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Supreme Court seeks government view in Monsanto - Bayer corn tussle (Tuesday, Nov. 19, 2002 -- CropChoice news) -- Mark H. Anderson, Dow Jones, 11/18/02: The U.S. Supreme Court asked the U.S.
Solicitor General to comment on one of two appeals that has reached its
doorstep in a tussle between Monsanto Co. and Bayer AG subsidiaries over
herbicide resistant corn technology.
The dispute between the companies stems from the
development of a corn called Roundup Ready that isn't hurt by Round Up, a
widely-used herbicide sold by Monsanto. The product allows farmers to use
the herbicide to kill weeds without harming the corn.
The herbicide resistant technology was developed through collaboration
between Rhone-Poulenc Agro, now a Bayer agricultural technology unit, and
DeKalb Genetics Corp., which is now owned by Monsanto.
The Bayer unit first sued Monsanto and DeKalb in 1997, alleging that DeKalb
has fraudulently convinced it in 1994 to release rights to genetic
technologies being used to develop the new corn.
Two trials were held in the case and a North Carolina jury in U.S. District
Court agreed DeKalb had committed fraud and misappropriated trade secrets.
The federal U.S. Circuit Court of appeals decision ultimately upheld the
lower court decisions, including a $65 million judgment against the DeKalb.
Monsanto challenged the federal appeals court decision that the company had
no right to use the technology because the DeKalb unit had illegally
obtained it.
Monsanto argued it should be allowed to use the corn technology because it
had purchased rights to it through DeKalb transactions without knowledge of
any fraud. The company also said the decision opens up other companies to
patent fraud suits that aren't brought until a company develops a valuable
commercial product.
The Bayer unit argued that the appeals panel decision was proper, however,
in that it protects the owners of a patent. | |
