New Zealand: Big Tobacco Likely to Sue, Should Plain Packaging Go Ahead

Source from:  Radio Network (nz)  02/21/2013

Lawsuits are being seen as the inevitable next step if plain packaging of cigarettes is brought in.

The government will announce a decision on the matter in the next few days.

University of Auckland professor of law, Jane Kelsey, says if plain packaging is brought in, the Government will be igniting a fight with large international companies with plenty of money.

"British American Tobacco has made it clear that they will sue the government under existing bilateral investment treaties, for significant damages."

Jane Kelsey says the Australian government is facing the same conundrum and is fighting back against the companies.

"The Australian government is facing this, and they have said 'bring it on'.

"The New Zealand government, John Key in particular, has been a bit more reticent about his willingness to front up to these challenges, and so it will be very interesting to see how he responds."

Jane Kelsey says the process will be so drawn out, it probably won't be settled until after the next election.

Managing partner at intellectual property firm AJ Park, Alan Potter, says cigarette companies own their brand, just like any other company.

"It would be wrong for someone else to take away that right to use, without proper compensation, where they are obeying all the other rules that go with using a trademark."

Alan Potter says it's dangerous territory for the Government to enter into.

He says cigarette companies' brands are registered trademarks, and thus their property.

"Should the government be able to take that right?

"That's been a property right in New Zealand for hundreds of years. Should the government now be able to say 'I'm going to take that away, you can no longer have that'?"

Mr Potter believes it is a slippery slope once the Government starts legislating against companies' rights. Enditem