Monsanto Settles Dispute With University Of California

Just as Monsanto and the University of California were set to meet in court on Feb. 27, Monsanto says the trial is off and that it will pay $100 million to license the university???s patent for the production of recombinant bovine somatotropin (BST).

An agreement between Monsanto and the regents of the University of California grants the firm an exclusive commercial license to the genetically engineered hormone, which enhances milk production from cows. It also dismisses the school???s claims, filed against Monsanto in 2004.

???We???re pleased that we???ve come to an agreement that will allow our dairy producer-customers to continue to use Posilac bovine somatotropin,??? says Carl Casale, a Monsanto executive vice president. Introduced in 1994, BST increases a cow???s milk production by 8 to 12 lb per day. Casale adds that the agreement avoids ???the expense and inconvenience of protracted litigation.?????

In addition to the $100 million payment to the university, Monsanto also agreed to pay a royalty of 15 cents per dose of BST sold to dairy producers. The firm said it would make minimum annual payments of $5 million through the 2023 expiration of the university???s patent.

The university will retain certain noncommercial rights to use the patent for research and educational purposes. In addition, the U.S. government has certain rights to the patent because the university developed it with federal funding.