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NEWS LIST
DuPont, Monsanto sign $1.75-billion licensing deal, end patent dispute
Edit:Administrator Time:2013-03-27 15:21:28 Views:2911 Number

DuPont's Pioneer Hi-Bred business will pay Monsanto a total of $1.75 billion in royalty payments through 2023 to stack Monsanto's Roundup Ready (RR) 2 glyphosate-resistance technology in DuPont's Genuity seeds in the United States and Canada, the companies announced today.

The deal puts to rest a long-running legal dispute between the 2 leading genetically modified seed firms and nullifies $1 billion in damages a that St. Louis district court awarded to Monsanto in August 2012.

Monsanto sued DuPont in 2009 over DuPont's use of Monsanto's first-generation RR (RR1) trait stacked with DuPont's own trait for glyphosate-resistance. DuPont countersued, alleging antitrust and patent misuse on the part of Monsanto.

Under the terms of the agreement, DuPont and Monsanto agree to dismiss their respective antitrust and RR1 soybean patent lawsuits.

"We've always agreed that technological innovation and farmer choice are essential to agriculture, and this agreement endorses the value of our next-generation soybean technologies," says Brett Begemann, Monsanto president and chief commercial officer. "This signals a new approach to our companies doing business together, allowing two of the leaders in the industry to focus on bringing farmers the best products possible while working to advance innovation and long-term opportunity for agriculture."

DuPont will be able to offer Genuity Roundup Ready 2 Yield soybeans as early as 2014, and Genuity Roundup Ready 2 Xtend glyphosate- and dicamba-tolerant soybeans as early as 2015, pending regulatory approvals.

DuPont will make a series of upfront and variable-based royalty payments subject to future delivery of enabling soybean genetic material, including 4 annual fixed royalty payments from 2014 to 2017 totaling $802 million for trait technology, associated data, and soybean lines to support commercial introduction. Beginning in 2018, DuPont will pay royalties on a per unit basis of Genuity Roundup Ready 2 Yield and Genuity Roundup Ready 2 Xtend for the life of the agreement for continued technology access, subject to annual minimum payments through 2023 totaling $950 million.

DuPont also will receive regulatory data rights for the soybean and corn traits previously licensed from Monsanto, enabling it to create a wide array of stacked trait combinations using traits or genetics from DuPont Pioneer or others. Monsanto will receive access to certain DuPont disease-resistance and corn defoliation patents.

"This technology exchange helps both companies to expand the range of innovative solutions we can offer farmers, and to do so faster than either of us could alone," says DuPont Pioneer President Paul E. Schickler.  "The agreements broaden the Pioneer soybean line-up. Importantly, they give us greater flexibility in developing combinations of genetics and traits to help feed an increasingly crowded planet." Schickler reaffirmed DuPont's existing financial growth commitments for its Agriculture segment.