Syngenta Seeds receives US$460,000 in settlement of lawsuits on illegal sale of its wheat seed

Syngenta Seeds announced settlement of three cases filed to curb illegal sales of its proprietary NK^® Brand COKER^®9663 wheat seed.  The lawsuits were directed against Porter Seed Cleaning, Inc., and Jay Farming, Inc.; MBS Seeds, Inc., and Andrews Farm and Seed, Inc.; and El Dorado Chemical Company.  In its suits, Syngenta had claimed infringement of its property rights under the Plant Variety Protection Act (PVPA), which states that protected seed may not be sold, offered for sale, re-sold or used to produce seed without permission of the owner.

“Those infringing on Syngenta’s rights under the PVPA are harming both the company and the growers who fully respect the law,” said Phil Farmer, senior business manager, soft wheat, for Syngenta Seeds.  “Our certified seed grower customers, many of whom are farmers themselves, deserve protection from these illegal acts.”

Other PVPA-protected wheat seed varieties include COKER 9474, COKER 9543, COKER 9803, COKER 9835, COKER 9025, COKER 9184, COKER 9152, COKER 9295, COKER 9312, COKER 9375 and Century II.

“Syngenta will continue to act under federal and state laws to protect our rights,” Farmer said. “PVPA encourages seed companies to continue investing in seed quality and genetic improvements. Illegal sales actually slow or can completely stop development of new varieties that benefit farmers and the entire wheat industry.”

The cash settlements were made to Syngenta by Porter Seed Cleaning, Inc., and Jay Farming, Inc., of Roe, Ark., in the amount of $300,000; by MBS Seeds, Inc. of Denton, Texas and Andrews Farm and Seed, Inc. of Carthage, Mo., in a combined amount of $100,000; and, by El Dorado Chemical Company of El Dorado, Ark., in the amount of $60,000.  The settlements represent lost royalties and indicate the multiplicative effect of increasing and selling several generations of seed.

These suits represent three of 10 that Syngenta has filed since 2002 in Texas and Arkansas to prevent further illegal sales of proprietary wheat seed.  Seven of these cases have been settled.  Additionally, the company’s recently acquired Agri-Pro Wheat has recently settled three similar suits filed in Oklahoma and Texas.  All thirteen lawsuits allege infringement of Syngenta Seeds’ intellectual property rights under the PVPA and the unauthorized use of trademarks.   

Syngenta is a world-leading agribusiness committed to sustainable agriculture through innovative research and technology. The company is a leader in crop protection and ranks third in the high-value commercial seeds market. Sales in 2003 were approximately $6.6 billion.  Syngenta employs some 19,000 people in over 90 countries.  Syngenta is listed on the Swiss stock exchange (SYNN) and in New York (SYT).