A license agreement prohibits the DuPont Co. from combining a proprietary genetic trait with Monsanto's patented trait for herbicide tolerance, a federal judge has ruled.
The decision, issued Friday in federal court in St. Louis, is a victory for Monsanto in a closely watched dispute between the world's two largest seed producers.
DuPont noted that U.S. District Judge E. Richard Webber's ruling was "narrow" and said it would pursue patent and antitrust claims against Monsanto that were not affected by the decision.
DuPont's Pioneer Hi-Bred unit licenses Monsanto's Roundup Ready gene, which gives corn and soybean crops resistance to the Roundup weedkiller, also known as glyphosate.
Monsanto sued DuPont in May over DuPont's plans to combine, or "stack," Roundup Ready with DuPont's own developmental trait Optimum GAT -- which confers resistance to two types of herbicides -- in soybeans. DuPont argued that a license agreement with Monsanto gave it the right to stack the traits, and the company responded with several counterclaims against Monsanto.
Webber ruled that the agreement prevents DuPont from stacking any non-Roundup Ready glyphosate-resistant traits with Roundup Ready. He also ruled that Monsanto could sue DuPont for breach of contract.
But Webber noted that his ruling did not apply to DuPont's patent and antitrust claims. DuPont Senior Vice President and General Counsel Thomas L. Sager said in a statement that the company would pursue those claims "vigorously.
"By gathering further evidence through the discovery process and proceeding quickly to trial, we will demonstrate that DuPont has the legal right to provide farmers with the best-yielding, most innovative seeds," Sager said.
Monsanto spokesman Lee Quarles said DuPont's claims of antitrust violations in the contract are a "continued smokescreen and effort to obscure the significance of the court's ruling on their license violation."
Webber's ruling comes as federal authorities are increasing their scrutiny of competition in the seed market. Monsanto, whose traits dominate the seed market, said last week that the Justice Department issued a formal request for information on the company's soybean business.
DuPont has encouraged federal intervention in the seed market, arguing that Monsanto has engaged in anticompetitive practices.
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