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Monsanto Co. v. Scruggs

Monsanto Co. v. Scruggs

United States Court of Appeals for the Federal Circuit

August 16, 2006, Decided

04-1532, 05-1120, -1121

Opinion

 [***1815]   [*1332]  MAYER, Circuit Judge.

Mitchell Scruggs; Eddie Scruggs; Scruggs Farm & Supplies, LLC; Scruggs Farm Joint Venture; HES Farms, Inc.; MES Farms, Inc.; and MHS Farms, Inc. (collectively "Scruggs") appeal the judgment of the United States District Court for the Northern District of Mississippi granting Monsanto Company's ("Monsanto's") motions for [**3]  summary judgment of patent invalidity and infringement, Monsanto Co. v. Scruggs, 342 F. Supp. 2d 584 (N.D. Miss. 2004) ("Summary Judgment I"); antitrust violations and patent misuse, Monsanto Co. v. Scruggs, 342 F. Supp. 2d 568 (N.D. Miss. 2004) ("Summary Judgment II"); and common law counterclaims of, inter alia, tortious interference, unfair competition, and invasion of privacy, Monsanto Co. v. Scruggs, 342 F. Supp. 2d 602 (N.D. Miss. 2004). Additionally, Scruggs appeals the trial court's order granting Monsanto a permanent injunction. Monsanto Co. v. Scruggs, 2004 U.S. Dist. LEXIS 29947, No. 3:00CV161-P-D (N.D. Miss. Nov. 4, 2004) (order granting permanent injunction). We affirm, vacate, and remand.

Background

Monsanto owns U.S. Patent No. 5,352,605 ("the '605 patent"), which is directed toward insertion of a synthetic gene consisting of a 35S cauliflower mosaic virus ("CaMV") promoter, a protein sequence of interest, and a stop signal, into plant DNA to create herbicide resistance. Monsanto also owns U.S. Patent Nos. 5,164,316; 5,196,525; and 5,322,938 (collectively "the McPherson patents"), which are directed toward insect resistant [**4]  traits. The McPherson patents expand upon the '605  [*1333]  patent in several ways, including disclosure of an enhanced CaMV 35S promoter.

Monsanto used the technology in the '605 patent to develop glyphosate herbicide resistant soybeans and cotton, sold as Roundup Ready (R) soybeans and cotton. One of the glyphosate herbicides to which the Roundup Ready (R) plants are resistant is Roundup, which is also sold by Monsanto. Monsanto used the '605 patent in combination with the McPherson patents to develop stacked trait cotton ("Bollgard/Roundup Ready (R) cotton"), which is resistant to glyphosate herbicide and certain insects.

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459 F.3d 1328 *; 2006 U.S. App. LEXIS 20914 **; 79 U.S.P.Q.2D (BNA) 1813 ***; 2006-2 Trade Cas. (CCH) P75,376

MONSANTO COMPANY, Plaintiff-Appellee, v. MITCHELL SCRUGGS, EDDIE SCRUGGS, SCRUGGS FARM & SUPPLIES, LLC, SCRUGGS FARM JOINT VENTURE, HES FARMS, INC., MES FARMS, INC., and MHS FARMS, INC., Defendants-Appellants.

Subsequent History: Rehearing denied by, Rehearing, en banc, denied by Monsanto Co. v. Scruggs, 2006 U.S. App. LEXIS 32268 (Fed. Cir., Dec. 4, 2006)

US Supreme Court certiorari denied by Scruggs v. Monsanto Co., 549 U.S. 1342, 127 S. Ct. 2062, 167 L. Ed. 2d 770, 2007 U.S. LEXIS 4007 (2007)

Prior History:  [**1]  Appealed from: United States District Court for the Northern District of Mississippi. Judge W. Allen Pepper, Jr.

Monsanto Co. v. Scruggs, 2004 U.S. Dist. LEXIS 29947 (N.D. Miss., Nov. 4, 2004)Monsanto Co. v. Scruggs, 342 F. Supp. 2d 568, 2004 U.S. Dist. LEXIS 26691 (N.D. Miss., 2004)Monsanto Co. v. Scruggs, 342 F. Supp. 2d 584, 2004 U.S. Dist. LEXIS 26650 (N.D. Miss., 2004)Monsanto Co. v. Scruggs, 342 F. Supp. 2d 602, 2004 U.S. Dist. LEXIS 26634 (N.D. Miss., 2004)

Disposition: AFFIRMED, VACATED, AND REMANDED.

CORE TERMS

patent, seed, grower, herbicide, sequences, promoter, patent misuse, technology, license, cotton, biotechnology, invalid, trial court, trait, written description, summary judgment, soybeans, argues, crops, license agreement, infringement, invention, glyphosate, antitrust, implied license, specification, exhaustion, plants, permanent injunction, tying arrangement

Civil Procedure, Appeals, Standards of Review, De Novo Review, Summary Judgment, Appellate Review, Standards of Review, Patent Law, Infringement Actions, General Overview, Defenses, Appellate Briefs, Reviewability of Lower Court Decisions, Preservation for Review, Business & Corporate Compliance, Implied Licenses, Specifications, Description Requirement, Written Description Versus Enablement, Patent Invalidity, Fact & Law Issues, Standards & Tests, Enablement Requirement, Proof of Enablement, Exclusive Rights, Antitrust & Trade Law, Sherman Act, Scope, Monopolization Offenses, Inequitable Conduct, Anticompetitive Conduct, Misuse, Remedies, Equitable Relief, Injunctions