Bayer Wins a Monsanto Royalty Dispute

In a case involving the former Monsanto, Bayer has won a royalty dispute against Indian seeds producer Nuziveedu Seeds Limited (NSL), the news agency Reuters has reported.

Citing “lawyers familiar with the matter,” Reuters said NSL has the right to appeal the ruling in a court, the lawyers said.

Terms of the arbitration were not disclosed. Saying the award is “confidential,” Bayer confirmed to Reuters only that MMB “has received a favorable award from the arbitration panel in the proceedings against NSL and Prabhat”

MMB – a joint venture between the erstwhile US agrochemicals giant and India’s Maharashtra Hybrid Seeds Co (Mahyco) – reportedly had been seeking nearly $23 million.

Including NSL, the jv sells genetically modified (GM) cotton seeds under license to nearly 40 Indian seed companies, which in turn sell the products to retailers.

According to Reuters’ sources, NSL and its affiliates decided to stop paying royalties, or trait fees, to MMB in 2015, arguing that Indian law did not provide Monsanto with patent protection on its GM cotton seeds, and if there were to be payments they should be set by the Indian government.

In contrast, Monsanto had insisted it had patent protection in India and therefore could collect royalties through bilateral contracts with the Indian seed companies.