ects of smoking will have to make up 75% of the front of the packaging and 90% of the back. Around the world lawmakers are stepping up their actions against tobacco packaging. The U.S. plans the biggest changes to its labels in 25 years by beefing up imagery illustrating the effects of smoking while the in the U.K., the Conservative-led government plans to ban tobacco products from being openly displayed in shops. Philip Morris Asia claims the move breaches its intellectual property and is taking the action under Australia's bilateral investment treaty with Hong Kong--which protects investments made by companies against discriminatory treatment--and has served a notice of claim on Canberra leaving both sides with three months to negotiate before court action. "If no mutually agreeable solution is found then it proceeds to us seeking compensation. We estimate the damage will potentially amount to billions of Australian dollars," a spokeswoman for Philip Morris Asia told Dow Jones Newswires, adding the company has nominated Singapore as a venue for the initial talks. Philip Morris Ltd. began operations in Australia in 1954 and its brands include Marlboro, Alpine and Longbeach. The group held 37.5% of the Australia cigarette market in 2010. Representatives for Imperial Tobacco Group PLC (IMT.LN) and British American Tobacco PLC (BTI)--the biggest cigarette seller in Australia--weren't immediately available to comment. BAT has already signalled it could take legal action and the tobacco companies have already embarked on a widespread advertising campaign against the new laws. Health Minister Nicola Roxon said the government's legal advice is strong. "We won't be frightened off by threats of legal action," Roxon told reporters. on Friday asking U.S. District Judge Larry Burns to stop them from doing so. Burns has twice denied their requests to be given notice before their client is drugged. Loughner has been at a Missouri prison medical facility since Burns declared him mentally incompetent to stand trial in May. Defense attorney Judy Clarke wrote that a prison administrative hearing on June 14 found Loughner was a danger to himself. She doesn'