Monsanto appeals a state court ruling on intellectual property rights

Monsanto Co., the world's biggest seed company, has suspended collection of royalties for its Roundup Ready soybeans in Brazil while it appeals a state court ruling on intellectual property rights.

"The company's ongoing appeal of this preliminary ruling seeks to reestablish the royalty collections during the time that the trial is heard by the original Mato Grosso state court," the St. Louis-based company said in a statement on its website yesterday.

A preliminary ruling yesterday from an appellate court in Mato Grosso agreed with a group of growers that a patent on first-generation Roundup Ready soybeans had expired. The court ordered a halt to royalty payments in the state. Monsanto will suspend the collections nationwide to "maintain operational consistency."

Monsanto said it expects appellate courts to decide whether collections can resume over the next several weeks, prior to the start of a trial in state court.

(Published by Bloomberg - October 18, 2012)