Losing the corn test
In one of the largest settlements to arise from lawsuits involving biotechnology, us agribusiness group Cargill has been ordered to pay $100 million to Pioneer Hi-Bred to settle charges that it used genetic material belonging to Pioneer.
Of the sum, only a part of the payment reflects damages for previous violations. An unspecified amount covers future usage of genetic material, which has been in dispute between the two companies.
The settlement will pave the way for Cargill to sell its North American seed operations. A deal with German company AgrEvo for about $650 million fell through in 1998 when the allegations first became public.
In its suit, Pioneer claimed that a former employee had taken corn-breeding material with him when he had left the company and had taken up employment with Cargill in 1989.
As part of the settlement, Cargill has agreed to destroy all such material procured through irregular means in its own corn-breeding programme and to desist from engaging in