March 9, 2020
News Release 20-020
Inv. No(s). 337-TA-1192
Contact: Peg O'Laughlin, 202-205-1819
USITC Institutes Section 337 Investigation of Certain Nicotine Pouches and Components Thereof and Methods of Making the Same

The U.S. International Trade Commission (USITC) has voted to institute an investigation of certain nicotine pouches and components thereof and methods of making the same.  The products at issue in the investigation are described in the Commission’s notice of investigation.

The investigation is based on a complaint filed by NYZ AB of Stockholm, Sweden; Swedish Match North America, LLC, of Richmond, VA; Pinkerton Tobacco Co., LP, of Owensboro, KY; and wm17 holding GmbH of Baar, Switzerland, on February 10, 2020.  The complaint alleges violations of section 337 of the Tariff Act of 1930 in the importation into the United States and sale of certain nicotine pouches and components thereof and methods of making the same that infringe a patent asserted by the complainants.  The complainants request that the USITC issue a limited exclusion order and cease and desist orders.  The USITC has identified the following as respondents in this investigation:

The Art Factory AB of Helsingborg, Sweden;
Kretek International, Inc., of Moorpark, CA; and
DRYFT Sciences, LLC, of Moorpark, CA.

By instituting this investigation (337-TA-1192), the USITC has not yet made any decision on the merits of the case.  The USITC’s Chief Administrative Law Judge will assign the case to one of the USITC’s administrative law judges (ALJ), who will schedule and hold an evidentiary hearing.  The ALJ will make an initial determination as to whether there is a violation of section 337; that initial determination is subject to review by the Commission.

The USITC will make a final determination in the investigation at the earliest practicable time.  Within 45 days after institution of the investigation, the USITC will set a target date for completing the investigation.  USITC remedial orders in section 337 cases are effective when issued and become final 60 days after issuance unless disapproved for policy reasons by the U.S. Trade Representative within that 60-day period.

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