The Delhi High Court held Monsanto's decision to terminate its sub-licence agreement for genetically modified hybrid cotton seeds with Nuziveedu Seeds Ltd. prima facie illegal and arbitrary.
The high court said Monsanto's 2015 sub-licensing agreement with Nuziveedu Seeds continues to be in force and binding on the parties, allowing the Indian company to use Monsanto's ‘Bollguard' and ‘Bollguard-II' trademarks.
The court, however, rejected Nuziveedu Seeds' argument that Monsanto was incorrectly granted the patent for ‘Bollguard' and ‘Bollguard-II'.
The high court gave the following directions to Monsanto:
- Monsanto cannot charge a higher trait fee than what is permitted under Indian laws.
- If Monsanto does not accept the trait fees, it shall be deposited with the court registry.
- If Monsanto fails to withdraw the fees within a month, it shall be deposited in a fixed deposit.
Alleging violation of its trademarks, Monsanto had claimed that Nuziveedu Seeds continued to market and sell seeds after it terminated the sub-licence agreement.
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