The liquidator of Healthier Smoker Ltd agreed yesterday that the company will cease making, selling and advertising products that allegedly infringe the intellectual property rights of one of the world's biggest tobacco companies.

Darren Flanagan, an accountant with DMFN Chartered Accountants, was appointed as liquidator of HSL only last Friday after suppliers to the company pulled the plug just days before Japan Tobacco International (JTI) was due to begin legal action against it. JTI is the maker of Silk Cut, Mayfair, Camel and Benson & Hedges cigarettes.

Mr Flanagan is understood to have been appointed after suppliers to HSL became aware of the JTI's legal action following a report in the Phoenix magazine last week.

HSL made liquids used in e-cigarettes under a number of different names including brands Purple Silk, Calm Desert Brand, Kamel Blend and Myfair E-juice. These particular brands, according to JTI, breached their trade marks.

In the High Court, Mr Flanagan agreed the company would immediately cease production of the brands identified by JTI and he agreed to destroy contentious packing.

He requested time to seek legal advice on JTI’s demand to destroy stock that has already been sold to retail outlets. Mr Flanagan will update the High Court on this issue on September 16th.

In a statement, JTI said: “Like many other consumer goods companies, JTI has invested heavily in building its brands over many years. They are our most precious assets and we want to protect them for the future. Distinctive packaging is key for fair competition and allows adult smokers to choose their tobacco products easily and without confusion. We welcome the court orders today.”

Waterford-based HSL said earlier this it planned to increase production to two million bottles a week and sell its products as far afield as China. It could not be reached for comment yesterday.