DuPont (DD) Loses Patent Case to Monsanto (MON), Will Pay $1B in Damages
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Monsanto Company (NYSE: MON) today won a patent infringement trial in the U.S. District Court against DuPont Pioneer, formally Pioneer Hi-Bred International, Inc., a wholly owned subsidiary of E. I. du Pont de Nemours and Company (DuPont). The trial had centered on DuPont's unauthorized use of Monsanto's patented Roundup Ready® technology.
In rendering its verdict, the federal jury found that DuPont (NYSE: DD) and DuPont Pioneer had willfully infringed Monsanto's patented Roundup Ready® technology when it tried to patch the problems with DuPont's own Optimum® GAT® (OGAT) technology that had failed in earlier development. The jury awarded damages of $1 billion to Monsanto based on DuPont's willful infringement of its technology and the improper head start that DuPont obtained when it infringed Monsanto's technology rights. The finding of willful infringement could lead to an increased award of damages in the case.
Monsanto's Roundup Ready technology was first commercially introduced to U.S. soybean farmers in 1996. Today, Monsanto broadly licenses Roundup Ready technology to alfalfa, corn, cotton, soybean, spring canola, sugar beet and winter canola farmers. Since its introduction, Roundup Ready technology has allowed farmers to better manage weeds, reduce the use of agricultural inputs, improve tillage practices, and save on fuel and time.
Monsanto originally filed suit against DuPont and DuPont Pioneer in May 2009. The lawsuit sought to prevent the unlicensed combination of Monsanto's proprietary Roundup Ready herbicide tolerant technologies in soybeans and corn with DuPont's problem plagued OGAT. DuPont had been offered a license at multiple times prior to and throughout the duration of the trial, but the Delaware-based company refused to accept the offer from Monsanto Company.
Today's verdict represents the third time that court proceedings have determined that DuPont or DuPont Pioneer has violated a trait licensing agreement with Monsanto.
In rendering its verdict, the federal jury found that DuPont (NYSE: DD) and DuPont Pioneer had willfully infringed Monsanto's patented Roundup Ready® technology when it tried to patch the problems with DuPont's own Optimum® GAT® (OGAT) technology that had failed in earlier development. The jury awarded damages of $1 billion to Monsanto based on DuPont's willful infringement of its technology and the improper head start that DuPont obtained when it infringed Monsanto's technology rights. The finding of willful infringement could lead to an increased award of damages in the case.
Monsanto's Roundup Ready technology was first commercially introduced to U.S. soybean farmers in 1996. Today, Monsanto broadly licenses Roundup Ready technology to alfalfa, corn, cotton, soybean, spring canola, sugar beet and winter canola farmers. Since its introduction, Roundup Ready technology has allowed farmers to better manage weeds, reduce the use of agricultural inputs, improve tillage practices, and save on fuel and time.
Monsanto originally filed suit against DuPont and DuPont Pioneer in May 2009. The lawsuit sought to prevent the unlicensed combination of Monsanto's proprietary Roundup Ready herbicide tolerant technologies in soybeans and corn with DuPont's problem plagued OGAT. DuPont had been offered a license at multiple times prior to and throughout the duration of the trial, but the Delaware-based company refused to accept the offer from Monsanto Company.
Today's verdict represents the third time that court proceedings have determined that DuPont or DuPont Pioneer has violated a trait licensing agreement with Monsanto.
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