Monsanto, Syngenta dump dispute, licence soyabean, other crop technologies
26 May 2008
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 Syngenta has withdrawn its antitrust and infringement cases against Monsanto related to its herbicide-tolerant and insect-protected corn technologies as well as herbicide-tolerant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.
