Bayer, Latham Clash Over Seed Trait

LINCOLN, Neb. (DTN) -- Latham Quality Inc. urged a federal court to reject Bayer CropScience's bid to dismiss antitrust claims that the company used licensing agreements to keep companies from developing off-patent glyphosate-resistant seeds for the past four years, in a court document filed in the U.S. District Court for the Eastern District of Missouri.

Latham, based in Alexander, Iowa, filed a federal lawsuit in May 2026, alleging Bayer illegally controlled the NK603 genetically engineered corn trait that makes corn resistant to glyphosate, after a patent covering NK603 expired in November 2022.

"When Bayer's last U.S. patent expired, competition should have followed and prices should have fallen," Latham told the court in its Oct. 16, 2026, response to the motion to dismiss. "Instead, Bayer preserved its monopoly."

In July 2026, Bayer asked a federal court to dismiss the lawsuit, arguing that Latham failed to show Bayer illegally used licensing agreements to keep companies from developing off-patent glyphosate-resistant seeds.

Latham said in its lawsuit that its sales grew every year from 2009 to 2021, when Latham alleges Bayer's conduct began to take its toll.

"Once the last NK603 patent expired, Monsanto was not providing any patent rights on it, yet still took a royalty," Latham said in its latest filing.

In its motion to dismiss, Bayer stated there was nothing to stop Latham from using a generic glyphosate-resistant seed. 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.

The Monsanto NK603 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 argued in its motion to dismiss that Latham entered a licensing contract with Monsanto almost two decades ago, knowing that the NK603 patent would expire in November 2022.

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 in its dismissal motion.

Latham told the court this week that it didn't pay the royalties and argues that the royalties themselves became improper once the patent expired.

INCREASED ROYALTIES

Prior to the NK603 patent expiring, Latham said in its new filing, Bayer increased royalties.

"After years at the same per-unit price with little or no variance between estimated and final rates, Bayer sharply increased the royalty just before NK603's patent expired and continued raising it thereafter," Latham said in its new court filing.

"Royalties rose from about 42% to 70% of a bag's cost with Bayer adding no value despite assurances otherwise."

Latham alleges in the lawsuit that Bayer entered into an agreement with Corteva, whereby Corteva would continue paying royalties to Bayer on NK603 even after the patent expired.

The complaint alleges the agreement effectively blocked Corteva from offering generic NK603.

Latham said its complaint plausibly alleges anticompetitive conduct and that Bayer's reliance on patent-law protections is misplaced because the patents at issue have expired.

By August 2024, Latham said in its original complaint that it was forced to sell its retail seed brand to MS Technologies LLC as a direct result of financial damages caused by Bayer.

As a result, Latham Hi-Tech Hybrids, Inc. changed its name to Latham Quality, Inc., and continues to condition, package and deliver Latham Hi-Tech seeds "pursuant to an agreement with MS Tech," the lawsuit said.

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

Bayer also pointed out that Corteva 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 case.

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."

Read more on DTN:

"Latham Sues Bayer, Alleging Monopoly," https://www.dtnpf.com/…

"Bayer Asks Judge to Drop Antitrust Case," https://www.dtnpf.com/…

Todd Neeley can be reached at todd.neeley@dtn.com

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