Monsanto and the Regents of the University of California (UC) announce they have signed an agreement which mutually resolves issues between there regarding possible infringement and validity of patent rights relating to the production of bovine somatotropin.

Monsanto and the Regents of the University of California (UC) announce they have signed an agreement which mutually resolves issues between there regarding possible infringement and validity of patent rights relating to the production of bovine somatotropin. Monsanto sells bovine somatotropin under the brand name POSILAC; it is used to enhance milk production and serves as an important tool to help dairy producers improve the efficiency of their operations.

Under the agreement, Monsanto is granted an exclusive commercial license under the University's patent estate, UC and Monsanto will dismiss all claims under the patent infringement, and Monsanto will pay the University a $100 million upfront royalty and an ongoing royalty of 15 cents per dose of POSILAC sold to dairy producers with a minimum annual royalty of $5 million through the 2023 expiration of the University's patent estate.