| China may outlaw cannabis consumption, but that hasn't prevented Shenzhen Smoore Technology and other Chinese companies from becoming critical suppliers of the vape pens used by US marijuana consumers. Smoore is currently embroiled in a legal battle with New York-based Blinc Group over its intellectual property. It's being closely watched in the $4.6 billion US vape pen market, which trails only the flower itself in marijuana-related spending, according to cannabis data provider Headset. A judge at the International Trade Commission made an initial determination in early February that Blinc didn't violate three of Smoore's patents. It's the latest step in a 16 month-long investigation. At stake is the industry of vape hardware, which has already seen questions about whether heated components or ingredients in e-liquids can expose the lungs to toxins. If Blinc prevails, it could give US consumers more choice when it comes to vape paraphernalia. If the initial ruling is reversed, it could crimp Blinc's ability to import components to produce its vapes. Smoore has requested a review of Judge Clark Cheney's opinion with the trade panel's board of commissioners. Should the panel's commissioners side with Cheney, Smoore can still appeal to a federal court. As a last resort, the president also has the power to review and veto decisions from the ITC — although it would be unlikely that he would rule in favor of a Chinese company. Smoore has been aggressive in going after other companies over intellectual property, filing numerous lawsuits as it seeks to tighten its grip on the industry. It first filed its complaint with the ITC in October 2021, arguing that companies such as Blinc are copying its patented inventions for ceramic vaporizer cartridges. The company, which says on its website that it has applied for more than 1,600 patents in China and overseas and has been granted more than 700 of them, declined to comment. Smoore International Holdings, the parent company, has a market capitalization of about 59.6 billion Hong Kong dollars ($7.6 billion). Vape pens have become the second-highest revenue earner for weed retailers, capturing around 24% of sales across 1o states in 2022, according to Headset. That same year, vape pen retail sales jumped 77% to $4.6 billion from the previous year. In an emailed statement, Blinc said that the initial ruling paves the way "for healthy competition in the cannabis vaporizer space." "Although 99% of vaping products are assembled abroad, this result serves as a reminder that foreign companies, no matter how big they are, should think twice before going after American businesses on American soil," the company said. The initial ruling may be difficult to overturn. Cheney found that Smoore's US subsidiaries — which Smoore had argued needed protection in its case — were just importers of Smoore products. He also determined that the company could not enforce one of its patents, writing that the company obtained them improperly. The dispute is part of the larger ongoing battle over patents and intellectual property as China seeks to bolster its technology and strengthen its companies. Tensions between Beijing and Washington have ramped up in recent years on issues related to technology and trade, with the US recently seeking to limit China's access to sensitive semiconductor technology. Even so, trade between the countries has continued to rise. Marshall Custer, an attorney specializing in cannabis issues at Hursch Blackwell, said that more intellectual-property disputes may arise going forward, given cannabis remains a young industry. "When you start getting into genesis and production methods for cannabis products in general, that is in the very early stages as well, that will ramp up over time," Custer said. He added that the "overwhelming majority" of his clients source their products from Chinese manufacturers. | 
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