Monday, May 10, 2010

Monsanto (NYSE:MON) Vs DuPont (NYSE:DD)

The Monsanto (NYSE:MON) Vs DuPont (NYSE:DD) battle is heating up, as what is perceived as a complicated mess by those outside the industry, is said to be a simple case of Dupont's inability to develop its product pipeline to its advantage by Monsanto.

DuPont claims Monsanto is using its patents licensing provision and other tactics to keep the company from developing a generic version of its Roundup Ready product, which they are able to do because the patent is about to run out on it for Monsanto.

According to DuPont, Monsanto is attempting to string out the process in order to force farmers to upgrade to their newest version called Roundup Ready 2 Yield, which could effectively extend the patent out until 2020. The cost of Roundup Ready to is about 40 percent more than its predecessor.

Monsanto says DuPont is attempting to manipulate public opinion in their favor, along with regulators, to gain leverage in their attempt to bypass paying a "fair" licensing fee for their Roundup Ready 1.

Monsanto claims that DuPont developed a genetic trait which doesn't work as good as it should, and so need Roundup Ready 1 to make it work better; the reason DuPont is making all the noise in Monsanto's view.

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