Bayer won an injunction to pause a Brazilian court ruling that entitled soybean farmers to refunds for royalties on expired GMO seed patents. This decision maintains the status quo while the appeal is processed, continuing Bayer’s legal battles over its Intacta technology patents in Brazil’s significant soybean industry.
Bayer has successfully secured an injunction to halt a Brazilian court ruling that entitled soybean farmers to reimbursement for royalties on expired genetically modified soy seed patents. This was confirmed by a farmer group, Aprosoja-MT, which noted the Mata Grosso state court’s ruling will not take effect temporarily as the issue is appealed. The company’s recent communication to stakeholders indicated that the suspension will maintain the current business model until the appellate court reviews the situation.
The company, having acquired Monsanto in 2016, is embroiled in ongoing legal disputes regarding patents linked to its Intacta RR2 PRO technology, crucial in Brazil’s soybean production. The technology is notable for its glyphosate tolerance and resistance against certain pests. Bayer’s latest injunction highlights escalating tensions in the legal confrontation between the company and Brazilian farmers concerning intellectual property rights.
Currently, Bayer has allocated approximately 4.5 billion reais (around $785 million) in “judicial guarantees” during the ongoing lawsuits. The conflict initiated in 2017 when farmers aimed to nullify Intacta’s patent protections in federal court, and a final ruling on this matter is still awaited. Additionally, the Brazilian Supreme Court ruled in 2023 that patent rights are limited to 20 years, impacting royalties already paid to Bayer by local farmers.
In summary, Bayer has obtained a crucial injunction to temporarily suspend a court ruling that favored Brazilian farmers regarding royalty reimbursements for expired soy patent rights. This legal development reflects the ongoing complexity of patent rights and royalty disputes in Brazil’s agricultural sector, particularly concerning genetically modified organisms. The resolution of the case is pending a higher court’s review.
Original Source: www.tradingview.com
