conclusion of article:
Prudential's McMillin sees the legal costs being passed on to farmers.
"At the end of the day, the farmer will be the one paying the lawyers
because the cost of these lawsuits will result in more expensive products,"
he said.
----
Lawsuits follow introduction of hybrid seeds
(Des Moines Register; 05/23/99)
Johnston, Ia. -The widespread planting of genetically altered seeds in
the past two years has produced a huge crop of lawsuits as companies fight to
protect their research dollars and high-tech inventions.
John McMillin, a seed industry analyst for Prudential Securities in New
York, said so many lawsuits are being filed, he has had a hard time keeping
up
with them all.
"It's going to take 10 years to work all of these lawsuits through the
courts," he said.
Traditional pollination methods in the field have become old- fashioned
as
years of expensive genetic research moved seed production into the laboratory.
By examining plants on the microscopic level, identifying each tiny
gene's
function and manipulating plants' genetic information, companies are
changing
the crops farmers eventually produce.
Corn that once would have fallen victim to pests or poor soil now grows
strong in the field. Soybeans produce new oils that are low in saturated fat
and have a longer shelf life. Crop yields continue to climb.
Despite controversy over the new technology, including a European ban on
imports of several varieties of genetically modified corn, the new products
have been popular with farmers looking for a leg up on bugs, weeds and the
weather.
Farmers' hunger for new products and willingness to pay a premium for
them
have companies scrambling to meet demand and ensure a return on research
that
can run into the millions of dollars.
With the dozens of new hybrid seeds being introduced each year come
patents,
which block anyone other than the owner from making, using or selling the
invention for 20 years, and protection from the Plant Variety and Protection
Act.
Herbert Jervis, chief intellectual property counsel at Pioneer Hi- Bred
International Inc. in Johnston, a suburb of Des Moines, said complications
are
routine in the early stages of a new technology when there are limited ways
of
achieving developments.
"When that happens, that's when you see lawsuits," Jervis said. "It's not
unique to agriculture, by the way. It happens in lots of industries as they
go
through maturing cycles."
Lawsuits filed over the use of genetics have involved the biggest names
in
the seed industry: Pioneer, St. Louis-based **Monsanto** Co., Illinois-based
Dekalb Genetics Corp. and Minneapolis-based Cargill Inc.
However, there have been resolutions in several big cases, including one
in
March when **Monsanto** and longtime rival Zeneca Group of Britain dropped
lawsuits against each other after making a pact over competing herbicides.
David Snively, assistant general counsel for **Monsanto**, said the
company
has initiated little legal action over the use of genetics but must ensure
that its customers receive quality products.
"We certainly want to make sure that farmers, when they buy a bag of
**Monsanto**'s Roundup-ready soybeans, know what they're getting, that it's
really the right genes and it's truly going to perform to their expectations
because our name is on the bag," he said.
Slater-based Garst Seed Co., part of a European-based joint venture that
is
the fourth-largest seed company in the world, has so far avoided litigation
over the use of genetics.
Garst president Col Seccombe said his company has worked hard to reach
agreements with other companies and has even turned away from pursuing some
claims because of the costs involved.
"If we're not certain, we'll try and negotiate with people to get
clarity,"
he said. "With lawsuits where you're throwing around numbers of upwards of
$100
million at a time, we're the fourth- largest seed company in the U.S., but
we
cannot afford to get into litigation of that size. This is not that
profitable
of a business."
Jervis said Pioneer also carefully charts its genetics development and
works
to reach agreements with other companies. But Pioneer also must protect its
seed and its customers, he said.
"Although the farmers may not appreciate all the ins and outs of this,
partly it's done for their protection because when we place a product on the
market, we have potential liability under the patent rights of others for
selling the product and the user may also have some problems," he said.
Snively said it likely will take years for many of the lawsuits to be
resolved.
"It's that sort of litigation with an infant industry, where people are
trying to sort out the rules and who's bumping into whom in the marketplace
and
what those rules should be," he said.
Prudential's McMillin sees the legal costs being passed on to farmers.
"At the end of the day, the farmer will be the one paying the lawyers
because the cost of these lawsuits will result in more expensive products,"
he
said.
(Copyright 1999)
From: "Biotech Activists" <biotech_activists@iatp.org>
To: Judy_Kew@greenbuilder.com
Subject: gmos and lawsuits
Date: Thu, 27 May 1999 05:56:09 -0500
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