Bayer Secures Injunction in Ongoing Soy Patent Dispute with Brazilian Farmers

Bayer has won an injunction to suspend a Brazilian court ruling that enabled soybean farmers to claim reimbursement for expired GMO soy seed patents. This injunction halts the court’s decision while the appeals process takes place. The legal battle highlights Phillips’ challenges with the Intacta RR2 PRO technology amid shifts in patent laws affecting royalties.

Bayer, the German multinational, has successfully secured an injunction to suspend a recent court ruling in Brazil that had granted soybean farmers reimbursement for royalties on expired patents of genetically modified soy seeds. This information was confirmed by the farmers’ lobby Aprosoja-MT and a statement from Bayer directed to its stakeholders this week. The injunction halts the enforcement of the lower court’s decision from Mato Grosso state, allowing Bayer some respite while legal challenges persist.

On Wednesday, Bayer communicated to its stakeholders that the December 2024 court ruling has been temporarily suspended pending a review by the Mato Grosso court of appeals. This decision helps maintain Bayer’s business model while the appeal is under consideration, ensuring the continuity of their operations in Brazil, the leading country in soybean production and export.

Bayer, which acquired Monsanto in 2016, has faced several legal hurdles concerning patents tied to its Intacta RR2 PRO technology. This genetically modified seed is known for its resistance to glyphosate and protection against certain pests. The ongoing injunction adds another layer to the complex legal disputes between Bayer and Brazilian farmers.

Approximately 4.5 billion reais (equivalent to $785.30 million) has been provided by Bayer in the form of judicial guarantees as two lawsuits remain active, as noted by Aprosoja-MT’s attorney, Sidney de Souza. The conflict intensified with a lawsuit filed in 2017, where Mato Grosso farmers sought to nullify the patent protections of Intacta. A decisive ruling on this matter is still awaited.

Earlier in 2023, Brazil’s Supreme Court determined that patent rights could not be extended beyond a 20-year period, negatively impacting Bayer’s Intacta royalties, which had amounted to about 1.3 billion reais paid by local farmers. This recent ruling inspired the Mato Grosso judge to adjust the patent terms and mandate the return of royalties deemed improperly collected, although this ruling is currently on hold due to Bayer’s successful injunction.

Bayer has achieved a significant legal development by obtaining an injunction against a Brazilian court ruling favorable to soybean farmers regarding expired patent royalties. This injunction maintains Bayer’s business operations in Brazil during the pending appeal process. Ongoing legal challenges surrounding Bayer’s Intacta technology underscore the contentious nature of patent rights and agricultural production in the country.

Original Source: www.tradingview.com