The case revolves around federal patent law and what limits apply. Bowman argues that he followed the restrictions he agreed to in the technology licensing agreements he signed when he bought Roundup Ready seeds when he planted his first soybean crop each season. Under those agreements, Bowman says, the patent and contract restrictions on harvesting seed for planting were in force.
But he draws the line at bulk commodity seeds — a grab bag of soybean seeds — he bought more cheaply from a local grain elevator for several years for late-season plantings. Bowman says he chose the commodity seeds because late-season planting is a greater gamble because of unpredictable weather and he wanted to limit his investment. When he harvested and sold crops, he saved some of the seed for subsequent planting.
The elevator did not segregate Monsanto seeds and Bowman ended up with Roundup Ready seeds. In court documents, he said he had expected the bag to include such seeds and had raised seedlings whose resistance he tested by spraying with weed killer. Over nine years, he culled and perfected the quality of seeds he used for the late-season plantings.
Bowman argues that Monsanto’s patent right was exhausted with the seed sale to the farmers who sold their seed to the grain elevator.
Walters dismissed claims that a victory by his client would broadly endanger patent protections for self-replicating technologies, calling them “completely exaggerated.”
“No other self-replicating technology is distributed like seeds,” he said. “There is no other self-replicating technology that is going to be dumped into a grain elevator mixed with everybody else’s production and then available for sale to the public.”
He said most self-replicating technologies are distributed under tight restrictions.
Walters said there are strong parallels between Bowman’s case and one involving a computer company that prevailed in a 2008 Supreme Court decision. The court found that the company did not violate a chip maker’s patent rights when it bought the company’s product from a third party and combined them with other components to make computers. The court said the patent holder’s restrictions on the computer chip use ended with the sale.
“Monsanto is saying the [rights to] subsequent generations are not sold so you can’t exhaust them. We’re saying like the method is embodied in the computer chip, the subsequent generations are embodied in that first generation. When you sell that first generation, you’re not only selling that generation but the ability to use that seed to make other generations,” Walters said.
“Just like when you sold the computer chip, you sold not only the chip but the ability to use that chip to practice the method,” Walters said.
Not so, Monsanto’s general counsel David F. Snively says. The company’s patent protections do not end with a sale. The engineered trait, which the company has invested millions of dollars in creating, is carried in harvested seeds and continues to provide resistance to pesticides if planted.
May 20, 2013, 9:31 p.m.
May 20, 2013, 7:48 p.m.
May 20, 2013, 11:26 a.m.