Bayer Asks Judge to Drop Antitrust Case

OMAHA (DTN) -- Bayer CropScience is asking a federal court to dismiss antitrust claims by Iowa-based Latham Quality Inc., arguing the company failed to show Bayer illegally used licensing agreements to keep companies from developing off-patent glyphosate-resistant seeds for the past four years.

Latham sued Bayer last April in the U.S. District Court for Eastern Missouri -- where Bayer CropScience is based -- alleging Bayer used anticompetitive conduct to maintain its monopoly over glyphosate-resistant corn seed. Latham brought allegations under Missouri state law against Bayer for breach of contract as well.

In its response, filed Monday with the court, Bayer stated there was nothing to stop Latham from using a generic glyphosate-resistant seed. In asking a U.S. district judge to dismiss the case, Bayer also filed a 163-page brief citing case law to explain why Latham's allegations don't have merit under either federal or state law.

Latham's lawsuit revolves around Monsanto's glyphosate-tolerant trait known as NK603. The trait is considered a foundational biotech trait that is now included in more than 90% of all commercial seed corn grown in the U.S. The trait became off-patent in late 2022, which Latham alleged should have stimulated generic seed production and lowered seed prices for farmers.

Bayer argues Latham entered into a licensing contract with Monsanto almost two decades ago, knowing that the NK603 patent would expire in November 2022. Under the contract, Latham was granted a license to sell seeds with biotech traits in exchange for royalty payments. Latham continued to license new, additional patented technology from Monsanto, and later Bayer, over that time as well.

"Latham knowingly continued to pay royalties after the NK603 patent expired and chose not to terminate (the agreement), despite a right to do so," Bayer stated.

Bayer terminated the licensing agreement, not Latham, in December 2024 -- after Latham had sold its seed business to MS Technologies. Bayer noted only then did Latham file its lawsuit, which Bayer said is "seeking to recast ordinary technology licenses as antitrust violations."

Bayer also pointed out that Corteva had sued Monsanto, but the licensing agreement was affirmed as lawful in 2024, and the court rejected the argument that their agreement was unlawful because royalties extended past the NK603 patent. Bayer said Latham is trying to turn complaints over a licensing contract into an antitrust class-action case.

"Latham's challenge, attempting to reframe disappointment in contract terms is agreed to as an antitrust class action, is meritless."

Latham charged in its complaint that Bayer made it difficult, if not impossible, for competitors to bring a generic NK603 seed to market, an allegation Bayer also said is without merit. Bayer cited that nothing prevents Latham or other seed companies from using Bayer's "publicly available know-how from the NK603 patent to develop their own, generic seed."

Instead of making corn seed cheaper for farmers, Latham alleges Bayer has used tactics to keep seed competitors from using the NK603 trait in breeding and has instead increased corn prices as a result. When Latham found a way to use the NK603 trait, Bayer retaliated by offering seed deals to Latham's customers that were below Latham's costs if those customers agreed to enter into exclusive agreements with Bayer's brands Channel or DEKALB.

Latham said Bayer's moves there undercut Latham's pricing by as much as $50 to $70 per unit of corn. Those moves ended up "putting Latham on the verge of bankruptcy and ultimately leading to the sale of its 75-year-old, family-owned seed business." Latham ultimately was forced to sell its seed brand to another Iowa company, MS Technologies, in 2024.

Bayer points out in its motion that Latham was able to obtain NK603 parent seed that was not subject to restrictions, which Bayer argues shows that the company did not block other companies from using a generic variety.

Latham also argued in its complaint that Bayer repeatedly changed the terms of its rebate program, the Premier Performance Program, which put pressure on independent seed companies

Bayer reached an agreement in May with the U.S. Justice Department to remove "potentially anticompetitive provisions" from its Premier Performance Program. Bayer had required independent seed companies to meet sales targets for both corn and soybeans to achieve discounts under its loyalty program. The Justice Department stated this contractual restraint raised concerns that Bayer was anticompetitively tying corn seed and soybean seed.

Bayer also argued in its motion to dismiss that its Corn Product Licensing Agreements (CPLA) incorporated not only the NK603 trait but also other traits with patents that have not expired. The CPLA also includes non-patent rights such as trademarks and proprietary biological materials. Pointing to the Corteva case, which was out of a Delaware court, Bayer said the CPLAs are enforceable despite the expiration of one patent.

Latham also alleged Bayer and its subsidiaries continue to charge high prices for the use of Bayer's traits. Bayer countered that "charging a high price is not an antitrust violation, nor is charging a low price," unless it is below Bayer's costs, which Latham does not allege in its complaint.

Both Latham and Bayer also point to Bayer's case and settlement with rival Corteva Agrisciences. Corteva earlier this year agreed to pay Bayer $610 million to resolve a similar licensing dispute that started in 2022 when Bayer and Corteva filed competing lawsuits against each other. The settlement allowed Corteva to cease paying per-unit royalties on NK603, but allowed Corteva to license a triple-stack corn variety and enter into licensing cotton seed as well. Corteva's CEO had stated the agreement would eventually generate $1 billion for Corteva over the next decade.

John Latham, president of Latham Quality, testified before a U.S. Senate Judiciary Committee last October that major seed companies were placing higher demands on independent seed companies, which is driving them out of the business. Latham alleged that from 2022 to 2024, at least 59 independent companies stopped selling hybrid corn seed.

"Unfortunately, many independent companies are going out of business as these multinational companies have become more powerful and frankly predatory," Latham told senators. https://www.dtnpf.com/…

Also see, "DOJ: Bayer Changes Its Seed Loyalty Program Over Possible Anticompetitive Provisions," https://www.dtnpf.com/…

Chris Clayton can be reached at Chris.Clayton@dtn.com

Follow him on social platform X @ChrisClaytonDTN

(c) Copyright 2026 DTN, LLC. All rights reserved.