Pioneer names Syngenta in germplasm protection lawsuit

Des Moines, Iowa
October 17, 2002

Pioneer Hi-Bred International, Inc., filed a lawsuit today in the U.S. District Court for the Southern
District of Iowa in Des Moines against Syngenta Seeds, Inc., for trade-secret misappropriation and infringement of its proprietary hybrid corn and parent seed.

The suit charges Syngenta with using Pioneer's proprietary germplasm without permission, reproducing that germplasm and incorporating it into commercial products.

Germplasm is the genetic material and parent lineage that seed breeders use to develop new and improved seed varieties. As the building block for Pioneer's research program, the company takes extensive measures to protect it.

"We take actions like this to protect our research investments, which include more than $1 billion in the last five years alone. We also feel we need to protect farmers who want to spread their production risks by planting different corn hybrids," said Jim Miller, Pioneer vice president, crop genetics research and development.

One way corn growers spread their production risks each year is to plant a diverse selection of corn hybrids assuming those hybrids contain a different germplasm base. This practice helps them prevent loss of yield, and income, in the event one hybrid does not perform as well as expected due to extreme
weather or other challenges during the growing season.

This practice also helps protect consumers from widespread crop shortages due to a single challenge from the weather, disease, or insects. To help farmers maximize production and minimize risk, Pioneer carefully manages its hybrid development to ensure farmers receive varieties with unique genetics within their specific geographic region. However, that protection cannot be assured if corn breeders from other companies are using Pioneer's proprietary germplasm without permission.

"The time has come for the seed industry to work together to halt practices that puts our industry and farmers at risk," Miller said. Efforts to protect corn-breeding material are not new for Pioneer. In 1992, Holden Foundation Seeds, Inc., Williamsburg, Iowa, was ordered to pay Pioneer $46.7 million and return breeding material back to Pioneer. In 2000, Cargill agreed to pay Pioneer $100 million and destroy plant breeding material to settle a germplasm protection lawsuit.

In 2001, Pioneer won a U.S. Supreme Court case affirming a company's ability to protect its genetic material. Monsanto agreed in 2002 to settle germplasm protection lawsuits between Pioneer and Monsanto seed units DeKalb and Asgrow on terms that included a Plant Breeding Accord affirming the
intellectual property and other rights that protect proprietary germplasm.

Pioneer Hi-Bred International, Inc., a subsidiary of DuPont, is the world's leading source of customized solutions for farmers, livestock producers, and grain and oilseed processors. With headquarters in Des Moines, Iowa, Pioneer provides access to advanced plant genetics, crop protection solutions, and quality crop systems to customers in nearly 70 countries. During 2002, DuPont is celebrating its 200th year of scientific achievement and innovation -- providing products and services that improve the lives of people everywhere. Based in Wilmington, Del., DuPont delivers science-based solutions for markets that make a difference in people's lives in food and nutrition; health care; apparel; home and construction; electronics; and transportation.

Company news release
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