Reynolds to Pay 5% Vape Profits as Royalty After Patent Verdict

R.J. Reynolds Vapor Co. must fork over 5.25% of the positive net sales of its popular Vuse Alto e-cigarette to Altria Group Inc. for more than the next decade, a North Carolina federal judge ruled, following a September jury verdict in which the Vuse was found to infringe three Altria patents.

After the $95 million verdict in Altria’s favor, the company had asked for a 10.5% royalty on the Alto’s positive net sales going forward until the vape pod patents expire in 2035. Judge N. Carlton Tilley Jr. granted only half that amount on Friday, saying there was no need ...