Roundup Patents Survive Antitrust Challenge But Case Is Remanded for eBay Test

In a decision that addressed, inter alia, issues of antitrust, patent misuse and the eBay injunction test, the U.S. Court of Appeals for the Federal Circuit affirmed a lower court’s judgment in favor of Monsanto, but remanded the lower court’s decision granting Monsanto a permanent injunction in light of eBay Inc. v. MercExchange, LLC, 126 S. Ct. 1837 (2006). Monsanto Co. v. Scruggs, Case Nos. 04-1520, 05-1120, -1121 (Fed. Cir., Aug. 16, 2006) (Mayer, C.J.).

The Monsanto patents at issue related to Roundup Ready and Bollgard/Roundup Ready soybeans and cotton, which are resistant to glyphosate herbicide and certain insects. Monsanto licensed its technology to seed sellers. Although the licenses allowed seed growers to incorporate the Monsanto technology in their germplasm, they also imposed various restrictions on seed sellers as well restrictions on seed growers, including a no-replant policy. Scruggs purchased the seeds from seed companies but did not sign a license agreement. It