Bayer CropScience and Monsanto enter long-term business and license agreements for key enabling technologies
Agreements aim at creating new choices and more options for farmers
Monheim (Germany) / St. Louis (USA) – Bayer CropScience AG and Monsanto Company (NYSE: MON), two of the leading agro-companies worldwide, have entered into a series of long-term business and licensing agreements related to key enabling agricultural technologies. Within the framework of these agreements Bayer CropScience will grant Monsanto a royalty bearing, non-exclusive license for its LibertyLink® herbicide tolerance technology for use in corn and soybeans, the two largest field crops in terms of acreage in the United States.
The agreements provide Monsanto with an option to market corn and soybean seeds which contain both Monsanto’s Roundup Ready® and Bayer CropScience’s LibertyLink® technologies, which could provide farmers with additional weed management solutions. Monsanto and Bayer CropScience also amended certain existing agreements in the area of herbicide tolerance to provide each other more favorable terms.
In the area of insect resistance, the two companies have also entered into a royalty-bearing agreement giving Bayer CropScience rights under certain Monsanto intellectual property. In addition, the companies amended other agreements related to insect-protection technologies, including Monsanto’s existing non-exclusive, royalty-bearing license for use of Bayer CropScience’s Dual Bt technology. This enables Monsanto to commercialize products containing multiple insect resistance genes with different modes of action.
As part of the agreements, Monsanto and Bayer CropScience cross-licensed each other under their respective patent estates for RNAi technology, an important enabling technology for the development of new agricultural products.
“I am delighted that Bayer CropScience and Monsanto have joined together to offer more choice and flexibility for farmers in the use of modern technology options,” said Prof. Dr. Friedrich Berschauer, chairman of the Board of Management of Bayer CropScience. “These agreements are an important step for Bayer CropScience as they could significantly broaden the availability of our LibertyLink® technology outside our core cotton and canola seed business. This agreement could also expand the base for our Liberty® herbicide business. At the same time, the agreements enable us to facilitate the development and commercialization of new technology solutions in the future.”
“Monsanto is pleased to have reached licensing agreements with Bayer CropScience across a range of crops and technologies,” said Hugh Grant, chairman, president and chief executive officer of Monsanto. “Farmers look to technology providers like Bayer CropScience and Monsanto Company to discover and deliver needed technologies to their farms. We believe these agreements will support and advance the work of both our companies as we independently bring innovation to the farm.”
Additional details of the agreements were not disclosed.
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