Delhi High Court dismisses PepsiCo's appeal in potato variety patent case

The Delhi High Court has dismissed PepsiCo's appeal against the revocation of a patent for a potato variety used exclusively for the production of Lay's potato chips. The Protection of Plant Varieties and Farmers' Rights (PPVFR) Authority in 2021 revoked the intellectual protection granted to PepsiCo's FC5 potato variety, stating that Indian regulations do not permit patents on seed varieties.

The decision to remove PepsiCo's patent cover came after Kavitha Kuruganti, a farmers' rights activist, argued that the company should not be able to claim a patent over a seed variety. In response, PepsiCo filed a petition with the Delhi High Court challenging the revocation of the patent.

On July 5, the Delhi High Court, presided over by Judge Navin Chawla, rejected PepsiCo's appeal against the authority's decision. A spokesperson for PepsiCo India stated that they are aware of the order and are currently reviewing it.

PepsiCo, a US-based snacks and drinks manufacturer, established its first potato chip plant in India in 1989. The company supplies the FC5 seed variety to a group of farmers who grow the potatoes exclusively for PepsiCo at a fixed price. PepsiCo claims that it developed the FC5 variety and registered its traits in 2016. The FC5 potato variety is known for its lower moisture content, making it ideal for snack production, particularly potato chips.

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Kuruganti expressed satisfaction with the court's decision, stating that it upheld the revocation order. This outcome represents a victory for farmers' rights in India.

Notably, in 2019, PepsiCo faced controversy when it sued several Indian farmers for cultivating the FC5 potato variety, accusing them of infringing its patent. The company sought more than Rs 1 crore in damages from each farmer for alleged patent infringement. However, PepsiCo later withdrew the lawsuits against the farmers.

The Delhi High Court's order did not address any accusations of public interest violation by PepsiCo. It is worth noting that this is not the first time a large US company has encountered patent infringement issues in India. Previously, seed maker Monsanto, now owned by German drugmaker Bayer AG, faced a long-standing intellectual property dispute and subsequently withdrew from certain business operations in India.

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