When tobacco regulation goes too far...
Tobacco companies argued that the new rules will destroy the values of their brands
llustrations obtained by Reuters show some of the proposed models of cigarettes packs in this April 7, 2011 file photo. Australia's highest court upheld the world's toughest anti-cigarette marketing laws on Aug. 15, 2012.
Continued at: http://www.msnbc.msn.com/id/48669041
Tobacco companies argued that the new rules will destroy the values of their brands
llustrations obtained by Reuters show some of the proposed models of cigarettes packs in this April 7, 2011 file photo. Australia's highest court upheld the world's toughest anti-cigarette marketing laws on Aug. 15, 2012.
CANBERRA, Australia — Australia's highest court upheld the world's toughest law on cigarette promotion on Wednesday despite protests from tobacco companies that argued the value of their trademarks will be destroyed under new rules that will strip all logos from cigarette packs.
The decision by the High Court means that starting in December, tobacco companies will no longer be able to display their distinctive colors, brand designs and logos on cigarette packs. The packs will instead come in a uniformly drab shade of olive and feature graphic health warnings and images of cancer-riddled mouths, blinded eyeballs and sickly children. The government hopes the new packs will make smoking as unglamorous as possible.
"This is a victory for all those families who have lost someone to a tobacco-related illness. For anyone who has ever lost someone, this is for you," Attorney General Nicola Roxon and Health Minister Tanya Plibersek said in a joint statement. "No longer when a smoker pulls out a packet of cigarettes will that packet be a mobile billboard."
Fears of global precedent
British American Tobacco, Philip Morris International, Imperial Tobacco and Japan Tobacco International are worried that the law will set a global precedent that could slash billions of dollars from the values of their brands. They challenged the new rules on the grounds that they violate intellectual property rights and devalue their trademarks.
The cigarette makers argued that the government would unfairly benefit from the law by using cigarette packs as a platform to promote its own message, without compensating the tobacco companies. Australia's constitution says the government can only acquire the property of others on "just terms."
The court, which ordered the tobacco companies to pay the government's legal fees, withheld its reasons for the judgment on Wednesday. They'll be released later this year.
The decision by the High Court means that starting in December, tobacco companies will no longer be able to display their distinctive colors, brand designs and logos on cigarette packs. The packs will instead come in a uniformly drab shade of olive and feature graphic health warnings and images of cancer-riddled mouths, blinded eyeballs and sickly children. The government hopes the new packs will make smoking as unglamorous as possible.
"This is a victory for all those families who have lost someone to a tobacco-related illness. For anyone who has ever lost someone, this is for you," Attorney General Nicola Roxon and Health Minister Tanya Plibersek said in a joint statement. "No longer when a smoker pulls out a packet of cigarettes will that packet be a mobile billboard."
Fears of global precedent
British American Tobacco, Philip Morris International, Imperial Tobacco and Japan Tobacco International are worried that the law will set a global precedent that could slash billions of dollars from the values of their brands. They challenged the new rules on the grounds that they violate intellectual property rights and devalue their trademarks.
The cigarette makers argued that the government would unfairly benefit from the law by using cigarette packs as a platform to promote its own message, without compensating the tobacco companies. Australia's constitution says the government can only acquire the property of others on "just terms."
The court, which ordered the tobacco companies to pay the government's legal fees, withheld its reasons for the judgment on Wednesday. They'll be released later this year.
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