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Synopsis

The Delhi High Court has affirmed PepsiCo's right to claim a patent for the potato variety essential to the production of its popular Lay's potato chips.

The division bench of Justices Yashwant Varma and Dharmesh Sharma overturned a previous single-judge order from July 5, 2023, which had dismissed Pepsi's appeal against the revocation of its patent-protected potato variety.

PepsiCo had filed an appeal under the Protection of Plant Varieties and Farmers’ Rights Act, 2001, challenging the Protection of Plant Varieties and Farmers Rights Authority's order dated December 3, 2021.

This order had revoked Pepsi's patent protection for the FL 2027 potato variety utilized in the manufacturing of Lay's chips. Following the dismissal of the appeal by a single judge on July 5, PepsiCo escalated the matter to the division bench.

The division bench allowed PepsiCo's appeal, setting aside the Authority's order from December 3, 2021, and the subsequent letter dated February 11, 2022.

The bench directed the restoration of PepsiCo's renewal application to the Registrar for further processing in accordance with the law.

“The appeal of PepsiCo is allowed. We consequently also set aside the order of the Authority dated December 3, 2021, and the letter issued by the Authority dated February 11, 2022. The renewal application as made by PepsiCo shall stand restored on the file of the Registrar, who shall dispose of the same in accordance with law,” the court said.

The Authority's order had revoked Pepsi's registration for the FL 2027 potato variety on multiple grounds outlined in Section 34(a), (b), (c), and (h) of the Act. This revocation, enacted in December 2021, stripped PepsiCo of its Plant Variety Protection certificate for the specified potato variety.

Court rejected the arguments put forth by farmers' rights activist Kavitha Kuruganti, emphasizing that PepsiCo's appeal was upheld. It disagreed with the single judge's findings related to the incorrect mentioning of the date of first sale and the eligibility of PepsiCo to apply for registration, as well as the alleged non-submission of relevant documentation. Kuruganti's claim that PepsiCo was acting against the public interest by suing farmers was also dismissed by the Court.

The division bench stated, "Apart from a mere reference to various suits alleging infringement...the respondent failed to establish or prove that those suits were vexatious or that they had been instituted as part of predatory tactics of PepsiCo."

Plant variety protection, as highlighted by the court, offers legal safeguarding to breeders through plant breeder's rights (PBRs), providing exclusive rights to the breeder of the registered variety.

PepsiCo Inc., a major player in the manufacturing and distribution of non-alcoholic beverages and snacks, asserted that FL 2027 is an ideal chipping potato variety due to its low external defects, high dry matter/solid content, and stable sugars.

Case Title: PepsiCo India Holdings Pvt Ltd v. Kavitha Kuruganti