Monsanto to launch defense of Brazilian Intacta patent by March

Monsanto has one month to present its defense of its patent Intacta RR2Pro (MON87701xMON89788) to Brazilian authorities, lawyers from the company announced, after the National Institute of Intellectual Property (INPI) confirmed that the firm’s patent will be declared null and void.

 

Monsanto’s lawyer Luiz Henrique do Amaral, said the company will present its arguments by March 22 in response to INPI’s technical opinion advising that the Intacta seed patent be revoked.

 

The Brazilian attorney general cited INPI’s re-evaluation based on a lawsuit filed in November against Monsanto by soybean producers in the state of Mato Grosso. The legal revision may trigger years of litigation between the company, Brazilian authorities, and exporters of soybeans.

 

“Any legal decision that suspends payments of royalties can be an appeal target by Monsanto,” said Amaral. He did not want to comment on how long it might take to arrive at a final decision on the case.

 

Sidney Pereira de Souza Junior, the lawyer who represents the Association of Corn and Soybean Growers of Mato Grosso, said the case is “going fast” and a decision could come in two years. After Monsanto presents its arguments, the court can concede an injunction suspending the royalties charged by the company for Intacta, while the case is deliberated, he added.

 

Amaral noted it was surprising that the authorities had revoked a patent approval that lasted 10 years in a matter of weeks based on the opinions of experts, who did not participate in the original evaluation. INPI stated that its technical opinion was based on the arguments of the Soybeen Producers’ Association, and Monsanto till date had not presented any counter arguments.

 

Intellectual property rights are crucial for Monsanto, which is facing regulatory obstacles to obtain approval for its acquisition by Bayer, a US$63.5 billion agreement that will create the largest seed and pesticide company in the world.

 

Monsanto shares are trading below the $128 Bayer price offer, reflecting uncertainties linked to the awaited approval by anti-trust business authorities around the world, including Brazil, the second largest market for Monsanto.

 

Nearly 96.5% of soybean plantations in Brazil are genetically-modified. The global demand for GMO seeds, including corn and soybeans, is expected to increase to $36.5 billion by 2021, against the $21.5 billion in 2015, according to Zion Research.

 

Intacta is genetically modified to tolerate glyphosate and to resist to caterpillars. Monsanto obtained its Intacta patent in 2012, and has charged royalties for it since 2013. The patent protection extends until 2022.