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DuPont, Monsanto End Antitrust and Patent Wars with $1.75B Deal
The Litigation Daily
E.I. du Pont de Nemours and Company has agreed to shell out at least $1.75 billion to resolve its patent and antitrust battle with Monsanto Company over genetically engineered seedsa battle that has already resulted in a $1 billion jury verdict against DuPont, as well as a bruising sanctions order against the chemical giant.
Under a patent licensing agreement announced Tuesday, DuPont will make fixed royalty payments to Monsanto totaling $802 million between 2014 and 2017, plus at least another $950 million in variable payments through 2023. The deal allows DuPont subsidiary DuPont Pioneer to begin offering seeds incorporating Monsanto's Genuity Roundup Ready 2 Yield soybean technology as early as 2014, according to a DuPont statement. DuPont will also gain access to regulatory data concerning Monsanto's seed technology, allowing the chemical company to expedite regulatory review of its products.
As part of the deal, Monsanto agreed to dismiss claims that DuPont infringed different patents on first-generation Roundup Ready soybeans. DuPont, for its part, agreed to drop pending counterclaims that Monsanto violated antitrust laws by placing restrictions on how patent licensees can use its seed technology.