"There is still a long way to go before all the legal questions about plain packaging are fully explored and answered," company spokesman Chris Argent said in a statement.

British American Tobacco spokesman Scott McIntyre said the company was disappointed in the court's decision but would comply with the law.

"Although the (law) passed the constitutional test, it's still a bad law that will only benefit organized crime groups which sell illegal tobacco on our streets. ... The illegal cigarette black market will grow further when all packs look the same and are easier to copy," McIntyre said in a statement.

Imperial Tobacco echoed that argument.

"Plain packaging will simply provide counterfeiters with a road map," spokeswoman Sonia Stewart said in a statement. "The legislation will make the counterfeiters' job both cheaper and easier by mandating exactly how a pack must look."

Australia's Health Minister Tanya Plibersek dismissed those claims, saying there are still measures to prevent counterfeiting, such as the use of alphanumeric codes on legitimate cigarette packs.

Australia faces a potential challenge to its laws through the World Trade Organization, with three tobacco growing countries — Ukraine, Honduras and the Dominican Republic — making official requests for consultation on plain packaging. Consultations are the first stage of the WTO's dispute resolution process.

These countries argue that the laws contravene Australia's international obligations in respect to trade-related aspects of intellectual property.

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