HC stops Nuziveedu Seeds from using Monsanto brand

New Delhi: The Delhi High Court on Friday restrained the Nuziveedu Seeds from selling Bt cotton seeds using the trade-mark of US-based agro major Monsanto's Indian arm Mahyco Monsanto Biotech Ltd (MMBL).

Justice Vipin Sanghi also asked the Hyderabad-based seed company to pay the royalty to MMBL, a joint venture between US-based Monsanto and Mahyco, after selling the old stock manufactured prior to November 2015. The bench restrained Nuziveedu Seeds from selling seeds manufactured after November last year when the license agreement was terminated.

It also appointed Local Commissioners to make an inventory of stocks available with Nuziveedu. The court's order came on a lawsuit moved by the MMBL. Senior advocates Sandeep Sethi and Pratibha M Singh, appearing for the agro major submitted that the domestic company was selling their product by infringing the Monsanto trade mark.

Monsanto has also urged that seed manufacturer Nuziveedu was selling Bt cotton seeds manufactured using patented Bollgard-II gene technology of Monsanto. The local company was selling the seeds under Monsanto's trademark subsequent to termination of the license agreement between the two parties on 15 November 2015, the counsel had submitted.

MMBL had terminated the license agreements of Nuziveedu and its group companies on account of continued refusal to pay contractually agreed trait fees amounting to more than Rs 165 crore. MMBL has also approached the Bombay High Court over non-payment of about Rs 400 crore of royalty fees by some Bt cotton seed manufacturers including Nuziveedu.

These companies, which had licensed the technology from MMBL, have not paid the trait value to MMBL for the seeds they sold to farmers in the current and last year's kharif seasons.