Tuesday, May 14, 2013

Editorial - A Soybean Patent Lesson

Patent fights have turned into legal brawls in recent years, and the Supreme Court has sometimes provided a note of sanity, as it did again in Monday's important ruling in Bowman v. Monsanto 

The High Court ruled unanimously in favor of Monsanto's patent rights over its Roundup Ready soybean seeds, which make plants resistant to a common weed killer. Indiana farmer Vernon Hugh Bowman violated a Monsanto licensing agreement that said he could plant these seeds in one—and only one—season. When Monsanto discovered Mr. Bowman was replanting Roundup Ready seeds to produce more, it argued he was infringing on, and diminishing the value of, its patent.

The Justices agreed, providing valuable guidance on the "doctrine of patent exhaustion"—which Mr. Bowman invoked, and which holds that once a patented product is sold, the patent no longer protects the product. The Court said this doctrine does not allow the purchaser to make copies of the patented invention, since the "patent would plummet in value after the first sale of the first item," providing the inventor "scant benefit."

The Justices also didn't buy Mr. Bowman's argument that because soybeans are "self-replicating" the plants themselves did the copying—not him. "This blame-the-bean defense" is "tough to credit," wrote Justice Elena Kagan for the Court, since Mr. Bowman was actively planting, tending and harvesting his crops.

The Court stressed that its holding was not meant to address every patent case involving a self-replicating product, though its ruling provides some assurance that companies pouring money into 21st-century technologies can expect to have their patents honored. That's the way to grow innovation.

WSJ

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