Seed Today - Q3 2008 - (Page 74)

Seed Industry Jolts & Volts Keeping current on dynamic changes in the seed industry The following article was developed by Context Network Partner, Blake Sieker, CPA, with excerpts from a series of seed industry specific proprietary white papers prepared by Context for seed industry executives across the globe. Jolt 2. On May 23, 2008, Jolt 1. A Sept. 14, 2007 Syngenta and Monsanto anpress release outlined an nounced that they had “Eight Gene Stacked Offering reached a definitive agreein Corn” and a new agreement which settles all outment between Dow AgroScistanding litigation relating ences and Monsanto. to the two companies’ gloThe other announcebal corn and soybean busiment, made public in a nesses. DuPont Form 8-K filing Clearly this ‘jolt’ with the U.S. Securities and emboldens Syngenta and Exchange Commission creates depth in their techBlake Sieker, CPA dated September 12, 2007, nology access while enoutlined modifications of existing corn hancing acreage penetration projeclicense agreements between Monsanto tions for Monsanto, both with current and DuPont’s subsidiary, Pioneer Hitechnology and as a platform/base for Bred International, Inc. future technology developments. In summary, it is difficult to predict what effects the technology and Volts - Market Evolutions germplasm cross licensing—and in some There have been significant shifts in instances, what appears to be fixed anmarket share for corn in the United nual royalty payments—will have on the States over the last decade. value of trait and germplasm technolThese changes have occurred for sevogy in the marketplace. eral significant reasons. These reasons Jolts - Step Changes T he seed industry continues to evolve quickly and significantly. Some of the market movements are caused by “jolts”: significant agreements in technology between major players resulting in step changes in the industry. Others changes are caused by “volts”: the evolution that is occurring in market share changes based on the market’s fundamental underlying reaction to technology availability and the place that seed company brands hold in this developing paradigm. May 2008 Syngenta-Monsanto Settlement Features Elements Specific To Monsanto 1. Royalty-bearing license to Syngenta enabling technology related to Monsanto third-generation herbicide-tolerant technology, dicamba tolerance. 2. Syngenta withdrawal of antitrust and infringement cases against Monsanto related to Monsanto’s herbicide-tolerant and insect-protected corn technologies as well as herbicide-tolerant soybean technology. Elements Specific To Syngenta 1. Global, royalty-bearing license to Roundup Ready 2 Yield(TM) soybean technology for use across its soybean seed brands. 2. Royalty-free rights around specific insect-protected corn borer technology (Bt11) (MON release); described by Syngenta as “…receives more favorable marketing conditions relating to its Bt11 trait for European corn borer control.” 3. Royalty-free license to Monsanto rights around specific herbicide-tolerant corn technology (GA21 event). 4. Settlement of Monsanto’s patent infringement suit against Syngenta on herbicide-tolerant corn technologies. Elements Common to Both Parties 1. The parties agreed to settle all patent, antitrust and commercial litigation between them and their subsidiaries. Some of these disputes include Syngenta’s antitrust suit, Monsanto’s patent infringement suit on herbicide-tolerant corn technologies, and a dispute between the parties involving herbicide-tolerant soybean technology. 2. Monsanto and Syngenta agreed to cross-enable each other to develop and deliver innovative new herbicide-tolerant and Bt insect-protection products incorn, cotton and soybeans to compete for the business of farmers around the world. 74 Third Quarter 2008

Table of Contents Feed for the Digital Edition of Seed Today - Q3 2008

Seed Today - Q3 2008 Contents Editor’s Notes Cover Feature Fred Miller, Ph.D., MMR Genetics Crosbyton Seed Company AOSCA Greg Lowry Floyd Hansmeirer AOSA/SCST According to ASTA Seedsellers, Inc. BinMaster Blake Sieker Ad Index

Seed Today - Q3 2008

For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.