Tobacco firms lose Australia plain packet challenge

Global tobacco giants lost a court challenge to Australia's plain packaging laws for cigarettes on Wednesday in a closely-watched case health advocates said would have a worldwide impact. The High Court of Australia ruled the measures, forcing cigarettes and tobacco products to be sold in drab, uniform packaging with graphic health warnings from December 1 this year, did not breach the country's constitution. Four cigarette companies led by British American Tobacco (BAT) had challenged the law, claiming it infringed their intellectual property rights by banning brands and trademarks from packets, and was unconstitutional. But the court dismissed the move by BAT, Japan Tobacco International, Imperial Tobacco and Philip Morris, rejecting the argument that the law represented "an acquisition of (their) property otherwise than on just terms". "At least a majority of the court is of the opinion that the Act is not contrary to (Australia's constitution)," the court said in a brief notice of judgment. "Today the court made orders accordingly." The court's full reasons will be delivered at a later date, and the tobacco firms were ordered to pay the government's legal costs. They cannot appeal further in the Australian legal system. Health campaigners welcomed the decision as a boost for other countries mulling similar moves, which include Britain, Canada and New Zealand. "We will see plain packaging implemented in Australia now in the next few months. It will be the first place in the world," said Jonathon Livermore from the McCabe Centre for Law and Cancer, a policy research group. "This is another important step in reducing smoking rates and cancer rates." Describing it as a "landmark" decision, the Washington-based Tobacco-Free Kids campaign applauded "the Australian government for standing up to the bullying of the tobacco industry". Australia is facing formal complaints at the World Trade Organization over the plan from countries including Honduras, Ukraine and the Dominican Republic.