The Gillard government has defended the constitutional legitimacy of its plain packaging (PP) laws, arguing that restricting how tobacco companies use their trademarks does not amount to an acquisition of property, reports the Sydney Morning Herald.

The government argues its plain packaging laws do not amount to an acquisition of the companies' property, because they do not deliver to the Commonwealth or anyone else ''any identifiable and measurable benefits or advantages''.
The Gillard government has defended the constitutional legitimacy of its plain cigarette packaging laws, arguing that restricting how tobacco companies use their trademarks does not amount to an acquisition of property.
Four tobacco companies – Phillip Morris, British American Tobacco Australia, Imperial Tobacco Australia and Japan Tobacco International – are challenging the laws in the High Court, relying on a section of the constitution that states an acquisition of property by the Commonwealth must grant ''just terms''.
In its defence filed with the High Court, the government argues its plain packaging laws do not amount to an acquisition of the companies' property, because they do not deliver to the Commonwealth or anyone else ''any identifiable and measurable benefits or advantages''.
It argues that the rights of the companies as trademark owners have always been subject to other laws. It also argues the companies use the trademarks to maintain or increase the consumption of cigarettes, which was harmful to the public and the public interest.
Four tobacco companies – Phillip Morris, British American Tobacco Australia, Imperial Tobacco Australia and Japan Tobacco International – are challenging the laws in the High Court, relying on a section of the constitution that states an acquisition of property by the Commonwealth must grant ''just terms''.
High Court judges have previously held that ''just terms'' were not required for laws ''which provide for the creation, modification, extinguishment or transfer of rights'' in ''areas which need to be regulated in the common interest''. The Attorney-General, Nicola Roxon, said she was confident the Commonwealth's case was strong.
In another setback for cigarette manufacturers, the Senate yesterday passed legislation restricting online tobacco advertising. Online retailers will not be allowed to use words such as ''cheap'' or ''tax-free'' to market cigarettes. (pi)