BAT Wins Australian Approval to Pursue Trademark Claim Over Health Labels

Source from:  Bloomberg 12/23/2010

British American Tobacco Plc., Europe's biggest cigarette maker, won an Australian judge's approval to pursue a claim that its trademark was infringed by a distributor who covered a label with a health warning. Supreme Court of Victoria Judge Elizabeth Hollingworth today dismissed a request from Trojan Trading Co. to throw the case out. "Trojan makes some very valid criticisms of BAT's proposed cause of action," Hollingworth wrote in the 19-page ruling posted on the court's website. "I am not persuaded that BAT's claim ought to be summarily disposed of." British American Tobacco, based in London, is seeking injunctions prohibiting Trojan from covering up labels on packets of Captain Black cigars and the return of profits Trojan earned from the sale of the cigars, or other monetary damages, according to the ruling. Trojan, a closely held Sydney-based company, distributes cartons and packets of Captain Black cigars. Since at least 2007, Trojan has partly covered or erased the Captain Black label with health stickers, BAT said, according to the judge's ruling. As a result, BAT's trademarks have been infringed, the company said. Trojan is legally obligated to place graphic warning messages on tobacco products before they can be sold in Australia and may have erased or covered the label, the company said. The company is following the law and BAT's claim is unsustainable, it said. Trojan's legal advisor Peter Zada of Navado said he had been instructed not to comment. BAT's lawyers at Corrs Chambers Westgarth didn't immediately respond to a request for comment when contacted at their office. Enditem