First statement: Tobacco is not good for you and is best avoided if you are interested in pursuing a healthy lifestyle.
Second statement: Intellectual property (IP) is a fundamental asset in enabling manufacturers to fully exploit their products, and should be safeguarded.
Philip Morris Tobacco Company logo
From a lawmaking viewpoint, is it possible to believe that both of those statements are true without becoming horribly conflicted? It’s a complicated question – and it looks as though it will take a lawsuit, and more, to answer it.
In Australia, the quandary has been brought into sharp relief by legal action against the government launched on 27 June by Philip Morris Asia (PMA) – parent company of Philip Morris Ltd, which serves the Australian market. Both companies are divisions of the powerful industry leader, Philip Morris International. In its suit, PMA is aiming to block plans spearheaded by Prime Minister Julia Gillard to enforce plain packaging across all tobacco products sold in the country: part of a wider drive to boost public health.
However, PMA argues that the government scheme is legally flawed on two counts: i) it flies in the face of time-honoured provisions for trademark protection contained in Australia’s IP laws; and ii) it flouts the terms of a major trade treaty between Australia and Hong Kong that enforces mutual support for all bilateral exports. Crucially, PMA is headquartered in Hong Kong, putting its relationship with Philip Morris Ltd firmly under the treaty’s jurisdiction.
While this battle plays out, there are signs that it could, in the near future, migrate to the European Union (EU) and the UK. With that in mind, this article looks at tobacco-brand developments in each region – starting with a more detailed look at the Australia-Hong Kong treaty.
