DuPont Wins Partial Victory in Biotech Soybean Patent Case

DuPont has scored a significant partial victory in a patent dispute with Monsanto, as a federal judge in St. Louis, Mo., has reversed part of a previous ruling that DuPont's biotech soybeans violate a license for seed traits that tolerate the glyphosate herbicide Roundup. The judge's decision, made on July 30, has been hailed by DuPont as "very important," as it vacated an earlier finding of an implied prohibition against stacking. However, Monsanto claims that the decision is merely procedural and that DuPont remains in breach of the contract. The dispute centers on DuPont's plan to stack Monsanto's Roundup Ready trait with its own Optimum GAT trait, which Monsanto had licensed to DuPont in 2002. The case is ongoing, with DuPont's other challenges proceeding, including claims that Monsanto is using its dominance in biotech seeds to stifle competition and that its Roundup Ready patent is invalid.

Key Takeaways:

• The federal judge in St. Louis, Mo., reversed part of a previous ruling that DuPont's biotech soybeans violate a license with Monsanto for seed traits that tolerate the glyphosate herbicide Roundup.
• DuPont's Pioneer Hi-Bred unit had pledged not to exceed the scope of the license, but the judge vacated this finding, allowing DuPont to proceed with its plan to stack Monsanto's Roundup Ready trait with its own Optimum GAT trait.
• Monsanto claims that the decision is merely procedural and that DuPont remains in breach of the contract, despite the partial victory.
• DuPont's other challenges in the case will proceed, including claims that Monsanto is using its dominance in biotech seeds to stifle competition and that its Roundup Ready patent is invalid.
• The judge has allowed discovery on the full scope of DuPont's antitrust claims, and has granted permission for DuPont to file amended counterclaims that add detail to the company's patent fraud allegations.

Statistics:

• DuPont's Pioneer Hi-Bred unit was found to have pledged not to exceed the scope of the license in 2002.
• The partial victory was achieved in a decision made on July 30, 2010.
• The case is ongoing, with multiple challenges and claims remaining in dispute.
• DuPont has been allowed to proceed with its plan to stack Monsanto's Roundup Ready trait with its own Optimum GAT trait, pending further court action.

Sources:

• Bloomberg News, court docket reported on July 30, 2010
• Monsanto Co. v. E.I. DuPont de Nemours & Co., U.S. District Court, St. Louis, Mo.
• DuPont spokesman Daniel Turner, quoted by Bloomberg News on July 30, 2010
• Monsanto chief deputy general counsel Scott Partridge, quoted by Bloomberg News on July 30, 2010
• Stephen Clapp, "DuPont Wins Partial Victory in Biotech Soybean Patent Case," Informa, July 30, 2010.