Organic Seed Growers and Trade v. Monsanto Company
718 F.3d 1350
| Fed. Cir. | 2013Background
- Appellants, a coalition of farmers, seed sellers, and agricultural organizations, sought declaratory judgments of non-infringement and invalidity for 23 Monsanto patents; the district court dismissed for lack of subject matter jurisdiction.
- Monsanto has binding assurances it will not sue growers whose crops might inadvertently contain traces of Monsanto biotech genes, and appellants allege potential contamination could expose them to infringement suits.
- The patents relate to technologies for genetically modifying seeds, including Roundup Ready glyphosate-resistant traits used in crops like soybeans and corn.
- Monsanto enforces its patent rights against unauthorized planting or replanting of its genetically modified seeds, with numerous past suits and settlements.
- Appellants are conventional seed users, some organic, who fear contamination could lead to patent infringement claims and thus take precautions or refrain from certain crops.
- Monsanto publicly stated it would not exercise patent rights where trace amounts occur due to inadvertent means, and the court discusses the scope and effect of those assurances.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether there is an actual controversy with Article III standing given Monsanto's assurances | Organic Seed Growers claims risk of suit and chilling effect from contamination. | Monsanto argues no injury possible; assurances moot the dispute. | No Article III controversy; standing lacking. |
| Whether Monsanto's assurances can bind as judicial estoppel to moot the dispute | Representations create binding assurances that remove any real threat of suit. | Statements are not a covenant but effectively remove risk; estoppel could apply. | Representations function as binding, supporting dismissal; potential estoppel applies. |
| Scope of Monsanto's assurances and whether they cover all conduct | Assurances should cover any inadvertent use or sale of trace amounts. | Scope is limited to trace amounts; not blanket coverage. | Disclaimers limited to trace amounts; still no controversy here. |
| Whether a lack of concrete plans to engage in infringing activity defeats jurisdiction | Past conduct of Monsanto and potential future harm create controversy. | No concrete plans shown to engage in infringing activity. | No concrete plans; no imminent infringement risk. |
| Whether alleged chilling effects from Monsanto's refusal to provide a blanket covenant are cognizable | Chilling effects constitute injury supporting standing. | Subjective fear cannot substitute for actual injury. | Chilling effects alone do not establish standing; not enough. |
Key Cases Cited
- Bowman v. Monsanto Co., 133 S. Ct. 1761 (2013) (patent exhaustion and self-replication limitations in seed use)
- MedImmune, Inc. v. Genentech, Inc., 549 U.S. 118 (U.S. 2007) (grounds for declaratory judgment jurisdiction based on actual controversy)
- Already, LLC v. Nike, 133 S. Ct. 721 (U.S. 2013) (covenant not to sue can moot a declaratory judgment claim)
- SanDisk Corp. v. STMicroelectronics, Inc., 480 F.3d 1372 (Fed. Cir. 2007) (considerations for declaratory judgment jurisdiction in patent context)
- Clapper v. Amnesty Int’l USA, 133 S. Ct. 1138 (U.S. 2013) (standing requires substantial risk of harm; cannot be based on mere fear)
- Geertson Seed Farms v. Geertson Seed Farms, 130 S. Ct. 2743 (U.S. 2010) (standing and gene flow considerations in regulatory challenges)
- New Hampshire v. Maine, 532 U.S. 742 (U.S. 2001) (elements of standing and injury requirements)
- Arkema Inc. v. Honeywell Int’l, Inc., 706 F.3d 1351 (Fed. Cir. 2013) (concrete plans and unfair advantage considerations in declaratory judgments)
- Cat Tech LLC v. Tubemaster, Inc., 528 F.3d 871 (Fed. Cir. 2008) (need for significant, concrete steps to infringing activity)
- Prasco, LLC v. Medicis Pharm. Corp., 537 F.3d 1329 (Fed. Cir. 2008) (considerations for prior positions in declaratory judgment contexts)
