Patent Law

The following is excerpted from a September 2, 2008 Monsanto press release:

Monsanto Company (NYSE: MON) and Pilot Grove Cooperative Elevator, Inc. announced the settlement of a two-year dispute involving patent infringement.  Pilot Grove acknowledged violating Monsanto's patented Roundup Ready seed technology and accepted responsibility for damages.

Compensation due under the terms of the settlement from Pilot Grove Coop will remain in the surrounding community to fund scholarships for local, college-bound FFA and 4-H youth.  Pilot Grove Coop will also develop and adopt a stewardship policy to avoid future patent infringement and assure sound product stewardship, and will work with a third-party organization to provide training for employees.

It is relatively rare that Monsanto sues over saved seed.  With approximately 250,000 customers in any given year, it is only a small fraction that saves seed containing patented traits and when they do it is largely only related to soybeans.

During the past 10 years the vast majority of seed patent infringement claims were settled without the need for any legal action. Monsanto filed suit against farmers for seed patent infringement approximately 125 times. Of those 125 lawsuits, all but eight (8) were successfully settled without the need for a trial; Monsanto proceeded through trial in the remaining eight, and won each case.

Read the full release here.