Des Moines, Iowa
February 4, 1999Pioneer Hi-Bred International, Inc. filed a lawsuit in
the US District Court for the Southern District of Iowa in Des Moines today against Monsanto Co. alleging Monsanto's newly acquired
overseas seed corn business misappropriated Pioneer trade secrets and genetics.
"Germplasm is the foundation of all efforts to develop advanced plant genetics,''
said Rick
McConnell, Pioneer senior vice president for research and product development. "The
billions of
dollars that companies are paying to gain access to seed lines shows how valuable they are
to a
research program. Pioneer has spent decades and billions of dollars developing the world's
largest plant genetics library. We will vigorously protect it, as we always have.''
The suit alleges Monsanto acquired Pioneer trade secrets when it purchased the
international seed business of Cargill, Inc., on June 29, 1998, for $1.4 billion. Damages
being sought were not
disclosed.
This latest germplasm protection lawsuit from Pioneer comes two days after Cargill, which still owns its seed business in North
America, said it found ``problems areas'' relating to the use of Pioneer's proprietary
genetic material in its breeding program. This admission came following a lawsuit brought
by Pioneer against Cargill for misappropriation of Pioneer's proprietary genetics.
Pioneer filed similar lawsuits against Asgrow Seed L.L.C., and DeKalb Genetics Corp., on Oct. 28, 1998, alleging
misappropriation of proprietary genetics.
Asgrow and DeKalb have recently filed Motions to Dismiss portions of Pioneer's lawsuits
against
them. The two companies claim that contract language associated with the sale of Pioneer
seed does not legally prohibit purchasers from using Pioneer's seed for research purposes.
"We find the behavior of Asgrow and DeKalb, both now owned by Monsanto, to be very
inconsistent,'' said Jerry Chicoine, Pioneer executive vice president and chief operating
officer.
"They seem to believe it is legal to use our proprietary germplasm in any way they
want. Yet, when they sell their products, they want to prohibit the use of those products
for research or for any other purpose except for the production of grain. Apparently it is
their position that Pioneer's research investment should not be protected, while theirs
should,'' Chicoine said.
Pioneer Hi-Bred International, Inc. is the world's leading supplier of agricultural
genetics and is the
leading developer and integrator of agricultural technology. Headquartered in Des Moines,
Iowa,
Pioneer develops, produces, and markets a full line of seeds, forage/grain additives and
services to grain and livestock producers, grain processors and other customers worldwide.
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