Monsanto Resumes Soybean Royalty Collection in Brazil
10 December 2012 Monsanto, the world’s largest seed company, will begin collecting royalties on first-generation Roundup Ready soybeans in Brazil again.
On Oct. 9, the Court of Justice in Mato Grosso ordered that the St. Louis, Missouri-based company stop collecting royalties on the soybeans across Brazil in an intellectual property suit brought about by a local grower federation and grower unions. The court decided it can resume collections as of Dec. 4.
Monsanto said it will place the earnings into an escrow account, pending the outcome of the appeal process as well as the full case. The company’s appeal will continue as a part of the ongoing process at the state and federal levels.
Monsanto said it continues to remain confident in the merits of its case.
“This action reinforces the confidence we have 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.
Monsanto says that under Brazilian law, Monsanto’s intellectual property rights on Roundup Ready soybeans are in place through 2014. Growers in Brazil claim the patent on the original Roundup Ready soybeans expired in 2010.
Monsanto also noted that the issues presented in this case do not relate to its next-generation products like INTACTA RR2 PRO™ soybeans.
For more information on Monsanto’s suspension of royalties, click here.
(Source: Monsanto)
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