Document: 513 U.S. 179115 S.Ct. 788130 L.Ed.2d 682 ASGROW SEED COMPANY, Petitionerv.Denny WINTERBOER and Becky Winterboer, dba Deebees. No. 92-2038. Supreme Court of the United States Argued Nov. 7, 1994. Decided Jan. 18, 1995. Syllabus * Petitioner Asgrow Seed Company has protected two varieties soybean seed under Plant Variety Protection Act 1970 (PVPA), which extends patent-like protection to novel sexually reproduced plants (plants grown from seed). After respondent farmers planted 265 acres Asgrow's sold entire saleable crop—enough plant 10,000 —to other for use as seed, filed suit, alleging infringement under, inter alia, 7 U.S.C. § 2541(1), selling or offering sell 2541(3), "sexually multiply[ing] a step in marketing [them] (for growing purposes)." Respondents contended that they were entitled statutory exemption liability 2543, provides relevant part "[e]xcept extent such action may constitute an [§ 2541(3) ]," farmer "save . saved production crop on his farm, sale provided this section: Provided, That" can be reproductive purposes where both buyer seller are "whose primary farming occupation is crops than purposes." In granting summary judgment, District found allows save resell only amount would need replant own fields. The Appeals reversed, holding 2543 permits up half every he produces PVPA-protected so long sells food feed. Held: A who meets requirements set forth 2543's proviso purpose replanting acreage. Pp. __. (a) not eligible exception if their planting harvesting conducted "as marketing" parties do dispute these actions constituted "sexual multiplication" varieties. Since PVPA does define "marketing," term should given its ordinary meaning. Marketing ordinarily refers act property sale, together with activities preparatory thereto, but require there extensive promotional merchandising connected selling. (b) By reason proviso, first sentence been preserved (saved seed) purposes. However, structure authorization extend was (marketing) replanting, because violate 2541(3). As practical matter, means by acreage sold. Thus, saves seeds acreage, changes plans, proviso's terms. statute's language stands way limitation 982 F.2d 486 (CA Fed.1992) reversed. SCALIA, J., delivered opinion Court, REHNQUIST, C.J., O'CONNOR, KENNEDY, SOUTER, THOMAS, GINSBURG, BREYER, JJ., joined. STEVENS, dissenting opinion. Richard L. Stanley, Houston, TX, petitioner. H. Seamon, Washington, DC, amicus curiae special leave Court. William Bode, respondents. Justice SCALIA 1 1970, 2321 et seq., protects owners against unauthorized sales An exemption, however, make some variety farmers. This case raises question whether limit quantity exemption. 2 Congress passed (PVPA) 84 Stat. 1542, order provide developers "adequate encouragement research, when appropriate, yield public benefits new varieties," 2581. (that is, parallels afforded asexually propagation grafting) Chapter 15 Patent Act. See 35 §§ 161-164. 3 developer obtains coverage acquiring certificate Office. 2421, 2422, 2481-2483. confers owner exclusive right 18 years "exclude others variety, it reproducing it, importing exporting using producing (as distinguished developing) hybrid different therefrom." 2483. 4 Petitioner, holder certificates protecting calls A1937 A2234. Respondents, Dennis Iowa whose farm spans 800 Clay County, northwest corner state. Winterboers have incorporated name "D-Double-U Corporation" business "DeeBee's Feed Seed." addition livestock feed, since 1987 derived sizable portion income "brown-bag" seed. brown-bag occurs purchases company, Asgrow, fields, harvests crop, cleans then (usually nondescript brown bags) them crop-seed farms. During 1990, A2234, 10,529 bushels, enough acres. average price $8.70 per bushel, compared then-current $16.20 $16.80 bushel obtain A2234 directly Asgrow. 5 Concerned making out sent local farmer, Robert Ness, Winterboer purchase. Mr. informed Ness could him "just like" purchased 20 bags each; biologist tested determined indeed 6 brought suit Federal Northern Iowa, seeking damages permanent injunction harvested complaint alleged varieties; multiplying those purposes; 2541(6), dispensing form propagated without providing notice variety.1 did deny held valid covering A2243, had produced Their defense, at least 2541(1) (3) charges, rested upon contention fell within 2543. That section, "Right seed; exemption," reads follows: 8 "Except subsections (4) section 2541 title, shall infringe any hereunder person obtained, descended authority seeding regard provisions title person, purposes, persons engaged, compliance State laws governing applicable. bona fide made channels usual either obtained descent infringement. ."2 9 argued gave unlimited subject conditions purposes," all comply state law. maintained fields—a Winterboers' greatly exceeded. agreed granted judgment favor. 795 F.Supp. 915 (1991). 10 Circuit (1992). Although "recogniz[ing] that, meaningful limitations, [of 2543] undercut much PVPA's incentives," id., 491, saw nothing purposes) necessary seller's Rather, read statute, another 50 percent specific nonreproductive e.g., denied petition rehearing suggestion en banc vote six judges five. 989 478 (1993). We certiorari. 511 ----, 114 1535, --- ---- (1994). II 11 It well acknowledge outset quite impossible complete sense provision issue here. One go no further very words establish that. Section not, claims ensuing text says, reserve "[r]ight seed"—since elsewhere remotely prohibits saving Nor, possible analysis, ("Provided, That") really proviso. 12 With advance warning mysteries will solved, we enter verbal maze entrance, discover, actually exit, begins excepting certain operation: section. ." (emphasis added). qualify 13 "(3) multipl[ied] variety; use[d] 2541(3)-(4). 14 bushels collected harvest 12,037 soybeans. 2401(f) (defining reproduced" include "any seed"). almost beans (i.e., "for purposes"), consent. central case, then, If were, grant "marketing." When terms used statute undefined, give FDIC v. Meyer, 510 996, 1001-1002, 127 308 believed word "marketing" requires "extensive coordinated activities, advertising, intervening representative, similar extended retail activities." F.2d, 492. disagree. thereto (in present cleaning, drying, bagging pricing seeds). extensive. market apples simply displaying cart tag; stock listing exchange; house (we normally say "place market") setting sale" sign front lawn. Indeed, dictionaries one meaning "market" "to sell." See, Oxford Universal Dictionary 1208 (3d ed. 1955); Webster's New International 1504 (2d 1950). Of course effective often involves occur But even relies more word-of-mouth goods process. Moreover, could, meanings, demand promotion, see why law here intend effect preserving less valuable varieties, eliminating desirable marketed mouth; requiring courts ponder difficult how promotion marketing. think marketing," putting sale.3 Under clause produce replanting. 16 next violating (4), 17 "it (Emphasis added.) Farmers generally grow sell. typically removed farmer's premises short taken grain elevator processor. Sometimes, soybean, cleaned stored fields season. clear what discussion "saved seed"—not merely regular uncleaned later fodder. 19 There ways provision, depending phrase section" modify. "production section"; alternatively "use section." parallelism created farm" followed immediately "or section," suggests former reading. placement comma, separating [of] farm," favors latter So fact alternative reading reader skip lengthy "Provided, find "provided [for] section"—despite between "provided" "Provided," despite presence colon, indicates specification preceded. surely easier for" "Provided" after colon. (It unusual, however deplorable be, prologue rather exception. Springer Philippine Islands, 277 189, 206, 48 480, 483-484, 72 L.Ed. 845 (1928); 1A N. Singer, Sutherland Statutory Construction 20.22 (5th 1992).) also preferred lends greater provisions. reading, ("production section") referred "bona sale[s] purposes" second 2543—the so-called "crop exemption". (The to, itself.) limited referent, opening clause's ("Except .") reservation devoid content, attached permit contrast, [his] intentionally sale—i.e., variety."4 respect our favored gives this: ("crop causes "permission" opposed itself. separate permission required this, already contained itself; serves reminder exemption—a peculiarly incomplete reminder, itself 21 To summarize: ("saved seed") such, ("marketing") replanting—because violated, above-discussed apply. transfer possession acreage.5 (We apparent sold—for purposes—only "produced view authorizes permitted buyers produce.) instead (or exemption). 22 remains discuss final feature authorizing Circuit, rejected proposition sellable sought achieve adopting "crop-by-crop" approach "primary occupation" requirement "[B]uyers sellers bag concluded, "only larger consumption seed." 490. say, stand creative (if somewhat insubstantial) limitation. ask constitutes bulk total business. Selling must preponderance business, just derive narrower focus applied. described—by reference original saved—then barely volume worth purposes). seems us most unlikely result. 23 24 hold While clear, comports affording varieties." Because unlawful, reach certiorari—whether authorized remain 2541(6). 25 26 Reversed. 27 dissenting. 28 key puzzle phrase, 2541(a)(3). synonymous selling," holds, ante, __, majority's comprehensive exposition correct. I record my dissent conveys message me. 29 common "selling." 2541(a)(1), same subsection crucial language, "sell variety." Yet, 2541(a)(3), mere clauses later, eschewed "sell" favor obviously prohibited sexual multiplication presume elected prohibit variety," meant something different. 30 narrower, broader, majority correct dictionary acts thereto. __," prohibiting broader steps are, ultimately, "selling," coextensive, encompass 31 whole—and interpreted Appeals—indicates intended preserve engage "brown-bag sales" neighboring express seller. 2541(a)(3) makes abundantly participation taboo. interprets refer subcategory namely through cooperatives, wholesalers, retailers, commercial distributors, sense. wanted allow another; but, want compete manufacturers ground, 486, 492 Fed.1992). 32 consistent time-honored practice viewing restraints alienation disfavor. Sexton Wheaton, Wheat. 229, 242, 603 (1823) (opinion Marshall, C.J.).* property. Generally personal patented copyrighted article—is free dispose sees fit. Univis Lens Co., 316 241, 250-252, 62 1088, 1093-1094, 86 1408 (1942); Bobbs-Merrill Co. Straus, 210 339, 350-351, 722, 726, 52 1086 (1908). restraint basic freedom expressed clearly unambiguously. Cf. Deepsouth Packing Laitram Corp., 406 518, 530-531, 92 1700, 1708, 273 (1972). recognizes, "by clear." Ante, am persuaded correctly intent Congress, doubts resolved purported freedom, affirm below. syllabus prepared Reporter Decisions convenience reader. Detroit Lumber 200 321, 337, 282, 287, 499. At time filed, full: otherwise subchapter, rights perform authority, following States, commerce regulated affecting commerce, prior expiration distribution 2567 title: "(1) offer expose deliver ship consign exchange solicit buy it; "(2) import into, export from, States; multiply "(4) therefrom; "(5) marked "Unauthorized Propagation Prohibited" Multiplication progeny thereof propagate "(6) dispense another, propagated, being received; "(7) foregoing instances multiplied sexually, except pursuance patent; "(8) instigate actively induce performance acts." October, 1992, amended 2541, designating adding (b), Curiously, references reflect change. For clarity's sake, therefore, continue designations, 2541(1)-(8), current 2541(a)(1)-(8). recently striking " 'section: That' follows period inserting 'section.' Amendments 1994, Pub.L. 103-349, 108 3136, 3142. amendment action, bearing resolution amendments affect issued April 4, 1995, pending before date. 14(a), 15, 3144, 3145. asserts Circuit's demanding interpretation supported ancient doctrine disfavoring property, post, wellspring doctrine, course, concern rights, context dissent's interpretation, ours, belittles concern. whole create product botanical research giving it," etc. Applying rule like applying contract Sherman statement "without hereunder" eliminate technical argument originally (because done retroactively rendered unlawful earlier "a soybeans, same, mean year's germination rate batch declines over time, get year-after-next's harvest. vegetable crops, harvest, overripen ("go seeds. amici asserted (and dispute) "grow" four five years, "brown bag" future crops. sets aside subsequent replantings mind, abandons plan example), analysis able though single year) times "It seem consequence absolute power man possesses disposition interfere existing others, disposition, fair real, valid. limitations prescribed law." (1823).

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