Dow AgroSciences LLC, and Monsanto Company have formed a global business agreement that establishes cooperative arrangements they say will give farmers new technology options and more choice in the products to meet their needs.

As part of the deal, the companies agreed to settle outstanding legal disputes. Mycogen has agreed to withdraw its appeal related to the U.S. Patent and Trademark Office determination that Monsanto scientists were the first to invent synthetic Bt genes. Monsanto agreed to withdraw its appeal that Mycogen scientists were first to invent the Cry1F gene.

"At Dow AgroSciences, we're focused on bringing new solutions like HERCULEX(tm) and WIDESTRIKE(tm) insect resistant traits to our customers, and this agreement is another step in expediting innovation," Jerome Peribere, president and CEO of Dow AgroSciences, said in a release this morning.

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"We're pleased to have reached a settlement that will bring new product options to the market and have a long-lasting impact for our customers," he said.

The agreement will provide farmers with greater access to new technology offerings and trait combinations with Roundup Ready, Hugh Grant, Monsanto's president and CEO, said adding, "This agreement is expected to be another important contributor to the growth of Monsanto's Roundup Ready Corn 2 technology in the coming seasons."

Under the agreement:

• Dow and Monsanto cross-licensed intellectual property and product
  licenses in corn and soybeans on a non-exclusive basis.

• Dow received a commercial license to certain Monsanto seed stock and biotechnology traits for corn and soybeans.

• In addition, Dow received royalty-bearing rights to create and license finished hybrids that combine Monsanto's Roundup Ready Corn 2 technology with Dow's HERCULEX I and HERCULEX XTRA technologies, to licensees of Monsanto's Roundup Ready
  Corn 2.

• Dow and Monsanto also established cross licenses of cotton technologies on a non-exclusive basis. Dow's license includes Monsanto's patent estate for cotton transformation. Monsanto's license includes the patent estate for glyphosate tolerant cotton of Mycogen Plant Sciences, Inc., an affiliate of Dow AgroSciences.

• Dow receives the intellectual property licenses for the commercialization of its WIDESTRIKE insect protection technology.

• Monsanto receives the intellectual property licenses related to its Bollgard, Bollgard II, Roundup Ready and Roundup Ready Flex technologies.

• Monsanto receives a commercial license for WIDESTRIKE technology in South America and Mexico.

• Dow and Monsanto also established non-exclusive cross licenses of certain enabling technologies. Dow's license includes Monsanto's patent estate for synthetic Bt technology. Monsanto's license includes the patent estate for Bt in plants owned by Mycogen.