Biotech Values

[DewDiligence]

MON temporarily suspends royalty collections on Brazilian soybeans due to Mato Grosso injunction:

http://www.bloomberg.com/news/2012-10-17/monsanto-suspends-soybean-royalty-collections-in-brazil.html

An appellate court in Mato Grosso [Brazil’s largest agricultural state] yesterday upheld an injunction requested by a group of growers to stop fee collections in the state before a trial challenging patents for the genetically modified beans. Monsanto will temporarily suspend the collections nationwide to “maintain operational consistency…” [i.e. to have the same policy in every Brazilian state].

Growers say the patent on the original Roundup Ready soybeans expired in 2010, ending their obligation to pay Monsanto a technology fee on the seeds. Monsanto says that Brazilian law extends the patent to 2014, when it expires in the U.S.

…Monsanto said it expects appellate courts to decide whether collections can resume over the next several weeks, prior to the start of the trial in state court.

This case affects only first-generation Roundup Ready soybeans, not the new Intacta product that includes second-generation RR and insect protection (#msg-60109375, #msg-76031308). Nevertheless, it would be a pretty big blow to MON’s business in Brazil during the next few years if the plaintiffs were to prevail in Court.

Note: This lawsuit is completely separate from the US case filed by an Indiana farmer that will be heard by the Us Supreme Court (#msg-80293708).