Monsanto has won what many commentators believe is a landmark patent case that could have implications for the future of agriculture.
The case concerned a farmer from Indiana who had bought Monsanto’s patented GM soybeans. The seeds are modified to make them resistant to the weedkiller Roundup Ready. The farmer, Vernon Bowman, used the seeds to plant a late crop, with a view to creating seeds for the following season, rather than harvesting them as his contract with Monsanto required him to do. He had argued that, as he had acquired the seeds from a third party, his contract with the company was not applicable. Monsanto, for its part, claimed that, were this type of conduct to be allowed, it would have no business as farmers could simply generate their own seed stock rather than buying it from the company.
The U.S. Supreme Court delivered a unanimous ruling for Monsanto and against Bowman, which Monsanto said affirmed its support for protecting U.S. innovations that are a critical part of supporting the world's growing needs.
According to Monsanto, the Supreme Court's decision affirms the basic purpose of the U.S. patent system – providing an incentive to innovate by providing inventors a meaningful opportunity to recover costs on their R&D investments. The decision also, said Monsanto, reflects the Court's sensitivity to the importance of patent protection not only for agriculture companies such as Monsanto, but for the basic incentive structure the patent system provides for innovation.
"The Court's ruling today ensures that longstanding principles of patent law apply to breakthrough 21st century technologies that are central to meeting the growing demands of our planet and its people," said David F. Snively, executive vice president, secretary, and general counsel of Monsanto. "The ruling also provides assurance to all inventors throughout the public and private sectors that they can and should continue to invest in innovation that feeds people, improves lives, creates jobs, and allows America to keep its competitive edge."