Bayer has obtained an injunction in Brazil, suspending a court ruling that allowed soybean farmers to reclaim royalties for expired patents on genetically modified seeds. The ongoing legal battle reflects broader conflicts over patent rights in the agricultural industry. Bayer successfully secured a stay on the ruling while awaiting an appeal.
Bayer has secured an injunction in Brazil that suspends a court ruling granting soybean farmers the right to reimbursement for royalties paid on expired patents related to genetically modified soy seeds. This decision was confirmed by the farmer group Aprosoja-MT and a company statement to stakeholders. The lower court ruling from Mato Grosso will not take immediate effect due to this injunction, allowing Bayer time for an appeal.
The company indicated in a recent note to stakeholders, which was accessed by Reuters, that the injunction halts the enforcement of a December 2024 court ruling until the appellate court reviews the case. Bayer asserts that this development maintains the integrity of its business model during the appeal process.
Bayer, which acquired Monsanto in 2016, has been embroiled in numerous legal disputes over patents associated with its Intacta RR2 PRO technology in Brazil, a leading country in soybean production and exports. This GMO seed is lauded for its resilience against the herbicide glyphosate and caterpillar infestations.
The law firm representing farmers, Aprosoja-MT, indicated that Bayer has already put forth approximately 4.5 billion reais (around $785.30 million) as “judicial guarantees” amid ongoing litigation. In 2017, farmers filed a lawsuit against Monsanto in federal court aiming to annul the patent protections for Intacta, with the final ruling still pending.
A previous decision by Brazil’s Supreme Court determined that patent rights cannot be prolonged beyond a 20-year term, which led to a reduction in the duration of certain Intacta patents. This ruling directly impacted approximately 1.3 billion reais in royalties that local farmers had already remitted. The lower court judge referenced the Supreme Court’s ruling in the recent Mato Grosso case, revising the patent terms and ordering reimbursement of incorrectly paid royalties.
Bayer’s successful injunction has temporarily prevented a ruling that allows Brazilian soybean farmers to reclaim royalties on expired soy seed patents. This case is part of a larger ongoing legal conflict between Bayer and farmers regarding intellectual property rights in the agricultural sector. The outcome of an appeal remains pending, while the implications of the Supreme Court’s decision on patent durations continue to factor into the case.
Original Source: www.tradingview.com
