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Cargill files notice of appeal on judge’s ruling in specialty canola patent case
Portland, Oregon
February 17, 2006

District Court made “erroneous findings of fact,” company says.

Cargill today filed a notice of appeal on a judge’s ruling preventing the company from enforcing two patents on Cargill Clear Valley® high oleic canola oils in the United States. The appeal to the United States Court of Appeals for the Federal Circuit seeks to reverse a December District Court ruling declaring the patents unenforceable in the United States, even though a jury in the same courtroom had found them to be valid and ordered Dow AgroSciences, Dow AgroSciences Canada and Canbra Foods to pay Cargill $2 million in damages for violating them.

The ruling came in response to a post-trial motion by Dow alleging that not all the relevant testing data had been submitted to the U.S. Patent and Trademark Office.

“The ruling is mystifying,” Cargill President Greg Page said at the time. “Cargill submitted all the relevant data derived from the most highly reliable testing technology and procedures available. We had valid reasons for believing the un-submitted data – the results of some less precise tests on frost-damaged or immature seed samples – was inaccurate and unreliable compared with the reams of other testing data we submitted.”

“The District Court applied incorrect legal standards and made clearly erroneous findings of fact on both the relevance of the un-submitted data and Cargill’s intent in not submitting it,” said Cargill Ron Dudley, head of Cargill Specialty Canola Oils. “We strongly believe the ruling is contrary to the law and will be overturned.”

The Federal Circuit Court has exclusive jurisdiction on patent appeals. A panel of three judges randomly selected from the 12 sitting judges will decide the appeal. Cargill plans to file a more detailed brief with the court in approximately 60 days.

Cargill Specialty Canola Oils develops, produces and markets high-performance canola oils and solid shortenings that deliver zero trans and low saturate solutions to the food industry. It is a business unit of Cargill, an international provider of food, agricultural and risk management products and services. With 124,000 employees in 59 countries, the company is committed to using its knowledge and experience to collaborate with customers to help them succeed.

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