March 10, 2010

Monsanto may lose bid to block soy imports

Monsanto Co., the world's biggest seed company, may not be able to rely on a European patent for its Roundup Ready soy to halt imports of Argentine soymeal, an adviser to the EU's highest court said.

The European patent for the trait that makes soy resistant to some herbicides does not extend to soymeal made from the patented seeds, Advocate General Paolo Mengozzi of the European Court of Justice said in a non-binding opinion on Tuesday (March 9).

Argentina, the world's third-biggest soy exporter after Brazil and the US, is one of the few countries where Monsanto does not hold a patent on the herbicide-resistant seeds. A ruling the European patent is enforceable may allow the company to block imports of Argentine soymeal and related products.

During 2005 and 2006, St. Louis-based Monsanto had shipments of soymeal from Argentina impounded in Amsterdam harbour. However, tests showed the products contained some of the patented seed traits and Monsanto sued the importers for infringement. A Dutch court hearing the dispute in 2008 sought the EU tribunal's guidance.

While Monsanto argued the patented trait in the soy remains under its protection after the beans have been processed into soymeal, the importers argued the patent's scope is not that wide under EU biotechnology rules.

Unlike in Argentina, Monsanto is compensated for the use of its patents in other countries, such as in Brazil, because of its patents or accords with farmers. In 2008, 68.5% of Argentine exports of soy and soy products went to the EU, according to data compiled by the Rosario Cereals Exchange.