Organic Seed Growers & Trade Ass'n v. Monsanto Co.
851 F. Supp. 2d 544
S.D.N.Y.2012Background
- Plaintiffs seek declaratory judgments that they do not infringe Monsanto patents, and that the patents are invalid or unenforceable, with no remedies due to plaintiffs.
- Defendants manufacture and sell transgenic Roundup Ready seeds and related glyphosate-tolerant technologies under various patents.
- Growers license the seeds for a single crop; second-generation seeds and seeds beyond authorized channels are not licensed.
- Contamination and inadvertent presence of patented traits in non-transgenic crops are possible but no plaintiff asserts infringement or sale of patented seeds.
- Organic certification is process-based and a residue of a patented trait does not automatically violate organic rules.
- Plaintiffs filed the FAC, and defendants moved to dismiss for lack of subject-matter jurisdiction; subsequently defendants reiterated positions denying a blanket covenant not to sue.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether there is subject-matter jurisdiction under the Declaratory Judgment Act. | Plaintiffs contend there is an ongoing controversy due to threats and patterns of enforcement. | Defendants argue there is no concrete injury or imminent controversy requiring relief. | No jurisdiction; controversy not sufficiently immediate or real. |
| Whether defendants’ past patent litigation against non-plaintiffs creates an implied controversy. | Past suits against dissimilar parties show ongoing enforcement against others. | Those suits are not directed at plaintiffs and do not establish a likely threat to plaintiffs. | Insufficient to establish jurisdiction. |
| Whether defendants’ implicit threat and covenant-not-to-sue communications create an injury-in-fact. | Statements imply potential suits against plaintiffs or others in the future. | The statements are non-threatening and simply reflect policy not to sue inadvertent infringers. | No imminent injury; statements do not create jurisdiction. |
| Whether plaintiffs’ preparatory conduct or potential future contamination supports immediacy. | Transgenic traits may spread and cause infringement in the near term. | Plaintiffs have not engaged in potentially infringing activity and contamination is not certain or imminent. | Lack of concrete, imminent potential infringement defeats jurisdiction. |
Key Cases Cited
- Ass’n for Molecular Pathology v. U.S. Patent & Trademark Office, 653 F.3d 1329 (Fed. Cir. 2011) (establishes substantial controversy test for DJ jurisdiction)
- MedImmune, Inc. v. Genentech, Inc., 549 U.S. 118 (S. Ct. 2007) (establishes real-and-immediate controversy requirement)
- SanDisk Corp. v. STMicroelectronics, Inc., 480 F.3d 1372 (Fed. Cir. 2007) (requires an injury in fact traceable to the patentee)
- Cat Tech LLC v. TubeMaster, Inc., 528 F.3d 871 (Fed. Cir. 2008) (immediacy and certainty of infringing activity affect jurisdiction)
- Prasco, LLC v. Medicis Pharm. Corp., 537 F.3d 1329 (Fed. Cir. 2008) (no jurisdiction if no imminent threat and actions by patentee are uncertain)
- Innovative Therapies, Inc. v. Kinetic Concepts, Inc., 599 F.3d 1377 (Fed. Cir.) (prior litigious conduct considered but not dispositive for DJ standing)
- Hewlett-Packard Co. v. Acceleron LLC, 587 F.3d 1358 (Fed. Cir. 2009) (objective words and actions of patentee govern standing)
- Creative Compounds, LLC v. Starmark Labs., 651 F.3d 1303 (Fed. Cir. 2011) (totality of circumstances required; potential injury must be supported by actions)
- Holder v. Humanitarian Law Project, 130 S. Ct. 2705 (S. Ct. 2010) (treatment of cases challenging government action contrasted with patent DJ)
- Aetna Life Insurance Co. v. Haworth, 300 U.S. 227 (U.S. 1937) (illustrates lack of automatic standing absent present right)
