Tobacco
The Troutman Sanders Tobacco Team consists of partners, attorneys of counsel and associates. The Team includes a former state Attorney General and Deputy Attorney General who have the "inside" experience, legal skills and business savvy to best service our tobacco clients in particular. The Tobacco Team works closely together and with clients to develop business strategies (particularly as they pertain to state escrow compliance issues); to maneuver through the complicated regulatory process; and to handle branding, transactional and litigation matters.
Policy Management
The tobacco industry changed forever after the states and four original participating manufacturers signed the Master Settlement Agreement (MSA) in 1998. As a result, tobacco manufacturers, importers or related entities that have not signed the MSA face a host of regulatory hurdles that impact their business operation and finances. The Troutman Sanders Tobacco Team regularly advises these compliant non-participating companies on the various states' regulations governing escrow payments, on the establishment of qualified escrow agreements, and on disputes concerning conditions under which funds should be released from escrow. We also assist these companies in determining methodologies to minimize escrow payments to the states while remaining compliant with state laws and regulations. This includes the voluminous complimentary statutes intended to provide states with certain enforcement tools.
In addition, many states have enacted statutes or promulgated regulations that require non-participating manufacturers to submit quarterly reports of sales, quarterly escrow payments and certain distributor reports, which, unless closely monitored, could result in the tobacco company being placed on the states' non-compliant list. Placement on such a list results in the tobacco manufacturer's product being deemed contraband and subject to seizure by the state. Our Team works closely with tobacco manufacturers to develop reporting systems so states receive the required information in a timely manner and in the proper form, thereby allowing the manufacturer to focus on real business issues.
Business and Commercial Law, Domestic and International
Members of our Team have experience in corporate and transactional work both in the U.S. and abroad. They assist in the formation, acquisition, merger and sale of corporate entities and in the purchase and sale of corporate assets. In particular, they advise cigarette manufacturers on a daily basis in the review, drafting and negotiation of business operating agreements including financing, supply, sales, technology license, distributor, broker, cigarette manufacturing and other related agreements.
Intellectual Property
Brand protection is most important in the cigarette business, and our Team has added value in this area by analyzing registrability, securing registration of foreign and domestic trademarks, and securing registration of copyrights. We know how important it is that trademarks be licensed in writing and their use monitored for proper quality control in order to avoid abandonment of trademark rights. Our Team performs all necessary tasks to protect, police and enforce trademark and copyrights, including intellectual property audits. We are well-versed in sweepstakes and promotions, as well as Web site requirements, which are popular with businesses of all types.
Commercial Litigation
When litigation arises, it is a distraction for corporate management and an interruption of the company's true business. The litigators on our Tobacco Team are skilled and equipped to successfully represent cigarette manufacturers in matters ranging from multi-district and class action litigation to commercial disputes in state and federal trial courts. They have experience representing clients in litigation concerning trademark, corporate, employment, finance and products liability matters. More importantly, they understand the business needs of our tobacco manufacturing clients and make a real goal to avoid litigation when possible.
Labor, Employment, Occupational Health and Safety
The most important business asset are the people. We regularly advise cigarette manufacturers regarding employment and related health and safety issues. Our Team is able to provide guidance throughout the process of considering employment agreements, confidentiality and non-competition policies, retirement and health benefit plans, and related matters pertaining to use of contractors.