Ending  a long running patent feud over soy and corn seeds technology and herbisides, US agro-chemical giant Monsanto and Swiss-based Syngenta have announced entering in to a licensing agreement to allow the the European multinational use of Monsanto's technology in its soy seed development. In return Syngenta will licence its crop resistance herbicide Dicamba to Monsanto.

Under the terms of the settlement, the two rivals have decided to end their multiple law suits against the other. Syngenta has withdrawn its antitrust and infringement cases against Monsanto related to its herbicide-tolerant and insect-protected corn technologies as well as herbicide-tolerant soybean technology. Monsanto is reciprocating by withdrawing its patent infringement suits on herbicide tolerant corn technologies.

Under the agreement:

• Monsanto receives a royalty-bearing license to Syngenta's enabling technology related to Monsanto's third-generation herbicide-tolerant technology, Dicamba tolerance
  
• Monsanto grants Syngenta a royalty-free license to its rights around specific herbicide-tolerant corn technology (GA21 event) and to its rights around specific insect-protected corn borer technology (Bt11)
  
• Monsanto and Syngenta agreed to settle all patent, antitrust and commercial litigation between them and their subsidiaries. Some of these disputes include Syngenta's antitrust suit, Monsanto's patent infringement suit on herbicide-tolerant corn technologies, and a dispute between the parties on herbicide-tolerant soybean technology
  
• Monsanto and Syngenta will cross-enable each other to develop and deliver innovative new herbicide-tolerant and Bt insect-protection products in corn, cotton and soybeans to compete for the business of farmers around the world

With Syngenta having agreed to license the US firms' technology after the twoo decided to end their disputes, Monsanto has announced the expansion of the potential commercial availability of its breakthrough 'Roundup Ready 2 Yield' soybean technology by granting a global royalty-bearing license to Syngenta for use across its soybean seed brands. Monsanto says its Asgrow brand and American Seeds' brands are preparing to introduce this higher-yielding soybean technology.

Mosanto also said that it is also broadly offering the technology to its Corn States customers to further expand its reach at the time of its introductory launch in 2009.

With the Syngenta agreement, Monsanto now estimates a potential available acreage for the product at between 45 million and 55 million acres in the US, an increase of more than 10 per cent over its original projection of 40 million to 50 million acres.

Monsanto says that its Roundup Ready 2 Yield could be used ultimately on approximately 75 per cent of an average of 60 million to 70 million soybean acres in the United States.

Sales of Syngenta's brands represented approximately 12 per cent of total US soybean sales in 2007. Monsanto's Asgrow and American Seeds Inc. brands collectively represented approximately 27 per cent of total US soybean sales in 2007.

Monsanto's Roundup Ready 2 Yield for soybeans will be introduced on 1 million to 2 million acres for the 2009 season as part of a controlled commercial release, followed by a large-scale product launch of 5 million to 6 million acres scheduled for 2010.

"Roundup Ready 2 Yield will be the first of four game-changing technologies that Monsanto plans to bring to farmers between now and the middle of the next decade," said Brett Begemann, executive vice president of Monsanto's global commercial business.

"Roundup Ready 2 Yield will be the new platform in soybeans, and can provide farmers with yield gains that have never been seen before in this crop," said Begemann. "In the future, this product will also serve as Monsanto's base technology for the next wave of soybean traits that enhance oil content or take yields to higher levels."

Monsantosays its second-generation soybean technology is poised to increase soybean yields for farmers allowing them to use the additive yield to support the world's growing food, feed and fuel needs.

Monsanto has spent four years of research trials on Roundup Ready 2 Yield on soybeans and says the results provide a consistent yield advantage of 7 per cent to 11 per cent when compared with its predecessor, Roundup Ready soybeans. The four-year average yield increase of Roundup Ready 2 Yield over its first-generation counterpart was 9 percent, it said.

As part of today's announcement, Monsanto said that it has also reached a global business agreement with Syngenta that establishes cooperative arrangements that are expected to result in new technology options for farmers.

"We're pleased that we were able to work with Syngenta to put farmer customers first and reach an agreement that offers them tremendous benefits and choice in the seasons ahead," said Begemann. "Our goal is to be the technology collaborator of choice within the agricultural industry." Additional specific details of the agreement were not disclosed.