GENET archive


4-Patents: Monsanto strikes royalty deal for transgenic soybean seeds in Brazil

                                 PART I
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TITLE:  Monsanto strikes royalty deal for transgenic soybean seeds
SOURCE: Valor Economico, Brazil,
        posted by Checkbiotech, Switzerland
DATE:   3 Oct 2005

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Monsanto strikes royalty deal for transgenic soybean seeds

After four months of negotiations with Brazilian soybean seeds producers,
Monsanto has struck a deal concerning the payment of royalties of
genetically modified Roundup Ready seeds.

An umbrella royalty contract will be used for individual contracts signed
by seed companies valid for the 2005/2006 harvest, that starts planting
in October.

For the next harvests, negotiations are to be resumed through the seeds
industry association Abrasem and Monsanto.

The deal points to royalties of R$0.88 per Kg of certified seeds, while
the fixing of seed prices is free. Monsanto wants to charge a 2% royalty
on the production value of non registered transgenic seeds, but an
agreement for that has not been reached yet with the grains producers OCB
and Associacao dos Cerealistas.

Abrasem estimates 3 million bags of certified seeds for the current
harvest, or 30% of the total soybeans planted. If confirmed, Monsanto
stands to earn an estimated R$6O million in royalties.

                                 PART II
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TITLE:  Monsanto Responds To News Reports Questioning Patent Situation On
        Roundup Ready Soybeans In Brazil
SOURCE: Monsanto, USA
DATE:   26 Sep 2005

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Monsanto Responds To News Reports Questioning Patent Situation On Roundup
Ready Soybeans In Brazil

ST. LOUIS (Sept. 26, 2005) - In response to news reports in the Brazilian
media, Monsanto Company (NYSE: MON) said today that it has multiple
patents on its Roundup Ready soybean technology and it is taking steps to
have these patents clarified through the Brazilian patent law system.

In a news article published over the weekend, a competitor of Monsanto
and a representative of the Brazilian Industrial Property Office called
into question a specific article of the patent law which determines the
length of time for which a company receives protection under Brazil
patent law. Monsanto believes that the law is clear that one of the
company's Roundup Ready soybean patents has patent protection until
August 2007. In fact, Monsanto has already been granted an injunction
regarding the interpretation of this patent which allows the company to
continue to collect royalties on its Roundup Ready soybean technology.

Under the pipeline patent treatment of Brazil's Industrial Property Law,
Monsanto's additional patents on the Roundup Ready soybean technology are
valid through June 2011. The company is currently taking action to affirm
the expiration dates of these patents, just as many other companies have
successfully done since Brazil's patent laws were modernized.

As the original news article in O Estado de S. Paulo states, the company
and its seed partners continue to amicably negotiate an appropriate
method for charging royalties.

Monsanto Company is a leading global provider of technology-based
solutions and agricultural products that improve farm productivity and
food quality. For more information on Monsanto, see:


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