The Supreme Court today held that the patient claim made by Monsanto Technology on the genetically modified BT cotton seed is valid.

The Bench of Justices Rohinton Nariman and Navin Sinha set aside the decision of the Division Bench of the Delhi High Court that had held Monsanto’s claim to be unenforceable.

An appeal was filed in May 2018 against the judgment of the Delhi High Court that had held Monsanto’s patent claim on Bt Cotton unenforceable in India under the Patents Act.

The dispute arose when under a sub-licence agreement between Monsanto Technology LLC and Nuziveedu Seeds Ltd, the former claimed royalties from the latter for supplying donor seeds of Bt Cotton for its breeding program.

Nuziveedu’s case was that the end product of the breeding program has distinct characteristics of its own, and hence no royalties need to be paid by it. It argued that the gene or the method of transformation was not transferred to them, and only seeds of the transgenic variety were given.

Monsanto, on the other hand, had claimed that since the donor seeds (produced by their own patented technology) were used by Nuziveedu to develop new varieties, they should continue paying royalties as per the original sub-licensing agreement.

When Nuziveedu continued to sell its genetically modified seeds even after its sub-licence with Monsanto was terminated, Monsanto approached the Courts seeking an ad-interim injunction. Nuziveedu in turn challenged the termination of the sub-licence agreement.

The Delhi High Court had in its decision held that Monsanto could not assert patentability on the genetically modified seeds produced by Nuziveedu through hybridization, and that the same claim does not find backing in the Patents Act.

Both sides were represented by a battery of Senior Advocates. Before the Supreme Court, Mukul Rohatgi, Abhishek Manu Singhvi, Neeraj Kishan Kaul and SN Mukherjee appeared for Monsanto, while Aryama Sundaram, Jayant Bhushan, and KV Viswanathan represented Nuziveedu.

As carried in BB