Mato Grosso judge rules null and void Intacta RR2 Pro royalties

The Mato Grosso Court, through a decision by judge Célia Regina Vidotti, declared the nullity of the collection of royalties related to patents PI0016460-7 and PI9816295-0, belonging to the Intacta RR2 Pro technology, after the expiration of their terms of validity.

The defendants in the action are Monsanto Technology LLC and Monsanto do Brasil Ltda., both acquired by Bayer in 2018.

The decision includes the refund of some amounts paid by rural producers, considered undue, and prohibits new charges relating to patents.

According to the judge, the ruling follows the understanding of the Supreme Federal Court in the judgment of Direct Action of Unconstitutionality 5.529, which declared the sole paragraph of article 40 of the Industrial Property Law unconstitutional. This decision set the time limits for the validity of patents.

Validity terms

The judge highlighted that patents PI0016460-7 and PI9816295-0 expired, respectively, on December 12, 2020 and March 3, 2018. From these dates onwards, there would be free exploitation of the technology. Therefore, charging royalties after these periods was considered illegal.

Furthermore, the proportional division of royalties by the number of patents was maintained as valid. According to the decision, if the defendants wanted a different model, they should have specified it clearly and in advance.

Other patents and agreements

The defendants obtained new patents related to the Intacta RR2 Pro technology in January of this year. However, the judge emphasized that these patents are not the subject of the action and therefore do not influence the decision.

The licensing agreement proposed by the defendants in other lawsuits was also disregarded.

Restitution and legal costs

The ruling ordered the refund of amounts unduly paid by rural producers. The amounts will be monetarily corrected by the National Consumer Price Index (INPC), with interest of 1% per month from the date of citation.

The decision also ordered the defendants to pay the legal costs and attorney fees, set at 15% of the updated value of the case.

The sentence is subject to appeal. As the court recess period began today, the deadline for defendants to respond will only begin on January 21, 2025 (article 220 of the Code of Civil Procedure).

Bayer's statement

Bayer sent the following statement about the case:

"Bayer was informed by the press about a decision that was allegedly handed down by the Specialized Court for Collective Actions of Mato Grosso, in the process that seeks to correct the term of validity of some patents for the Intacta RR2 Pro soybean technology.

Although the decision has not been officially published, the company is closely monitoring the case to understand any implications.

Intacta RR2 Pro technology is protected by intellectual property rights, including several patents granted and valid in Brazil and abroad. Bayer is confident in the solidity of the legislation that guarantees its rights.

Regardless of the content of the decision, the company will file the appropriate appeals. There is no change in the pillars of our business model, including the testing and billing system at the Receiving Points (PODs)."