Apple Growers in Minnesota Challenge Restrictive Licensing Agreement
A number of Minnesota-based apple growers have filed a complaint against the regents of the University of Minnesota and others claiming that exclusive and limited licensing agreements pertaining to the cultivation and sale of a new apple variety violate federal and state competition and restraint of trade laws. Aamodt Apple Farm, Inc. v. Regents, U. Minn., No. __ (Minn. Dist. Ct., Hennepin Cty., filed June 16, 2010). According to the complaint, the SweeTango®, a cross between the Honeycrisp™ and Zestar!™ varieties, was developed with the use of state funding through the university’s apple-breeding program. One grower allegedly has an exclusive license to grow the apple and may license others to grow it on its behalf. The agreements allegedly limit the number of trees that can be planted and where and how the apples can be sold.
The plaintiffs allege unreasonable restraint of trade in commerce; establishment, maintenance and use of a monopoly power; prohibited contracts, combinations and conspiracies; tortious interference with business relations/prospective business relations; violations of the federal Agricultural Fair Practices Act; and violations of due process and equal protection rights. They seek declaratory and injunctive relief, damages in excess of $50,000, costs, and attorney’s fees. According to the plaintiffs, the SweeTango® is “an early season apple variety [that] has been released to consumers in a limited fashion and has already generated overwhelming demand.” They contend that the growing and sales restrictions make them unable to compete in the apple marketplace.
