The Supreme Court on January 8 ruled that United States seed maker Monsanto can claim patents of its genetically modified (GM) cotton seeds in India, the world's biggest producer of the fibre.
The decision on an appeal overturns an earlier ruling by the Delhi High Court that Monsanto — which has been bought by German drug and crop chemical maker Bayer AG — was unable to claim patents of GM cotton seeds.
The outcome is positive for foreign agricultural companies such as Monsanto, Bayer, Dupont Pioneer and Syngenta, which have been concerned that they could lose patents of GM crops in India.
“This is a very good move as most international companies have stopped releasing new technology in the Indian market due to the uncertainty over patent rule,” said Ajit Narde, a leader of the Shetkari Sanghatana, a farmers' body, which has been demanding access to new technologies.
Access to advanced technology is important to help Indian farmers to compete with rivals overseas, Mr. Narde said.
Mahyco Monsanto Biotech (India), a joint venture between Monsanto and India's Maharashtra Hybrid Seeds Co., sells GM cotton seeds under licence to more than 40 Indian seed companies, which in turn sell product to retailers.
Royalty payment dispute
The Delhi High Court ruling came after local company Nuziveedu Seeds Ltd (NSL) argued that India's Patent Act does not allow Monsanto any patent cover for its GM cotton seeds.
Monsanto's Indian joint venture had terminated its contract with NSL in 2015 after a royalty payment dispute, escalating tensions over seed technology and drawing in the Indian and U.S. governments.
The Supreme Court on January 8 also said the Delhi High Court would examine Monsanto's claims that NSL infringed its intellectual property on Bt cotton seeds.
Monsanto's GM cotton seed technology dominates 90% of India's cotton acreage.