Legal Cases

Monsanto’s Controlling Interests

Farmers that buy Monsanto GM seeds such as Roundup Ready seeds must sign a lengthy and restrictive agreement whereby they can only use the seeds for one season of crops.  Monsanto is serious in protecting its seed patents to the point of suing farmers if they save seeds from the original crop to plant successive crops, or if they give seed samples to fellow farmers.  They will also sue if a GMO crop is found on a farmer’s land even if that crop ended up there through cross pollination or by the wind.  These are all examples of natural pollen drift. Animal and bird deposits also occur.

Monsanto has an army of private investigators that gather information about farming activities. This is an extensive network of spies that rely on using tactics such as secret videotapes, infiltration of community meetings and agents that pose as surveyors to gain access to farm lands.  A hotline (1-800-ROUNDUP) is maintained so farmers can turn in their neighbors for suspected violations.

Monsanto has an annual budget of $10 million dollars and a staff of 75 devoted solely to investigating and prosecuting farmers. The legal deck of cards is stacked in their favor.  Below are some of the farmers and seed businesses that sought legal remedies.  Keep in mind that many must settle out of court to avoid being litigated until broke.

An investigation uncovered the fact that one Monsanto agent forged the signature of Anthony Parr, an Illinois seed-cleaner, in an effort to convict him of  "aiding and abetting" farmers by processing their seeds for replanting. Seed cleaners  remove chaff and weed seed from harvested seed. Parr said he was not aware that he cleaned Monsanto’s seed. Nevertheless, he racked up over $25,000 in legal fees before even setting foot in a courtroom and, like so many others, reluctantly settled out of court. Parr lost almost 90 percent of his former customers, who were afraid that associating with him would lead to prosecution against them as well.

Launching a lawsuit against the very company that is responsible for a farmer suicide every 30 minutes (known as GM suicide), 5 million farmers are now suing Monsanto for as much as 6.2 billion euros (around 7.7 billion US dollars). The reason?  As with many other cases, such as the ones that led certain farming regions to be known as the ‘suicide belt’, Monsanto has been reportedly taxing the farmers to financial shambles with ridiculous royalty charges. The farmers state that Monsanto has been unfairly gathering exorbitant profits each year on a global scale from “renewal” seed harvests, which are crops planted using seed from the previous year’s harvest.

Decided May 13, 2013.  The Supreme Court held that patent exhaustion does not permit a farmer to reproduce patented seeds through planting and harvesting without the patent holder’s permission.  The Court was unanimous in favor of Monsanto.
Appeal from the United States District Court for the Northern District of California
Appeal Filed May 17, 2013
The appeal involves the USDA's regulation of Roundup Ready Alfalfa (RRA), a plant genetically modified by the Monsanto Company and Forage Genetics International to be resistant to the herbicide glyphosate (Roundup). At issue was the Record of Decision (ROD) issued by APHIS, which unconditionally deregulated RRA on the ground that it was not a "plant pest" within the meaning of the term in the Plant Protection Act (PPA), 7 U.S.C. 7701-7772. The court affirmed the judgment of the district court because the statute did not regulate the types of harms that plaintiffs complained of, and therefore, APHIS correctly concluded that RRA was not a "plant pest" under the PPA. Once the agency concluded that RRA was not a plant pest, it no longer had jurisdiction to continue regulating the plant. APHIS's lack of jurisdiction over RRA obviated the need for the agency to consult with the FWS under the Endangered Species Act, 16 U.S.C. 1531, and to consider alternatives to unconditional deregulation under the National Environmental Policy Act, 42 U.S.C. 4321 et seq.(NEPA) Accordingly, the district court properly entered summary judgment in favor of defendants.

The appeals panel affirmed the district court’s summary judgment in favor of federal officials, corporate seed manufacturers and industry trade groups. The panel also held that APHIS did not violate the Plant Protection Act by not considering, sua sponte, whether Roundup Ready Alfalfa was a noxious weed.

Sept 2012. Two groups of plaintiffs in these consolidated cases have brought actions challenging the APHIS interim decision partially deregulating a genetically engineered variety of sugar beet. APHIS has since issued a final decision fully deregulating the sugar beets, and the challenged interim decision has expired. For the reasons explained herein, the Court will dismiss these actions as moot. This dispute concerns Roundup Ready sugar beets which are genetically engineered to withstand glyphosate-based herbicides.

24 Feb 2012    Organic Seed Growers And Trade Association; Organic Crop Improvement Association International, Inc.; Ocia Research And Education Inc.; The Cornucopia Institute; Demeter Association, Inc.; Center for Food Safety; Beyond Pesticides; Navdanya International; Maine Organic Farmers and Gardeners Association; Northeast Organic Farming Association Of New York; Northeast Organic Farming Association/Massachusetts Chapter, Inc.; Northeast Organic Farming Association of New Hampshire; Northeast Organic Farming Association of Rhode Island; Ct Nofa; Northeast Organic Farming Association of Vermont; Rural Vermont; Ohio Ecological Food & Farm Association; Florida Certified Organic Growers and Consumers Inc.; Southeast Iowa Organic Association; Northern Plains Sustainable Agriculture Society; Mendocino Organic Network; Northeast Organic Dairy Producers Alliance; Midwest Organic Dairy Producers
Alliance; Western Organic Dairy Producers Alliance; Canadian Organic Growers; Manitoba Organic Alliance; Peace River Organic Producers Association; Union Paysanne; Family Farmer Seed Cooperative; Sustainable Living Systems; Global Organic Alliance; Food Democracy Now!;Family Farm Defenders Inc.; Farm-Toconsumer Legal Defense Fund; Weston A.Price Foundation; Michael Fields Agricultural Institute; Fedco Seeds Inc.;Adaptive Seeds, Llc; Sow True Seed;
Southern Exposure Seed Exchange; Mumm’s Sprouting Seeds; Baker Creek Heirloom Seed Co., Llc; Comstock, Ferre & Co., LLC; Seedkeepers, LLC; Siskiyou Seeds; Countryside Organics; Wild Garden Seed; Cuatro Puertas; Seed We Need; Interlake Forage Seeds Ltd.; Alba Ranch; Wild Plum Farm; Gratitude Gardens; Richard Everett Inc.; Genesis Farm; Chispas Farms LLC; Kirschenmann Family Farms Inc.; Midheaven Farms; Koskan Farms; California Cloverleaf Farms; North Outback Farm; Taylor Farms, Inc.; Jardin Del Alma; Ron Gargasz Organic Farms; Abundant Acres; T & D Willey Farms; Full Moon Farm, Inc.; Common Good Farm, LLC; American Buffalo Company; Radiance Dairy; Quinella Ranch; Nature’s Way Farm Ltd.; Levke And Peter Eggers Farm; Frey Vineyards, Ltd.; Bryce Stephens; Chuck Noble; Larhea Pepper; Paul Romero; Brian Wickert; Bruce Drinkman; Murray Bast; And Donald Wright Patterson, Jr.,Plaintiffs are farmers and seed businesses, both organic and non-organic, as well as related membership organizations. Plaintiffs do not want to use, grow crops raised from, or sell transgenic seed, which is seed that has had genetic code of another species introduced to it.
Monsanto’s motion to dismiss case for lack of jurisdiction was granted.

2011.  David and Don Runyon  own a 900-acre Indiana farm. The Runyons charge bio-tech giant Monsanto sent investigators to their home unannounced, demanded years of farming records, and later threatened to sue them for patent infringement. The Runyons say an anonymous tip led Monsanto to suspect that genetically modified soybeans were growing on their property.
California's Mendocino County as of March 2, 2004 became the first county in the nation to ban the growing of genetically altered crops and animals via ballot Measure H despite a massive campaign against it from the usual suspects.

Nov 2010. Monsanto alleges that Boggs sold and/or transferred "saved" bin-run Roundup Ready seeds to one or more third parties, and sold, transferred or otherwise supplied newly purchased soybean, corn, and/or cotton seed to one or more third parties without authorization or license.  The Court favored Monsanto.

On January 14, 2010, Monsanto Company and Monsanto Technology filed suit against defendant Kevin Slusser, an Arkansas farmer, alleging Slusser used Roundup Ready seed  produced from Roundup Ready soybean seed planted in 2008, or earlier, which he had saved, without authorization from Monsanto, in violation of Monsanto’s patent rights.

2000-2010.  GEERTSON SEED FARMS, an Oregon business; TRASK FAMILY SEEDS a South Dakota business v Monsanto
Ninth Circuit Court of Appeals No. 07-16458 D.C. No.  CV-06-01075-CRB
A federal appeals court (U.S. District Court for the Northern District of California) decision upheld a nationwide ban on GM alfalfa until the proper environmental impact statement (EIS) was completed by the USDA. Monsanto took the matter to the Supreme Court.
Monsanto had sued Phillip Geertson, a producer of organic alfalfa seeds in Oregon.  Geertson claimed that Roundup Ready alfalfa could spread its genes to neighboring fields and that would prevent farmers from marketing their produce as organic as well as prohibit them from exporting to countries that prohibit GM crops.
The law under which organic farmers were allowed to challenge USDA’s oversight of the GM alfalfa is the National Environmental Policy Act (NEPA). 

Docket No. 09-475   U.S. Supreme Court Opinion  
Monsanto v Geertson Seed Farms http://supreme.justia.com/cases/federal/us/561/09-475/
June 21, 2010   Reverse and Remanded
So much for the NEPA and the law of the land.

June 2010.  The case is procedural in that farmer defendants failed to produce information requested by Monsanto.  Sanctions against them for failure to comply were requested.
Information which Monsanto sought included the identity of each state and county in which [defendants] have produced a commercial agronomic crop each year;  the total number of acres of cotton planted by [defendants] each year;  the total number of acres of Roundup Ready® cotton planted by [defendants] each year; the total number of acres of Roundup Ready® Flex cotton planted by [defendants] each year;  the total number of acres of Bollgard® cotton planted by [defendants] each year; the total number of acres of Bollgard® II cotton planted by [defendants] each year;  the total number of acres of any other cotton variety planted by [defendants] each year; the identity of each field where you planted Roundup Ready, Roundup Ready® Flex, Bollgard® and/or Bollgard® II cotton during the 2003 through 2009 crop years by [Farm Service Agency] farm number, tract number, and field number.
It seems that if Monsanto had a REAL case, they would already know this information…..

2009.  Monsanto won this case which struck an expert witness that was not in their favor.
Defendants are farmers who planted Monsanto’s patented Roundup Ready soybeans that they saved from the previous year’s crop. This violated Monsanto’s patent rights. On March 16, 2009, partial summary judgment in favor of Monsanto on its patent infringement claim was granted. The case on Monsanto’s breach of contract claim and patent infringement damages, including the issue of willfulness was set a few months later. Monsanto requires farmers to pay a technology fee for Roundup Ready soybeans in addition to the price of the seed and to sign a licensing agreement which permits them to use the seed for a single growing season only.

2008.  Loren David appealed from the final judgment of the U. S. District Court for the Eastern District of Missouri. On April 20, 2006, the court held that David knowingly infringed U.S. Patent 5,352,605 (the “’605 patent”), and awarded Monsanto Company and Monsanto Technology LLC (collectively “Monsanto”) compensatory damages in the amount of $226,214.00. Monsanto Co. v. David, 448 F. Supp. 2d 1088, 1094 (E.D. Mo. 2006). On July 25, 2006, the court awarded Monsanto attorney fees, prejudgment interest, and costs, bringing the total damages award to $786,989.43. Monsanto Co. v. David, 448 F. Supp. 2d 1095, 1102-03 (E.D. Mo. 2006).
David did buy RoundUp Ready soybeans in 2003.  He claims he planted the perimeter of his field with RUR seeds and the interior field with conventional seeds.  As part of his defense, he also claims that though the original seeds are patented and under contract that future generations of seeds should not be.  At issue is whether a genetically engineered seed and resulting plant will reproduce seeds identical in genetic makeup to the parent.  Nevertheless, Monsanto wins another case and must be paid for next generation seeds as if they were the original product.

2008.  A landmark piece of legislation, AB 541 - sponsored by a coalition of agriculture organizations and food businesses was signed into law.  AB541 indemnifies California farmers that were victims of natural drift of GE pollen onto their land and subsequent contamination.

MONSANTO COMPANY V SCRUGGS.  The Cauliflower Mosaic Virus Case. 
2000 – 2006.  (“Scruggs et al”) appealed the judgment of the United States District Court for the Northern District of Mississippi granting Monsanto Company’s motions for summary judgment of patent invalidity and infringement, Monsanto Co. v. Scruggs, 342 F. Supp. 2d 584 (N.D. Miss. 2004); antitrust violations and patent misuse, Monsanto Co. v. Scruggs, 342 F. Supp. 2d 568 (N.D. Miss. 2004) (“Summary Judgment II”); and common law counterclaims of, inter alia, tortuous interference, unfair competition, and invasion of privacy, Monsanto Co. v. Scruggs, 342 F. Supp. 2d 602 (N.D. Miss. 2004). Additionally, Scruggs appeals the trial court’s order granting Monsanto a permanent injunction.
Monsanto owns U.S. Patent No. 5,352,605 (“the 605 patent”), which is directed toward insertion of a synthetic gene consisting of a 35S cauliflower mosaic virus (“CaMV”) promoter, a protein sequence of interest, and a stop signal, into plant DNA to create herbicide resistance. Monsanto also owns U.S. Patent Nos. 5,164,316; 5,196,525; and 5,322,938 (collectively “the McPherson patents”) which are directed toward insect resistant traits. The McPherson patents expand upon the ‘605 patent in several ways, including disclosure of an enhanced CaMV 35S promoter.
Monsanto used the technology in the ‘605 patent to develop glyphosate herbicide resistant soybeans and cotton, sold as Roundup Ready (R) soybeans and cotton. Monsanto used the ’605 patent in combination with the McPherson patents to develop stacked trait cotton (“Bollgard/Roundup Ready (R) cotton”), which is resistant to glyphosate herbicide and certain insects.
Guess who won the case.

2005.  Roundup Ready soybean  was licensed to defendant for a limited period. Monsanto alleged that defendant retained soybean seed and planted it in a subsequent year and sold or planted seed in other farms without their authorization.  Monsanto claims it will suffer irreparable injury if the discovery process is not expedited.  They need to know who Dragan’s customers are before more patent infringement and loss of profits occur.

13 Sep 2004.  Plaintiffs/Appellants brought this case as a putative class action under sections four and fifteen of the Clayton Act, 15 U.S.C. §§ 15 & 16  for treble the damages caused by an alleged price-fixing conspiracy in violation of section one of the Sherman Act, 15 U.S.C. § 1. Appellants appeal from the district court's denial of their motion to certify two classes – farmers and seed distributors.
While Monsanto enjoyed a lawful monopoly over its GM Seed genes, by virtue of its patents, it was unable to commercialize the genes itself. In 1992 and 1993, Monsanto granted broad licenses to Appellees Pioneer and Syngenta, major seed producers and distributors, to develop commercial seeds using these patented genes, thus surrendering its monopoly over the genes. The licenses did not restrict in any material way Pioneer's or Syngenta's development, marketing, or pricing of seeds containing the genes. For the soybean licenses, Monsanto received full up-front payment from both Pioneer and Syngenta. For the corn licenses, Monsanto received full up-front payment from Pioneer. Syngenta's corn license required payment of royalties which floated with whatever premium Syngenta might charge for its GM corn seed sales as compared to its non-GMO corn seed sales.
Monsanto wished to extract the monopoly profits from certain genes it had patented  which could be used to develop genetically modified corn and soybean seeds (GM seeds). But Monsanto had surrendered its monopoly over the genes by giving broad licenses to Pioneer and Syngenta. Monsanto therefore secured the agreement of Pioneer and Syngenta to inflate the prices of their own GM corn and soybean seeds to support Monsanto's technology fees rather than to undercut the fees through normal price competition. Monsanto propped up its technology fee also by securing the agreement of Appellee Aventis to limit its production of LibertyLink soybean seeds, which competed with the GM soybean seed sold by Monsanto, Pioneer, and Syngenta. The parties to the conspiracy performed their obligations under their illegal agreement to an extent sufficient to injure all members of the proposed classes.
Appellants moved for certification of two classes. The first class consisted of farmers (other than as distributors) who, from 1996 to present, purchased Roundup Ready soybean seeds or the right to grow the seeds directly from one of the defendants. The second class consisted of farmers (other than as distributors) who, from 1996 to present, purchased Yieldgard corn seeds or the right to grow the seeds directly from one of the defendants. Appellants sought certification of these classes under Fed. R.Civ.P. 23(b)(3).
After much legal analysis, the court found in favor of Monsanto.  According to the court, no price fixing conspiracy existed.  This is what is referred to as a legal fiction.

[2004] 1 S.C.R. 902, 2004 SCC 34  Canadian Supreme Court.   
Schmeiser claimed that the presence of RR crops occurred accidentally.  He claimed he had never used them and did not owe Monsanto damages since he had not profited from the alleged “infringement”.
Through legal maneuvering, the court concluded that Monsanto did have patent ownership of a plant it genetically engineered in a lab. 
So if a GMO crop is found on agricultural land if it wasn’t purchased or even if it got their by natural means such as wind or insect pollination, the farmer is liable to Monsanto for “theft” of its property!  Legal intent doesn’t factor into the equation. 

In 1998, Ralph purchased 264 fifty-pound bags of soybean seed containing the patented Roundup Ready biotechnology. In 1999, he purchased 127 fifty-pound bags of cottonseed, containing both the Roundup Ready biotechnology and the Bollgard  biotechnology (hereinafter, "stacked-trait" cottonseed). The standard Monsanto contract was signed and so began the controversy.
7 Sep 2004 Kem L. Ralph appeals from two final judgments of the United States District Court for the Eastern District of Missouri.  Monsanto Co. v. Ralph, No. 4:00CV135 RWS (E.D.Mo. July 12, 2002); and (2) a July 9, 2003, judgment entering a jury award to Monsanto of nearly three million dollars in damages for patent infringement, or, in the alternative, breach of contract, and granting Monsanto's motion for permanent injunction, Monsanto Co. v. Ralph, No. 4:00CV135 RWS (E.D.Mo. July 9, 2003)
Ralph also appeals from the September 3, 2003.  This court held that though the contract based damages were excessive in light of the McFarling case, it was right to uphold the sanction and denial of Ralph’s post-judgment motion.

302 F.3d 1291: United States Court of Appeals, Federal Circuit.  Decided: August 23, 2002 Rehearing En Banc Denied:
RE: Roundup Ready Soybeans.  Monsanto filed suit in the Eastern District of Missouri, charging patent infringement and breach of contract, and seeking a preliminary injunction. Mr. McFarling challenged the Missouri court's jurisdiction, and raised various counterclaims and defenses including charges of antitrust violation, patent misuse, and violation of the Plant Variety Protection Act, 7 U.S.C. § 2321 et seq. (PVPA). The district court interpreted the argument concerning violation of the PVPA as a request for declaration that the patents are invalid or unenforceable, granted McFarling's motion to stay the proceeding pending review by the Supreme Court of this court's ruling that plant seeds and seed-grown plants are within the subject matter of § 101 of the Patent Act.

2001.  Troy Roushonce big on biotech, was wrongly accused of saving seed. The legal fight cost him $390,000 in lawyers' fees. Even if he could find good conventional seed; once Monsanto's DNA is in your field it's almost impossible to get it out. And with the corporate DNA police abroad in the land, farmers can't afford to take a chance. So it looks as though there's no turning back from a future in which Monsanto and a handful of other companies own the genetic building blocks of the world's food supply. 'I'd put the genie back in the bottle in a heartbeat,' says Roush”.

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