Monsanto Company and the Regents of the University of California have signed an agreement which mutually resolves issues between them regarding possible infringement and validity of patent rights relating to the production of bovine somatotropin. Monsanto sells bovine somatotropin under the brand name POSILAC.

  “We’re pleased that we’ve come to an agreement that will allow our dairy producer-customers to continue to use POSILAC bovine somatotropin,” said Carl Casale, Monsanto executive vice president for North America commercial operations.

“We will continue to focus on optimizing our dairy business, and to create and bring new products to our customers,” Casale said.  “This agreement illustrates that we are willing to work jointly to resolve disputes, and it allows us to avoid the expense and inconvenience of protracted litigation.”  

Terms of the agreement include:

·       Monsanto is granted an exclusive commercial license under the University’s patent estate, including access under a patent which expires in 2023, for the manufacture of bovine somatotropin. Monsanto’s license is subject to certain rights maintained by the U.S. government because the University’s work was performed with federal funding.  The University also retains certain non-commercial rights to practice the invention for research and educational purposes.

·       The University of California and Monsanto will dismiss all claims under the patent infringement lawsuit which was scheduled for trial beginning Feb. 27, 2006.  The University received U.S. Patent No. 6,692,941 and filed the lawsuit against Monsanto in February 2004.

·       Monsanto will pay the University a $100 million upfront royalty and an ongoing royalty of 15 cents per dose of POSILAC sold to dairy producers with a minimum annual royalty of $5 million through the 2023 expiration of the University’s patent estate. 

Monsanto press release