DuPont,Bayer resolve disputes and agree on license-sharing

Date:06-26-2009

DuPont and Bayer AG said on Thursday they had signed several licensing agreements that will resolve a patent infringement dispute over their biotechnology agriculture products.

The two companies sued each other over patents and licensing deals concerning genetically modified seeds for corn and soybeans that allow farmers to use stronger herbicides and insect repellents.

These agreements create significant value capture opportunities for both parties through herbicide and seed sales as well as royalties. The agreements establish cross-licenses that will enable next generation seed solutions and weed and insect control strategies from Bayer CropScience and the DuPont Crop Protection and Pioneer Hi-Bred businesses. The agreements also resolve outstanding legal and patent disputes between the companies in the area of insect control and herbicide safeners.

"These agreements are good news for farmers who will benefit from the cross-licensing of innovative technologies from both companies," said James C. Borel, DuPont group vice president. "DuPont and Bayer have a strong history of working together, and these agreements set the stage for additional collaboration between the two companies."

"Growers will benefit worldwide from new herbicide products, new multi-insect-control and multi-herbicide-tolerant products in corn as well as multi-herbicide-tolerant products in soybeans," said Professor Dr. Dr. h.c. Berschauer, chairman of the board of management of Bayer CropScience. "For Bayer CropScience, the agreements provide an excellent basis to further extend the reach and value capture through royalties for our proprietary biotech solutions."

Within the framework of these agreements, Bayer CropScience grants Pioneer licenses to use the LibertyLink(R) trademark in Pioneer proprietary corn and soybean germplasm. In addition, Bayer CropScience will provide Pioneer with worldwide regulatory support for Pioneer products comprising the LibertyLink(R) trait. The company also enables Pioneer to use the glufosinate-tolerance technology in soybean product development.

In the area of insect resistance, Bayer CropScience provides Pioneer with licenses under its Dual Bt patents, with limited rights to grant sublicenses for development of next generation insect resistance management in corn.

As part of the agreements, Bayer CropScience grants DuPont Crop Protection rights to continue to offer its DuPont(TM) Q product formulations containing the Bayer herbicide safener isoxadifen. These corn postemergence herbicides provide growers with improved crop safety. DuPont also receives rights to offer blends of isoxadifen with certain defined HPPD herbicides and its sulfonylurea herbicides as well as licenses that will enable DuPont to introduce a broad class of future crop protection product offerings.

A number of other cross-licenses on enabling technologies between the two companies also are included in the agreements. Further details of the agreements were not disclosed.