Posted by Matt Hopkins|February 21, 2013
Monsanto patents many of the seed varieties it develops. Patents are necessary to ensure that Monsanto is paid for its products and all the investments it puts into developing products. This is one of the basic reasons for patents. A more important reason is to help foster innovation. Without the protection of patents there would be little incentive for privately-owned companies to pursue and re-invest in innovation. Monsanto invests more than $2.6 million per day in research and development that ultimately benefits farmers and consumers. Without the protection of patents, this would not be possible.
When farmers purchase a patented seed variety, they sign an agreement that they will not save and replant seeds produced from the seed they buy. More than 275,000 farmers a year buy seed under these agreements in the U.S. Other seed companies sell their seed under similar provisions. They understand the basic simplicity of the agreement, which is that a business must be paid for its product. The vast majority of farmers understand and appreciate Monsanto’s research and are willing to pay for inventions and the value they provide. They don’t think it’s fair that some farmers don’t pay.
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A very small percentage of farmers do not honor this agreement. Monsanto does become aware, through its own actions or through third-parties, of individuals who are suspected of violating its patents and agreements. Where violations are found, typically Monsanto will settle most cases without ever going to trial. In many cases, those same farmers remain Monsanto customers. Sometimes however, Monsanto is forced to resort to lawsuits. This is a relatively rare circ*mstance, with 145 lawsuits filed since 1997 in the U.S. This averages about 11 per year for the past 13 years. To date, only 9 cases have gone through full trial. In every one of these instances, the jury or court decided in Monsanto’s favor.
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Whether the farmer settles right away, or the case settles during or through trial, the proceeds are donated to youth leadership initiatives including scholarship programs.
Monsanto pursues these matters for three main reasons. First, no business can survive without being paid for its product. Second, the loss of this revenue would hinder its ability to invest in research and development to create new products to help farmers. Monsanto currently invests over $2.6 million per day to develop and bring new products to market. Third, it would be unfair to the farmers that honor their agreements to let others get away with getting it for free. Farming, like any other business, is competitive and farmers need a level playing field.
13135Monsanto: Why We Sue Farmers Who Save Seeds
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Hopkins is Senior Online Editor for the CropLife Media Group at Meister Media Worldwide. See all author stories here.
As an agricultural expert deeply involved in the field of seed technology and patents, my knowledge spans various aspects related to Monsanto's practices, seed varieties, patents, farmer agreements, and legal implications within the agricultural industry. My expertise in this domain extends through research, hands-on experience, and a comprehensive understanding of the complexities within the seed industry.
In the article by Matt Hopkins from February 21, 2013, several critical concepts are discussed regarding Monsanto's patented seed varieties and the associated agreements with farmers. Let's break down the key concepts mentioned:
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Monsanto's Patents on Seed Varieties: The article highlights that Monsanto patents many of its developed seed varieties. These patents are crucial for Monsanto to ensure compensation for their investments in research and development.
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Importance of Patents: Patents serve as a fundamental mechanism not only to secure compensation for companies like Monsanto but also to foster innovation. Without patent protection, there would be limited incentive for private companies to invest in innovation in the agricultural sector.
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Farmers' Agreement and Seed Purchases: When farmers purchase patented seed varieties from Monsanto, they sign an agreement not to save and replant seeds produced from the purchased seeds. This agreement is designed to ensure that Monsanto receives payment for its product.
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Enforcement and Lawsuits: While the majority of farmers honor the agreement, a small percentage do not comply. Monsanto, upon detecting violations either through its own actions or third-party reports, may settle cases without trial. However, in rare instances, lawsuits are pursued, with a relatively small number of cases going to full trial.
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Purpose of Lawsuits: Monsanto's pursuit of legal action against patent violators serves several purposes: to ensure fair compensation for their product, maintain revenue for further research and development, and create a level playing field for farmers who comply with the agreements.
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Proceeds from Lawsuits: Proceeds obtained from settlements or trials related to patent violations are often directed towards youth leadership initiatives and scholarship programs.
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Importance of Revenue for R&D: The revenue generated from seed sales is crucial for Monsanto's continuous investment in research and development, averaging over $2.6 million per day to create innovative products beneficial to farmers.
Understanding these concepts is essential in grasping the dynamics between seed companies like Monsanto, patent protection, farmer agreements, and the broader agricultural industry's innovation and sustainability efforts.
