British American Tobacco (BAT) has commenced legal proceedings against the Australian government over the country's world-first plan to exclude all marketing text and images from cigarette packs. The company said it started the proceedings in the High Court on behalf of its shareholders.
BAT, whose brands include Dunhill, Winfield and Benson & Hedges, believes the Tobacco Plain Packaging Act is "unconstitutional and invalid due to the fact the Federal Government is trying to acquire our valuable intellectual property without compensation."
British American Tobacco spokesman Scott McIntyre said, "As a legal company selling a legal product, we have consistently said we will defend our valuable intellectual property on behalf of our shareholders as any other company would."
Earlier the company's rival Phillip Morris International sued the federal government over the ruling.
In November, the Australian Parliament passed a ruling that will make it the first country to restrict logos, branding, colors and promotional text on tobacco packets.
The new rule requires product names to appear in standard colors and positions in a plain font and size on packets colored a dark olive-brown starting December 2012.
Health warnings with graphic images of the harmful effects of smoking will have to make up 75% of the front of the packaging and 90% of the back.
