A jury in U.S. District Court here found that DEKALB Genetics Corp., a seed company now owned by Monsanto Company, infringed one claim in a 1996 Rhone Poulenc Agrochemie (RPA) patent. The jury also determined that DEKALB misappropriated a trade secret involving RPA’s unpatented technology for glyphosate resistant corn. There have been no punitive damages awarded by the jury. DEKALB will request that the trial court overturn the verdicts, and if necessary will file an appeal to the Federal Circuit Court of Appeals on all aspects of this complex trial. The jury concluded that RPA had abandoned its trade secret in 1997 when it disclosed the technology in its own patent application.

"We’ll ask the court to set aside the verdicts made by both juries that considered different aspects of the same case. And if necessary, we’ll appeal," said David F. Snively, assistant general counsel - litigation. "DEKALB did not sell a single bag of corn containing the technology prior to RPA’s abandonment of any trade secret claim in 1997. Further, DEKALB was not able to tell the jury that it held a license to all the RPA technology. We’re confident that the appeal court will understand that DEKALB’s license from RPA was a complete defense to the patent and trade secret claims, and since RPA published their so-called trade secret well in advance of any commercial products being sold, no liability should exist."

Monsanto was not a party in the trial and had previously been determined by the District Court to be a bona fide purchaser and holder of a commercial license. While RPA retains the right to pursue injunctive relief against DEKALB and may contest the District Court’s decision to dismiss Monsanto, the determination that Monsanto is authorized to use the RPA technology assures ongoing availability of Roundup Ready corn through Asgrow and Holden’s seed companies.

Although RPA is disputing a certain gene technology for glyphosate tolerant corn, Monsanto holds the complete technology rights to commercialize Roundup Ready corn. In addition, Monsanto disclosed in the trial the development status of its next-generation Roundup Ready corn products which are expected to be commercially available as early as 2001. These products do not contain any RPA technology and will provide corn growers the freedom to choose Roundup Ready hybrids for years to come.

Monsanto is a life sciences company, committed to finding solutions to the growing global needs for food and health by sharing common forms of science and technology among agriculture, nutrition and health. The company’s 31,800 employees worldwide make and market high-value
agricultural products, pharmaceuticals and food ingredients.

Roundup Ready is a trademark owned or licensed by Monsanto and its subsidiaries.

Company news release
N1876