July 3, 2010

Monsanto drops Argentine soymeal import complaint

Monsanto Co., the world's largest seed company, said it withdrew a patent complaint seeking to bar imports of Argentine soymeal into Europe after settling with Cefetra Ltd. and Alfred C. Toepfer International.

Monsanto withdrew the claim from the District Court of The Hague, the St. Louis-based company said Thursday (Jul 1).

The European Court of Justice, the EU's top court, was scheduled to rule July 6 on whether Monsanto could use European patents to block imports of soymeal from Argentina. Monsanto has not received royalties for its Roundup Ready soy in Argentina since the country disallowed seed patents, said Jim Tobin, the company's vice president of industry affairs.

Monsanto's decision to settle the EU case was prompted by a preliminary ruling in March, he said. The European patent for the trait that makes soy resistant to the company's Roundup herbicide does not extend to soymeal made from the patented seeds, Advocate General Paolo Mengozzi of the EU court said in his legal advice, which the court follows in a majority of cases.

Argentine growers planted about 43 million acres of soy containing Monsanto's Roundup Ready trait last year, making the country the company's second-biggest soy market after the US, according to an Oct 7 Monsanto report. About 95% of soy grown in Argentina contain Monsanto's Roundup Ready trait, Tobin said.

Monsanto ended unsuccessful attempts to collect soy seed royalties at Argentina grain handlers in 2003, he said.

During 2005 and 2006, Monsanto had shipments of soymeal from Argentina impounded in Amsterdam. Tests showed they contained some of the patented seed traits and Monsanto sued the importers for infringement. The Hague court sought the EU tribunal's guidance on a number of questions in 2008.

Toepfer is a unit of Archer Daniels Midland Co., the Decatur, Illinois-based commodities processor.