World Bank ruling on Uruguay-Philip Morris case

By Pittaluga Abogados

The International Centre for Settlement of Investment Disputes of the World Bank (ICSID) accepted jurisdiction to hear a claim that Uruguay violated multiple provisions of its Bilateral Investment Treaty (BIT) with Switzerland, therefore allowing the litigation against Philip Morris to continue. It´s the latest chapter on the IP case between Uruguay and the international tobacco company.

On 2010 three subsidiaries of Philip Morris, headquartered in Switzerland, filed for arbitration at the ICSID claiming Uruguay´s government had violated provisions of the BIT (signed in 1991), through the application of some actions of its anti-tobacco campaign launched in 2005.

Two of the most questioned measures are related to Intellectual Property rights: health warnings must cover 80% of cigarette packages and companies are allowed to commercialize only one cigarette trademark. Philip Morris said those measures "unjustifiably restrict legitimate businesses from selling their products and using their trademarks”. The company also stated that the ICSID ruling "holds Uruguay accountable to its international obligations".

On the other hand Diego Cánepa, Uruguay´s pro-secretary of Presidency, affirmed the ICSID decision "was expected" by the government, which has already "prepared the case knowing it was a possibility."

For more information about the subject please contact juan@pittaluga.com