Thursday, January 31, 2008

No Declaratory Judgment Jurisdiction Even After MedImmune

In Monsanto Company v. Syngenta Crop Protection, Inc., Judge Jackson dismissed Monsanto's declaratory judgment action for lack of subject matter jurisdiction. Monsanto introduced a new herbicide, PARRLAY, and in response Syngenta informed Monsanto that it had a patent on the use of two herbicides, and that it would be an infringement for Monsanto to market PARRLAY in conduction with Roundup. Monsanto brought a declaratory judgment action, and Syngenta moved to dismiss because Monsanto did not allege that it sold or had plans to sell PARRLAY.
Judge Jackson recognizes that following the Supreme Court's decision in MedImmune a plaintiff does not have to establish a reasonable apprehension of a lawsuit in order to establish an actual controversy between the parties. Judge Jackson examined SandDisk, Benitec Australia, Sony, and BridgeLux, and concluded that Monsanto did not establish a "substantial controversy of sufficient immediacy and reality to support declaratory judgment jurisdiction. Judge Jackson found that Syngenta's single letter to Monsanto does not establish a course of conduct that shows a perparedness and willingness to enforce its patent rights. Syngenta did not provide a claim construction or analysis, or demand royalties. Judge Jackson noted that Monsanto would not be a direct infringer of the patent, but at most an inducer of infringement. Judge Jackson noted that to prove inducement, the patentee has to prove direct infringement and that the alleged infringer knowingly induced infringement and possessed specific intent to encourage another's infringement. Monsanto provided the declaration of an employee that he "understands" that Sygenta believes that farmers will mix Monsanto's herbicides, but Judge Jackson did not find this enough to satisfy MedImmune's immediacy and reality requirement. Monsanto also argued that it planned to introduce another herbicide, but since this was post-filing, it was not relevant to establishing a case or controversy when the action was filed.

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