Legal setback for Monsanto in Argentine soy dispute

LUXEMBOURG, March 9 (Reuters) - U.S. biotech giant Monsanto's (MON.N) EU patent on its Roundup Ready soybean seeds should not extend to cover imports of processed soybean meal into the 27-nation bloc, an adviser to Europe's top court said on Tuesday.

The opinion from an advocate general must still be confirmed by the European Court of Justice in a final ruling later this year. But it is a setback for Monsanto in its legal battle to secure royalty payments on the use of its seeds.

At stake is more than 3 billion euros ($4.1 billion) of annual trade in Argentine soymeal to Europe. Argentina is the world's top soymeal supplier and the European Union is its No. 1 client.

"The protection for a patent relating to a DNA sequence is limited to the situation in which the genetic information is currently performing the function described in the patent," the court said in a statement. (Reporting by Michele Sinner, writing by Charlie Dunmore, editing by Dale Hudson)