The German company said
it had resolved "outstanding issues and differences" over the
dispute, giving no further details. Two sources familiar with the matter said
the companies had reached a legal settlement that would end all ongoing
litigation.
Bayer AG said on Friday
it had reached an "amicable settlement" in its Monsanto unit's
long-running intellectual property dispute with Indian seed maker Nuziveedu
Seeds Ltd NUZI.NS (NSL) over genetically modified cotton seeds.
In a statement
to Reuters, the German company said it had resolved "outstanding issues
and differences" over the dispute, giving no further details. Two sources
familiar with the matter said the companies had reached a legal settlement that
would end all ongoing litigation.
NSL did not immediately
respond to a request for comment.
Mahyco Monsanto Biotech
(India) (MMB), a joint venture between Monsanto and India's Maharashtra Hybrid
Seeds Co (Mahyco) had been at loggerheads with the NSL and the Indian
government over how much it could charge for its genetically modified cotton
seeds.
The dispute triggered a
clutch of legal cases, antitrust investigations and orders against Monsanto
from the farm ministry, costing Monsanto tens of millions of dollars in lost
revenue each year and eventually drawing in the Indian and U.S. governments.
One of the sources with
direct knowledge said the companies had been in talks for more than a month,
and that the settlement efforts were being handled by Bayer.
"It was a very big
dispute... This will be relief for both," said the source, who spoke on
condition of anonymity.
The Bayer spokesman said
the company looked forward to working collaboratively with all stakeholders for
the benefit of Indian agriculture, but did not elaborate.
New Delhi approved the first
GM cotton seed trait in 2003 and an upgraded variety in 2006, helping transform
India into the world's top producer and second-largest exporter of the fibre.
Monsanto's GM cotton seed technology went on to dominate 90% of India's cotton
acreage.
NSL, which produces GM
cotton seeds, stopped paying royalties to Monsanto in 2015, arguing that Indian
law did not grant Monsanto patent protection for the seeds. The companies have
been entangled in litigation ever since.