Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm Insights

Supreme Court Sides With Monsanto

Author: Fred D. Zemel

Date: May 20, 2013

Key Contacts

Back

The U.S. Supreme Court recently sided with Monsanto Co. in a closely watched case involving patented soybean seeds. The Court concluded that an Indiana farmer could not copy patented seeds through planting and harvesting without Monsanto’s permission.

The Facts of the Case

Monsanto holds patents for Roundup Ready soybean seeds, which contain a genetic alteration that allows them to withstand exposure to the weed killer. It sells the seeds subject to a licensing agreement that permits farmers to plant the purchased seed in one growing season. Farmer Hugh Bowman purchased Roundup Ready soybean seeds for his first crop of each growing season and followed the terms of the licensing agreement.

However, when it came to his riskier late-season planting, Bowman purchased soybeans intended for consumption from a grain elevator. He planted them and treated the plants with weed killer to preserve only the Roundup Ready soybean plants. He continued to use the seeds from these plants for several seasons.

After discovering this practice, Monsanto sued Bowman for patent infringement. Bowman raised the defense of patent exhaustion, which eliminates the patent holder’s right to control or prohibit the use of an invention after an authorized sale.

The Supreme Court’s Decision

The Supreme Court unanimously held that the doctrine of patent exhaustion did not allow Bowman to reproduce the seeds by planting and harvesting them. While the Court acknowledged that the doctrine allows purchasers to essentially do what they want with a purchased item, those rights only apply to the particular article sold. “It leaves untouched the patentee’s ability to prevent a buyer from making new copies of the patented item,” the Court stated.

As further explained in the opinion, “By planting and harvesting Monsanto’s patented seeds, Bowman made additional copies of Monsanto’s patented invention, and his conduct thus falls outside the protections of patent exhaustion. Were this otherwise, Monsanto’s patent would provide scant benefit. After Monsanto sold its first seed, other seed companies could produce the patented seed to compete with Monsanto, and farmers would need to buy seed only once.”

While the debate over Monsanto’s business practices and the danger of genetically modified foods will likely continue, the Supreme Court’s decision offers much-needed clarity regarding the limits of the doctrine of patent exhaustion, particularly its application to biotechnology.

If you have any questions about this case or would like to discuss the legal issues involved, please contact me, Fred Zemel, or the Scarinci Hollenbeck attorney with whom you work.

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Scarinci Hollenbeck, LLC, LLC

Related Posts

See all
10 Common Issues in Franchise Disputes post image

10 Common Issues in Franchise Disputes

The most common franchise disputes involve breach of contract, franchise termination and non-renewal, intellectual property rights, territorial encroachment, royalty and fee payments, franchisor support obligations, and violations of state franchise laws such as the New Jersey Franchise Practices Act. Franchisors and franchisees can often resolve these conflicts by providing written notice detailing the dispute and […]

Author: Paul Grossman

Link to post with title - "10 Common Issues in Franchise Disputes"
Reputational Risk and Legal Exposure: Why New Jersey Businesses Must Manage Them Together post image

Reputational Risk and Legal Exposure: Why New Jersey Businesses Must Manage Them Together

New Jersey businesses must manage legal and reputational risk together because modern disputes play out on two fronts at once: the legal proceeding itself and the court of public opinion, where customers, employees, investors, and business partners often reach conclusions long before a judge or jury has had the opportunity to evaluate the facts. Success […]

Author: Sean M. Pena

Link to post with title - "Reputational Risk and Legal Exposure: Why New Jersey Businesses Must Manage Them Together"
Eviction Is Not Always the End: Understanding Post-Possession Rent Claims in New Jersey and New York post image

Eviction Is Not Always the End: Understanding Post-Possession Rent Claims in New Jersey and New York

No. An eviction does not automatically end a tenant’s obligation to pay rent. Post-eviction rent claims are common because recovering possession resolves who has the right to occupy the premises, but it does not extinguish the tenant’s contractual obligations under the lease. Whether unpaid or future rent remains owed depends on three factors: the lease’s […]

Author: Donald M. Pepe

Link to post with title - "Eviction Is Not Always the End: Understanding Post-Possession Rent Claims in New Jersey and New York"
Company Dissolved? Legal and Financial Consequences to Expect post image

Company Dissolved? Legal and Financial Consequences to Expect

A company is dissolved; legally, it ceases to exist. Accordingly, dissolution results in significant legal and financial consequences.  It is a process that must be properly managed to avoid continuing liability. The Corporate Dissolution Process Corporate dissolution is the legal process of formally closing a corporation, paying its debts and distributing the remaining assets. Most […]

Author: Jay McDaniel

Link to post with title - "Company Dissolved? Legal and Financial Consequences to Expect"
The Legal Implications of Signing a Triple Net Lease post image

The Legal Implications of Signing a Triple Net Lease

A triple net lease is a commercial lease in which the tenant pays the property’s real estate taxes, insurance, and maintenance costs, known as the three nets, in addition to base rent. They are most often used in freestanding retail and office buildings and in large single-tenant industrial properties, with terms that typically run 10 […]

Author: Donald M. Pepe

Link to post with title - "The Legal Implications of Signing a Triple Net Lease"
Business Law FAQs: What Companies Need to Know post image

Business Law FAQs: What Companies Need to Know

Running a business in New Jersey and New York means operating within one of the most legally complex environments in the country. From the moment you form your company to the day you sell it, and every contract, hire, dispute, and transaction in between, business law is present in decisions that look, on the surface, […]

Author: Scarinci Hollenbeck, LLC

Link to post with title - "Business Law FAQs: What Companies Need to Know"

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Sign up to get the latest from our attorneys!

Explore What Matters Most to You.

Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.

Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.

Let`s get in touch!

* The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form. By providing a telephone number and submitting this form you are consenting to be contacted by SMS text message. Message & data rates may apply. Message frequency may vary. You can reply STOP to opt-out of further messaging.
“If you would like to submit a file, please email it directly to info@sh-law.com.

Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!