Legal Dispute between Farmers and PepsiCo over Unique Potato Variety : Daily News Analysis

Date : 13/07/2023

Relevance:

GS Paper 2: Legal Rights
GS Paper 3: Agriculture,

Keywords: Protection of Plant Varieties and Farmers Rights Act, 2001 (PPV&FR), Sustainable Agriculture, Farmer Right

Context-

The Delhi High Court rejects PepsiCo India's patent appeal for its unique Lays' potato variety. This decision pertains to the Protection of Plant Varieties and Farmers Rights Act, 2001 (PPV&FR), which safeguards plant varieties and promotes agricultural development in India.

Background:

PepsiCo developed a potato plant variety called 'FL 2027' for use in Lay's chips. The variety possesses desirable characteristics such as low external defects, high dry matter/solids content, and stable sugars, making it ideal for chip production.
PepsiCo obtained a registration certificate for FL 2027 in 2016, granting them exclusive rights to market, sell, import, export, or distribute the variety for six years.
However, the certificate was revoked by the Protection of Plant Varieties and Farmers Rights' Authority (PPVFRA) following an application filed by Kavitha Kurungati, a farmers' rights activist.

The Protection of Plant Varieties and Farmers Rights Act, 2001:

The PPV&FR Act establishes a framework to conserve and encourage the development of plant varieties.
It aims to safeguard the rights of breeders, researchers, and farmers while promoting agricultural progress.
The act also facilitates the growth of the Indian seed industry, ensuring farmers have access to high-quality seeds and planting materials.

The Protection of Plant Varieties and Farmers' Rights (PPV&FR) Act, 2001, was enacted in India adopting a sui generis system and is in line with the International Union for the Protection of New Varieties of Plants(UPOV), 1978. This legislation recognizes the contributions of both commercial plant breeders and farmers in plant breeding activities and aims to implement Trade-Related Aspects of Intellectual Property Rights (TRIPS) in a manner that supports the socioeconomic interests of all stakeholders, including private and public sectors, research institutions, and resource-constrained farmers.

Objectives of the PPV&FR Act, 2001:

Establish an effective system for protecting plant varieties, the rights of farmers, and plant breeders, and encourage the development of new plant varieties.
Recognize and protect the rights of farmers who have contributed to conserving, improving, and making plant genetic resources available for the development of new plant varieties.
Accelerate agricultural development in the country, protect plant breeders' rights, and stimulate investment in research and development in both the public and private sectors for new plant variety development.
Facilitate the growth of the seed industry to ensure farmers have access to high-quality seeds and planting materials.

Rights under the Act:

Breeders' Rights: Breeders have exclusive rights to produce, sell, market, distribute, import, or export the protected variety. They can appoint agents or licensees and seek civil remedies for infringement of their rights.
Researchers' Rights: Researchers can use registered varieties for conducting experiments or research. They can also use a variety as an initial source for developing another variety, but repeated use requires prior permission from the registered breeder.

Farmers' Rights:

Farmers who have developed a new variety are entitled to register and protect it, similar to breeders.
Farmers' varieties can also be registered as extant varieties.
Farmers have the right to save, use, sow, re-sow, exchange, share, or sell their farm produce, including protected variety seeds, in the same manner as before the Act came into force. However, they cannot sell branded seeds of protected varieties.
Farmers are eligible for recognition and rewards for conserving plant genetic resources of land races and wild relatives of economic plants.
Farmers can receive compensation for non-performance of a variety under Section 39(2) of the Act.
Farmers are not required to pay any fees in proceedings before the Authority, Registrar, Tribunal, or High Court under the Act.

Overall, the PPV&FR Act, 2001 aims to protect plant varieties, recognize the rights of farmers and breeders, and promote agricultural development while ensuring access to quality seeds for farmers.

Grounds for Revocation:

Under Section 34 of the PPV&FR Act, the registration of a breeder's variety may be revoked based on various grounds.
These include incorrect information furnished during the application, registration granted to an ineligible person, failure to provide required documents, non-compliance with prescribed acts and regulations, and if the grant of registration goes against the public interest.

Court's Rejection of Appeal:

The court rejected PepsiCo's appeal primarily based on Section 34(a) of the PPV&FR Act. It was revealed that PepsiCo had sought registration for FL 2027 as a "new variant" instead of an "extant variant" in its application, despite the variety being commercially introduced in India earlier.
To be registered as a "new variant," the variety must satisfy the additional criterion of novelty along with distinctiveness, uniformity, and stability.
Since FL 2027 did not meet the novelty requirement, it could only be registered as an "extant variety."

Conclusion:

India's agriculture sector plays a significant role in its economy, employing a large workforce. Multinational food processing companies and investors should prioritize understanding India's local laws, particularly the PPV&FR Act of 2001, to ensure the well-being of farmers and respect their rights. The act provides necessary safeguards and protections to farmers, contributing to the sustainable development of agriculture in the country.

Probable Questions for Mains exam-

Discuss the key provisions and objectives of the Protection of Plant Varieties and Farmers Rights Act, 2001 (PPV&FR Act). How does this act to safeguard the rights of farmers while promoting agricultural development in India? (10 Marks, 150 Words)
Explain the grounds for revocation of a breeder's variety registration under the Protection of Plant Varieties and Farmers Rights Act, 2001. Discuss the recent legal dispute between farmers and PepsiCo over a unique potato variety and the Delhi High Court's rejection of PepsiCo's patent appeal. (15 Marks, 250 Words)

Source: The Hindu