It seems the Australian government will most likely win the legal battle filed against it by tobacco giant Philip Morris since intellectual property rights agreements give governments the right to pass laws to protect public health, reports said.

The Australian government is still determined to keep fighting the tobacco industry and the legal impediments now offered by global tobacco firm Philip Morris.

"The government does not support [investor-state dispute resolution clauses] that would confer greater legal rights on foreign businesses than those available to domestic businesses. ... The government has not and will not accept provisions that limit its capacity to put health warnings or plain packaging requirements on tobacco products or its ability to continue the Pharmaceutical Benefits Scheme,'' Prime Minister Julia Gillard told The Canberra Times.

The Australian government is fighting against the tobacco industry to save the lives of its citizens, added Health Minister Nicola Roxon.

"Plain packaging means that the glamour is gone from smoking and cigarettes are now exposed for what they are: killer products that destroy thousands of Australian families," she said.

Earlier, Philip Morris sued the government of Australia over a new law that would require cigarettes to come in plain packaging. The new cigarette law (to be enforced by December 2012) would mean that all tobacco sold in Australia will come in the following packaging:

1. Plain olive-brown color

2. Graphic health warnings on top

3. Brand names in the same font, color, size and position below

An illustration obtained by Reuters shows a proposed model of a cigarettes pack April 7, 2011. Australia's government has unveiled plans for some of the world's toughest anti-smoking laws, saying it would force big tobacco companies to use plain green packaging for cigarettes despite the threat of industry legal action. REUTERS/Australian Government/Handout

Hong Kong-based Philip Morris Asia Limited (a subsidiary of Philip Morris International Inc. and the owner of Australian-based affiliate Philip Morris Limited) argued the new law is in violation of the Australia-Hong Kong Bilateral Investment Treaty. The little-known treaty, signed in 1993, was supposed to provide equal protection for investors from one partner country making investments in the other partner country and vice versa.

Using this as basis, Philip Morris has stated in their official company website that the plain packaging violates Article 6(1) and Article 2(2) in the treaty which protects their investments and intellectual property and their right to equal treatment.

"We are confident that our legal arguments are very strong and that we will ultimately win this case," said Anne Edwards, a Philip Morris spokeswoman, according to the official press release .