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The Green Guide

Monsanto Loses Lawsuit to Rhone Poulenc

(St. Louis Post-Dispatch; 04/23/99)

**Monsanto** Co. said Thursday it will appeal a federal jury verdict that
gives $65 million to a competitor in the farm chemicals and crop
biotechnology businesses.

A jury in Greensboro, N.C., awarded the money, which included $50
million in punitive damages, to Rhone-Poulenc, a French life sciences company.

First, **Monsanto** will ask the trial judge to set aside the award; if
that fails, the company will appeal.

Rhone-Poulenc filed suit in late 1997, accusing **Monsanto** and DeKalb
Genetics Corp., a seed company, of improperly using genetic material owned
by Rhone- Poulenc for several DeKalb corn varieties.

DeKalb was developing these varieties with **Monsanto**'s genetic-
engineering technology to tolerate the herbicide Roundup. **Monsanto** said
the verdict "will have no immediate effect" on **Monsanto**'s and DeKalb's
efforts to sell "Roundup Ready" corn.

When the suit was filed, **Monsanto** owned 40 percent of DeKalb;
**Monsanto** now owns all of it.

The dispute involves a 1994 licensing agreement, which Rhone- Poulenc
said was invalidated by DeKalb's behavior. **Monsanto** and DeKalb unsuccessfully
argued that the contract remained valid.

"The awards are clearly excessive given the fact the dispute revolves
around the innocent failure of DeKalb to fully communicate the results from a
single, preliminary field test of corn developed using (Rhone-Poulenc's)
technology," said David F. Snively, **Monsanto**'s assistant general counsel for
litigation.

The verdict "assures that companies doing business must act honorably,"
said Alain Godard, chief executive of Rhone-Poulenc's agricultural subsidiary.