Dallas, Texas 03/13/2014 (FINANCIALSTRENDS) – Altria Group Inc (NYSE:MO) is a Richmond, US based electronic and smokeless products and is the holding company for Philip Morris USA Inc.
Altria Group Inc(NYSE:MO) is expected to become one of the major players in the future of cigarettes industry. The company is expected to play an important part as will other companies such as Lorillard LOEC Inc, besides Reynolds. Between them, these three manufacturers will hold the market for natural cigarettes as well as the now increasingly popular ecigarettes.
The difference between both the cigarette types is minimal. Where the conventional cigarette burns dried and rolled tobacco leaves when lit, the e-cigarettes will light up liquid nicotine inside a cartridge and the vapour thus created are inhaled. The lighting of this device is with battery-powered devices.
Currently, a lawsuit has been filed by Imperial Tobacco Group Plc, subsidiary for infringing on some of the patents it holds on e-cigarette devices. The subsidiary is called Fontem Ventures, and is located in Netherlands and has accused nearly 11 companies such as Lorillard Inc and others for violating some of the technologies it holds patents on.
Altria Group Inc(NYSE:MO) has been spared from the lawsuit, as this company is known to develop the technology for the ecigarettes internally.
The lawsuit will affect Lorillard Inc as it offers a brand called the blue Cigs, NJoyInc, Ballantyne Brands LLC at Charlotte as well as Mistic brand besides Vapor Corp, which also offers several of these products.
Considering the fact that nearly 70% of the e-cig market is already held by these products, it needs to be seen if the lawsuit will hold any influence on their sale.
Conventional cigarettes will continue to be used, along with many embracing the vapour-based nicotine fix which the e-cigarettes offer. The law suit however has not specified the damages it is seeking for infringement of its technologies.
