Biotech Bullies Monsanto & Dow Make a Deal

January 19, 2006

Dow Agro, Monsanto reach deal
Settlement ends long-running legal dispute; companies will cross-license
some technologies
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Indianapolis Star - United States
By Ted Evanoff
ted.evanoff@indystar.com

A deal that could not have existed before the age of genetically modified
crops resolved Dow AgroSciences' long-running intellectual property dispute
with life sciences giant Monsanto.

Indianapolis-based Dow Agro, which employs 1,100 on the Northwestside, said
Wednesday it and Monsanto would cross-license some of their corn, cotton and
soybean technologies.

The milestone agreement opens larger markets worldwide for the Indianapolis
biotech firm and ends a legal scuffle dating almost to the start of Dow
Agro's spin-off by local drug maker Eli Lilly and Co.

"Two major ag biotech companies found a business solution rather than
continuing to fight in the courts. At the end of the day, that is a money
saver and a people and brain-power saver,'' said Pete Siggelko, Dow Agro
vice president for plant genetics and biotechnology.

Science was a key piece of the resolution that cleared a legal cloud hanging
over one of the largest firms in metro Indianapolis in sales volume.
Under the cross-licensing deal, Dow Agro's insect-resistant Herculex and
Monsanto's Roundup herbicide each will be available to be genetically
introduced into certain brands of corn and soybean seeds by independent seed
firms.

At the same time, Dow's Mycogen unit agreed to end its appeal of a U.S.
Patent and Trademark Office decision. The patent office decided Monsanto
invented certain synthetic genes. Monsanto also dropped its appeal of a
patent office decision that had favored Mycogen.

Dow Agro, whose predecessor acquired Mycogen Seeds of San Diego in 1996,
employs 5,500 worldwide and has sales of $3.4 billion, ranking it among the
state's 10 largest firms. It's owned by Dow Chemical Co. of Midland, Mich.
Dow Chemical and Lilly in 1989 formed the Northwestside business, calling it
DowElanco. In 1997, Dow acquired Lilly's stake in the joint venture,
renaming it Dow AgroSciences.

By 1998, Mycogen was gripped in legal disputes over patent infringements
alleged by Monsanto of Creve Coeur, Mo.

"It's good to have these things resolved -- both the money going out the
door, and the wear and tear and the distractions,'' Siggelko said.

Call Star reporter Ted Evanoff at (317) 444-6019