Monsanto, Novartis Settle All Lawsuits

November 16, 1999

Monsanto Company and its seed unit DEKALB Genetics Corporation and Novartis Seeds, Inc., have agreed to settle all pending lawsuits between them. The actions involve contractual and intellectual property rights issues regarding Bt corn. Specifically the products include Novartis NK Brand YieldGard corn and Novartis NK Brand Knockout corn.

The settlement secures for Novartis a royalty bearing license under the DEKALB and Monsanto intellectual property for future sales of Bt corn. Novartis also gains royalty-bearing licenses for glufosinate-resistance in corn. The licenses enhance the value of Novartis Bt corn in the marketplace while eliminating the risks of costly litigation. Novartis also has agreed to a license payment for past sales of NK Brand Knockout corn while Monsanto has agreed to improved and simplified license terms and conditions for Bt corn to Novartis. Specific financial details were not disclosed.

In addition, the agreement resolves the patent infringement lawsuit of Monsanto against Novartis in Delaware; patent infringement lawsuits of DEKALB against Novartis and Novartis distributors in Illinois and Indiana; the patent infringement lawsuit of Novartis against Monsanto and DEKALB in Delaware, and the mutual breach of contract lawsuits between Novartis and Monsanto in Minnesota and Missouri.

"This agreement ensures freedom to operate and allows us to bring new, improved NK brand Bt corn hybrids to farmers in the future," said Edward T. Shonsey, president, CEO of Novartis Seeds.

Hendrik A. Verfaillie, president and chief operating officer of Monsanto, said, "We can now move forward with more certainty in the marketplace. Farmers will have greater choice in the corn varieties they purchase with built-in protection against insects and with better weed control options."