August 11, 2006

 

EU legal experts dismiss Monsanto's claim in soy import row

 

 

Legal experts at the European Commission have dismissed a claim by US biotech giant Monsanto for patent protection for products imported into the European Union that use its Roundup Ready soybeans.

 

Monsanto is fighting legal battles against Dutch and Danish importers, saying soymeal imports from Argentina are illegal because Argentine farmers are not paying royalties for Monsanto-patented soybeans which are then turned into soymeal and exported.

 

Monsanto is also threatening to take Spanish importers to court.

 

Argentina asked for advice from Brussels legal experts some weeks ago, officials said. In a letter delivered to Argentine officials in Brussels Wednesday, legal experts said EU law governing the protection of biotech inventions do not extend to derivatives of patented products, according to an EU official.

 

Yet while the letter appears to side against Monsanto's legal claims, the commission is not involved in a legal case against the company, the official said.

 

Argentina worries about Monsanto's court cases against importers because its soymeal exporters say their business is being hit by delays in shipments at European ports.

 

Argentina is the world's leading soy meal supplier, and the EU is its largest client. Monsanto has no patent in Argentina, but soybean farmers there frequently use the company's Roundup Ready soy--which makes crops resistant to herbicides--without paying royalties. The soybeans are then turned into soymeal exported as animal feed.

 

Even if the importers are found guilty by the Dutch and Danish national courts, it will be up to national courts to impose sanctions, the official said.

 

Argentina's Economy Ministry in Buenos Aires said the letter constituted the commission's official backing for Argentina in the row.