Monsanto Company and the Regents of the University of California announced today that they 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.
Under the agreement, Monsanto will pay the university $100 million in upfront royalties and a minimum of $5 million a year for the commercial rights to continue to sell its POSILAC brand of bovine somatotropin. This resolves the patent infringement lawsuit against the company that was scheduled to begin today.
POSILAC is used to enhance milk production and serves as an important tool to help dairy producers improve the efficiency of their operations, Monsanto said in its release about the agreement.
"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.
Under the agreement:
Monsanto Company is a leading global provider of technology-based solutions and agricultural products that improve farm productivity and food quality.
SOURCE: Monsanto Company via PR Newswire.