Philip Morris (PM) Asia began legal proceedings against the government of Australia to block a law that requires plain packaging for cigarettes from 1 December 2012.

The law would cause PM Asia “billions of dollars” in damages said the tobacco company in a statement today.
A Notice of Arbitration under Australia’s Bilateral Investment Treaty with Hong Kong was served on the government, proposing Singapore as location for the international arbitration. PM Asia said the Permanent Court of Arbitration, located in The Hague, should be the arbitration appointing authority.
PM Asia said it would also seek domestic redress from the High Court of Australia. The legal process could take two or three years, the company said.
In June, PM Asia said it would ask for arbitration if talks with the government failed to resolve the issue. Plain packaging wrongly expropriates intellectual property and discriminates against PM Asia investments in Australia, the company said.
The legislation on plain packaging mandates a drab brown colour for all cigarette packages and will increase the size of warnings to cover most of both sides of the pack. Branding will be standardised. (ci)