I. Asgrow Seed Co. v. Winterboer
a. 513 U.S. 179 (1995)
i. Vol. 513, U.S. Reports, Page 179
b. Federal District Court -> US Court of Appeals for Federal Circuit -> US Supreme Court
c. Asgrow – plaintiff,
d. Winterboer – defendant,
e. Facts:
i. BACKGROUND of Plant Variety Protection Act (PVPA)
a. When owners create a new plant breed they have option of obtaining a PVPA certificate for that breed- gives them patent-like rights to that crop for 18 years
i. Can only be sold/advertised by owner/developer of crop or with their permission
b. EXEMPTION: Stated that protected seed could be sold by someone other than the owner as long as both buyer and seller were farmers whose business came from growing/selling crops
i. Ie, farmers can sell come seeds to other farmers, but did set a specific amount
ii. Was difficult to interpret, had much legal jaron (basis of this case)
ii. Asgrow obtained a PVPA certificate for 2 specific soybean seeds which it developed (labed A1937 and A2234)
iii. Dennis and Becky Winterboer, Iowa farmers, bought both seed types from Asgrow, grew them on their land, and sold reproduced seed to other farmers to use on their land
1. Made much money as they were undercutting Asgrow with prices and claiming to other farmers that their crops were just like Asgrow’s AS1937, A2234 seeds
iv. Asgrow researched the Winterboers, obtained reproduced seed, tested it and discovered it was both their soybean seeds that were protected under the PVPA
v. Asgrow brought case to Federal District Court
1. Claimed Winterboers had infringed on PVPA by
a. 1. Selling seeds protected by PVPA certificates
b. 2. Reproduced the protected seeds as a step in marketing them for future growing purposes
c. 3. Selling the protected seeds to others in a way they could be re-grown, without explaining that seeds were protected under PVPA
f. Procedure:
i. Winterboer did not deny selling of protected seed, however believed their selling fell under statute exemption of the law from infringement liability
1. Cited US Code, Title 7, Chapter 57, Subchapter III, Part K, labeled ‘Right to Save Seed; Crop Exemption’
2. Argued that this language gave them the right to sell an unlimited amount of seed produced from a protected variety, subject only to the conditions that both buyer and seller be farmers "whose primary farming occupation is the growing of crops for sale for other than reproductive purposes,"
ii. Asgrow claimed that exemption stated seller can only sell amount of seed needed to replant their own field, and that Winterboer had done much more than that
iii. Federal Court agreed with Asgrow, granted them summary judgment (determination by the court without full trial)
1. Thus, this was an issue of law, not fact, therefore no need for trial
iv. Winterboer appealed to US Court of Appeals for Federal Circuit
1. Decision reversed in favor of Winterboer
2. Cited they found no statement in the statute exemption limiting amount of seed that could be resold for growing purposes
3. Asgrow asked for rehearing, denied
v. Asgrow petitioned for writ of certiorari, granted by US Supreme Court
g. Issues:
i. Does the exemption under the PVPA limit the selling of protected seed to only the amount it would take to replant the seller’s own property?
h. Holding:
i. Focus of case was USSC interpretation of the exemption under PVPA
ii. Referred to PVPA as a ‘verbal maze’, said ‘not all mysteries regarding the PVPA would be solved’
iii. Voted in favor of Asgrow, held that there is a limit on how much protected seed can be sold for growing purposes and that the Winterboers greatly exceeded that limit
i. Reasoning:
i. Part of exemption that USSC used to base its’ ruling:
1. "it shall not infringe any right hereunder for a person to save seed produced by him from seed obtained, or descended from seed obtained, by authority of the owner of the variety for seeding purposes and use such saved seed in the production of a crop for use on his farm, or for sale as provided in this section ..”
a. Only sell as much seed as it takes to replant its own acreage
b. Key line: states that you cannot qualify for the exemption if you “sexually multipl[ied] the novel variety as a step in marketing,”
i. Meaning of ‘marketing’ debated hotly as word was broadly defined in statute, USSC took it to mean ‘sell’
ii. Since Winterboer main goal was to sell seeds for profit, they were not protected from exemption
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