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Monsanto suffers judicial setback on soybean royalty charge of Intacta RR2 in Brazil
Aug. 24, 2015
The Justice of the Brazilian state of Rio Grande do Sul granted an injunction which prohibits Monsanto to charge royalties of 7.5% over soybean sales with seeds ( produced with the Intacta RR2 technology ) saved by producers themselves. According to lawyer Jane Berwanger, who represents the producers, the decision applies to the entire country and includes the fine of US$ 2,000 for improper charge.
The lawsuit was filed by the Association of Soybean Producers of Rio Grande do Sul, the Federation of Workers in the southern state of the countries and other rural unions of Rio Grande do Sul, according to the lawyer. She says that the injunction reinforces similar decisions adopted by the Justices of the state of Bahia and Mato Grosso, but that had scope just in that state.
"Monsanto cannot charge nearly twice of royalties for a seed that the farmer saved and reproduced," said the lawyer. The acquisition of certified seed royalties account for less than 4% of the estimated production, while a royalties of 7.5% on sales for the seeds saved by the producers are charged by Monsanto, which is consider to be improper by the producers.
Through its press office, Monsanto stated that it was not notified "of any lawsuit in first instance" and has the "tranquility that this system [of remuneration by the technology] is totally abiding". The company highlighted yet that there was no double charge because "only the producer that uses irregular seeds pays royalties on the soybean sales".
Farmers of Rio Grande do Sul also has a judicial dispute against the payment of 2% of royalties on the sale of Mosanto's first generation of transgenic soybeans - RR1 - which had the patent expired. The company had lost the lawsuit on first instance, but the decision was reverted at the Court of Justice in 2014. Farmers appealed, but there is not a date for a new judgement of the case.
Source: AgroNews
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