Print This PageMonsanto's Position on Seed Patent Infringement
Monsanto’s primary reason for enforcing its patents is to ensure a level playing field for the vast majority of honest farmers who abide by their agreements, and to discourage using technology to gain an unfair advantage. Monsanto invests more than $2.6 million each day in research and development in order to bring new tools to farmers. If farmers ignored patent laws and saved our seeds, we would not be able to continuously fund the development of newer and better technologies.
Unfortunately, there are many misconceptions about seed patent lawsuits that have been fueled by sensationalistic print media, unbalanced television news reports and dramatic rumors on the Web. The following list explains Monsanto’s position on the most common misconceptions we hear about seed patent lawsuits. It is important to understand the facts to fully appreciate how we approach enforcement of our intellectual property rights.
#1: Planting saved seed violates federal law.
U.S. Patent No. 5,352,605 (sometimes referred to as “605”), protects Monsanto’s intellectual property for biotech seed under federal laws. The U.S. Patent and Trademark Office re-examined several of Monsanto’s patents and upheld their validity in October 2007.
Farmers also sign contractual use agreements that prohibit the saving of seeds for replanting. Under the agreement, they are allowed to plant the seeds and sell the harvest as a commodity. Because our seeds produce far better yield than conventional seed products, it is a critical investment for farmers.
Cases involving seed patent infringement cost time and money which impacts the ability to re-invest in research and development. Growers who plant saved Roundup Ready seed also create an unfair advantage compared to the vast majority of honest Monsanto customers.
Monsanto is a leading global provider of technology-based solutions and agricultural products that improve farm productivity and food quality. Over the last two decades, Monsanto scientists have focused on researching and delivering meaningful products to our farmer customers and the broader soybean value chain. Monsanto invests more than $980 million annually to identify and develop new solutions for growers.
#2: Saving seed creates an unfair advantage.
The primary reason for enforcing patents is to ensure a level playing field for all Monsanto customers and to discourage the use of technology to gain an unfair financial advantage.
Monsanto invests approximately three million dollars each day in research and development to bring new tools to farmers. If farmers ignored patent laws and saved seed, we would not be able to continuously fund the development of newer and better technologies designed to increase yields, use few natural resources, and improve the lives and economic conditions for farmers.
Monsanto is a company 100% focused on agriculture. Simply put, we succeed if – and only if – farmers succeed.
#3: Litigation is the last resort.
Monsanto does not like suing farmers. However it is something we feel we need to do both to protect the interests of our customers and our shareholders.
If evidence of seed saving is produced, Monsanto first tries to work directly with the farmer to resolve the issue. We start with discussions, not with lawsuits. Most farmers agree to a quick and amicable settlement, and maintain their good standing as a Monsanto customer.
The vast, majority of seed piracy cases are simply settled. With approximately 250,000 American customers in any given year, it is only a tiny fraction of those who save seed. Since 1997, Monsanto has had to file suit against farmers for seed piracy 138 times (as of July 2009) in the United States. Of those cases, most settled out of court, with only nine proceeding through a complete trial.
Monsanto won each of those nine cases and the appeals that followed.
#4: Monsanto invests settlement funds in youth leadership initiatives.
Monsanto directs all cash pretrial settlement funds for use in supporting youth leadership initiatives and agricultural scholarships. In a recent settlement case, Monsanto established a local trust in Pilot Grove, Missouri, to support county youth headed to college to study agriculture. Monsanto also supports the National FFA Foundation and national 4-H.
#5: The decision to save seed can have costly consequences.
It is never Monsanto’s intention to put anyone one out of business, even for serious mistakes such as patent infringement. Every effort is made by Monsanto to find a solution that will allow the farmer to continue his or her operation and very few farmers have been unable to meet these obligations.
Monsanto always seeks the farmer’s assistance and cooperation to personally verify evidence and answer questions. At the request of farmers during settlements, Monsanto works for creative solutions for payment of the settlement figure in order to minimize the financial impact over time.
#6: Investigators do not threaten farmers.
Discussions with farmers on saved seed are never productive unless they are civil. Licensed professional investigators, such as the ones hired by Monsanto’s attorneys, are specifically trained to avoid verbal or physical confrontations.
Most investigators have a background in agriculture and/or law enforcement. There are no incentives or commissions for catching those involved in patent infringements. Their only role is to gather information.
The investigators are diligent, persistent and have specialized training in conducting thorough interviews. Investigators are instructed neither to instigate nor to participate in heated arguments or confrontations. If discussions with farmers cease to be civil, our investigators are instructed to leave and end the conversation.
#7: Monsanto respects farmers’ privacy.
Most reports of seed piracy are made anonymously to Monsanto through our Customer Service Line, and each call is taken seriously.
Monsanto’s lawyers hire licensed and experienced professional investigators who follow up on these complaints as well as other leads. Their job is to gather evidence related to patent infringement. They follow all applicable state and federal privacy laws as they are required to do under their retention agreements.
If there is evidence of seed piracy, Monsanto will work with the farmer to confirm the facts and discuss how to resolve the issue quickly, amicably and professionally.
#8: Investigators do not trespass.
It is illegal to trespass, and investigators will not violate laws to gather evidence. Going on a farmer’s property isn’t necessary to obtain the needed information.
For sample-taking purposes, investigators will only enter a farmer’s property to knock on his / her door and ask for some time to discuss any concerns. Investigators will only enter a farmer’s field with his/her consent or a written court order.
#9: Accidental presence is not cause for a lawsuit.
Monsanto does not pursue farmers for the accidental presence of our patented technology in their fields or crop. We have no motivation to do so and we surely would not prevail in the courts if we did.
It is a myth that Monsanto sues farmers for the accidental presence of our technology in their crop. This rumor likely began with Percy Schmeiser who Monsanto sued in Canada for saving Roundup Ready canola seed. Schemeiser claims to this day that the presence of Monsanto technology in his fields was accidental. The fact is that the Canadian courts found on three separate occasions that it was intentional.
To learn more about this topic, please visit:
http://www.monsanto.com/monsanto/ag_products/stewardship/unintened_trace_presence.asp.
#10: It’s not okay to save seed for “personal use.”
There are no exceptions under the terms of the Patent Act: replanting patent-protected seed from Monsanto is not lawful and is not authorized.
The “personal use” exception is related to the Plant Variety Protection Act (PVPA), but it does not cover patent-protected seeds. Contracts signed by growers also prohibit this.
