Brazilian court orders Bayer to withhold BRL1.3 billion from royalties for Intacta RR2 PRO technology

The Court of Justice of the Brazilian state of Mato Grosso (TJ-MT) ruled that Bayer must deposit, in court, one-third of the value of royalties it received since 2018 for the Intacta RR2 PRO technology, a soybean imbued with the biotechnology of tolerance to the herbicide, glyphosate, as well as protection against the major caterpillars that attack the crop.

According to the Mato Grosso Soy and Corn Producers Association (Aprosoja-MT), this amount is around BRL1.3 billion, referring to soy producers in the states of Mato Grosso, Bahia, Goiás, Piauí, Rondônia and the Tocantins.

Judge Clarice Claudino da Silva from the Second Chamber of Private Law of the TJ-MT welcomed the arguments of farmers, who stressed that the patent in question expired in March 2018, but Bayer has continued to collect royalties.

Aprosoja-MT is still seeking a second lawsuit against the Intacta technology patent involving a value of R$ 1.2 billion.

In a statement, Aprosoja-MT said, ″The sum of the amounts involved in both demands reached the amount of approximately R$2.5 billion, a value that could be even higher since this sum only takes into account the royalty report presented unilaterally by Monsanto during the process. But in the future, it will have to be updated with the amounts effectively paid by rural producers for the use of the technology throughout the relevant period.″

Currently, the amount paid in royalties for soybeans with Intacta technology is R$213 per hectare for saved seeds, Aprosoja-MT added.

Consulted by AgroPages, Bayer said that it believes in the revocation of the injunction.

″Bayer has strong legal arguments aimed at revoking the injunctive relief granted in the case. INTACTA RR2 PRO^® technology is protected by intellectual property rights, both patents and of a diverse nature. The company is evaluating alternatives to determine the next steps,″ it said.

(Editing by Leonardo Gottems, reporter for AgroPages)