Agribusiness and farming is not what it used to be. With today's technology and tools, farmers can save time and manipulate their crops in a way that was considered unimaginable 10 years ago.
With the advent of genetic engineering and genetic modification, companies such as Monsanto have given farmers an edge on crop production.
Or have they?
Monsanto has genetically altered many seed types so they are resistant to certain types of pests and herbicides. These seeds are patented, thanks to a U.S. Supreme Court decision that extended patent protection to altered plants in 2001.
The seeds come at a price to farmers, who must enter into a technology agreement with Monsanto upon purchase. The farmers agree to the terms of sale, which include not saving leftover seeds to be planted the following year. Doing so would violate the agreement and the product patent.
Saving seed from prior years, considered sound agricultural practice since farming began, is now referred to as "technology piracy."
Monsanto has started many lawsuits against U.S. farmers. Monsanto has expressed the need to monitor farmers' seed use to ensure farmers continue purchasing seeds year after year.
Monsanto believes it is imperative it recover its research and development costs, which ballooned past $450 million US last year alone.
It likens protecting its patent to the same way the entertainment industry protects its interest when it sues underground digital distributors who exploit music, video games and movies.
It is not taking "seed piracy" lightly. It has set aside a budget of $10 million US and a dedicated staff to investigate and prosecute farmers. The result has been 90 lawsuits filed against American farmers, small businesses and farm companies.
Monsanto is able to protect its business from these alleged "technology pirates" through the investigation of about 500 tips that farmers are illegally using or "reusing" seeds.
Many of these cases are settled before a lawsuit commences. However, for the cases that are not settled, farmers have paid out an average of $412,000 US for cases with recorded judgment.
Farmers have a different view of the situation. They believe they are being taken advantage of as Monsanto attempts to overturn centuries-old farming practices and drive farmers out of business to achieve its goal of being the sole source for staple crop seeds in the U.S.
Farmers argue they have a hard enough time making a living, let alone fighting off corporations and lawsuits. They have been sued even where their fields were contaminated by pollen and where seeds from a previous year have sprouted with non-genetically engineered varieties the following year.
In these cases, farmers have been found liable due to the manner in which patent law has been applied, regardless if they signed a contract with Monsanto or if the seed use was accidental.
The purchase of genetically modified seed is popular with farmers for its weed and insect control advantages. As a result, 40 per cent of corn and 80 per cent of soybeans in the U.S. are genetically engineered.
The Centre for Food Safety -- which advocates against genetically modified food -- recently released a report giving the details of Monsanto's actions and its opinion on the subject.
Are Monsanto's actions, as they state, "nothing less than corporate extortion of American farmers?" Or is it simply the natural result of bringing agriculture into the 21st century?
Previous Column: Identity theft safeguards
Next Column: Patents debate re-ignited
David Canton is a lawyer with the high-tech/ e-business practice group at Harrison Pensa, a London-based legal services partnership. This article contains general comments only and does not constitute legal advice. If you have legal questions, we recommend you contact a qualified lawyer.
David Canton may be reached by calling 519-661-6776 or e-mail dcanton@harrisonpensa.com
Home Page
|
|