Rice companies in court: Searching for a grain of truth

Two major exporters are fighting a legal battle over copyright issues

The next time you have a plate of basmati rice, spare a moment to think not only about the diligent farmers who spend months out in the field to grow this magnificent crop but also the lawyers clad in black who fight awe-inspiring battles in court to put a legal stamp on your meal so you can have your fill without any sense of guilt.



LT Foods, renowned for their brand of Daawat basmati rice is caught in a legal tangle. According to Amira Foods, also a rice exporter, they have a unique logo in their product which they got copyright for around ten years ago. But LT Foods has illegally copied the symbol and has been using it for the past few years.

Amira Foods approached the Patiala House Court alleging that their business was in jeopardy. In this regard the court has directed LT Foods, in an interim order, not to sell their products using a logo similar to that of Amira Foods.

According to the court's orders, LT Foods, their agents, assignees, representatives, successors, distributors, stockiest and all others acting on their behalf are restrained till further order from selling, advertising, soliciting, displaying their goods under trademark logo similar to that of Amira Foods. Their products, worth about Rs 100 crore, bearing the controversial logo, were also seized. Amira Foods has also filed for claims against LT Foods for copyright infringement.

"The petition was filed in Patiala House Court against LT Foods and despite the stay orders by the court they are still using the logo of a Lady Imagery. And now they have challenged the stay order in the High Court," said SK Bansal, counsel for Amira Foods. When contacted by MiD DAY, representatives of LT Foods refused to comment on the matter.

Patent battle
In September 1997, a Texas company called RiceTec won a patent (U.S. Patent No. 5,663,484) on "basmati rice lines and grains." The patent secures lines of basmati and basmati-like rice and ways of analysing that rice. RiceTec, owned by Prince Hans-Adam of Liechtenstein, however faced international outrage over allegations of biopiracy. It had also caused a brief diplomatic crisis between India and United States with India threatening to take the matter to WTO as a violation of TRIPS. This could have resulted in a major embarrassment for the United States.