DuPont Urges U.S. to curb Monsanto Seed Monopoly

"Monsanto has engaged in numerous practices that improperly seek to expand the scope of intellectual property rights at the expense of competition, innovation, and choice."

January 8, 2010 | Source: Reuters | by Carey Gillam

DuPont (DD.N) on Friday asked U.S. regulators to rein in practices by seed industry leader Monsanto Co, claiming its rival is hindering competition and limiting innovation needed to feed a growing world population.

DuPont, which owns Pioneer Hi-Bred International, said Monsanto (MON.N) is unfairly using monopoly powers to drive up prices and stymie competition.

“Monsanto has engaged in numerous practices that improperly seek to expand the scope of intellectual property rights at the expense of competition, innovation, and choice,” DuPont said in a report.

The company submitted its 18-page report of allegations to the U.S. Departments of Justice and Agriculture in advance of a public hearing on competition and antitrust concerns in the seed industry slated for March.

Monsanto officials declined to comment, but the St. Louis-based company filed its own comments with regulators last month, arguing that such allegations are unjustified.

Monsanto, which commercialized the world’s first biotech crop in 1996, said there is ample competition, with a broad array of seed product choices and prices across all crops.

DuPont is Monsanto’s chief rival in the highly profitable U.S. biotech seed arena, and the two are currently suing each other over over a soured licensing deal.

DuPont’s report said Monsanto has a monopoly in soybean and corn traits — genetics that help crops fight off pests and withstand weed-killing treatments. It said Monsanto coerces seed dealers, farmers and others into arrangements that perpetuate a reliance on high-priced Monsanto products.