Pioneer Hi-Bred International, Inc. v. Holden Foundation Seeds, Inc

1987 WL 341211 (1987)

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Nature of the Case

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Facts

P has its own breeding program, develops its own seed stocks, creates its own parent corn, produces the hybrid seed, and contends that it maintains complete ownership over all of these operations until the ownership of that hybrid is ultimately transferred to the farmer. Foundation seed companies such as D sell seeds to hybrid seed companies who then plant the seed purchased from D, do the necessary detasseling, roguing and harvesting to produce hybrid seed, condition the harvested seed, and then size, bag, and sell the hybrid seed to the farmer. These hybrid corn companies compete directly with P at the retail level. Without parent material from companies such as D, from which competitive hybrids can be produced, hybrid companies cannot remain competitive. D supplies the parent seed for 30% to 40% of the hybrid seed corn sold in the United States each year. Originally, D took successful lines developed by the public institutions, increased them and sold the product to the hybrid seed companies for their use in production. As the increase in the use of hybrid seed occurred, certain foundation seed houses began to employ breeders and to some breeding on their own to attempt to develop private inbred lines which they hoped would lead to successful hybrids and thereby enhance their share of the business. The funding of public institutions for breeding research has been drastically reduced. P spends $33 million on corn research per year and releases, on the average, seven new hybrids annually. P alleges that D violated § 43(a) of the Lanham Act, 15 U.S.C. § 1125(a) P claims that D wrongfully acquired and appropriated the seed of Pioneer's H3H and/or H43SZ7 and used it to produce and market D inbred lines designated LH38, LH39, and LH40. D claims that they independently developed their LH38, LH39, and LH40 lines without taking anything from P and without using anything that belonged to P. D claims that its inbreds LH38, LH39 and LH40 have as their male parent D's inbred L120. P claims that D has no records of any nature or description which would show where they got L120, and P further claims that L120 is a P line or was derived from a P line.