUSE® Solo Device Vapor E-Cig Power Unit Kit
`Photographic Images of VUSE® Vibe Menthol Refill Cartridges
`Photographic Images of VUSE® Vibe Vapor Pen Packaging
`Photographic Images of VUSE® Solo Vapor E-Cig Power Unit Kit Packaging
`Photographic Images of VUSE® Vibe Menthol Refill Cartridges Packaging
`Product Information Guide for the VUSE® Vibe Device Vapor Pen
`Product Information Guide for the VUSE® Solo Device Vapor E-Cig Power Unit
`Kit
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`PHYSICAL EXHIBIT LIST
`
`Ex. No.
`
`PX1
`PX2
`PX3
`PX4
`PX5
`PX6
`PX7
`
`Description
`IQOS® System (including IQOS® holder, charger, cleaning tool, and MarlboroTM
`HeatSticks)
`Pack of 20 MarlboroTM HeatSticks
`Pack of 20 MarlboroTM Smooth Menthol HeatSticks
`Pack of 20 MarlboroTM Fresh Menthol HeatSticks
`VUSE® Vibe Vapor Pen
`VUSE® Vibe Menthol Refill Cartridges
`VUSE® Solo Vapor E-Cig Power Unit Kit
`
`
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`
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`Appx. No.
`A
`B
`C
`D
`E
`F
`
`
`
`LIST OF APPENDICES
`
`Description
`U.S. Patent No. 9,839,238 Certified Prosecution History
`U.S. Patent No. 9,839,238 Cited References
`U.S. Patent No. 9,901,123 Certified Prosecution History
`U.S. Patent No. 9,901,123 Cited References
`U.S. Patent No. 9,930,915 Certified Prosecution History
`U.S. Patent No. 9,930,915 Cited References
`
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`I.
`
`INTRODUCTION
`
`1.
`
`RAI Strategic Holdings, Inc. (“RAI”), R.J. Reynolds Vapor Company (“RJRV”),
`
`and R.J. Reynolds Tobacco Company (“RJRT”) (collectively, “Complainants”) respectfully
`
`request that the United States International Trade Commission (“Commission”) institute an
`
`investigation into violations of Section 337 of the Tariff Act of 1930, as amended, 19 U.S.C.
`
`§ 1337, by the Proposed Respondents Altria Client Services LLC (“ACS”), Altria Group, Inc.
`
`(“AGI”), Philip Morris USA, Inc. (“PM USA”), Philip Morris International Inc. (“PMI”), and
`
`Philip Morris Products S.A. (“PMP”) (collectively, “Respondents”).
`
`2.
`
`This Complaint is based on Respondents’ unlawful and unauthorized ongoing
`
`importation into the United States, sale for importation, and/or sale within the United States after
`
`importation of certain tobacco heating articles and components thereof. Respondents’ products
`
`infringe at least one or more claims listed below (“Asserted Claims”) of the following U.S.
`
`patents (“Asserted Patents”):
`
`U.S. Patent No.
`
`Asserted Claims1
`
`9,839,238 (Ex. 1)
`
`19*
`
`9,901,123 (Ex. 2)
`
`27*, 28, 29, 30
`
`9,930,915 (Ex. 3)
`
`1*, 2, 5
`
`3.
`
`The Asserted Patents are valid and enforceable United States patents, the entire
`
`right, title, and interest to which RAI owns by assignment. Exs. 4-6. RJRV is an exclusive
`
`licensee of the Asserted Patents. Ex. 7. RJRT has conducted (and continues to conduct)
`
`research and development and has provided (and continues to provide) technical support for
`
`
`1 Independent claims are denoted by *.
`
`
`
`
`
`

`

`
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`products practicing the Asserted Patents. In addition, RJRT has made (and continues to make)
`
`investments in plant, equipment, capital, and labor relating to the products practicing the
`
`Asserted Patents in the United States.
`
`4.
`
`Respondents’ activities with respect to the ongoing importation into the United
`
`States, sale for importation into the United States, and/or sale within the United States after
`
`importation of certain tobacco heating articles and components thereof, described more fully
`
`infra, are unlawful under 19 U.S.C. § 1337(a)(l)(B)(i) in that they constitute infringement of the
`
`valid and enforceable Asserted Patents.
`
`5.
`
`A domestic industry exists in the United States relating to articles protected by the
`
`Asserted Patents, described more fully infra, as required by Section 337 (a)(2) and defined by
`
`Section 337 (a)(3). Complainants’ domestic industry includes significant domestic investments
`
`in plant and equipment, significant employment of labor and capital, and substantial investments
`
`in the exploitation of the inventions claimed in the Asserted Patents, including through research
`
`and development and engineering relating to the exploitation of the claimed inventions and
`
`articles protected by the Asserted Patents, including Complainants’ VUSE® Vibe and VUSE®
`
`Solo products (“Domestic Industry Products” or “D.I. Products”). Exs. 50-57; PX 5-7.
`
`Complainants manufacture components of their VUSE® Vibe and VUSE® Solo products in the
`
`United States. Id.
`
`6.
`
`To remedy Respondents’ continuing unfair and unlawful violations of Section
`
`337, Complainants seek, as permanent relief, a limited exclusion order pursuant to 19 U.S.C.
`
`§ 1337(d) barring from entry into the United States Respondents’ products that infringe one or
`
`more of the Asserted Claims of the Asserted Patents. Complainants also seek cease and desist
`
`orders pursuant to 19 U.S.C. § 1337(f) prohibiting each Respondent from engaging in the
`
`
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`importation into the United States, as well as the sale within the United States af