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Brands under siege

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Australia
Brand images, colored packaging and other identifying marks mat soon become a thing of the past if Australian legislators get their way.
The government is debating a wide-range of anti-smoking initiatives that include plain packaging of tobacco products, including the use of designated fonts to identify brands rather than logos. The bulk of the packaging would be taken up with graphic health warnings.
If the measures, which are planned to be introduced July 1, 2012, are approved , Australia would become the first country in the world to adopt such harsh measures setting an uncomfortable precedent that other countries may attempt to adopt.
Obviously, tobacco companies are not happy with the moves. Although none have as yet launched legal attacks to defend their brand images and oppose the plan, it is clear that this is one option that all of them are considering.
British American Tobacco Australia (BATA) released a statement saying that that the plain packaging proposals “would not hold up to close scrutiny.” 
Commenting on the issue, a BATA spokesperson added that:”If that requires us to take legal action, then we would do so. We would look at various things, including intellectual property rights, trademark legislation and remedies under international treaties.”
Philip Morris International, while refusing to discuss possible legal action against the measure, claimed that being forced to adopt plain packaging would be “an unconstitutional expropriation of valuable intellectual property, violating a variety of Australia’s international trade obligations.” 
“Plain packaging has not been introduced in any country in the world and there is no evidence to support the government’s notion that this will reduce consumption,” Imperial Tobacco Australia said in a statement. “Plain packaging would seriously harm our brands and infringe the intellectual property rights in which both Imperial Tobacco and its shareholders have invested.” 
The company said it planned to challenge the initiative on the basis that it would affect profits negatively by negating the commercial value of its branding. 
“Introducing plain packaging just takes away the ability of a consumer to identify our brand from another brand, and that’s of value to us,” according to a spokeswoman. “It really affects the value of our business as a commercial enterprise and we will fight to support protecting our international property rights.” 
Former prime minister Kevin Rudd remained unfazed, however, claiming on TV that: “the government will not be intimidated by any big tobacco company.”
 

Quarter 4, 2011


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