Delhi HC rules in favour of PepsiCo, sets aside earlier single-Bench order

A division bench of the Delhi High Court on Tuesday set aside a single judge order that upheld the revocation of patent held for a potato variety by PepsiCo to make Lay’s chips.

This allows PepsiCo to claim a patent for the potato variety used to make Lay’s chips.

The Delhi High Court order said, “The appeal of PepsiCo... is allowed. The impugned judgement and order dated July 5, 2023 shall consequently stand set aside.... We consequently also set aside the order of the Authority dated 03 December 2021 and the letter issued by the Authority dated 11 February 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.”

Patent row

The Court rejected the contention of farmers rights activist Kavitha Kuruganti, who submitted that Pepsi cannot claim a patent over the potato seed variety. The petition was filed after Pepsico sought renewal of its patent for the potato variety.

In 2019, PepsiCo sued several Indian farmers for cultivating the FL 2027 potato variety, accusing them of infringing its patent. The company supplies this particular seed variety to a group of farmers who grow the potatoes exclusively for the company. However, the snacks and beverage major decided to withdraw the suit subsequently.

The Protection of Plant Varieties and Farmers’ Rights Authority (PPVFRA), subsequently, revoked the registration certificate given to PepsiCo for the potato variety in December 2021. As a result, Pepsico moved the High Court, which, in July 2023, ruled that Indian regulations do not permit patents on seed varieties.

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