NEW DELHI (India CSR): The Delhi High Court recently upheld the revocation of PepsiCo’s patent for a potato variety essential in the production of Lay’s potato chips. In 2021, the Protection of Plant Varieties and Farmers’ Rights (PPVFR) Authority revoked the patent for PepsiCo’s FC5 potato variety, citing Indian regulations prohibiting patents on seed varieties.

PepsiCo’s Legal Challenge

After the decision to revoke the patent was made, PepsiCo challenged this decision in court. This decision was prompted by farmers’ rights activist, Kavitha Kuruganti, arguing that seed varieties should not be patented. In response, PepsiCo lodged an appeal with the Delhi High Court.

The Delhi High Court’s Ruling

Judge Navin Chawla, presiding over the Delhi High Court, upheld the PPVFR Authority’s decision and dismissed PepsiCo’s appeal on July 5. In a subsequent statement, a PepsiCo India spokesperson confirmed they are aware of the order and are currently reviewing it.

PepsiCo’s Involvement in India

PepsiCo, a US-based snacks and drinks manufacturer, set up its first potato chip plant in India in 1989. The FC5 potato variety, known for its low moisture content, is supplied to farmers to grow exclusively for PepsiCo. Despite the court’s ruling, PepsiCo maintains that it developed and registered the FC5 variety’s traits in 2016.

Reactions to the Court’s Decision

Kuruganti expressed satisfaction with the court’s ruling, seeing it as a triumph for farmers’ rights in India. However, this isn’t PepsiCo’s first encounter with controversy over this potato variety.

Past Controversies

In 2019, PepsiCo stirred controversy by suing 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 but eventually withdrew the lawsuits.

The Broader Context

The Delhi High Court’s decision did not address potential public interest violations by PepsiCo. Interestingly, this isn’t the first instance where a major US company has faced patent issues in India. Seed maker Monsanto, now under Bayer AG’s ownership, also encountered an intellectual property dispute and subsequently withdrew from certain business operations in India.