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Advisor

Monsanto vs. Pioneer - revisited

Well . . . there appears to be an effort by dealers to tell customers that they cannot plant RR1 seed next year.  Well we will see how farmers intrerpret the patent expiration and licensing expiration of RR1 in 2014.

 

I have reread the ruling by the judge in the controversy, where Monsanto was awarded a billion dollar judgment against pioneer for violating licensing agreements entered into with Monsanto by stacking traits in seeds (corn and soybeans) carrying the RR1 patented trait. 

 

I find out that the big argument is that Monsanto is using RR2 to extend its control over seed companies and of course Pioneer thinks it is being bent over the counter, and  probably should order some of DB's Superlube after they received the adverse ruling.  

 

You see they wanted to collect the "tech fee" on their b a s t a r d i z e d version rather than remit the tech fee to Monsanto which is a requirement (as in the old licensing agreement covering RR1) until the RR2 patent runs out years from now.  Guess $350 a bag for seed corn is just not enough blood to suck out of farmers. LMAO!

 

Well here is what the judge said about the RR1 technology which Pioneer was in essence trying to b a s t a r d i ze by introducing its own traits and its own chemically tolerant seeds, which from what I understand for the judges ruling they could not do.

 

It does not get much clearer than this . . . in the courts own words . . . in its decision . . . so you might want to think twice before you really believe the stories seed salesmen are telling customers regarding the so called "extension" of the RR1 patent, what they are talking about is the requirement by Monsanto to have licensee's sign new agreements for RR2 technology and pay or collect tech fees til that patent runs out.  

 

I do not see anywhere where it says farmers cannot save back seed (and Monsanto already addressed this issue last year) when the patents on RR1 runs out.  I find it kinda interesting that Pioneer tried to do an end run on Monsanto, just like the farmer that lost in the Supreme Court last week.  You know I think it is clear . . . Pioneer is no Monsanto . . . just like Dan Quail was no John Kennedy.    

 

I guess it must be tough to be a big seed company, and have to pay a fee to Monsanto for another decade plus damages.  Even the big boys lose sometimes.   I hope their seed police audit every Pioneer customer, what a great "Madison Avenue" idea to promote a business and customer loyalty. lol.

 

From the Courts Judgment:

 

"As such, the Court concludes that the Licensed Field definition in 2.11 is a field of use restriction, permitting Pioneer to use the 40-3-2 and NK603 traits only in seed products containing no other glyphosate-tolerant traits.

 

Subparagraph 2.11 acts as a limitation both on

 

(1) the license grant in § 3.01(a), in the sense that Pioneer’s authority to use the licensed trait technology is limited to the Licensed Field of seed products with glyphosate tolerance “solely due” to 40-3-2 or NK603, and

 

(2) the definition of Licensed Commercial Seed in 2.09, to the extent that even if Pioneer’s RR/OGAT stacked seed products otherwise satisfy that definition, Pioneer still may not “develop, use, produce, have produced, offer to sell, sell and import” them under 3.01(a) because they are not within the Licensed Field.

 

As a result, Monsanto is also entitled to judgment in its favor on Pioneer’s counterclaim for a declaratory judgment that the agreements permit RR/OGAT stacking."

 

Pass the popcorn and get me another Corona.  Adios Amigos.  John

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Highlighted
Veteran Advisor

Re: Monsanto vs. Pioneer - revisited

Faust, I heard from a Pioneer rep that even with the RR trait patent expiring next year we would still be unable to plant bin run soybeans due to other genetic patents on their seed such as SDS, soybean cyst nematode and others. I don't know how true that is? It seems as though Pioneer may be turning some farmers off with the seed police scare tactics. Pioneer has been behind in the game for years now. The one thing Pioneer has going for it is easy financing compared to other companies. I have Pioneer soybeans growing on my farm right now, but I have a feeling I may switch all of my soybean seed business over to a smaller regional company that I already buy seed corn from.

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