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Case Code: ECON074
Case Length: 13 Pages 
Period: 1989-2019   
Pub Date: 2019
Teaching Note:Available
Price:Rs.300
Organization : PepsiCo India
Industry :Food & Beverage
Countries : India
Themes: International Marketing
Case Studies  
Business Strategy
Marketing
Finance
Human Resource Management
IT and Systems
Operations
Economics
Leadership & Entrepreneurship

PepsiCo India vs. Gujarat Potato Farmers

 
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EXCERPTS

A NOTE ON INTERNATIONAL INTELLECTUAL PROPERTY LAW

 

The International Intellectual Property Law (IIPL) referred to the laws that encompassed the creation, sharing, protection, and usage of Intellectual Property (IP) across the globe. IP laws differed from country to country and the significant variations in the laws among countries and their interpretations had given rise to various issues. Every country had its own set of IP laws and any corporation had to register its patents in each and every country where it desired to operate its business. The IIPL was the amalgamation of various treaties between nations around the globe such as Trade Related Aspects of Intellectual Property Rights (TRIPS) and the World Intellectual Property Organization (WIPO), a United Nations agency for administering IP agreements among its 188 members...

 
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PEPSICO INDIA ALLEGES INFRINGMENT OF INTELLECTUAL PROPERTY RIGHTS BY FARMERS

Pepsico used the FC5 variety of potato to produce its Lays brand of potato chips. The FC5 variety had a moisture content of 80 percent compared to the other varieties of potatoes with water content of 85 percent. The low moisture content of FC5 was favorable for making chips and easier to store and process. PepsiCo India had introduced the FC5 variety in 2009 and supplied the seeds to the farmers with a buyback agreement which specified that the entire produce was to be sold to the company. The issue arose when some farmers in Gujarat cultivated the FC5 variety of potato without license from PepsiCo India and sold it in the open market...
 

ACTIVISTS ALLEGE VIOLATION OF FARMERS’ RIGHTS

Most of the political parties supported the farmers against PepsiCo India’s decision to file lawsuits against the farmers. Some of the political parties threatened to launch an agitation calling for a boycott of the products of PepsiCo India. Tajinder Pal Singh Bagga, spokesperson of the Bharatiya Janata Party , Delhi Unit, said.

 

EXHIBITS

Exhibit I: Timeline Related to the Filing of the Lawsuit by PepsiCo and its Aftermath
Exhibit II: PepsiCo Brands
Exhibit III: The Revenues of PepsiCo India from FY 2013 to FY 2018
Exhibit IV: Salient Features of the Protection of Plant Varieties and Farmers Right Act 2001
Exhibit V: Market Share of PepsiCo and its Competitors in 2010 and 2015
Exhibit VI:Changes in Retail Value Market Share of PepsiCo India’s Brands: 2013 vs. 2017