Australia
wins court challenge to tobacco plain packaging
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[December 18, 2015]
By Matt Siegel
SYDNEY (Reuters) - A Singapore-based court
has refused a challenge by Philip Morris to Australia's landmark plain
packaging legislation passed in 2011, which the tobacco giant had
brought under a bi-lateral trade treaty with Hong Kong, the company
said.
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The Permanent Court of Arbitration declined on jurisdictional
grounds to allow the case to proceed, effectively ending the
challenge through this venue, which was based on claims that
Australia was violating intellectual property laws.
The decision by the court not to hear the case is likely to be seen
as a major victory for Australia, which is facing challenges in
other forums such as the World Trade Organisation (WTO), and for
other countries considering similar laws.
Australia was the first country in the world to force manufacturers
to strip all branding from cigarette packets, most of which are now
sold over the counter from blank fronted cabinets, although other
countries have followed its lead.
The court said on its website that it would make its decision public
once any potentially confidential material within it had been
redacted.
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Australian Minister for Rural Health Fiona Nash, who is responsible
for government tobacco policy, welcomed the decision.
"Plain packaging is a legitimate public health measure which is
consistent with Australia’s international legal obligations," she
said in a statement.
Philip Morris blasted the ruling, saying that Australia had
exploited procedural issues to avoid an open discussion about the
effectiveness of plain packaging in curbing tobacco consumption.
"There is nothing in today's ruling that addresses, let alone
validates, plain packaging in Australia or anywhere else," Marc
Firestone, Philip Morris International Senior Vice President, said
in a press release.
"It is regrettable that the outcome hinged entirely on a procedural
issue that Australia chose to advocate instead of confronting head
on the merits of whether plain packaging is legal or even works."
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The World Trade Organisation (WTO) is currently considering a
separate challenge to Australia's legislation by four member states,
and a flurry of challenges by tobacco companies are ongoing as more
countries follow Australia's lead.
The court's decision would not have any bearing on the WTO case or
any of the other legal challenges currently underway.
Companies including Philip Morris, British American Tobacco BATS.L,
Japan Tobacco International 2914.T and Imperial Tobacco Group IMT.L
took the British government to court earlier this month to challenge
its plain packaging laws, which take effect next May.
The case will be heard in a six-day hearing at London's Royal Courts
of Justice.
(Reporting by Matt Siegel; Editing by Michael Perry)
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