Philip Morris launches legal action against Australia

[jbond197]

Philip Morris launches legal action against Australia over plan for plain cigarette packs

SYDNEY — Tobacco giant Philip Morris launched legal action on Monday 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 of those companies to file a claim for compensation.

“We would anticipate that the compensation would amount to billions,” Philip Morris spokeswoman Anne Edwards told The Associated Press.

The legislation, 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 on Monday arguing the legislation violates a bilateral investment treaty between Australia and Hong Kong.

The tobacco company says the treaty protects companies’ property, including intellectual property such as trademarks. The plain packaging proposal severely diminishes the value of the company’s trademark, Edwards said.

“Our brands are really one of the absolute key valuable assets that we have as a company — it’s what helps us compete, it’s what enables us to distinguish our products,” Edwards said. “This move ... would essentially amount to confiscation of our brand in Australia.”

The government denied the plan breaks any laws and said it would not back down.

“Our government is determined to take every step we can to reduce the harm by tobacco,” Health Minister Nicola Roxon said. “We won’t be deterred by tobacco companies making threats or taking legal action.”

Prime Minister Julia Gillard also brushed off Philip Morris’ threats. “We’re not going to be intimidated by big tobacco’s tactics,” she told Australian Broadcasting Corp.

The legal notice filed Monday opens up a three-month period of negotiation between the two sides. Philip Morris said if a “satisfactory outcome” isn’t achieved by the end of the three months, it will seek arbitration.

Copyright 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Good Job Aussies !! We need to act strictly against these tobacco companies they are taking so many lives and helping pollute environment. Hats off to you for taking a solid step in an effort to restrict them.

 

[twoplustwoisfour]

Pollute the environment? Seriously?

On topic: Where is the right of the consumer? Where's the right of the businessmen?

What would happen if tomorrow PDF was told to remove all logos and advertisements and replace them with dead bodies? Then why should the same standard not be applied to tobacco companies?

 

[Awesome]

Tobacco should be outright banned... Especially with the advent of electric cigarettes that give a nicotine fix without the tar, regular cigarettes should be abolished.

Right of the consumer, the businessman goes out the window when we know that cigarette smokers still regularly smoke in the company of non-smokers and harm people who have a right to not be harmed.

 

[SpArK]

Tobacco should be outright banned... Especially with the advent of electric cigarettes that give a nicotine fix without the tar, regular cigarettes should be abolished.

Right of the consumer, the businessman goes out the window when we know that cigarette smokers still regularly smoke in the company of non-smokers and harm people who have a right to not be harmed.

 

[jbond197]

Pollute the environment? Seriously?

Yes seriously. Being an ex-smoker, i know how many people we make passive smoker by smoking at public places. What ever you exhale after smoking is definitely not good for environment hence the claim of polluting the environment. Its difficult for a smoker to admit this for sure. Leave this habit and then you will realize how bad passive smoking is and how difficult it is to breathe when somebody is smoking around you.

On topic: Where is the right of the consumer? Where's the right of the businessmen?

Nobody stopped the sale of cigarettes. Graphic images on cigarettes packs are for the benefit of consumer and businesses have to comply with the changes in the rules anyhow.

What would happen if tomorrow PDF was told to remove all logos and advertisements and replace them with dead bodies? Then why should the same standard not be applied to tobacco companies?

Some body will do or suggest to do so only if PDF becomes as deadly a disease as smoking is. Mind it this action is not against businesses its rather pro civic health and a good step indeed.. Aussie govt is doing real good for their future generations..

 

[DarK-LorD]

Tobacco should be outright banned..

Dark days ahead.

 

[jbond197]

Tobacco should be outright banned... Especially with the advent of electric cigarettes that give a nicotine fix without the tar, regular cigarettes should be abolished.

Right of the consumer, the businessman goes out the window when we know that cigarette smokers still regularly smoke in the company of non-smokers and harm people who have a right to not be harmed.

Very good point. Those running low on nicotine can look for options like electric cigarettes to help suppress their craving rather than forcing 1000's of non-smokers to inhale what they are exhaling... We are worrying here about rights of smokers and businesses but why not worry about the rights of non-smokers. They would not like to die of cancer because somebody else likes to smoke.

 

[Awesome]

Dark days ahead.

The darkness is all in your mind man, the rest of us live a happy, addiction free life. Pretty and bright here. Moreover its not like there aren't options out there, we are not going to throw you to the wolves, you need help like any other addict and we suggest you take it rather than carry on your injurious behavior.

In most countries now they are making specialized smoker rooms where addicts can go and smoke. It does help since they are saying those rooms would have their own ventilation system. Although I think its the wrong approach, and banning is the next logical step. Offer nicotine substitutes to those badly affected.

 

[twoplustwoisfour]

People here need to watch 'Thank you for Smoking'.

That's all.

 

[T-Faz]

I don't understand how banning cigarettes ads and promotion material will effect its market, after all those who want to smoke continue to smoke and many more pick up the habit.

I grew up in a time when tobacco advertisement was at its peak, I was inundated by ads from Marlboro, Benson & Hedges and Philip Morris. I certainly thought that the ads were cool but they never made me want to smoke. I don't smoke and such ads do not have any impact on me, I fail to see how the current trend has any effect on the tobacco market.

 

[twoplustwoisfour]

Yes seriously. Being an ex-smoker, i know how many people we make passive smoker by smoking at public places. What ever you exhale after smoking is definitely not good for environment hence the claim of polluting the environment. Its difficult for a smoker to admit this for sure. Leave this habit and then you will realize how bad passive smoking is and how difficult it is to breathe when somebody is smoking around you.

Look, I'm not a smoker but I feel for the rights of smokers. Smoking is public areas is equivalent to having a loud ringtone, it's a pain in the butt, but in the context, it's nothing but an irritant. To say that smoking causes pollution is a huge hyperbole. If you want to control pollution, ban cars and ask everyone to use public transport. You don't put warning on CDs saying loud music makes you deaf, then why the discrimination against cigarettes?

Nobody stopped the sale of cigarettes. Graphic images on cigarettes packs are for the benefit of consumer and businesses have to comply with the changes in the rules anyhow.

No, it's not in the benefit of the consumer. It's in the favour of the anti-smoking lobby.

 

[jha]

In India, already such pictures are there on the cig. packs.. People in search of Clean Oxygen do not pay heed to these distractions..

 

[saniaehsan]

Philip Morris is also violating laws in Pakistan. Media has reported that Tobacco Control Cell fo Government of Pakistan has started action against Philip Morris for illegally advertising in print media. Government has put ban on all sort of tobacco ads in media. Philip Morris has also evaded million of rupees by under invoicing of import of Marlboro cigarettes. Civil society should raise their voice against Philip Morris for violating President's ordinance regarding smoking.

 

[xdrive]

Good Job Aussies !! We need to act strictly against these tobacco companies they are taking so many lives and helping pollute environment. Hats off to you for taking a solid step in an effort to restrict them.

Thanks.

Just a bit of information for everyone. 15,000 Australians die a year from smoking related illnesses. Smoking is a massive killer