(NASDAQ) – Chemicals giant EI DuPont de Nemours & Co. ( DD ), commonly called DuPont, has reached technology licensing deals with Monsanto Co. ( MON ) on genetically modified seed traits, the two companies said Tuesday. Both the companies also agreed to dismiss their antitrust and patent infringement lawsuits pending against each other in U.S. federal court.
Under the deals reached between the two companies, DuPont will make a total of $1.75 billion in royalty payments to Monsanto for the technology licensing deals, while a $1 billion jury verdict awarded to Monsanto in August 2012 in its patent infringement lawsuit against DuPont will be dismissed. Monsanto is the world’s largest seed company.
The agreements between DuPont and Monsanto include a multi-year, royalty-bearing license for Monsanto’s next-generation soybean technologies in the U.S. and Canada. Through these deals, DuPont’s subsidiary, DuPont Pioneer will be able to offer Genuity Roundup Ready 2 Yield soybeans as early as 2014, and Genuity Roundup Ready 2 Xtend glyphosate and dicamba tolerant soybeans as early as 2015, pending regulatory approvals.
DuPont Pioneer also will receive regulatory data rights for the soybean and corn traits previously licensed from Monsanto, enabling it to create a wide array of stacked trait combinations using traits or genetics from DuPont Pioneer or others. Meanwhile, Monsanto will receive access to certain DuPont Pioneer disease resistance and corn defoliation patents.
As part of the deal, DuPont Pioneer will make four annual fixed royalty payments from 2014 to 2017 totaling $802 million for trait technology, associated data, and soybean lines to support commercial introduction.
Additionally, beginning in 2018, DuPont Pioneer will pay royalties on a per-unit basis of Genuity Roundup Ready 2 Yield and Genuity Roundup Ready 2 Xtend for the life of the agreement for continued technology access. Annual minimum payments through 2023 will total $950 million…” Full Story Here
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