Patents, Copyrights and Trademarks -- 2003



Peterson v. BASF Corp.   (Minnesota Court of Appeals)

Preemption by patent laws of state consumer fraud suit

The NAM filed an amicus brief 8/21/02 supporting BASF's appeal of an adverse jury award, treble damages and costs totaling over $52 million for a suit alleging violation of the New Jersey Consumer Fraud Act and other claims. The appeal involved a variety of issues under the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA), patent law, pesticide law and consumer fraud law. The NAM's brief argued that the New Jersey law is preempted by federal patent law because patent owners are entitled to license the use of patented products with restrictions. A "field of use" restriction is a valid right of patent owners, where they can license a patented product for a particular market or application. In addition, we argue that a state may not question the validity of a patent under its own consumer fraud laws. Patent issues are the exclusive province of the federal patent system and must be decided under federal law.

On 3/11/03, the court rejected the appeal and allowed the case to go forward on theories of negligence and public nuisance.