(Updates with comment from DuPont, details, share price)
DOW JONES NEWSWIRES
Monsanto Co. (MON) said Tuesday it filed a patent-infringement
lawsuit Monday in federal court against DuPont Co. (DD) and its
Pioneer Hi-Bred International Inc. unit to prevent what the world's
largest seed supplier alleges is the illegal use of its Roundup
Ready herbicide-tolerant technologies.
Monsanto and DuPont have become increasingly competitive in
recent years as DuPont looks for growth from its agricultural
segment.
Pioneer has the right to sell soybeans and corn with the Roundup
Ready trait. Pioneer has publicly said for several years it would
replace the trait with DuPont's Optimum GAT trait, but it recently
said the Optimum GAT trait, when used alone, poses unacceptable
risks to farmers, according to Monsanto.
Monsanto alleges Pioneer is using its Roundup Ready trait to
mask problems with the other trait, violating its contract rights
and patents.
The two companies have met in court before over patents; A court
determined years ago that Pioneer breached its license and
improperly used Monsanto's YieldGard corn borer trait. Both
companies were named in similar lawsuits by Syngenta AG (SYT) in
2002.
In a statement, DuPont said it has attempted to work through the
mediation process Monsanto requested and said it disagrees with
Monsanto's position "that they can use their current trait monopoly
to prevent the introduction of competitive seed products for U.S.
growers."
DuPont added that the lawsuit was another example of Monsanto
"trying to flex its anti-competitive muscle in the market."
Monsanto's shares were recently up 4 cents at $89.04 and
DuPont's were down 0.6% at $29.23.
-By Kerry E. Grace, Dow Jones Newswires; 201-938-5089;
kerry.grace@dowjones.com
