Brazilian Court Orders Monsanto to Pay Farmers 6.2 Billion Euros

A judge in the Brazilian state of Rio Grande do Sul has suspended the collection of royalties on Monsanto GM soybean seeds from Brazilian farmers. The ruling also provides for the reimbursement of license fees paid since the harvest campaign 2003/2004, based on violation by Monsanto of the rules of the Brazilian Cultivars Act.

According to the attorney for the farmers associations of Passo Fundo, and Santiago and Sertão, who filed a class action suit in 2009, the claim lodged requested that Monsanto be forced to pay up to five million farmers in Brazil a reimbursement of about 6.2 billion euros.

Not only has Monsanto been collecting royalties on Roundup Ready soybean seed, but until the recent court ruling, royalties were also required for the entire soybean crop, and for soybean seed retained from the previous harvest. 

The farmers don't dispute that Monsanto is entitled to royalties from the soybean seed farmers initially purchased, but they demand the right to plant again the original soybean seed they purchased and to sell the crops as food or feed, without additional license fee payments. 

Furthermore, if Monsanto appeals this decision, Monsanto incurs a penalty of 400,000 euros per day. And if the firm plans to appeal the verdict at the federal state of Rio Grande do Sul, the Brazilian Supreme Court has yet to decide on extending nationally the decision.

Sources:
GM Watch
Brazilian Media