Taxpayer Compensation for Plain Package Cigarettes

The taxpayer may have to cover the cost of compensation if the federal government continues to go ahead with it's plain packaging for cigarettes.

It has been reported that the Constitution and international trade agreements prevent the government from stripping or devaluing property without compensation on "just terms", including intellectual property rights such as trademarks.

The compensation cost could blow out to 3 billion dollars.

IP Australia, the body that administers trademarks and other intellectual property, has warned that even if making plain packaging mandatory were not found to constitute an acquisition of property, cigarette companies may still be able to seek compensation

Is it a bad move to make all cigarettes plain packaged? Does it really matter if they are or not? Do tobacco companies have a right to protect their intellectual property? Read full article.