Delhi High Court has rejected PepsiCo Inc’s appeal against an order that revoked a patent for a potato variety grown exclusively for the New York-based company’s popular Lay’s potato chips.
In 2021, the Protection of Plant Varieties and Farmers’ Rights (PPVFR) Authority revoked the intellectual protection previously granted to PepsiCo’s FC5 potato variety. The authority cited India’s rules, which prohibit granting patents on seed varieties, as the reason for the revocation.
After Kavitha Kuruganti, a prominent activist for farmers’ rights, presented her argument that PepsiCo cannot assert a patent over a seed variety, the authority took action and removed the patent cover granted to the company.
PepsiCo filed a petition with the Delhi High Court in response to the revocation of the patent cover.
Delhi High Court Judge Navin Chawla, in an order issued on July 5, dismissed PepsiCo’s appeal against the decision made by the authority.
“We are aware of the order … and are in the process of reviewing the same,” a PepsiCo India spokesperson said in a statement.
Since establishing its initial potato chip plant in India in 1989, the U.S. snacks and drinks maker has been supplying the FC5 seed variety to a collective of farmers. These farmers subsequently sell their crops to the company at a predetermined price.
PepsiCo has consistently asserted that it was solely responsible for the development of the FC5 variety and obtained registration for the trait in 2016. This particular variety, known for its lower moisture content, is essential for producing snacks like potato chips.
In a statement, Kuruganti said, “It is good that the judgement of Justice Navin Chawla upheld the revocation order.”
In 2019, PepsiCo initiated legal action against certain Indian farmers for cultivating the FC5 potato variety, alleging infringement of its patent. The company further pursued compensation exceeding 10 million rupees ($121,050) from each farmer for the alleged patent violation.
Within a few months, PepsiCo decided to withdraw the lawsuits it had filed against the farmers.
The Delhi High Court, in its order, did not find any merit in the accusations of public interest violation made against PepsiCo.
PepsiCo is the second major U.S. company to encounter patent infringement challenges in India.
Following a protracted intellectual property dispute, seed maker Monsanto, presently owned by German pharmaceutical company Bayer AG, made the decision to withdraw from certain ventures in India.
