Irish parliament passes plain tobacco packaging law

(Adds timetable for introduction of law)

DUBLIN, March 3 (Reuters) - Ireland (Other OTC: IRLD - news) on Tuesday became the second country in the world to pass legislation requiring cigarettes to be sold in plain packets, despite threats of legal action by tobacco companies opposed to the move.

Japan Tobacco International and Imperial Tobacco (LSE: IMT.L - news) Group have said they would take legal action against the plan to ban the colourful logos used to sell tobacco brands but the Irish government has said it plans to proceed.

The law was approved in its final reading in Ireland's upper house of parliament on Tuesday and needs to be signed by the country's president, widely seen as a formality.

Under the legislation, companies would be banned from producing branded tobacco products for the Irish market from May 2016 and would be banned from selling branded tobacco products in Ireland from May 2017, a government spokesman said.

In a response last year to Britain's health department over its plans to introduce a similar law by May, Imperial Tobacco said plain packaging would infringe international law, could threaten future foreign direct investment into Britain and set a dangerous precedent for other sectors.

Australia introduced a similar ban in 2012 with the aim of reducing smoking and is facing challenges at the World Trade Organization which say that the law creates illegal obstacles to commerce. (Reporting by Conor Humphries; Editing by Greg Mahlich and Jane Merriman)