Expiration Of Biotech Crop Patents Will Affect Growers

Expiration Of Biotech Crop Patents Will Affect Growers

The patent expiration of the first generation of Roundup Ready soybean trait in 2014 will be the first time that a major biotech trait will become potentially subject to competition with generic traits. That could result in lower prices for seed and more choices for farmers.

The patent on the first generation of the Roundup Ready soybean trait will expire in 2014. It will be the first time that a major biotech trait will potentially face competition with generic traits. Will it result in lower prices for seed and more choices for farmers? Roger McEowen, professor of agricultural law and director of the Center for Agricultural Law and Taxation at Iowa State University, offers the following explanation and observations.

In the near future, the last of the Roundup Ready soybean patents held by Monsanto Company will expire. That expiration will be followed by the expiration of other patents on biotech crops and expiring approvals in overseas markets like the European Union and China.

Whether this will lead to lower seed prices remains to be seen

Those expirations could lead to the planting of so-called generic versions of Roundup Ready seeds that lack approval in overseas markets, complicating the export process and potentially disrupting billions in trade. Whether the expirations will lead to lower seed prices and more choices for farmers is an open question and greater use of the historic practice of saving some seed and replanting it in the next crop season remains to be seen. But, as patents expire and regulatory approvals for overseas markets become uncertain, a significant question exists as to whether farmers will continue to have access to these markets.

Certainly, as patents begin to expire on various biotech crops, those crops will remain for a period of time in the commercial grain supply chain. That means steps will likely be necessary to ensure that the crops will still meet requirements imposed by certain buyers such as the European Union and China. Without those steps, U.S. farmers could face problems in maintaining access to those markets. Another potential problem could arise if the holder of the expired patent develops and markets a new product that could potentially compete with the product for which the patent has expired (the so-called generic product).

Patent on first generation RR soybean trait set to expire in 2014

The patent expiration of the first generation of RR soybean trait in 2014 will be the first time that a major biotech trait will become potentially subject to competition with generic traits. That could result in lower prices and more choices for farmers. That will most likely be the case if Monsanto sticks to its pledges to maintain and extend current licensing agreements and regulatory approval for overseas markets.

Certainly, Monsanto has legal options that it can use to extend its existing monopoly and prevent competition among generic seed products. It appears at the present time that Monsanto does not plan to use those options to the extent of diminishing competition in the seed market. But, this entire matter is one that is developing.

A complete brief on this topic is posted on the Center for Agricultural Law and Taxation website as an article April 8, 2011 Expiration of Biotech Crop Patents Issues for Growers. This article looks at the laws governing seed sales and the current outlook.

TAGS: Soybean
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