The Plain Packaging Saga
Two of the world’s largest tobacco companies, Philip Morris International (PMI) and British American Tobacco (BAT), have recently filed lawsuits against the UK government over its plan to introduce plain packaging for tobacco products. Both PMI and BAT argue that the measures deprive them of property in the form of trademarks, and are seeking compensation that could amount to billions of pounds if they succeed.
“We respect the government’s authority to regulate in the public interest, but eliminating trademarks simply goes too far,” said Marc Firestone, PMI’s senior vice president and general counsel. “Countries around the world have shown that effective tobacco control can coexist with respect for consumer freedoms and private property.”
The measures, which are scheduled to be introduced in 2016, have faced opposition from Big Tobacco companies from the very beginning. The tobacco industry’s ability to market its products has been gradually eroded, to varying degrees, by legislation in countries around the world. In the UK, advertising was phased out between 2003 and 2005, and in 2012, tobacco products were banned from being displayed in supermarkets and large stores.
In the claims filed to the High Court, PMI and BAT also claim the measures violate European intellectual property laws. The Department of Health responded it would not let policy “be held to ransom by the tobacco industry”.
Government lawyers are reportedly confident that all legal aspects of the new measures have been taken into account. But even if they are unsuccessful, tobacco companies may be hoping that legal action will delay implementation or discourage other countries from taking similar action.
Indeed, as long as tobacco remains a legal product, cigarette brand owners can argue that they should not be treated differently from other consumer products.
Australia introduced a similar ban in 2012 with the aim of reducing smoking and is facing challenges at the World Trade Organization, which argues that the law creates illegal barriers to trade.
By Martina Clochiatti