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Lorillard subsidiaries sue Zippo in the UK over blu e-cig

(Reuters) - Lorillard Inc said two of its e-cigarette subsidiaries sued Zippo Manufacturing Co in the United Kingdom to protect itself from Zippo's claims of trademark infringement regarding the blu brand of e-cigarettes.

Cygnet UK Trading Ltd, a subsidiary of the U.S. tobacco giant has faced criticism for its blu e-cigarettes as it allegedly creates trademark confusion with lighter and fuel products sold by Zippo.

Last month, a German court ordered Cygnet to stop selling the blu e-cigarettes in that country, citing patent infringement.

The blu e-cigarettes business is being sold to Imperial Tobacco Group Plc as part of Lorillard's $27.4 billion merger with Reynolds American Inc .

Cygnet and the other unit, Lorillard Technologies Inc, filed for an injunction and declarations with the High Court of Justice in London, Lorillard said on Wednesday.

The injunction asks that Zippo be ordered to stop repeating its "unfounded threats" against Cygnet and seeks damages for Zippo's conduct.

"Zippo is trying to unfairly capitalise on the commercial success of our blu e-cigs electronic cigarettes business despite the fact that blu e-cigs products could not possibly cause damage to Zippo's lighter sales," Ronald Milstein, Lorillard's executive vice president said in the statement.

The filing also seeks the court's declaration that the current use of the blu e-cigarettes trademark does not infringe Zippo's claims of intellectual property rights.

Lorillard said it does not expect a court ruling until late 2015.


(Reporting by Devika Krishna Kumar in Bangalore; Editing by Savio D'Souza)