Free access: Plain tobacco packaging becomes law in Australia
Managing IP is part of the Delinian Group, Delinian Limited, 4 Bouverie Street, London, EC4Y 8AX, Registered in England & Wales, Company number 00954730
Copyright © Delinian Limited and its affiliated companies 2024

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Free access: Plain tobacco packaging becomes law in Australia

Australia’s government passed plain packaging legislation today but now faces a legal fight on at least two fronts as the tobacco companies step up their campaign against the law

The Senate passed the legislation earlier this month with a series of amendments that were approved by the House of Representatives today.

This means that from December next year all tobacco sold in Australia will be sold in plain, dark brown packs – with no industry logos, brand imagery, colours or promotional text.

The name of the brand of cigarettes will appear on the pack in a standard font size, colour and position.

Within hours, Philip Morris Asia said that it had served a notice of arbitration under Australia’s Bilateral Investment Treaty with Hong Kong.

"We are left with no option," said Anne Edwards, a spokesperson for Philip Morris Asia, adding that Australia’s government has ignored "serious legal issues associated with plain packaging".

The company wants the legislation to be suspended and compensation to be paid for what it describes as the loss of the company’s trade marks in Australia.

"We are confident that our legal arguments are very strong and that we will ultimately win this case," said Edwards.

The legislation was split into two Bills – Tobacco Plain Packaging Bill 2011 and Trade Marks Amendment (Tobacco Plain Packaging) Bill 2011.

The tobacco companies have consistently argued that the legislation breaches Australia’s commitments under the TRIPs Agreement, violates the country’s constitution and will make it easier for cigarette packets to be counterfeited.

Philip Morris Asia announced its intention to sue the Australian government using the Bilateral Trade Agreement with Hong Kong in June.

The company’s statement today said that its Australian subsidiary will also be pursuing claims under domestic law before the High Court of Australia.

British American Tobacco Australia said earlier this month that it intends to sue the Australian government in the High Court as soon as the legislation receives Royal Assent.

BAT claims that it is unconstitutional for the federal government to remove its property without compensation.

"In years to come plain packaging will be remembered as the legislation which wasted billions of taxpayer’s dollars, caused uncontrollable growth in organised gang activity on the black market and increased smoking rates in young people."

Click here to read all of Managing IP’s coverage of the plain packaging controversy.

more from across site and ros bottom lb

More from across our site

A 36-member team from Zhong Lun Law Firm, including six partners, will join the newly formed East IP Group
The Delhi High Court sided with Ericsson against Indian smartphone maker Lava, bringing the companies' nine-year dispute to a close
We provide a rundown of Managing IP’s news and analysis from the week, and review what’s been happening elsewhere in IP
Tennessee has passed the ELVIS Act, a law that fights against AI models that mimic the voice and likeness of music artists
Rob Stien, chief communications and public policy officer at InterDigital, says the EU has forgotten innovators while trying to solve an issue that doesn’t exist
As Australia’s Qantm IP leans towards being acquired by a private equity company, sources discuss what it could mean for IP firms
Law firms that are conscious of their role in society are more likely to win work, according to a survey of over 23,000 in-house professionals
Nghiem Xuan Bac Pham, managing partner of Vision & Associates, discusses opportunities created by the US-China rift as well as profitability issues facing IP practices
Douglas Leite and two of his colleagues were intrigued by Bhering Advogados’s mission to grow its patent litigation practice
Each week Managing IP speaks to a different IP practitioner about their life and career
Gift this article