On January 9, a division bench of the Delhi High Court determined that the New York-based PepsiCo has the right to claim a patent for the distinct potato variety cultivated solely for its renowned Lay’s potato chips.
The High Court overturned the ruling of a single judge from July 2023, which had affirmed the revocation of the patent by the Protection of Plant Varieties and Farmers’ Rights (PPVFR) Authority in 2021. The court rejected the arguments put forth by Kavitha Kuruganti, a farmers’ rights activist, who contended that the company should not be able to assert a patent for the potato seed variety.
Continue Exploring: Delhi High Court rejects PepsiCo’s appeal, revokes patent for potato variety used in Lay’s chips
“The appeal of PepsiCo is allowed. We consequently also set aside the order of the Authority dated December 3, 2021, and the letter issued by the Authority dated February 11, 2022. The renewal application as made by PepsiCo shall stand restored on the file of the Registrar who shall dispose of the same in accordance with law,” the judgment said.
In 1989, PepsiCo established its first potato chip plant in India. The company supplies a specific potato seed variety to a group of farmers, who exclusively sell their produce to the company at a fixed price.
The court has dismissed Kuruganti’s concern that PepsiCo, through initiating multiple lawsuits against farmers, was acting against public interest.
The court said, “Apart from a mere reference to various suits alleging infringement, which are stated to have been filed by PepsiCo, the respondent failed to establish or prove that those suits were vexatious or that they had been instituted as part of predatory tactics of PepsiCo.”
PepsiCo’s Lawsuit Against Indian Farmers
In 2019, PepsiCo filed a lawsuit against certain Indian farmers for cultivating the FC5 potato variety, claiming that the growers had violated its patent. The company also sought over INR 10 crore ($121,050) from each farmer for the alleged patent infringement. However, PepsiCo withdrew the lawsuit within a few months.
In December 2021, the Protection of Plant Varieties & Farmers’ Rights (PPV&FR) revoked the varietal registration certificate previously granted to the food and beverages major for the potato variety ‘FL-2027’ in the country. In response to this decision, PepsiCo stated that it is currently in the process of reviewing the order issued by the PPV&FR Authority.
PPV&FR is a regulatory body established under the Protection of Plant Varieties and Farmers’ Rights Act, 2001. The authority’s decision followed a petition filed by agricultural activist Kavitha Kuruganti, who argued that PepsiCo India’s certificate of registration was issued on the basis of inaccurate information provided by the company.
