2005-07-11

NEW LAW MAY KILL LONGLIFE TRADEMARK

The name of Taiwan’s most famous cigarette brand may no longer be LONGLIFE if the newest amendments to Taiwan’s Tobacco Hazards Act are successfully passed and implemented.

The amendments, which have already been passed by Taiwan’s Executive Yuan and submitted to the Legislative Yuan for deliberation and approval, stipulate that all descriptions and or phrases indicating that cigarettes are “mild”, “low tar”, or “which may cause consumers to erroneously believe that smoking does not harm health” will be prohibited from appearing on packs or containers in which cigarettes are sold.

In addition to the imposition of heavier taxes on the sale of tobacco products, the amendment also imposes very strict regulations in connection with tobacco advertising and or the sponsorship of events.

Those guilty of transgressing the new restrictions, regardless of whether they are cigarette producers or importers, may find themselves subject to fines from a minimum of NT$ 500,000 (approximately US$ 15,800) to a maximum of NT$ 2.5 million (approximately US$ 83,333) per violation. If the violator is an advertising agent or media outlet, he will could end up paying a fine from a minimum of NT$ 200,000 (approximately US$ 6,666) to NT$ 1 million (approximately US$ 33,333) per violation.

The sale of cigarettes in places where smoking is prohibited will also be banned under the new regulations, and those who violate this prohibition could face a fines ranging from a minimum of NT$ 2,000 (approximately US$ 67) to a maximum of NT$ 10,000 (approximately US$ 333) per violation.

Taiwan Tobacco and Liquor Corp. (TTLC) has been producing and selling cigarettes under the trademark LONGLIFE for many years and controls approximately forty percent of the local market for cigrettes. TTLC has indicated its intention to continue selling cigarettes under the LONGLIFE mark even if the proposed amendment is passed. TTLC argues that famous brand names are valuable company assets, and that the company will suffer damages if it is required to change the mark. TTLC also argues that if the proposed amendments are passed, they should not be applied retroactively as the LONGLIFE trademark has been registered in Taiwan since 1959.

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