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Article

21 May 2015

Author:
John Bingham, Telegraph (UK)

Tobacco companies prepare multi-billion compensation claims over UK plain packaging

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Tobacco companies are preparing to launch what could be one of the biggest ever legal claims against the British Government for losses as a result of the introduction of plain packaging for cigarettes. They are expected to begin lodging papers at the High Court as early as Friday, seeking a multi-billion compensation payout for being stripped of the right to use instantly recognisable brands. Lawyers will argue that forcing them to use entirely unbranded packaging would amount to deprivation of a highly valuable intellectual property...industry analysts have suggested the combined value of the industry in the UK could be as much as £11 billion...Philip Morris International, the company behind Marlboro cigarettes, is likely to be among the first to lodge papers with most of the major tobacco companies following soon after. Lawyers for the companies are expected to base their claim around a legal opinion drawn up by Lord Hoffmann, the former senior Appeal Court judge, which concludes that banning the use of branding on cigarette packaging altogether could be a breach of trademark law...MPs approved new legislation introducing plain packaging in March...The change could come into effect next May...Supporters of the change argued strongly that new unbranded packaging bearing large and graphic health warnings would help discourage younger people from taking up smoking, with major health benefits for the country.

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Tobacco companies launch multi-billion compensation claims over UK plain packaging law

Philip Morris international arbitration (re Australian plain packaging law)