Hong Kong-based tobacco giant Philip Morris Asia announced a lawsuit Monday against the Australian government over the country's plans to strip company logos from cigarette packages.

Under proposed government legislation due to take effect next year, all logos would be removed from cigarette packaging and brand names would have to be printed in a specific font. All packets would be a bland olive-green and contain grisly graphics, such as diseased gums, blinded eyes and blackened lungs.

The government believes the new packaging would provide health benefits by discouraging people from smoking.

Philip Morris maintains that the move is a violation of a bilateral investment treaty between Australia and Hong Kong.