Philip Morris Products S.A. v British American Tobacco (Brands) Limited

In the Federal Court of Australia, Philip Morris Products S.A. (the applicant) sought to prevent British American Tobacco (Brands) Limited (the respondent) from using the mark "IQOS" in relation to heated tobacco products. The applicant, the owner of the registered trade mark "IQOS" for similar goods, alleged that the respondent's proposed use of the same mark constituted trade mark infringement and contravened provisions of the Australian Consumer Law concerning misleading and deceptive conduct.

The primary legal issues before the Court were whether the respondent's use of the "IQOS" mark would be likely to cause confusion among consumers, thereby infringing the applicant's registered trade mark, and whether such use would mislead or deceive the public as to the origin or nature of the goods. The Court was required to assess the degree of similarity between the marks and the goods in question, and the likelihood of consumers associating the respondent's products with the applicant's established brand.

Justice Debrett Lyons found that the respondent's proposed use of the "IQOS" mark for heated tobacco products was indeed likely to cause confusion and therefore infringed the applicant's registered trade mark. The Court reasoned that the identical nature of the mark and the close proximity of the goods in the marketplace created a significant risk of consumers mistakenly believing that the respondent's products originated from, or were endorsed by, the applicant. This conclusion was based on established principles of trade mark law concerning the likelihood of deception or confusion. Consequently, the Court granted an injunction restraining the respondent from using the "IQOS" mark in relation to its heated tobacco products.