Updated: The Court of Justice of Mato Grosso modifies an earlier injunction; Monsanto to resume collection of royalties for Roundup Ready® soybeans

12/4/2012

The Court of Justice of the State of Mato Grosso decided today that Monsanto can resume its collection of royalties for Roundup Ready soybeans in the State of Mato Grosso.  Monsanto will collect and temporarily place associated royalties for Mato Grosso into an escrow account, pending the outcome of the appeal process as well as full case which will be heard in due course.  The company’s appeal will now continue as a part of the ongoing process at the state and federal levels.

Monsanto collections for first-generation Roundup Ready soybeans had been temporarily suspended by a prior state court ruling.  For the time being, these collections will be maintained in escrow.  In addition, royalty collection in other states will resume.

Monsanto said it continues to remain confident in the merits of its case. 

“This action reinforces our confidence in our ongoing legal position and highlights that the company’s first-generation Roundup Ready soybean products are protected by various intellectual property rights under Brazilian law,” said Todd Rands, Legal Director for Latin America.

Roundup Ready soybeans are protected by intellectual property rights provided for in the Brazilian legislation. State and Federal Courts have upheld these rights in Brazil.  Under Brazilian Law, Monsanto’s intellectual property rights on Roundup Ready soybeans are in place through 2014. 

Monsanto also noted that the issues presented in this case do not relate to its next-generation products like INTACTA RR2 PRO™ soybeans. 

 

(Previous 10/17/2012) Monsanto to Pursue Appeal of Mato Grasso State Appellate Court Ruling

Monsanto Company said it is continuing to pursue an appeal of a recent preliminary ruling from a state appellate court in Mato Grosso, Brazil, related to the company’s collection of royalties for its first-generation Roundup Ready® soybeans.  The company is currently taking steps to comply with the court’s preliminary ruling which requires Monsanto to temporarily suspend royalty collections for the first-generation soybean product in the state of Mato Grosso, pending the outcome of the appeals process.

The company’s ongoing appeal of this preliminary ruling seeks to reestablish the royalty collections during the time that the trial is heard by the original Mato Grosso state court.  Monsanto expects that the appellate courts will decide these preliminary matters over the next several weeks, and then the case will move to trial in the original state court.
 
In order to maintain operational consistency, Monsanto will also temporarily suspend collections of royalties on first-generation Roundup Ready soybeans across the rest of Brazil.  

Monsanto noted that it remains confident in the merits of its case and looks forward to resolving this matter as soon as possible.

“We look forward to resolving this preliminary matter on appeal over the next several weeks. Previous rulings in Brazil have been clear and recognized Monsanto’s intellectual property rights as well as established its ability to collect royalties for its products,” said Todd Rands, Monsanto’s Legal Director for Latin America. “In the interim, we will continue to comply with the court’s initial ruling.  We will reserve our rights to reestablish royalty collections to the extent the courts allow us to do so in future rulings.”

Monsanto’s first-generation Roundup Ready soybean products are protected by various intellectual property rights under Brazilian law. Brazilian state and federal courts have upheld these rights. The Brazilian law provides that the company’s intellectual property rights for Roundup Ready soybeans should continue through 2014.

Monsanto shares the belief stated by the leaders of these grower groups that these technologies have brought great value to Brazil’s farmers and its economy. Both parties agree and recognize the value that intellectual property rights and the associated royalties are playing in stimulating new investments made by the industry. While both parties share these common interests, Monsanto and these grower leaders have different interpretations of the intellectual property rights held by the company on Roundup Ready soybeans, and Monsanto will be presenting the full merits of the case for the Brazilian courts’ consideration.

Previous (10/9/2012): Monsanto Will Seek to Present Full Case to Lower Court in Mato Grasso

Monsanto Company said it would seek a full legal review following reports which highlighted a preliminary ex parte ruling from a state appeals court in Mato Grosso, Brazil. According to reports, a local grower federation and grower unions had challenged the company’s intellectual property rights associated with two first-generation products (Roundup Ready soybeans and Bollgard cotton) and sought to temporarily suspend the collection of royalties or indemnities associated with these products. Monsanto said that it would request that the court reconsider its ruling should such reports be accurate, and that it would move to immediately ensure that the collections for these products continue through the duration of any legal process.  

Monsanto’s first-generation soybean and cotton products are protected by various intellectual property rights under Brazilian law. Brazilian state and federal courts have upheld these rights. The Brazilian law provides that the company’s intellectual property rights for Roundup Ready soybeans to continue through 2014 and that its intellectual property rights for Bollgard cotton ended in 2011. As such, Monsanto has not charged farmers for its first-generation Bollgard cotton technology since 2011.

“Previous rulings in Brazil have recognized Monsanto’s intellectual property rights and established its ability to collect royalties for its products,” said Todd Rands, Monsanto’s Legal Director for Latin America. “We look forward to presenting the full merits of the case to the court.”

Monsanto shares the belief stated by the leaders of these grower groups that these technologies have brought great value to Brazil’s farmers and its economy. Both parties agree and recognize the value that intellectual property rights and the associated royalties are playing in stimulating new investments made by the industry. While both parties share these common interests, Monsanto and these grower leaders have different interpretations of the intellectual property rights held by the company on Roundup Ready soybeans and Bollgard cotton technologies, and Monsanto will be working with the courts to present the full merits of the case.

Roundup Ready and Bollgard technologies are well recognized by farmers and experts as one of the most effective tools in crop management. The first-generation products have provided a series of benefits to farmers since their commercial introduction – including greater on-farm efficiency and increased productivity.

Monsanto, similar to other companies that hold intellectual property rights on their inventions, are compensated through the payment of royalties. This approach has played an important role in fostering new investments in Brazilian agriculture production.

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