Philip Morris fights Aussie law
Source: Agencies |
June 28, 2011, Tuesday
|
Print Edition
Print Edition
TOBACCO giant Philip Morris launched legal action yesterday against the Australian government over the country's plans to strip company logos from cigarette packages and replace them with grisly images of cancerous mouths, sickly children and bulging, blinded eyes.
The government believes the new rules will make the packages less attractive to smokers and turn Australia into the world's toughest country on tobacco advertising.
Several outraged cigarette makers have threatened lawsuits, arguing the move illegally diminishes the value of their trademarks. Philip Morris is the first to file a claim for compensation.
The leagislation, which will be introduced to Parliament in July, would ban cigarette makers from printing their logos, promotional text or colorful images on cigarette packs.
Brand names will instead be printed in a small, uniform font and feature large health warnings and gruesome, full-color images of the consequences of smoking. The law would be phased in over six months, starting in January 2012.
Hong Kong-based Philip Morris Asia Limited, which owns the Australian affiliate Philip Morris Limited, filed a notice of claim yesterday arguing the legislation violates a bilateral investment treaty between Australia and Hong Kong.
The tobacco company said the treaty protects companies' property, including intellectual property such as trademarks. The plain packaging proposal severely diminishes the value of the company's trademark.
The government denied the plan breaks any laws and said it would not back down.
The government believes the new rules will make the packages less attractive to smokers and turn Australia into the world's toughest country on tobacco advertising.
Several outraged cigarette makers have threatened lawsuits, arguing the move illegally diminishes the value of their trademarks. Philip Morris is the first to file a claim for compensation.
The leagislation, which will be introduced to Parliament in July, would ban cigarette makers from printing their logos, promotional text or colorful images on cigarette packs.
Brand names will instead be printed in a small, uniform font and feature large health warnings and gruesome, full-color images of the consequences of smoking. The law would be phased in over six months, starting in January 2012.
Hong Kong-based Philip Morris Asia Limited, which owns the Australian affiliate Philip Morris Limited, filed a notice of claim yesterday arguing the legislation violates a bilateral investment treaty between Australia and Hong Kong.
The tobacco company said the treaty protects companies' property, including intellectual property such as trademarks. The plain packaging proposal severely diminishes the value of the company's trademark.
The government denied the plan breaks any laws and said it would not back down.
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