OTTAWA — The Supreme Court agreed on Thursday to rule on the constitutionality of a federal law banning tobacco company sponsorships of cultural and sporting events.

The companies won a moral victory last summer when the Quebec Court of Appeal ruled tobacco companies could associate their corporate names - not the names of specific brands - with sponsored activities.

The judges also ruled that the 1997 law went too far in prohibiting publicity "that was susceptible of creating a false impression."

Quebec's high court nonetheless confirmed the validity of all other provisions of the law, including the requirement for cigarette manufacturers to include alarming photos on their packages.

The federal government appealed the Appeal Court decision, paving the way for the Supreme Court to review the entire legislation, including sections ruled constitutional by the lower court.

Imperial Tobacco spokesman Yves-Thomas Dorval said he hopes the new Conservative government will agree to negotiate in order to avoid judicial procedures.

"There is nothing to gain in continuing to constantly bring these questions before the court," he said in an interview Thursday.

"We can resolve all these questions through a discussion with the government."

Federal Health Minister Tony Clement declined to comment.

Dorval said tobacco companies believe the law threatens their freedom of expression, protected by the Canadian Charter of Rights and Freedoms.

"The worse organizations that exist on earth have the right to see their name linked to a financial contribution," he said. "Even criminal groups like the Hells Angels aren't prevented in such a way."

The Canadian Cancer Society said it was pleased to have been given the opportunity to present its case before the Supreme Court.

"Even if the question of corporate sponsorships is only a small aspect of the law, it's a loophole that can become large," said spokesman Rob Cunningham. "We don't want any loopholes."

The appeal will be heard by the Supreme Court in the coming months.

Tobacco companies had been a lucrative source of funding for events as varied as car races, golf tournaments and music festivals before the new law was passed.