Organic Seed Growers and Trade v. Monsanto Company

718 F.3d 1350, 43 Envtl. L. Rep. (Envtl. Law Inst.) 20125, 107 U.S.P.Q. 2d (BNA) 1067, 2013 WL 2460949, 2013 U.S. App. LEXIS 11601
CourtCourt of Appeals for the Federal Circuit
DecidedJune 10, 2013
Docket2012-1298
StatusPublished
Cited by24 cases

This text of 718 F.3d 1350 (Organic Seed Growers and Trade v. Monsanto Company) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Organic Seed Growers and Trade v. Monsanto Company, 718 F.3d 1350, 43 Envtl. L. Rep. (Envtl. Law Inst.) 20125, 107 U.S.P.Q. 2d (BNA) 1067, 2013 WL 2460949, 2013 U.S. App. LEXIS 11601 (Fed. Cir. 2013).

Opinion

DYK, Circuit Judge.

Appellants, a coalition of farmers, seed sellers, and agricultural organizations, sought declaratory judgments of non-infringement and invalidity with respect to twenty-three patents owned by Monsanto Co. and Monsanto Technology, LLC (collectively, “Monsanto”). The district court concluded that there was no justiciable case or controversy and dismissed for lack of jurisdiction. Because Monsanto has made binding assurances that it will not “take legal action against growers whose crops might inadvertently contain traces of Monsanto biotech genes (because, for example, some transgenic seed or pollen blew onto the grower’s land),” Defs.’ Mem. of Law in Supp. of Mot. to Dismiss at 5, Organic Seed Growers & Trade Ass’n v. Monsanto Co., 851 F.Supp.2d 544 (S.D.N.Y.2012) (No. 11-CV-2163), ECF No. 20, and appellants have not alleged any circumstances placing them beyond the scope of those assurances, we agree that there is no justiciable case or controversy. We affirm.

BACKGROUND

The twenty-three patents-in-suit 1 relate to technologies for genetically modifying *1353 seeds. The patented technologies are used to incorporate various traits into soybeans, corn, and other agricultural crops, including traits conferring resistance to the herbicide glyphosate (the active ingredient in Monsanto’s product Roundup). See generally Bowman v. Monsanto Co., 569 U.S. -, 133 S.Ct. 1761, 185 L.Ed.2d 931, 185 L.E.2d 941 (2013); Monsanto Co. v. McFarling, 363 F.3d 1336 (Fed.Cir. 2004). Such seeds are known as “Roundup Ready.” Farmers using Monsanto’s Roundup Ready glyphosate-resistant seeds are able to eliminate weeds by spraying glyphosate over the tops of their crops, a practice that would kill non-genetically modified, or “conventional,” seeds. See Bowman, 569 U.S. at -, 133 S.Ct. at 1765-67; McFarling, 363 F.3d at 1338-39.

Monsanto sells seed and licenses others to grow and sell seed, pursuant to a limited-use license (the “Technology Agreement”) permitting growers to plant, harvest, and sell a single generation of genetically modified seeds. It is undisputed that Monsanto has enforced its patent rights against farmers who planted Monsanto’s genetically modified seeds without authorization, see, e.g., Monsanto Co. v. Bowman, 657 F.3d 1341 (Fed.Cir. 2011), aff'd Bowman, 569 U.S. -, 133 S.Ct. 1761; Monsanto Co. v. Scruggs, 459 F.3d 1328 (Fed.Cir.2006), or who replanted saved seeds in violation of the Technology Agreement, see, e.g., McFarling, 363 F.3d at 1352. Between 1997 and 2010, Monsanto brought some 144 infringement suits for unauthorized use of its seed. Approximately 700 other cases were settled without litigation.

The appellants are growers, seed selling businesses, and agricultural organizations, all of whom grow, use, or sell conventional seeds, and many of whom have organic certification. The appellants “do not want to use or sell transgenic seed” incorporating Monsanto’s technologies. First Amended Complaint (“Am. Compl.”) ¶2, Organic Seed Growers, 851 F.Supp.2d 544 (S.D.N.Y.2012) (No. ll-CV-2163), ECF No. 3. They also oppose the use of glypho-sate and do not use it on their crops. They are concerned, however, that

if they do indeed become contaminated by transgenic seed, which may very well be inevitable given the proliferation of transgenic seed today, they could quite perversely also be accused of patent infringement by the company responsible for the transgenic seed that contaminates them.

Id.

On March 29, 2011, the appellants brought suit against Monsanto in the Southern District of New York, seeking declaratory judgments that the patents-in-suit are invalid, unenforceable, and not infringed. Organic Seed Growers, 851 F.Supp.2d at 549. The appellants alleged that they have been forced to “forgo growing [conventional] corn, cotton, canola, sugar beets, soybeans, and alfalfa, since it is widely known that those crops are currently under severe threat of transgenic seed contamination.” Am. Compl. ¶ 96; see also id. at ¶ 104 (alleging that “over 85-90% of all soybeans, corn, cotton, sugar beets, and canola grown in the U.S. contains Monsanto’s patented genes”). They *1354 further alleged that they must take costly precautions to avoid contamination, such as testing seeds for transgenic traits and creating “buffer” zones between their farms and those of neighbors growing modified crops. Am. Compl. ¶ 108. The appellants contended that if they do not take these precautions, their crops would be contaminated, and they would be sued for infringement by Monsanto.

On April 18, 2011, the appellants asked Monsanto to “ ‘expressly waive any claim for patent infringement [Monsanto] may ever have against [appellants] and memorialize that waiver by providing a written covenant not to sue.’ ” Organic Seed Growers, 851 F.Supp.2d at 549 (quoting Am. Compl. Ex. 3 (Apr. 18, 2011, letter from appellants’ counsel to Monsanto’s counsel)). The appellants stated that without such a covenant, they would “‘feel they would be at risk of having Monsanto assert claims of patent infringement against them should they ever become contaminated by transgenic seed potentially covered by Monsanto’s patents.’ ” Id. at 549-50 (quoting Am. Compl. Ex. 3). Monsanto refused their request and referred the appellants to a statement posted on its website, which reads in relevant part:

It has never been, nor will it be Monsanto policy to exercise its patent rights where trace amounts of our patented seeds or traits are present in farmer’s fields as a result of inadvertent means.

J.A. -508 (“Monsanto’s Commitment: Farmers and Patents”). 2 Through counsel, Monsanto assured the appellants that

Monsanto is unaware of any circumstances that would give rise to any claim for patent infringement or any lawsuit against your clients. Monsanto therefore does not assert and has no intention of asserting patent-infringement claims against your clients. You represent that “none of your clients intend to possess, use or sell any transgenic seed, including any transgenic seed potentially covered by Monsanto’s patents.” Taking your representation as true, any fear of suit or other action is unreasonable, and any decision not to grow certain crops unjustified.

Am. Compl. Ex. 4 (alteration omitted) (Apr. 28, 2011, letter from Monsanto’s counsel to appellants’ counsel). According to Monsanto, a covenant not to sue is unnecessary because it would not have an incentive to bring suit in the first place because it could not collect significant damages for low levels of inadvertent infringement.

The district court concluded that “these circumstances do not amount to a substantial controversy and ...

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718 F.3d 1350, 43 Envtl. L. Rep. (Envtl. Law Inst.) 20125, 107 U.S.P.Q. 2d (BNA) 1067, 2013 WL 2460949, 2013 U.S. App. LEXIS 11601, Counsel Stack Legal Research, https://law.counselstack.com/opinion/organic-seed-growers-and-trade-v-monsanto-company-cafc-2013.