Delhi HC denies PepsiCo’s potato patent appeal, highlighting the specifics of the case.

Delhi High Court Upholds Revocation of Intellectual Property Protection Granted to PepsiCo India

The Delhi High Court last week upheld an order by the Protection of Plant Varieties and Farmers’ Rights Authority (PPVFRA), revoking the intellectual property protection granted to PepsiCo India Holdings Pvt. Ltd with respect to a potato variety developed by it.

Case Background

The case revolves around FL 2027, a potato variety developed by Robert W Hoopes, a US breeder employed with Frito-Lay Agricultural Research, a division of PepsiCo Inc. FL 2027 is a processing-grade variety with high dry matter and low sugar content, making it ideal for making potato chips. PepsiCo has been using this variety to manufacture its Lay’s brand of potato chips in India, with around 14,000 farmers cultivating it through contract farming.

Revocation of Registration

PepsiCo India Holdings was granted a certificate of registration for FL 2027 on February 1, 2016, with a validity period of six years, extendable up to 15 years. However, PPVFRA revoked the registration through an order on December 3, 2021, and rejected PepsiCo India’s application for renewal on February 11, 2022. PepsiCo challenged these decisions in the Delhi High Court, which upheld the PPVFRA’s decision on July 5.

Reasons for Revocation

PepsiCo had applied for registration of FL 2027 as a “new variety” despite commercializing it in India in 2009. A “new variety” must meet the criterion of novelty, meaning it should not have been sold in India prior to one year before the application for registration. FL 2027 failed this test and could only have been registered as an “extant variety” based on distinctiveness, uniformity, and stability. Additionally, PepsiCo provided incorrect information about the date of the variety’s first sale, further undermining its eligibility for registration.

Impact on India’s IP Regime

The ruling is not expected to significantly impact investor confidence in India’s IP regime for plant varieties and breeder’s rights. The court held that the revocation was justified due to PepsiCo’s incorrect application and failure to provide complete disclosure. Similar to the requirements of the Patents Act, the court stated that IP protection is granted in exchange for a complete disclosure of the claimed invention or development.

Summary of the Case:

• The Delhi High Court upheld the revocation of intellectual property protection granted to PepsiCo India for a potato variety called FL 2027.
• FL 2027 is a processing-grade potato variety developed by PepsiCo and used for making Lay’s potato chips in India.
• PepsiCo’s registration was revoked due to incorrect application and failure to meet the criterion of novelty.
• The ruling is not expected to impact investor confidence in India’s IP regime for plant varieties and breeder’s rights.