From: Australian Broadcasting Corporation
ASHLEY HALL: Tobacco companies are preparing for a big legal battle over the Federal Government’s proposed laws to restrict cigarettes to plain packaging.
From the beginning of next year, the Government wants all branding removed and replaced with health warnings and graphic images of death and disease.
The brand name would only appear in small generic text at the bottom of the packet.
It would give Australia the world’s toughest laws on tobacco promotion.
But tobacco companies say the action is anti-competitive and intellectual property experts agree the Government could be on shaky legal ground.
Anna Hipsley reports.
ANNA HIPSLEY: No logos, no colours, no brand imagery, no promotional text.
Federal Health Minister Nicola Roxon is convinced the measures will work.
NICOLA ROXON: And our government regards this comprehensive approach as necessary to try to bring down the smoking rate in Australia and save many thousands of Australians from having loved ones die as a result of disease that they get from smoking.
ANNA HIPSLEY: But the public’s reaction to the announcement was mixed.
MALE: Yeah I just don’t think it’s very helpful. I don’t think it achieves what they’re setting out to do.
FEMALE: I don’t think it’s going to change anything; if people want to smoke they’re still going to smoke.
2ND MALE: Anything you can do to stop people smoking, fantastic.
ANNA HIPSLEY: Big tobacco says the new laws will do nothing to discourage people from smoking, despite numerous studies showing otherwise.
Research released this week from the UK Centre for Tobacco Studies has found plain cigarette packaging could help prevent people from taking up the habit, even if it would have little impact on people who already smoke.
The Government is already facing an uphill battle to get the legislation through. Shadow health minister Peter Dutton says he wants to see more evidence that plain packaging will lower the smoking rate.
PETER DUTTON: We will take an assessment of the legislation that’s been put forward by the Government today but we want to see the evidence that the Government’s relying on.
ANNA HIPSLEY: And tobacco companies are squaring up for a legal fight.
SCOTT MCINTYRE: It’s not a path we want to take, because the Government’s going to have to spend millions of dollars of taxpayers’ money fighting this in the court and then potentially billions of dollars in compensation to the tobacco industry.
ANNA HIPSLEY: Scott Mcintyre is spokesman for British American Tobacco, one of the big three tobacco companies in Australia.
SCOTT MCINTYRE: If we were a big cola company or a big fast food chain if they looked to take away the branding on our cans or on our burgers, we’d be taking them to court and unfortunately we’re a big company and we’re no different.
We’ve invested billions of dollars into these brands. Unfortunately it looks like the government is pushing us down that path.
ANNA HIPSLEY: The company claims the Government’s proposed laws infringe on international trademark and intellectual property rights.
Imperial Tobacco’s spokeswoman Cathie Keogh agrees.
CATHIE KEOGH: Very clearly our trademarks are our most valuable asset and we will act to protect the value of those trademarks and if that means legal action then yes we will be taking legal action.
ANNA HIPSLEY: In its draft legislation, the Government appears to concede that tobacco companies may have a case. It’s put certain provisions in place should a court take the side of the tobacco companies.
Tim Wilson is Director of the Intellectual Property and Free Trade Unit at the Institute for Public Affairs. The IPA will not disclose whether it receives funding from tobacco companies.
But Tim Wilson says he’s not surprised there’s a battle brewing.
TIM WILSON: What happens in Australia will potentially be replicated round the world.
ANNA HIPSLEY: He says there could also be wide-ranging implications for government regulation of the marketing of other products.
TIM WILSON: It’s not just setting a precedent for tobacco companies but also the sovereign risk now associated with trademarks. Most of the proposals that have been used against tobacco companies over the past 20 years are now being targeted towards sugary, fatty and salty food, alcohol and they’re starting to be replicated on those products.
So it sets a precedent for what may be down the track for McDonalds and Foster’s and all those other companies.
ANNA HIPSLEY: Two of the big tobacco companies that PM contacted also raised concerns about the impact plain packaging laws would have on the black market trade.
British American Tobacco’s spokesman Scott McIntyre.
SCOTT MCINTYRE: There’s potential here for the illegal tobacco market, counterfeit cigarettes to actually skyrocket. If I’m a criminal counterfeiter in China brining this stuff in, this is a cash cow for me because it’s a blueprint to print more.
ANNA HIPSLEY: But Federal Health Minister Nicola Roxon is confident that won’t happen.
NICOLA ROXON: Companies will be able to use some markings to be anti-counterfeiting measures.
ANNA HIPSLEY: The Government is hoping the laws will come into effect on January 1.
ASHLEY HALL: Anna Hipsley reporting
