Today, Delhi High Court rejects PepsiCo's appeal challenging the revocation of a patent for a potato variety used exclusively for the production of Lay's potato chips.

Back in 2021, the Protection of Plant Varieties and Farmers' Rights (PPVFR) Authority revoked the intellectual protection granted to PepsiCo's FC5 potato variety, stating that Indian regulations do not permit patents on seed varieties.

After the decision to remove PepsiCo's patent PepsiCo filed a petition in Delhi High Court challenging the court orders.

On July 5, the single-headed bench of Justice Navin Chawla, of Delhi High Court rejected PepsiCo's appeal against the authority's decision. A spokesperson for PepsiCo India stated that they are aware of the order and are currently reviewing it.

PepsiCo, a US-based snacks and drinks manufacturer, established its first potato chip plant in India in 1989. The company supplies the FC5 seed variety to a group of farmers who grow the potatoes exclusively for PepsiCo at a fixed price. PepsiCo claims that it developed the FC5 variety and registered its traits in 2016.

The Delhi High Court's order did not address any accusations of public interest violation by PepsiCo. It is worth noting that this is not the first time a large US company has encountered patent infringement issues in India. Previously, seed maker Monsanto, now owned by German drugmaker Bayer AG, faced a long-standing intellectual property dispute and subsequently withdrew from certain business operations in India.

"Mere filing of the litigations by the appellant against the farmers, even presuming the same to be completely frivolous, cannot be construed as satisfying the test of grant of registration itself not being in public interest. The Authority has, therefore, erred in revoking the registration granted in favour of the appellant,” the court said.