Hope Not Hype - Third World Network

Appendix Four: Legal Remedies: Case Studies
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of other lawsuits were filed over ownership of cry-based transgenes. In parallel, there is
similar legal wrangling over herbicide tolerance transgenes (ISB News, 2005).
These and other (e.g., Jones, 2006) cases illustrate the seriousness of intellectual
property issues among developers. The issues are so central, there is speculation that they
are the primary reason for mergers in an industry that is decreasing its number of primary
players (Thomas, 2005). Companies with complementary intellectual property reduce the
complexity of the patent thicket by collapsing the number of competing companies. The
cases also illustrate the vast legal resources of the industry.
Monsanto vs. US farmers
A report published by the Center for Food Safety (CFS) in 2005 chronicled the
impact of material transfer agreements (MTAs) between Monsanto and US farmers.
According to CFS, “[f]armers who discontinue their use of Monsanto’s genetically
engineered seed face patent infringement allegations in the event that some of that seed
from the previous year sprouts ‘volunteers’ in fields converted to conventional varieties”
(Center for Food Safety, 2005, p. 20). This liability may extend also to farmers who
purposefully save seed (for update, see Barlett and Steele, 2008). The MTA between
Monsanto and the grower states that the grower accepts the terms of the licensing agreement
“by signing this Agreement and/or opening a bag of seed containing Monsanto
Technology”. 1 If Monsanto considers that a grower has infringed on its patents, the grower
may be liable for restitution including Monsanto’s court and legal fees. Growers are required
to answer claims exclusively in the US District Court of Missouri or the Circuit Court of
the County of St. Louis, near Monsanto headquarters. CFS reports that Monsanto has 75
employees and devotes US$10 million annually for the purpose of investigating farmers,
including its former customers. CFS provided evidence of between 475-600 investigations
by Monsanto annually, with settlements estimated in the millions of dollars. CFS found
that Monsanto has filed 90 lawsuits across 25 US states. The largest judgment in favour of
Monsanto is reportedly just over US$3 million, with a cumulative total of US$15 million
(Center for Food Safety, 2005).
Monsanto reportedly estimates that without MTAs, as much as a quarter of their
royalties on Roundup Ready crops would be lost to unregistered use and with the MTAs,
they estimate losses of 10% (Smyth et al., 2002).
1
2006 Monsanto Technology/Stewardship Agreement