Colors Fruit RSA

The battle for ownership in South Africa of the so-called Sheehan table grape cultivars is far from over, with the case seemingly destined to head to the court of appeal in Bloemfontein following the latest High Court decision, on appeal, in favour of Voor-Groenberg Nursery.

Colors Fruit, which has imported the cultivars under license into South Africa over the past five years and was originally awarded ownership in the Cape Town High Court, immediately announced that it would ask for leave to appeal.

Riaan van Wyk, chief executive of Colors Fruit, said that the case is not yet over, outlining the fact that there have so far been two judgements in the case; one by Judge Dennis Davis in the Cape High Court in favour of Colors Fruit; and the second, on appeal, in favour of Voor-Groenberg by a bench consisting Judges Griessel, Salema and Fortuin.

'Our legal team is of the opinion that we have an excellent chance of appeal and of winning in the Appeal Court,' said Mr Van Wyk. 'The big question also still remains of whether AMC in Spain acted legally when they cancelled our sub-licence for the exclusive rights of these varieties in South Africa and Namibia. This has not been heard yet.'

According to Van Wyk, the issue will be settled by way of an arbitration hearing in London on 8 November 2012.

'There is thus at this stage no finality on this whole issue as well as the future of the Sheehan cultivars in South Africa and Namibia,' he added.

The five table grape varieties which are the subject of this complex battle, are expected to form a central part of Colors Fruit's future local and international marketing campaigns. It is therefore certain that the company will use anything in its power to protect its investment in the importation, quarantine, multiplying of plant material and distribution of these varieties, as well as the long-term income from the varieties. Whatever the outcome of the Appeal Court decision or the arbitration, there is great potential for a long and drawn-out court battle.

Colors Fruit has already managed the planting of around 160ha of the five cultivars, namely Allison, Krissy, Megenta, Melanie and Melody.

The company has also entered into comprehensive agreements with producers who planted the cultivars, which may add to an already complex situation. It is also now quite possible that growers who had planned to plant some of the varieties this year or in the future, will be extremely careful given the risks involved in planting them.