A federal judge ruled against a new law in Hawaii curbing genetically modified crops, handing a victory to seed and chemical companies in a battle over modern agricultural techniques.

Units of DuPont Co., Syngenta AG, Dow Chemical Co. and BASF SE won a judgment in the U.S. District Court for the District of Hawaii, blocking an ordinance adopted last November by the island of Kauai, according to a court order dated Aug. 23 and filed Monday.

The dispute came amid a series of legal challenges and legislative efforts aimed at restricting the proliferation of genetically modified crops, and requiring labels for foods and beverages made from them, with critics warning of environmental damage from pesticides and potential consumer health risks.

Most large food and seed companies have fought such efforts, arguing there is no evidence of health problems resulting from GMO foods and that farm chemicals are used judiciously.

The companies, which make pesticides and seeds genetically engineered to withstand them, sued in January to overturn Kauai County's law, which would have required disclosure of some pesticide use and genetically modified crop cultivation, and restricted some crop-growing and pesticide use near schools and nursing homes. Seed company officials argued that the law exceeded the island's authority and would have placed "burdensome and baseless restrictions' on farming businesses.

Environmental advocates in Hawaii, where year-round growing conditions for decades have drawn seed and chemical companies to test products, have raised fears that biotech plants could spread to organic farms via wind or insects, and that seed and pesticide makers won't detail their chemical use on Kauai. Together the companies lease more than 11,000 acres for test farms and research facilities on Kauai, the fourth-largest Hawaiian island.

U.S. Magistrate Judge Barry Kurren, in his judgment, wrote that "the Ordinance is pre-empted by state law and is therefore invalid," and blocked Kauai from implementing or enforcing the law.

"This issue is far from over," said Gary Hooser, a Kauai council member who co-introduced the bill. "One opinion from one federal magistrate does not settle the issue."

Mr. Hooser said he supported appealing the ruling, although the full Kauai county council must make such a decision. The bill passed in November after council members overrode a veto by the island's mayor.

"By denying Kauai's law, the judge undermined efforts to create more transparency and more protections for farmers, workers and families from hazardous pesticides," said Paul Towers, spokesman for the Pesticide Action Network, which supported Kauai County in the case. Mr. Towers said the group still was reviewing the order and would "explore all available options' to defend Kauai.

The seed and chemical companies were pleased with the ruling, according to a joint statement.

Write to Jacob Bunge at jacob.bunge@wsj.com

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