Bayer obtains injunction in patent dispute with Brazilian soybean farmers.
The injunction prevents the first-instance ruling issued by Judge Celia Regina Vidotti from having immediate effect.
By Ana Mano
SAO PAULO (Reuters) - Bayer has obtained a preliminary injunction to suspend a court ruling that granted Brazilian soybean producers the right to reimbursement of royalties paid for expired patents on genetically modified soybean seeds, according to a group of farmers and a statement sent by the company to stakeholders this week.
The injunction prevents the first-instance ruling issued by Judge Celia Regina Vidotti from having immediate effect, said the Mato Grosso Soybean and Corn Producers Association (Aprosoja-MT) on Thursday night.
Bayer did not immediately respond when asked for comment.
On Wednesday, Bayer sent a statement to stakeholders, a copy of which was obtained by Reuters, explaining that the company had managed to suspend the December 2024 decision until the Mato Grosso Court of Justice reviews the appeal.
"This outcome preserves the current status quo, ensuring that the core principles of our business model... remain unchanged while the appeal is pending," said the Bayer statement.
The German company, which acquired the American company Monsanto in 2016, has faced several legal challenges related to patents linked to its Intacta RR2 PRO technology in Brazil, the world's largest producer and exporter of soybeans. The genetically modified seed, widely used in Brazil, combines tolerance to the herbicide glyphosate and protection against caterpillars.
The injunction is the latest twist in a protracted court battle pitting the company against Brazilian farmers.
It is estimated that Bayer has provided R$4,5 billion in the form of "judicial guarantees" while two of these lawsuits are still pending, said Sidney de Souza, lawyer for Aprosoja-MT, this Friday.
In 2017, farmers in Mato Grosso sued Monsanto seeking to cancel Intacta's patents. There is no decision on the merits, he said.
In 2023, the Brazilian Supreme Federal Court (STF) ruled that patent rights could not be extended beyond 20 years from the date of filing, reducing the duration of certain Intacta patents. This decision affected R$1,3 billion in royalties paid by farmers to Intacta.
"The judge applied the Supreme Federal Court's decision in our case, corrected the patent terms, and ordered the return of royalties paid improperly," said Souza regarding the Mato Grosso court's decision, which has now been suspended by the injunction.
