The High Court has rejected big tobacco's constitutional challenge to the Federal Government's plain packaging laws, clearing the way for the new-look packets to hit Australian shelves.

The new laws will require cigarettes to be sold in olive green packs without trademarks and with graphic health warnings.

They were set to be introduced in December, but were put on hold after the challenge was mounted by major tobacco companies including British American tobacco, Philip Morris, Imperial Tobacco and Japan Tobacco.

The companies argued the Government was trying to acquire their intellectual property, including trademarks, without proper compensation.

But the Government argued that it was only trying to regulate what appears on the boxes, and was not acquiring any trademarks.

The High Court has now ruled in the Government's favour, clearing the way for the plain packets to be on the shelves on December 1.

The decision has been hailed as a "massive victory" for the Government and for Attorney-General Nicola Roxon, who led the push for plain packaging during her time as health minister.

Welcoming the "historic" decision today, Ms Roxon called on the tobacco companies to quit fighting the measures and get on with implementing plain packaging.

"This is good news for every Australian parent who worries about their child picking up an addictive and deadly habit," she told a Canberra news conference.

"I want to say that we are proud as a Government for the action that we've taken. We are very pleased that the highest court in Australia has said that the Australian Constitution allows this measure to be introduced."

Ms Roxon's successor as Health Minister, Tanya Plibersek, said the decision deprived tobacco companies of their "mobile billboards" in smokers' pockets.

Sorry, this video has expired Nicola Roxon and Tanya Plibersek welcome the court ruling

"This is a victory for all of those families who have lost someone to tobacco-related illness," she said. "For anyone who has lost someone to smoking, this one is for you."

In a statement, the High Court said it would publish its reasons for the decision at a later date.

The case is being watched carefully around the world, with other countries - including the UK and New Zealand - considering similar laws.

The fight against the packaging is now expected to shift to the World Trade Organisation, where the Domincan Republic, Ukraine and Honduras are leading a challenge against what they say is an "anti-trade" measure.

'Historic decision'

Sorry, this video has expired Plain packaging advocate Jonathan Liberman speaks outside the High Court

Jonathan Liberman, from the McCabe Centre for Law and Cancer, welcomed today's ruling.

"The lesson for other countries is that the only way to deal with the grandiose claims, the clearly unfounded legal claims, of the tobacco industry, is to see them in court," he said.

"And the High Court here has heard argument, has delivered its decision, the system has worked.

"Unfortunately we've had to sit back and patiently wait for it to take its course and now we have the - this historic decision this morning."

Mr Liberman said the decision by the High Court vindicated the Government's position, and he expected other countries to follow suit.

"They [the tobacco companies], have fought every public health measure over the years. When the High Court of Australia tells you that your legal arguments are unfounded, it's a pretty strong message," he said.

"We will see plain packaging implemented in Australia in the next few months. It will be the first time it's happened anywhere in the world.

"And it would be very surprising if there weren't other countries that followed."

No right of appeal

Monash University intellectual law expert Professor Mark Davison advised the Government on the development of the packaging and says today's decision is a "massive victory" for the Government and for Attorney-General Nicola Roxon.

"It is also as predictable as it is massive, and it is very massive," he told ABC News 24.

"Hardly anybody thought that the tobacco industry had any prospects of winning this case.

"The claim of the tobacco industry was that the Government was acquiring its property and if it does that, the Australian Government has to pay compensation for that property.

"Clearly, the High Court has decided that there hasn't been an acquisition of property and so the claims by the tobacco industry that Governments are seizing its property are simply untrue."

And he said there was no right of appeal to today's decision.

"The laws will proceed according to the legislation and that means on December 1 this year all retail packaging will comply with the regulation.

"There's no appeal from the High Court in relation to Australian constitutional issues."

'No evidence'

British American Tobacco spokesman Scott McIntyre said there was still no evidence that plain packaging stopped people from smoking.

"What we're calling for now is the Government to do a review in 12 months' time," he said.

"They've said that they will do one because the Attorney-General Nicola Roxon said all along, there's no proof that plain packaging will actually reduce smoking rates.

"So we're calling on the Government to ensure that's an independent review, to include all the key stakeholders."

He says there is a real risk the black market will grow.

"Ireland at the moment has an illegal tobacco problem of around 30 per cent equal to the legal market," he said.

"They have huge issues with it there, and unless the Government really does something quickly to stamp out the problem in Australia now, when all packets look the same and easy to copy and smuggle over the borders, we expect that it will head in that direction."