Tobacco Plain Packaging Legislation in the Context of the Rationale of European Trade Mark Law: Public Policy, Justification, Compatibility

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Tobacco Plain Packaging Legislation in the Context of the Rationale of European Trade Mark Law: Public Policy, Justification, Compatibility Tobacco Plain Packaging Legislation in the Context of the Rationale of European Trade Mark Law: Public Policy, Justification, Compatibility A thesis submitted to The University of Manchester for the Degree of Doctor of Philosophy in the Faculty of Humanities 2018 Christos Hadjiarapis School of Law Table of Contents List of Abbreviations _____________________________________________________ 7 Table of Statutes _______________________________________________________ 10 Table of Cases _________________________________________________________ 14 Abstract ______________________________________________________________ 20 Declaration ___________________________________________________________ 21 Copyright Statement ____________________________________________________ 21 Dedication ____________________________________________________________ 22 Acknowledgements _____________________________________________________ 23 Chapter 1 - Introduction _________________________________________________ 24 1.1 The Current Landscape of Trade Mark Law _______________________________ 24 1.2 The Importance of Tobacco Plain Packaging Legislation _____________________ 27 1.3 The Significance of this Thesis and the Knowledge Gap ______________________ 30 1.4 Research Questions__________________________________________________ 33 1.5 Research Methodology _______________________________________________ 34 1.6 Delimitations of the Thesis ____________________________________________ 35 1.7 Structure __________________________________________________________ 36 Chapter 2 - Tobacco Control in Public Health Policy Agendas and Tobacco Plain Packaging Legislation ___________________________________________________ 39 2.1 Introduction _______________________________________________________ 39 2.2 Tobacco Control in the European Union__________________________________ 44 2.2.1 Advertising and Promotion __________________________________________ 45 2.2.2 Health Warnings___________________________________________________ 48 2.2.3 Product Presentation _______________________________________________ 51 2.2.4 Maximum Tar Yield of Cigarettes ______________________________________ 52 2.2.5 Excise Duty _______________________________________________________ 53 2.2.6 Tobacco Control Measures and Tobacco Plain Packaging Legislation__________ 53 2.3 The World Health Organisation Framework Convention on Tobacco Control _____ 54 2 2.4 Tobacco Plain Packaging Legislation as the Latest Development of Tobacco Control 55 2.4.1 Tobacco Plain Packaging Legislation in Canada ___________________________ 56 2.4.2 The Australian Plain Packaging Act 2011 ________________________________ 58 2.4.3 Tobacco Plain Packaging in the European Union and the UK’s Children and Families Act 2014 _____________________________________________________________ 59 2.5 Challenges to the Tobacco Plain Packaging Legislation ______________________ 65 2.5.1 Investment Claim __________________________________________________ 65 2.5.2 Claims under the World Trade Organisation _____________________________ 67 2.5.2.1 The Provisions of Tobacco Plain Packaging Legislation as a Justifiable Encumbrance of the Use of a Trade Mark ___________________________________ 68 2.5.2.2 Nature of Rights Conferred by a Trade Mark ___________________________ 71 2.5.3 Expropriation of Property Claims ______________________________________ 75 2.5.3.1 Australia _______________________________________________________ 76 2.5.3.2 UK ____________________________________________________________ 78 2.5.4 Additional Claims Examined in the UK Judicial Review (R (on the application of British American Tobacco (UK) Limited) v The Secretary of State for Health) ________ 83 2.6 Conclusion _________________________________________________________ 87 Chapter 3 - Tobacco Plain Packaging Legislation and its Impact on Trade Marks as Objects of Property _____________________________________________________ 90 3.1 Introduction _______________________________________________________ 90 3.2 The Communicative Aspects of Trade Marks as the Subject Matter of Property Rights _____________________________________________________________________ 93 3.3 Locke’s Labour Theory on Trade Mark Law ______________________________ 100 3.3.1 Putting Locke’s Labour Theory into Context among other Property Theories __ 101 3.3.2 The Application of Locke’s Labour Theory on Trade Mark Law ______________ 107 3.3.2.1 State of Nature _________________________________________________ 108 3.3.2.2 The two Lockean Provisos _________________________________________ 110 3.3.2.3 The Labour in Locke’s Theory ______________________________________ 111 3.3.3 Maniatis’ Application of the Lockean Labour on Trade Marks ______________ 114 3.3.4 Wilf’s Application of the Lockean Labour on Trade Marks _________________ 117 3.3.5 The Creation of Goodwill as the Lockean Labour in Relation to Trade Marks __ 120 3.4 Goodwill and Tobacco Plain Packaging Legislation_________________________ 123 3 3.4.1 Defining Goodwill _________________________________________________ 123 3.4.2 Goodwill as the Basis of Trade Mark Property Rights _____________________ 128 3.4.3 Tobacco Plain Packaging and its Impact on Goodwill _____________________ 132 3.5 Conclusion ________________________________________________________ 140 Chapter 4 - The Essential Function of Trade Marks in the Light of Tobacco Plain Packaging Legislation __________________________________________________ 143 4.1 Introduction ______________________________________________________ 143 4.2 The Development of the Essential Function Doctrine prior to the First Trade Marks Directive ____________________________________________________________ 147 4.2.1 The Indication of Common Initial Trade Source as the First Interpretation of the Essential Function of Trade Marks ________________________________________ 148 4.2.2 The Two Justifications of the Early Development of the European Trade Mark Law and Tobacco Plain Packaging Legislation ___________________________________ 153 4.2.3 The Indication of Trade Origin as the Essential Function of Trade Marks ______ 156 4.3 The Essential Function of Trade Marks and its Role in the Trade Marks Directive 160 4.4 Tobacco Plain Packaging Legislation and the Essential Function of Trade Marks _ 163 4.4.1 Registration of Trade Marks in Relation to Tobacco Products ______________ 163 4.4.2 Tobacco Plain Packaging Legislation and the Distinctive Character of Tobacco Trade Marks_______________________________________________________________ 167 4.5 Conclusion ________________________________________________________ 176 Chapter 5 - The Modern Functions of Trade Marks as the Theoretical Basis of Tobacco Plain Packaging Legislation ______________________________________________ 178 5.1 Introduction ______________________________________________________ 178 5.2 Defining the Modern Functions of Trade Marks __________________________ 182 5.3 The Development of the Functions Doctrine in the Double Identity Cases by the CJEU ____________________________________________________________________ 186 5.4 The Functions Doctrine and Tobacco Plain Packaging Legislation _____________ 196 5.5 The Anti-Dilution Provision and its Relevance with Tobacco Plain Packaging Legislation ___________________________________________________________ 199 5.5.1 Reputation as a Requirement of the Anti-dilution Provision _______________ 200 5.5.2 The Uniqueness of Trade Marks and the Protection against Dilution by Blurring 203 4 5.5.3 Tobacco Plain Packaging Legislation and the Protection against Dilution by Tarnishment _________________________________________________________ 207 5.6 The Modern Functions of Trade Marks as a Source of Controversy ___________ 212 5.7 Conclusion ________________________________________________________ 216 Chapter 6 - The Effects of Tobacco Plain Packaging Legislation on Tobacco Branding and Consumers __________________________________________________________ 219 6.1 Introduction ______________________________________________________ 219 6.2 Tobacco Plain Packaging Legislation and its Impact on Trade Marks as Marketing Tools _______________________________________________________________ 221 6.2.1 A Brief Overview of the Rise of Brand and Adverting _____________________ 222 6.2.2 Defining Brands and Branding in Commercial Communication _____________ 225 6.2.3 Tobacco Branding Under the Provisions of Tobacco Plain Packaging Legislation 234 6.2.4 Inventive Uses of Tobacco Brands on Tobacco Packaging under Tobacco Plain Packaging Legislation __________________________________________________ 240 6.3 Tobacco Plain Packaging Legislation and its Impact on Trade Marks as Devices Reducing Search Costs _________________________________________________ 245 6.4 Conclusion ________________________________________________________ 252 Chapter 7 - Discussion and Conclusions ____________________________________ 255 7.1 Introduction ______________________________________________________ 255 7.2 Tobacco Plain Packaging Legislation and Tobacco Trade Marks as Regulated by the European Trade Mark Law System and its Doctrines __________________________ 256 7.3 Justifying Tobacco Plain Packaging Legislation ____________________________ 262 7.3.1 Tobacco Trade Marks and the Protection of Children _____________________ 264 7.3.2 Tobacco is a Unique Product ________________________________________ 267 7.4 Tobacco Plain Packaging Legislation and its Impact on our Understanding of the Development of Trade Mark Law Provisions ________________________________
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