Supreme Court holds Monsanto’s patent on GM cotton seeds valid

Supreme Court holds Monsanto’s patent on GM cotton seeds valid

The Delhi High Court had held those plant varieties and seeds cannot be patented under Indian law by companies such as Monsanto

New Delhi: The Supreme Court on Tuesday held that Monsanto’s patent claim on genetically modified (GM) Bt. cotton was valid. A bench headed by Justice R.F. Marian set aside a 2 May order of the division bench of the Delhi High Court, which had held that plant varieties and seeds cannot be patented under Indian law by companies such as Monsanto Inc., and that royalties on GM technology would be decided by a specialized agency of the agriculture ministry.

As a result, the patent held by Monsanto, through its Indian arm Mahyco-Monsanto Biotech Ltd (MMBL) over its Bollgard-II Bt cotton seed technology, a GM variant which resists the bollworm pest, was decreed to be unenforceable in India.

A division bench of the Delhi High Court comprising justices Ravindra Bhat and Yogesh Khanna had permitted MMBL to approach the Protection of Plant Varieties and Farmers’ Rights Authority (PPVFRA) under the agriculture ministry for registering the variety within three months, following which the authority had to decide on a benefit-sharing mechanism. At present, trait fees on Bt cotton seeds are decided by a price control committee under the agriculture ministry.

The court had also directed Monsanto to continue with its obligations under the sub-license agreements and allowed “the suit to proceed with respect to the claim for damages and other reliefs”, within the light-weight of the sub-license termination notices issued by Monsanto.”

The court’s order came in an exceeding case filed in 2015 by Monsanto, through MMBL, against Nuziveedu Seeds and its subsidiaries for mercantilism Bt cotton seeds exploitation its proprietary technology despite termination of a license agreement in November 2015. The order and the court’s interpretation of section 3(j) of the Patents Act, 1970, could prove to be an impediment for the entry of new technology in the Indian agriculture sector as technology developers will lose pricing freedom. Monsanto had appealed the order in the Supreme Court.