The Value of Licensing
The 2009 annual Corn, Sorghum and Soybean Research Conference and Seed Expo in Chicago gathered together hundreds of seed industry representatives and companies. The seed companies represented at the conference varied widely, ranging from very small family owned seed companies to much larger corporations. But in an industry that sees millions of dollars spent on research and product development how does a smaller seed company stay competitive in the market?
One word - Licensing.
Licensing is fairly common in the seed industry. Monsanto broadly licenses its germplasm and traits as do other larger companies such as Syngenta and DuPont. Licensing allows other seed companies access to the latest and most innovative products on the market and to sell those products under their own brands.
“Licensing allows me to take advantage of the huge product line Monsanto offers and custom-tailor that to my customers and my geographic areas,” Fred Pond, Advanced Genetics, said. “I pick the products that work well in my soils and in my environment - the maturities that my customers want, the harvest ability and yield.”
Licensing is about building relationships and partnerships that put the farmer first, working together to get the farmer the products that work best for them. Many companies, including Monsanto, even license their technology to competitors as well as collaborating on products together. For example, Monsanto and Dow AgroSciences, worked together to develop the product Genuity™ SmartStax™. Genuity™ SmartStax™ is a stack of traits developed from both companies. By working together, Monsanto and Dow were able to quickly meet the demand of farmers for this type of product.
Licensing comes down to getting the best seed to the farmer.
“We have our own seed brand, and we have to be able to get those traits and genetics from some place,” Matt Hynes, sales marketing manager at GROWMARK, said. “So we work with Corn States to help us uncover and take a look at the genetics and how they are performing, as well as the traits that will help our farmer owners do what they do best.”
As the industry continues to grow, the importance of licensing will only become stronger.
“I see [licensing] growing more and more important as we move forward with all the different traits, particularly with the genetics and how quickly they are advancing,” Hynes said about the future of licensing. “It’s about how we continue to determine what we need to have and how quickly that product needs to come to market.”
Monsanto Company is a member of Excellence Through Stewardship® (ETS). Monsanto products are commercialized in accordance with ETS Product Launch Stewardship Guidance, and in compliance with Monsanto’s Policy for Commercialization of Biotechnology-Derived Plant Products in Commodity Crops. Any crop or material produced from this product can only be exported to, or used, processed or sold in countries where all necessary regulatory approvals have been granted. It is a violation of national and international law to move material containing biotech traits across boundaries into nations where import is not permitted. Excellence Through Stewardship® is a registered trademark of Biotechnology Industry Organization.
IMPORTANT: Grain Marketing and Seed Availability: Genuity™ SmartStax™ has received the necessary approvals in the United States, however, as of 12/10/09 approvals have not been received in certain major corn export markets. Genuity™ SmartStax™ will not be launched and seed will not be available until after import approvals are received in appropriate major corn export markets.
B.t. products, including Genuity™ SmartStax™, may not yet be registered in all states. Check with your Monsanto representative for the registration status in your state.
ALWAYS READ AND FOLLOW PESTICIDE LABEL DIRECTIONS. Roundup Ready® crops contain genes that confer tolerance to glyphosate, the active ingredient in Roundup® brand agricultural herbicides. Roundup® brand agricultural herbicides will kill crops that are not tolerant to glyphosate. Genuity™, Roundup®, Roundup Ready®, Roundup Ready 2 Technology and Design™, SmartStax™, and SmartStax and Design™ are trademarks of Monsanto Technology LLC. Ignite® and LibertyLink® and the Water Droplet Design® are registered trademarks of Bayer. Herculex® is a trademark of Dow AgroSciences LLC. Respect the Refuge® and Respect the Refuge and Corn Design® are registered trademarks of National Corn Growers Association. All other trademarks are the property of their respective owners. ©2009 Monsanto Company.
