Philip Morris International Inc. (PM), the world’s largest publicly traded tobacco company, said it has started legal action against
the Australian government over plans to allow the sale of cigarettes only in plain packages. The company filed a notice of claim
against the government saying the proposals violate terms of Australia’s Bilateral Investment Treaty with Hong Kong, Philip
Morris’ Asian unit said in an e-mailed statement today. A copy of the court document wasn’t immediately available. Australia,
which has already banned the public display of tobacco products in retail outlets, plans to outlaw logos on cigarette packs and
force them to be sold in plain dark olive packaging, carrying health warnings instead of company logos. Cigarette brand names
will appear on the packages in the same size and style of printing. The legislation, if passed by parliament, will come into force
on Jan. 1, 2012. “The forced removal of trademarks and other valuable intellectual property is a clear violation of the terms of
the bilateral investment treaty between Australia and Hong Kong,” Anne Edwards, a spokeswoman for Philip Morris Asia, said in
the statement. “We believe we have a very strong legal case and will be seeking significant financial compensation for the
damage to our business.” The government raised tobacco taxes by 25 percent last year as it seeks to curb smoking, which is the
nation’s largest single preventable cause of death, according to Health Minister Nicola Roxon. “We don’t believe that taking
that action is in breach of any of our international obligations,” Roxon told Sky News today. “We believe that we are able, and
the Australian people I think would expect their government, to take action in the interests of public health.” To contact the
reporter on this story: Robert Fenner in Melbourne at rfenner@bloomberg.net To contact the editor responsible for this
story: Neil Denslow at ndenslow@bloomberg.net
Philip Morris International Inc. (PM), the world’s largest publicly traded tobacco company, said it has started legal action againstthe Australian government over plans to allow the sale of cigarettes only in plain packages. The company filed a notice of claimagainst the government saying the proposals violate terms of Australia’s Bilateral Investment Treaty with Hong Kong, PhilipMorris’ Asian unit said in an e-mailed statement today. A copy of the court document wasn’t immediately available. Australia,which has already banned the public display of tobacco products in retail outlets, plans to outlaw logos on cigarette packs andforce them to be sold in plain dark olive packaging, carrying health warnings instead of company logos. Cigarette brand nameswill appear on the packages in the same size and style of printing. The legislation, if passed by parliament, will come into forceon Jan. 1, 2012. “The forced removal of trademarks and other valuable intellectual property is a clear violation of the terms ofthe bilateral investment treaty between Australia and Hong Kong,” Anne Edwards, a spokeswoman for Philip Morris Asia, said inthe statement. “We believe we have a very strong legal case and will be seeking significant financial compensation for thedamage to our business.” The government raised tobacco taxes by 25 percent last year as it seeks to curb smoking, which is thenation’s largest single preventable cause of death, according to Health Minister Nicola Roxon. “We don’t believe that takingthat action is in breach of any of our international obligations,” Roxon told Sky News today. “We believe that we are able, andthe Australian people I think would expect their government, to take action in the interests of public health.”
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