PepsiCo Inc. has achieved a significant legal triumph as the Delhi High Court overturned the 2021 decision revoking the patent for its FC5 potato variety, a crucial component in Lay’s potato chips. Initially revoked by the Indian Protection of Plant Varieties and Farmers’ Rights Authority, citing regulations against patenting seed varieties, the recent Delhi High Court ruling reverses this decision following the dismissal of PepsiCo's appeal in July 2023.
The judges, in a January 9 judgment, nullified the 2023 ruling, providing a favorable outcome for PepsiCo. The company expressed satisfaction, emphasizing its commitment to collaboration with farming communities for mutual benefits and progress.
PepsiCo, a major player in India since establishing its first potato chip plant in 1989, supplies the FC5 seed variety to farmers who sell their produce to the company at a fixed price. The FC5, exclusively developed by PepsiCo in 2016, is prized for its low moisture content, ideal for snacks like potato chips.
The legal saga began in 2019 when PepsiCo sued Indian farmers for allegedly infringing its FC5 potato variety patent, seeking over 10 million rupees ($120,490) from each accused farmer. These lawsuits were later withdrawn within months. PepsiCo's victory adds to the landscape of intellectual property disputes faced by U.S. companies in India, reminiscent of seed maker Monsanto's withdrawal from certain Indian businesses following a prolonged intellectual property dispute, now under the ownership of Bayer AG.
Tags
India