Biotech Values

[DewDiligence]

MON—More color on the RR-soybeans case to be heard by US Supreme Court. (Also see #msg-80271967.)

http://online.wsj.com/article/SB10000872396390443768804578038801313993688.html

›Supreme Court to Hear Challenge to Monsanto Seed Patents

October 5, 2012, 4:51 p.m. ET
By BRENT KENDALL

WASHINGTON—The U.S. Supreme Court agreed Friday to hear an Indiana farmer's appeal that challenges the scope of Monsanto Co.'s patent rights on its Roundup Ready seeds.

The company, whose genetically modified seeds produce crops that are resistant to herbicide, has required farmers to use the patented seeds only for a single crop and not save the "second-generation" seeds from the harvest.

Monsanto has imposed the terms because its technology reproduces itself in each generation of seeds. If farmers could replant seeds taken from each harvest, they could avoid paying for Monsanto's technology in future plantings, the company says.

In a short written order, the Supreme Court said it would consider the planting tactics of Indiana farmer Vernon Bowman, who appealed to the justices after Monsanto successfully sued him for patent infringement in the lower courts.

For several years, Mr. Bowman purchased Monsanto-licensed seed for his first seasonal soybean crop and abided by the agreement not to save second-generation seeds. But for his late season "second crop" of soybeans, Mr. Bowman tried a different approach: he bought and planted "commodity seeds" from a grain elevator. Those soybean seeds were a mix and included some that contained Monsanto's technology. He chose to save the seeds from those second-crop harvests, which he used in subsequent years.

Monsanto argued the farmer's actions infringed upon its patents and lower federal courts agreed.

In a petition to the Supreme Court, Mr. Bowman argued that the lower court rulings gave Monsanto an unfair and unprecedented level of patent protection for its seeds, even after they had been sold into commerce.

Monsanto said Mr. Bowman's position would eviscerate its patent rights.

The Supreme Court agreed to hear the case over the objections of the Obama administration, which had urged the justices to leave the lower court rulings in place.

The case is Bowman v. Monsanto, 11-796. Oral arguments are likely to take place early next year.‹