Nuziveedu Seeds vs. Monsanto: IP Rights Analysis
Nuziveedu Seeds vs. Monsanto: IP Rights Analysis
• Monsanto had licensed its Bt Cotton Seed Technology to Indian seed companies, including
Nuziveedu Seed Limited (“Nuziveedu”), Prabhat Agri Biotech Limited and Pravardhan Seeds
Private Limited.
• Under the license agreement, these companies were supposed to sell certain seeds and pay a
contractually-agreed trait value to Monsanto.
• Later on, these seed companies demanded a reduction of this trait value because the Indian central
and state governments passed new price control orders fixing trait fees and the retail prices of seeds.
• Since Monsanto refused to reduce the trait value, in October 2015, a group of 8 Indian seed
companies, including Nuziveedu, stopped paying royalties to Monsanto.
• In response, Monsanto terminated their license agreements and in 2016, filed a suit in the Delhi
High Court against Nuziveedu and the others, seeking an injunction against them for patent and
trademark infringement.
SINGLE JUDGE BENCH DECISION
• The court noted that the Protection of Plant Varieties and Farmers Rights Act,
2001, and the Patents Act, 1970, are independent laws governing different
aspects of intellectual property rights in relation to plant varieties and
biotechnological invention.
• While the defendants argued that their actions were protected under the Plant
Varieties Act, the court maintained that the rights conferred by the Patents
Act, particularly in relation to patented traits and biotechnological
inventions, are distinct and not overridden by the provisions of the Plant
Varieties Act.
DIVISION JUDGE BENCH DECISION
• “100. … In other words, the moment the DNA containing the nucleotide
sequence (subject patent) is hybridized to produce the transgenic
seeds/plants; the seeds/plants fall within the purview of the PV Act, and,
above, the process of creation of such seeds/plants are also excluded from
patentability as they squarely fall within the meaning of an "essentially
biological process" that is exempted from patentability within the meaning of
section 3(j), as well. For these reasons, it is held that the subject matter, the
concerned nucleotide sequence over which Monsanto has patent rights and
the process is unpatentable by reason of Section 3 (j) of the Patents Act.”
DIVISION JUDGE BENCH DECISION
• “107. For the above reasons, it is held that the learned single judge’s conclusion that the PV Act
and the protective mechanism was an option, or alternative, which Monsanto could possibly have
resorted to, in addition to patent protection, under the Patents Act, is incorrect. These two
systems are not complimentary, but exclusive, in the case of all processes and products falling
under Section 3 (j) of the Patents Act. Nuziveedu’s contention with respect to patent exclusion,
therefore, succeeds. The court at the same time realizes that the patent granted to Monsanto has
stood all this while. Given these factors, it is held that Monsanto is at liberty to claim registration
under the PV Act, with the benefit of its filing the patent application, as far as the date of filing
and for purposes of Section 15 of the PV Act. In case Monsanto wishes to avail its right, the
application or applications (for registration) under the PV Act shall be preferred within three
months and decided in accordance with its provisions; such claims shall be decided in
accordance with law. Subject to these liberties, Nuziveedu‟s counter claim succeeds and is
allowed.”
Why do we need to protect plant varieties in IP
Law?
NEED TO PROTECT
• Encouraging Innovation.
• Protecting Breeder/Farmer’s Investment.
• Global Collaboration.
• Improved Crop Varieties.
REASON FOR ADOPTING THE PPVFR ACT
ARTICLE 27.3: PATENTABLE SUBJECT
MATTER
• Enacted in 2001.
• Objective of the Act, as mentioned in the preamble:
a. To provide an effective system for protection of Plant varieties and rights of farmers and plant
breeders.
b. To recognize and protect the rights of farmers in respect of the contribution made at any time in
conserving, improving and making available plant genetic resources for the development of new
plant varieties.
c. To accelerate agricultural development in the country, protect plant breeders’ rights, stimulate
investment for research and development in public/private sector for development of plant variety
and
d. To facilitate the growth of seed industry to ensure the availability of high quality seeds and
PPVFR AUTHORITY
• In exercising its power under s.3(1), the Central Government established the PPVFR
Authority in the year 2005.
• Functions of the PPVFR Authority:
i. provide for registration of new and extant plant varieties.
ii. develop, characterise and document the registered varieties.
iii. create compulsory cataloguing facility for all varieties.
iv. ensure the registered varieties are available to farmers.
v. regulate the grant of compulsory licences.
vi. collect statistics with regard to plant varieties.
DEFINITION
2. Extant Variety
s.2(j): (j) “extant variety” means a variety available in India which is—
(i) notified under section 5 of the Seeds Act, 1966 (54 of 1966); or
(ii) farmers’ variety; or
(iii) a variety about which there is common knowledge; or
(iv) any other variety which is in public domain;
TYPES OF VARIETIES UNDER THE PPVFR
ACT, 2001
b. Farmer’s Variety
s.2(l): “farmers’ variety” means a variety which—
(i) has been traditionally cultivated and evolved by the farmers in their fields;
or
(ii) is a wild relative or land race of a variety about which the farmers possess
the common knowledge;
TYPES OF VARIETIES UNDER THE PPVFR
ACT, 2001
4. New Variety
s.15(3): NDUS Test.
• Novelty - not been sold or otherwise disposed of in India, earlier than 1 year (and
outside India, in case of trees and vines earlier than six years, or, in any other case,
earlier than four years).
• Distinctiveness - distinguishable by at least one essential characteristic from any
another variety in common knowledge.
• Uniformity - sufficiently uniform in its essential characteristics.
• Stability - if its essential characteristics remain unchanged after repeated propagation,
on, in the case of a particular cycle of propagation, at the end of each cycle.
MAHARASHTRA HYBRID SEED CO. V.
UNION OF INDIA
FACTS
• The petitioners argued that the hybrid seeds obtained from crossing the
parental lines are distinct in traits and characteristics from the parent lines.
• They contended that the characteristics of the hybrid variety are different
from the parental lines, and therefore, the parent lines should not be
considered the same as the hybrid variety.
• The petitioners also asserted that the development and sale of hybrid seeds
should not be seen as exploitation of the parental lines, as the sale of hybrid
seeds does not involve the transfer of title of the parent lines to third parties.
CONTENTION OF THE RESPONDENTS
• “28. It is settled law that the intention of the Legislature must be discerned
from the plain language of a Statute. In my view, the plain language of
Section 15(3)(a) of the Act indicates that a variety would be novel if
harvested material of a variety has not been sold, or otherwise disposed of
prior to the specified period. It would, obviously, follow that the plant would
cease to conform to the novelty criteria as required for being registered as a
new variety, if the propagating material/harvested material of the variety was
sold or otherwise disposed of for the purposes of exploitation of such variety
prior to the specified period.”
DECISION
• “35. In my view, a plain reading of Section 15(3) of the Act would indicate that if the seeds of parent lines have been commercially sold, the
breeders cannot claim the parent lines to be novel. As I see it, even if one was to consider that language of Section 15(3) of the Act was
ambiguous on the issue, the same would have to be resolved against the petitioners. This is so because it is well settled that in case of ambiguity
in the language of a statute, a purposive interpretation that furthers the intention of the Legislature must be adopted. The Legislative intent of
the Act is to protect the rights of the farmers' and plant breeders. India had ratified the TRIPS agreement and, therefore, was obliged to protect
the intellectual property rights in certain plant varieties. The protection as envisaged under the Act is to provide certain exclusive rights for a
specified period of time. By virtue of Section 24(6) of the Act, the registration certificate issued in respect of a plant variety could be extended
for a period up to 18 years from the date of registration in case of trees and vines and 15 years from the date of registration in other cases. In the
case of extant varieties the validity of the registration certificate can be extended upto 15 years from the notification of that variety under
Section 5 of the Seeds Act, 1966. In other words, the Parliament in its Legislative wisdom considered that providing exclusivity as specified
under Section 24(6) of the Act was sufficient protection to the plant breeders. If the provisions of Section 15(3) of the Act are read in a manner
as suggested by the petitioners, the effect would be to extend that period of protection many times over. In the first instance, a breeder would
get protection in respect of the hybrid variety and assuming that there are two parent lines, the breeder could just before the expiry of the
Registration Certificate in respect of a hybrid variety, register one of the parent variety and thus, extend its period of exclusivity for a further
period of 15/18 years because protection of even one parent line would practically ensure exclusive rights in relation to the hybrid variety. In
the same manner, before expiry of the registration period of that parent line, the breeder could register the other parent line as a new variety. In
this manner a breeder could extend the protection for a period up to maximum 45/54 years instead of 15/18 years as contemplated under the
Act. Clearly, this is not the legislative intent of the Parliament.”
PIONEER OVERSEAS CORPORATION VS
CHAIRPERSON, PROTECTION OF PLANT
VARIETIES AND FARMERS’ RIGHTS (DELHI
HC SINGLE JUDGE DECISION)
FACTS
• This case involves a dispute over the registration of a plant variety, KMH-50,
by Kaveri Seeds Company Limited. Pioneer Overseas Corporation, a
subsidiary of Pioneer Hi-Bred International Inc., challenged the registration
of KMH-50 on the grounds that it was not distinct from their own variety,
30V92.
• The Authority accepted Kaveri's application for registration of KMH-50
based on the results of the Distinctiveness, Uniformity, and Stability (DUS)
Test. Pioneer alleged that Kaveri had misappropriated the germplasm of their
variety, 30V92, and that the Registrar had not considered this allegation in
the registration process.
FACTS
• Procedural reasons prevented Kaveri’s application from proceeding, as it had abandoned under
Section 21(4) of the Act. The provision requires that Kaveri should have filed a counter-claim
to the opposition within two months of receiving notice of the opposition but did not do so.
• The Registrar had failed to consider scientific evidence like pedigree information, DNA
fingerprinting and research records.
• Kaveri’s variety was not examined for DUS criteria before acceptance for registration.
• Under Section 18 of the Act, Kaveri had failed to provide the requisite information to the
Registrar about the parental lines and veracity of genetic material of its variety.
• The results of the DUS tests were not conclusive of the two varieties being different. It said
that the registrar had failed to compare the characteristics of two varieties, especially
distinctiveness.
CONTENTION OF RESPONDENTS
• Procedural lapses did not prevent the Registrar from considering the opposition on
merits.
• The Registry did not have to conduct a DUS test before accepting an application, and a
DUS test for a variety could be conducted at any stage of the application.
• Once DUS criteria were met by Kaveri’s variety, there was no requirement to compare
it with Pioneer’s variety. In any event, the DUS test reports clearly established that the
two varieties were distinct from each other.
• Pioneer’s request for a special test (DNA test) was not acceptable. It claimed that under
Rule 20 of the 2003 Rules accompanying the Act, DNA tests could only be conducted
when DUS tests failed to establish distinctiveness. It also said that a request for a DNA
test could only be made by an applicant and not any third party.
DECISION
• The court also held that the scheme of the Act is unequivocal. The Registrar must
examine an application before accepting it for registration. Once the application
has been accepted for registration and no opposition is filed, the law says that the
Registrar “shall” register the application. The use of the word “shall”, according to
the court, makes the provision mandatory, giving no discretion to the Registrar to
reject the application. An applicant must satisfy the Registrar that the DUS test has
been complied with before the Application is accepted for registration of a variety.
• Pioneer’s application for conducting the special test in the nature of DNA profiling
of the variety 30V92 and KMH-50 was restored to the file of the Registrar for
considering it afresh, if necessary.
DECISION
• The Court held that prima facie, even by evaluating the DUS test results it
indicates that the characteristics, in respect of which the two varieties were
found to have qualified the DUS test, are more or less identical when
compared inter se. However, Court was not inclined to examine the said
controversy any further as the same had not been considered in any of the
impugned orders. However, it was held obvious that if the question whether
the variety 30V92 and KMH-50 were different and distinct from each other
was required to be determined, a meaningful examination of their essential
characteristics would be relevant.
EXCLUSION FROM PROTECTION
• s.24(6)
- Trees and Vines: Minimum of 9 years and can be extended to 18 years.
- Other Crops: Minimum of 6 years and can be extended to 15 years.
• Both the time periods are calculated from the date of registration of the
variety.
• There is an annual fee which has to be paid by the breeder (s.35).
INFRINGEMENT
• s.28
- An exclusive right on the breeder or his successor, his agent or licensee, to
produce, sell, market, distribute, import or export the variety registered under
the Act.
- A breeder may authorize any person to produce, sell, market or otherwise
deal with the variety registered under this Act.
- A breeder shall enjoy provisional protection of his variety against any
abusive act committed by any third party during the period between fi lling of
application for registration and decision taken by Authority.
RESEARCHERS’ RIGHTS
• s.30
(a) A person can use any registered variety for conducting experiments or
research.
(b) A person can use any registered variety as an initial source of variety for
the purpose of creating other varieties.
Authorization of the breeder of a registered variety is required where repeated
use of such variety as parental line is done for commercial production of other
new developed variety.
FARMERS’ RIGHTS
• s.41
- Right to receive compensation by villagers or local communities for their
significant contribution in the evolution of a variety which has been registered
under the Act.
- Who can raise the claim - Any person/ group of persons/governmental or
non-governmental organization, on behalf of any village/local community in
India.
- Any compensation granted shall be deposited by the breeder of the variety
in the Gene Fund.
COMPULSORY LICENSING
• On February 18, 2011, the appellant applied to the Plant Variety Authority for the
registration of a chipped potato variety, FL 2027, under the ‘new’ category.
• The Registrar raised queries about the application, including the date of
commercialization as well as the fact that the variety falls under the 'extant'
category rather than the 'new' category.
• The appellant filed the revised application; however, due to a bona fide mistake
ticked the box in the form depicting FL 2027 as a 'new variety', with the date of
commercialization as 17.12.2009 in India.
• The Registrar granted registration to FL 2027 on 01.02.2016, treating it as an
'extant variety'.
FACTS
• The respondent had filed an application under Section 34 of the Act before the
Authority for revocation of registration granted in favor of the appellant.
• The Authority allowed the application and passed the impugned order revoking
the registration of FL 2027 under Section 34(a), (b), (c), and (h) of the Act.
• Due to revocation of registration, the appellant's application for renewal of
registration was also rejected vide Authority letter dated 11.02.2022.
• Being aggrieved by the Authority's decision, the appellant filed the present
appeal under section 56 of the Act challenging the impugned order and the
letter.
CONTENTIONS OF THE APPELLANT
• According to Section 34(a) of the Act, the Authority can cancel a registration based on false information. The
appellant argued that the Authority misunderstood, as the registration error (checking “new variety” instead
of “extant”) didn’t impact the registration, given the Registrar categorized FL 2027 correctly as an “extant
variety.” Additionally, the order wrongly cited application deficiencies related to an unintentional error in the
first sale date, which the appellant claimed had no bearing on the registration.
• Under Section 34(b), the certificate can be revoked if granted to someone not entitled to protection. The
appellant argued the order incorrectly deemed their assignment deed unlawful due to unstamping and lack of
witnessing, stating it was completed in the USA where such formalities aren’t required. Section 34 prohibits
revocation when the Registrar accepts it without objection.
• Section 34(c) deals with failure to provide necessary information. The appellant contested that the order
misunderstood the legality of their assignment deed, completed in the USA, where stamping and registration
aren’t mandatory.
• Section 34(h) allows cancellation if issuance isn’t in the public interest. The appellant argued that using this
section was an error, as the suit against farmers, ineligible under Section 39(1)(iv), shouldn’t be
retrospectively deemed against public interest in 2021 when the appellant had a valid certificate and no
revocation application during the litigation filing.
CONTENTIONS OF THE RESPONDENT
• The respondent contended that the impugned order is free of errors. The appellant had purposefully
checked the box for ‘new variety’ instead of ‘extant variety’. Furthermore, the respondent contended
that, according to documents, the first sale of FL 2027 in Chile occurred in 2002, and thus the variety
became public domain after 2017, i.e., fifteen years after the date of first sale. As a result, the appellant
would be ineligible to renew his registration. As a result, the Authority has correctly invoked Section
34 (a).
• The respondent contended that there was no legitimate assignment of such right in the appellant’s favor
and that the appellant had not produced any documentation proving its entitlement to file the
application. Moreover, the breeder of the candidate variety did not sign PV-2, the required form
proving the authority to submit an application. Therefore, the Authority properly invoked section 34(b)
and (c) to withdraw the registration that had been granted in the applicant’s favor.
• The respondent contended that the appellant had misused the registration by suing several Gujarati
potato producers and demanding disproportionately large and unreasonable compensation. The
intention behind such crimes was to terrorize, harass, and deeply unsettle the farmers. As a result, the
registration was properly canceled in accordance with Section 34(h) of the Act.
SINGLE JUDGE BENCH DECISION
• The appellant's misrepresentation of FL 2027 as a 'new variety' instead of an 'extant variety' was an
error in the revised application. The Registrar should have called for an amendment, and the
mistake could not be grounds for revoking the registration under Section 34(a) of the Act.
• The date of the first sale of the variety is crucial information, and the applicant must provide correct
details, failing which the registration can be revoked under Section 34(a). The appellant filed the
proof of right form (PV-2) without the breeder's or FLNA's signature, and the breeder did not
provide the required documents for registration.
• The application filed by the appellant had deficiencies, and the Authority was justified in revoking
the registration under Section 34(b) and (c) of the Act.
• The appellant's filing of litigations against farmers, even if frivolous, does not satisfy the test of the
grant of registration not being in the public interest. The Authority erred in revoking the registration
under Section 34(h).
• The court dismissed the appeal without cost, emphasizing that applications for variety registration
should strictly conform to the Act, Rules, and Regulations, and the onus of providing correct
DIVISION JUDGE BENCH DECISION
• The Division Bench, agreeing with PepsiCo ruled that plant variety cannot be revoked on
grounds not related to its validity and protectability.
• They highlighted those discrepancies in the application, such as the date of first sale,
authorization to file, and wrongful entry, are not fatal to the plant variety’s registration, as
they were not intentional.
• The Division Bench, however, agreed with the single-judge’s finding that the mistake of
describing FL 2027 as a “new” category was remediable and again not fatal to the cause,
as the Registrar had processed it as relating to the “extant” category.
• The renewal application by the Appellant will stand restored on the Registrar’s file.
• The Division Bench clarified that filing lawsuits to enforce plant variety against farmers is
not a violation of public interest.
PROBLEMS WITH THE INDIAN PLANT
VARIETIES REGIME
- PROF. (DR.) N.S. GOPALAKRISHNAN
PROBLEMS WITH THE INDIAN PLANT
VARIETIES REGIME (I)
• Registration Applications
- Total applications filed until May 7th, 2018: 16,104
- Categories of applications: new varieties, extant varieties, and farmers' varieties
- Certificates issued by February 28th, 2018: 3,074
- 450 were for “new varieties”: Most of these were given to the Indian Council of Agricultural Research
and 35 private seed companies.
- Not a single individual got registered for a new variety.
- Applications closed or rejected by May 7th, 2018: around 400
- Significant number of applications filed in the last two years, especially in extant and farmers' varieties
categories
- Extant varieties including varieties notified under section 5 of the Seed Act 1966 and varieties that are
PROBLEMS WITH THE INDIAN PLANT
VARIETIES REGIME (I)
• Ownership of registered extant varieties:
- Public funded institutions (e.g., ICAR, Agricultural Research Institutions, State Universities): more than
80%
- Private seed industries (national and multinational): remaining percentage.
• Registration of VCK (Varieties Commonly Known):
- Total VCK registered: 320
- Registered by private industries including Monsanto India Ltd., Maharashtra Hybrid Seed Co., Rasi Seed
Pvt., Nirmal Seed Pvt., Nuziveedu Seed Ltd., etc.
- Not a single farmers’ variety that is registered in the category of extant variety
- No regulations for “other varieties in public domain” and no applications.
- 80% of the applications closed/rejected is also for “extant varieties”.
PROBLEMS WITH THE INDIAN PLANT
VARIETIES REGIME (I)
• Problems faced by farmers:
1. Complex Registration Process:
- There are requirements for providing technical details and declarations about the variety.
- The process is unfriendly to farmers and excludes certain traditional varieties, such as wild
relatives or landraces, from protection.
- Farmers need assistance from experts like lawyers/scientists to navigate the registration process.
2. Exclusion of Traditional Varieties:
- The system excludes traditional varieties that do not fit the criteria of identifiable farmers,
groups, or communities.
- This exclusion limits the protection of traditional varieties that have been cultivated and
conserved over generations.
PROBLEMS WITH THE INDIAN PLANT
VARIETIES REGIME (I)
3. Limited Duration of Protection:
- The exclusive rights granted to registered extant and farmers' varieties are
valid for only 15 years from the date of registration.
- After this period, the varieties move into the public domain, potentially
depriving farmers of long-term benefits.
4. Private Industry Exploitation:
- Private seed industries are making serious attempts to benefit from the
enclosure movement of publicly available varieties.
- There is a concern that private industries may exploit traditional varieties for
commercial gain, rather than benefiting the farming community.
PROBLEMS WITH THE INDIAN PLANT
VARIETIES REGIME (I)
5. Lack of Community Ownership:
- A limited number of farmers' varieties are registered in the name of communities,
with a substantial number registered in the name of individual farmers.
- The lack of community ownership may hinder collective benefits and sharing of
resources among farming communities.
6. Need for Clarity and Revisiting Norms:
- There is a call for revisiting norm-setting practices and procedures to bring more
clarity to the registration process.
- The current system may not adequately protect the interests of farmers and farming
communities in the long run.