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Article: ITC Rejects Big Tobacco’s Push to Destroy the Vape Market

ITC Rejects Big Tobacco’s Push to Destroy the Vape Market

The recent U.S. International Trade Commission (ITC) decision in favor of SV3 (Mi-One Brands) represents a major victory for the independent vaping industry and the retailers who rely on it. In a case brought by RJ Reynolds, the ITC ultimately found no violation of Section 337, rejecting claims that could have severely restricted vape product imports into the United States.

Here you can read the official statement of Vapor Technology Association.

Section 3387: Tariff Act of 1930 and Vaping in 2026

Section 337 refers to a part of the Tariff Act of 1930 (19 U.S.C. §1337) that allows the U.S. International Trade Commission (ITC) to investigate unfair trade practices involving imported products. Most cases involve claims that imported goods infringe U.S. intellectual property, such as patents, trademarks, or copyrights.

These cases move faster than typical court lawsuits and can have huge market impact because they affect entire product categories at the import level. In industries like vaping, electronics, or consumer goods, a Section 337 ruling can determine whether products stay on the U.S. market or are banned at the borderSection 337 is a trade law tool companies use to try to block competitors’ products from being imported into the United States, often based on patent or intellectual property claims.

What this Decision Means for You

For convenience stores, vape shops, and gas stations, the stakes were extremely high. If RJ Reynolds had prevailed, the ruling could have resulted in an exclusion order that would have immediately removed many popular vaping products from the U.S. market. Such a move would have dramatically limited product selection for retailers and potentially handed significant market control to Big Tobacco companies.

The ITC’s decision helps preserve a competitive marketplace and ensures that independent distributors like SV3 can continue supplying the products adult vapor consumers demand. For Mi-Pod Wholesale customers, the ruling protects access to a wide range of top-selling devices and maintains the product diversity that drives store traffic and category growth.

Vapor Technology Association Official Statement

WASHINGTON – March 11, 2026 –

Yesterday’s decision by the International Trade Commission ruling no violation in the case brought by R.J. Reynolds Tobacco Company and its affiliates is a corroboration and validation of what the Vapor Technology Association has passionately advocated for: a free and fair marketplace that limits the power of Big Tobacco monopolies and allows the independent U.S. vaping industry a chance to continue to deliver less harmful vaping products to American consumers struggling to quit smoking. 

Without this ruling, an exclusion order banning all nicotine vaping devices from entering the United States would have been implemented. Such a ban would have decimated the independent U.S. vaping industry – which accounts for more than $20 billion in economic output and employs approximately 130,000 Americans – and handed control of the entire vaping marketplace to a cigarette company, forcing Americans to return to smoking deadly cigarettes. 

The ITC’s decision yesterday represents a positive path forward for our industry. It proves that unlike the misguided FDA, some federal agencies are still willing to stand up to corporate interests for the good of our free market and American public health. The ITC’s decision, rejecting all of the claims, is a decisive blow against those seeking to use government agencies to corner a market and a huge step for President Trump’s America First agenda. 

We appreciate the ITC referencing our submission in its final decision and take this inclusion as a sign that the ITC seriously listened to the concerns of the massive American independent vaping industry.

Sterne Kessler Secures Victory for SV3 in Section 337 Investigation

Washington, D.C. (March 11, 2026) – Sterne, Kessler, Goldstein & Fox secured a defense victory for SV3, a leading distributor of vape products in the United States, in Investigation No. 337-TA-1410 before the U.S. International Trade Commission (ITC). The Commission issued its final determination on March 10, 2026, with a finding of no violation of Section 337.

Complainant RJ Reynolds (RJR) accused SV3 and 34 other disposable e-cigarette manufacturers and distributors of unfair importation. RJR moved for emergency relief via a motion for a Temporary Exclusion Order (TEO), which was defeated in November 2024.

In the final determination, the Commission reversed the Administrative Law Judge's (ALJ) initial determination of violation, finding that the two surviving dependent claims of U.S. Patent No. 11,925,202 were invalid as obvious under 35 U.S.C. 103. Accordingly, the Commission found no violation and terminated the investigation.

“We are pleased with the Commission’s final determination, which brings this investigation to a close for our client,” said Danny Yonan. “We appreciate the Commission’s careful consideration of the record.”

The Sterne Kessler team representing SV3 was led by Directors Daniel Yonan, head of the firm’s U.S. International Trade Commission Practice Group, and Uma Everett, a member of the firm’s Trial & Appellate Practice Group. The team also included Directors Kyle Conklin, Kristina Caggiano Kelly, and Ryan Richardson, and Associates Tyler Drye, Brooke McLain, and Joseph Venier.

About Sterne, Kessler, Goldstein & Fox

Based in Washington, D.C. and renowned for more than four decades for dedication to the protection, enhancement, and enforcement of intellectual property rights, Sterne, Kessler, Goldstein & Fox is one of the most highly regarded intellectual property specialty law firms in the world. Its team of attorneys, registered patent agents, technical specialists, specialized trademark paralegals, and law clerks include some of the country’s most respected practitioners of IP law, tackling innovations across a broad spectrum of industries. The firm’s practitioners represent Fortune 500 companies, entrepreneurs, start-ups, inventors, venture capital firms, and universities in a client service driven environment that is welcoming, inclusive, and intellectually stimulating. Visit the firm online at sternekessler.com.

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