November 23, 2010

DuPont's insect-resistant seed unaffected by court ruling

DuPont Co. said plans to provide insect-resistant corn seed for planting next year through its ProAccess unit are unaffected by an adverse federal court ruling this month.

DuPont's Pioneer unit violated a 1995 agreement with Dow Chemical Co. by distributing the seed through ProAccess in bags that did not properly display the Pioneer brand, US District Judge Tanya Walton-Pratt in Indianapolis ruled on November 9. DuPont can sell the trait developed with Dow only through Pioneer and affiliates.

ProAccess distributes Pioneer seed through independent companies that collectively have about 5% of the US corn and soy markets, said Doyle Karr, a Pioneer spokesman. Seeds with the Herculex insecticide trait will be available to ProAccess customers as planned for 2011 planting, he said today, November 23.

"ProAccess distribution companies will continue to provide growers with high-performing corn seed containing Herculex insect traits and Pioneer genetics," Karr said.

Pioneer may modify the design of some bags for the 2011- 2012 season to comply with the ruling, he said.

Dow's Mycogen seed unit filed the lawsuit. Dow said today that DuPont also breached the collaboration agreement by "improperly sublicensing" the Herculex trait to ProAccess seed companies, an issue that will be resolved at trial in January.

Dow added, "Mycogen believes the trial is about more than just the 'look' of the bag. We look forward to expanding our opportunities with" ProAccess seed companies in the future.

DuPont is considering an appeal and other legal options to address its concerns about the ruling, Karr said.

Based in Wilmington, Delaware, DuPont fell US$0.30 to US$46.80 at 4:15 p.m. in New York Stock Exchange composite trading. Dow declined US$0.21 to US$31.50. Monsanto Co., the world's biggest seed company, rose US$0.45 to US$59.90.