DuPont receives court-backed sanctions for violating Monsanto's seed technology patent

A US federal appeals court has ruled that DuPont, by creating its mass-distributed seed unit, Pioneer, illegally employed technology which is developed by fellow agrochemical giant, Monsanto.

While not outlining any specific actions, the ruling will affirm sanctions against the company.

The US Court of Appeals for the Federal Circuit is in agreement with a lower court decision stand that DuPonthas violated Monsanto''s licensed seed technology, known as Roundup Ready, when it was developing its own seed to be tolerant of potent, commonly-used herbicides.

The Roundup Ready soybean seed technology was introduced in 1996 to withstand dousing of the glyphosate herbicide, Roundup, which Monsanto also makes.

In addition, the court agreed with a 2012 decision by the US District Court in St. Louis, US, over alleged abuse of the judicial process by DuPont, although adding that the company''s actions were not considered "fraud on the court," according to Reuters.

"We are disappointed with the decision reached by the Federal Circuit in the now-concluded litigation with Monsanto," said DuPont spokesman, Dan Turner. "It is important to note, however, that the appellate panel agreed with our long-standing position that we did not commit fraud on the court."

Following the 2012 district court decision, DuPont was ordered to compensate Monsanto US$1 billion in damages for breaking a 2002 licensing agreement between the companies. Both companies struck a deal, in which DuPont paid Monsanto US$1.75 billion as part of a new licensing agreement which voided the jury award from 2012.

The agreement also allowed DuPont to appeal the current sanctions.

The companies'' legal battle began when Monsanto sued DuPont in May 2009, claiming that the latter had employed its Roundup Ready seed trait without licensing permission. It claimed that DuPont, while developing Pioneer, broke the agreement when it attempted to build on a patent owned by Monsanto.

In its defense, DuPont argued that Monsanto fraudulently obtained the patent, leaving it invalid. Dupont also asserted that it did not know that it could not "stack" its own seed trait on that of Monsanto''s Roundup Ready trait.

However, based on email exchanges, DuPont lawyers are revealed to have advised the company that the licensing pact did not allow for the use of Monsanto''s technology. For the misrepresentation, Monsanto demanded the court to enforce sanctions against DuPont.

Monsanto and DuPont are two of the leading agribusiness organisations which are competing for dominance over ''high-yield'' crops, most of which are genetically-modified organisms.

Together with two other agrochemical and biotech corporations, Dow Chemical and Syngenta, combine sales of these companies have risen from US$60.1 billion in 2004 to US$119.3 billion in 2012.