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Juul and Boulder enter into litigation war in the United States

2021/03/25|Industry news

According to the information of foreign media, Juul filed a civil lawsuit against platinum International Co., Ltd. in the court of Northern California of the United States, accusing platinum International Co., Ltd. of improper competition. Juul asked platinum International Co., Ltd. to stop infringing on the reputation of Juul, stop improper market behavior, make a public apology, and reserve the right to ask platinum International Co., Ltd. to compensate for the losses.

Platinum International's parent company, platinum (Shenzhen) Technology Co., Ltd. (hereinafter referred to as platinum company), also gave a response at the first time.

A spokesman for the company said: Juul's accusation against the company is absurd. Over the past two years, Juul's North American market share has dropped by dozens of percentage points. Juul should look for the reasons for its failure from itself. The company is ready to launch a civil lawsuit against Juul in the New Jersey court.

At present, there is not much information about this lawsuit, but relevant people think that Juul's move is very sudden.

Because in my impression, Juul has little connection with platinum, and it is impossible to talk about the alleged infringement of its reputation and improper market behavior. However, from the response of platinum, it seems that there is indeed friction between the two companies.

According to the analysis of people familiar with the electronic cigarette market in the United States, with the rapid decline of Juul's market share in the past two years, platinum International's market in the United States is becoming larger and larger, and the two companies that originally had less competition began to face-to-face competition, so friction is inevitable. "It's very common for big brands to compete for power channels in the United States."

Juul and Bode have submitted a number of PMTA applications to the US FDA, and both parties have applied for PMTA for cigarette oil. They are one of the few compliant cigarette oil suppliers in the US market and are undoubtedly direct competitors.

Generally speaking, to initiate a lawsuit against a competitor, on the one hand, is to recover the loss, on the other hand, it is also to interfere with the other party through legal means. After all, the lawsuit procedure is very complicated and tedious. A protracted lawsuit will involve a lot of time, energy and financial resources, and Juul has a lot of experience in this respect.

However, platinum and Germany are obviously not prepared to respond passively. They claim to counterclaim with Juul and take a very tough attitude.

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