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Tuesday, 04/17/2012 8:07:44 AM

Tuesday, April 17, 2012 8:07:44 AM

Post# of 575134
High Court begins hearing plain packaging challenge

Naomi Woodley reported this story on Tuesday, April 17, 2012 20:14:25

Listen to MP3 of this story ( minutes)
http://mpegmedia.abc.net.au/news/audio/pm/201204/20120417-pm3-plainpackaging.mp3

MARK COLVIN: The full bench of the High Court has spent the day looking at cigarette packets and looking at the intricacies of trademark law, as it considers a challenge to the Federal Government's Plain Packaging Act.

Several tobacco companies are arguing that the laws leave them with no way to distinguish their products from their competitors.

They're also arguing for compensation from the Commonwealth for surrendering almost all their packaging space to health messages.

The Federal Government says it's confident that the laws will withstand the legal challenge.

Naomi Woodley was at the High Court for PM and filed this report.

NAOMI WOODLEY: The High Court challenge to the plain packaging laws is being brought by British American Tobacco and JT, or Japan Tobacco International, but Phillip Morris and Imperial Tobacco Australia are also represented.

The Attorney-General, and former Health Minister, Nicola Roxon says the legal action is not a surprise.

NICOLA ROXON: Today is not the first day that the tobacco companies have been in court. It won't be the last day that they're in court. But our government is determined to take this action because we think it can save lives.

We think it can reduce a lot of grief and misery in families and we think that it can have a positive impact on the budget by reducing some of the expenditure that is spent each and every year in treating tobacco related illness.

NAOMI WOODLEY: The laws to ensure all cigarette packets are the same shape, with the same drab colour and print are due to come into effect in December.

The tobacco companies are arguing that the changes would extinguish their trademark, leaving only the names in a generic font as their distinguishing mark.

Allan Myers QC for British American Tobacco put it this way…

ALLAN MYERS (voiceover): The effect of this legislation is to sterilise the trademark, and turn it into a husk.

NAOMI WOODLEY: Gavan Griffith QC for JT International likened the packaging to a billboard, and tobacco companies only means of advertising.

He invited the full bench of the court to compare before and after examples of packets, arguing that the difference was…

GAVAN GRIFFITH (voiceover): So stark one can say it effectively extinguishes the right to use all our trademarks, to promote our product.

NAOMI WOODLEY: Justice Susan Crennan then asked…

SUSAN CRENNAN (voiceover): Aren't you and all your competitors in the same boat?

NAOMI WOODLEY: To which Mr Griffith replied…

GAVAN GRIFFITH: Of course your honour but the boat has sunk. There is no boat above the water line when this is all that is left.

NAOMI WOODLEY: Mr Myers for BAT went further, inviting the justices to open packets of cigarettes to compare the full extent of the changes proposed to the design and feel of the products.

The tobacco companies are also calling for compensation, arguing that the Commonwealth is acquiring the valuable advertising space on the packaging for no payment. And they argue it’s irrelevant that it wants to use that space for public health warnings.

Mr Myers told the court that it is a benefit to the Commonwealth because it is…

ALLAN MYERS (voiceover): …relieved of the cost of acquiring that space to publish, what it publishes.

NAOMI WOODLEY: Alan Archibald QC, representing Philip Morris, argued that the changes crossed a line from regulation, like warnings on rat poison, to control. Or, in his words, the legislation…

ALAN ARCHIBALD: …conscripts the cardboard package to the Government's purpose.

NAOMI WOODLEY: The Solicitor-General will put the Government's defence tomorrow.

The Attorney-General, Nicola Roxon, says they believe it is lawful for the Parliament to regulate the way tobacco is sold.

NICOLA ROXON: Tobacco is the only legal product sold in Australia which if it is used as intended will kill you. No other product is in that category.

Over many decades we've taken steps to introduce tobacco control measures and this is the next step in a long line of measures that governments have taken to make smoking less attractive, for it not to be able to be marketed, for it not to be able to be advertised.

NAOMI WOODLEY: And the Government has the support of the Opposition.

TONY ABBOTT: This is an important health measure. It's important to get smoking rates down further. We didn't oppose the legislation in the Parliament and I hope it withstands the High Court's scrutiny.

NAOMI WOODLEY: Three days have been set down to hear the case, and the High Court is expected to reserve its judgement until a later date.

MARK COLVIN: Naomi Woodley.

http://www.abc.net.au/pm/content/2012/s3479699.htm

========

Tobacco companies to challenge Australia plain packaging legislation

Tobacco companies have begun a court challenge against Australia's plain packaging
legislation in a test case that is being keenly watched in Britain and around the world.


Examples of the new plain cigarette packaging in Australia Photo: Rex Features

By Jonathan Pearlman, Sydney

10:00AM BST 17 Apr 2012

Under laws that come into effect this December, Australia .. http://www.telegraph.co.uk/news/worldnews/australiaandthepacific/australia .. will become the world's first country to require cigarettes to be sold in drab olive packets with graphic health warnings and no logos. But the move has faced heavy resistance from giant tobacco companies which have flagged numerous challenges and are keen to avoid the adoption of similar measures in countries such as Britain, Canada and New Zealand.

In a High Court case that began today in Canberra before a full bench of seven judges, the world's largest tobacco companies are claiming the laws unlawfully extinguish the value of their trademarks without providing compensation.

Japan Tobacco International and British American Tobacco Australia argued they should be compensated for the loss of their trademarks. Philip Morris and Imperial Tobacco are likely to repeat the call.

Gavan Griffith QC, acting for Japan Tobacco, which sells Camel, said the measures meant the Government had acquired the company's "billboard" and could potentially use the packets to promote its own messages such as tax or road safety announcements.

"It's acquiring our billboard, in effect," he said.
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But an expert in intellectual property law, Mark Davison, from Monash University said the tobacco companies would struggle to prove that the Government had taken ownership of their trademarks.

"The difficulty is for the tobacco companies is that the Commonwealth Government doesn't want to own the tobacco trademarks," he told ABC Radio.

"It simply is either prohibiting the trademarks in respect of those that are of a pictorial nature and restricting the use of word trademarks."

Australia's Attorney General, Nicola Roxon, said she believed the laws were "absolutely necessary" and the Government had merely restricted the use of the branding and trademarks without taking them over.

"We are very conscious that we are being watched around the world on this," she said.

"I think big tobacco are just throwing everything at it because they are scared it will be successful and they are scared it will be copied around the world".

A spokesman for British American Tobacco, Scott McIntyre, said the company would "obviously prefer not to be in a position where we are forced to take the federal government to court but unfortunately they have taken us down the legal path".

The case is set to be heard for three days.

http://www.telegraph.co.uk/news/worldnews/australiaandthepacific/australia/9208436/Tobacco-companies-to-challenge-Australia-plain-packaging-legislation.html

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