DuPont and Monsanto companies announced this morning that they have reached a multiyear licensing agreement for advanced soybean seed technologies. The agreement ends a bitter court battle between the two biotechnology companies.
As part of a series of agreements, Johnston-based DuPont Pioneer will pay Monsanto royalty payments totaling $802 million from 2014 to 2017, and then pay royalties on a per-unit basis through 2023 totaling at least $950 million for being able to offer Genuity Roundup Ready 2 Yield soybeans.
DuPont Pioneer 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 Pioneer 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," DuPont Pioneer President Paul Schickler said in a press release. "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."
DuPont and Monsanto also agreed to dismiss their respective antitrust and first-generation Roundup Ready soybean patent lawsuits pending in U.S. federal court in St. Louis.
Additional terms of the agreements were not disclosed.