Research Triangle Park, North
Carolina
May 16, 2005
BASF
has resolved a lawsuit it brought against a number of rice
farmers in northeastern Arkansas who violated the company’s
CLEARFIELD* rice stewardship agreement and technology by
planting saved seed or otherwise dealing improperly with
CLEARFIELD rice seed. The Consent Judgment entered by the
federal court awards BASF
damages of $2.5 million and enjoins certain conduct of the
defendants in the future.
This resolution will help keep this innovative
technology effective in coming seasons, according to Bruce
Cranfill,
CLEARFIELD rice market manager.
“As a result of the judgment and its provisions,
we are confident that none of the crop resulting from the use of
the saved seed will enter the seed channel,” he said.
Concluding the lawsuit in this fashion is a clear
victory for the vast majority of farmers who follow the
stewardship agreement, Cranfill said.
“This legal action was necessary
to preserve the integrity of the CLEARFIELD* Production System
for rice for the overwhelming majority of farmers who have
appropriately – and legally – used the technology,” he
emphasized. “Our position has been explained to growers and is
clearly spelled out in the stewardship agreement.”
CLEARFIELD rice is a unique
production system with three elements: herbicide-tolerant seed
varieties or hybrids; herbicides to manage previously
uncontrolled weeds; and stewardship agreements.
Without proper stewardship,
CLEARFIELD rice could potentially outcross with red rice, posing
a significant long-term threat to growers of CLEARFIELD – now
and in the future – who derive the benefits of this technology.
Last fall, BASF filed a complaint
in U.S. District Court for the Eastern District of Arkansas
claiming that several growers, who farm in and around Walnut
Ridge, Arkansas, infringed patents on the technology and
violated the stewardship agreement. BASF amended the complaint
to name other growers and entities associated with the
original grower defendants. As part of the Consent Judgment, the
growers who signed CLEARFIELD Stewardship Grower Agreements
admitted they understood and agreed to terms of the agreement
but violated it by planting saved seed. The Consent Judgment
provides also that:
- BASF has been awarded
damages against Defendants in the amount of $2.5M;
- Defendants acknowledge
infringing the patent rights of BASF;
- Defendants must sell as
grain all rice seed produced or retained contrary to the
CLEARFIELD* rice stewardship agreements in order to ensure
that the saved seed does not get into the seed
channel;
- BASF will have the right
to inspect the defendants’ premises over the next three
years; and
- Defendants will implement
key stewardship practices to maintain the continued
viability of the CLEARFIELD technology.
The settlement of the case
underscores the commitment by BASF to defend its CLEARFIELD
technology, which ultimately will benefit the entire rice
industry.
“The decision to take legal action
in this matter was not made lightly, and it was made with
conviction,” Cranfill said. “Our commitment to protecting the
technology for the entire rice industry is unwavering.”
With sales of €3,354 million in
2004, BASF’s
Agricultural Products division is a leader in crop
protection and a strong partner to the farming industry
providing well-established and innovative fungicides,
insecticides and herbicides. Farmers use these products and
services to improve yields and quality of agricultural crops.
Other uses include public health, structural/urban pest control,
turf and ornamental plants. BASF aims to turn knowledge rapidly
into market success. The vision of BASF’s Agricultural Products
division is to be the world’s leading
innovator, optimizing agricultural production, improving
nutrition, and thus enhancing the quality of life for a growing
world population.
BASF is the world’s leading
chemical company: The Chemical Company. Its portfolio ranges
from chemicals, plastics, performance products, agricultural
products and fine chemicals to crude oil and natural gas. As a
reliable partner to virtually all industries, BASF’s intelligent
solutions and high-value products helps its customers to be
more successful. BASF develops new technologies and uses them to
open up additional market opportunities. It combines economic
success with environmental protection and social responsibility,
thus contributing to a better future. In 2004, BASF had
approximately 82,000 employees and posted sales of more than €37
billion. BASF
shares are traded on the stock exchanges in Frankfurt (BAS),
London (BFA), New York (BF), Paris (BA) and Zurich (AN).
Always read and follow label
directions.
CLEARFIELD is a registered trademark of BASF. |