A federal court has granted summary judgment on a majority of issues in a dispute between scientists and the University of California Davis centered on the intellectual property rights of two strawberry varieties. Cal. Berry Cultivars, Inc. v. Regents of U. of Cal., No. 16-2477 (N.D. Cal., filed May 2, 2015). Two former UC Davis scientists and their company sued the university alleging it refused to license the strawberry varieties they invented; additional details on the complaint appear in Issue 604 of this Update. The court granted summary judgment on most of the issues, leaving open the scientists’ assertions that UC Davis breached the implied covenant of good faith and fair dealing as well as the unfair competition claim. However, because the court also ruled in favor of UC Davis’ breach of contract claim, it noted that the jury verdict and final judgment may “sock it to both sides .…
A Florida federal court has confirmed an arbitration tribunal's decision awarding $32 million to Del Monte International for Inversiones Y Procesadora Tropical Inprotsa's continued use of Del Monte pineapple seeds after the agreement permitting use had expired. Inversiones Y Procesadora Tropical Inprotsa v. Del Monte Int'l, No. 16-24275 (S.D. Fla., order entered May 1, 2017). Inprotsa argued that although it had stipulated "that Del Monte owned the MD2 pineapple variety," "it only stipulated to that fact because Del Monte had falsely represented that it owned the MD2 variety in letters to Costa Rican growers." In response, Del Monte pointed out that the arbitral tribunal "specifically held that the parties' agreement was not procured by fraud." The court found that Inprotsa did not argue "that the two-year arbitration process was fraudulent, that the arbitration tribunal acted fraudulently, or that the final award was procured by fraud." Rather, the company argued that…
A budget plan passed to fund the U.S. government until September 2017 reportedly includes $3 million to pay for an information campaign about genetically modified organisms (GMOs) in food. As a partnership between the U.S. Food and Drug Administration (FDA) and the Department of Agriculture, the campaign will apparently seek to counter "misinformation about agricultural biotechnology." “It is not the responsibility of the FDA to mount a government-controlled propaganda campaign to convince the American public that genetically modified foods are safe,” Rep. Nita Lowey (DN.Y.) said. See The Washington Post, May 3, 2017. Issue 633
California’s Office of Environmental Health Hazard Assessment (OEHHA) has announced a public hearing on a petition to issue regulations setting “naturally occurring” lead levels in candy containing chili or tamarind. The hearing, which will be webcast, is tentatively scheduled for June 19, 2017. Comments on the petition may be submitted by email or in writing by July 3, 2017. Issue 633
The U.S. Food and Drug Administration (FDA) denied a citizen petition to ban the use of perchlorates in dry food packaging while revoking regulations permitting the use of potassium perchlorate in food-container seals, saying industry makers no longer use the chemical. FDA said it will amend food additive regulations allowing the use of potassium perchlorate as a component in sealing gaskets for food containers. Trade groups petitioned for the change, arguing that plastics manufacturers have stopped using the compound. The following day, FDA rejected a petition from public interest groups seeking to ban use of potassium perchlorate and sodium perchlorate monohydrate in dry food packaging and requesting that the agency issue new regulations prohibiting use of perchlorates in packaging. Neither request was “the proper subject of a food additive petition,” the agency stated, but the groups could petition to revoke or reevaluate the Threshold of Regulation exemption. Issue 633
Voters in Santa Fe, New Mexico, rejected a sugar-sweetened beverage (SSB) tax initiative that would have raised the price of SSBs by 2 cents per ounce. Political action committees, industry groups and advocacy organizations reportedly spent $3.25 million on the vote. Campaign finance reports show that Michael Bloomberg, who began his campaign for SSB taxes and portion caps during his term as mayor of New York City, contributed $1 million to a pro-tax committee. Issue 633
The U.S. Food and Drug Administration (FDA) has extended the compliance date for calorie-count menu labeling from May 5, 2017, to May 7, 2018, and is inviting public comment on the issue. The menu-labeling rule applies to restaurants with 20 or more locations, as well as “grab-and-go” foodservice vendors such as supermarkets, coffee shops and bakeries, concession stands at movie theaters and amusement parks. While the rule is supported by the National Restaurant Association and many restaurant chains have already posted the required information, other trade groups say that the FDA underestimated the costs of compliance and that the rule is an unnecessary regulatory burden on businesses. Issue 633
A study examining the health effects of sugary and artificially sweetened beverages has allegedly concluded that consumption of the latter was associated with an increased risk of stroke and dementia. Matthew P. Pase et al., “Sugar and Artificially Sweetened Beverages and the Risks of Incident Stroke and Dementia,” Stroke, May 2017. Based on data from more than 4,000 adults enrolled in Framingham Heart Study Offspring cohort, the study followed health outcomes for 10 years and purportedly accounted for confounding factors such as “age, sex, education (for analysis of dementia), caloric intake, diet quality, physical activity, and smoking.” The results apparently suggested that, when compared to those who abstained from artificially sweetened beverages, participants who imbibed up to six servings per day were at greater risk of stroke or dementia, with the strongest associations for ischemic stroke. “To our knowledge, our study is the first to report an association between daily…
MastJagermeister SE has filed an opposition to a trademark application by apparel company Offseason Outdoors for a logo featuring a deer’s head. MastJagermeister SE v. Offseason Outdoors, No. 91234087 (T.T.A.B., opposition filed April 19, 2017). Jagermeister, which marks its alcohol products with deer head images, filed its notice of opposition to Offseason’s trademark application, claiming Jagermeister has owned deer head marks since 1968. Issue 632
A California plaintiff has filed a projected class action against Omaha Steaks alleging the company’s shipping and handling charges “greatly exceed” the actual cost of shipping items to consumers. McCoy v. Omaha Steaks Int’l, No. BC658076 (Sup. Ct. Cal., Los Angeles Cty., filed April 14, 2017). The plaintiff asserts that he was charged $15.99 in shipping and handling fees for a jar of dry rub, allegedly twice what he would have paid had the product been shipped by the U.S. Postal Service. The complaint relies on the Direct Marketing Association’s ethical guidelines on shipping charges, which purportedly recommend charges be “reasonably related” to actual costs and disclosed early in the order process. Issue 632
