The patent rights on the first genetically modified seeds expire next year, but it鈥檚 not clear how the introduction of 鈥済eneric鈥� seeds fits into the science and business of GM crops.
Farmers would love to continue using their favorite seeds in generic form 鈥� saving money while getting the same popular biotech benefits. But they may find there is only a limited window of opportunity.
Soybeans with Monsanto鈥檚 RoundUp Ready gene first showed up in the field in 1996. Today, more than 90 percent of the soybeans grown in the U.S. are RoundUp Ready. There is also RoundUp corn, cotton, canola, alfalfa, and even sugar beets.
When the original RoundUp gene for soybeans goes off-patent in 2014, it will be the first time a major biotech trait has gone generic.
鈥淭he question coming up now in ag biotech is what happens when these things come off patent,鈥� said Tom Clemente, a plant geneticist at the University of Nebraska Lincoln. 鈥淎nd it鈥檚 still convoluted because it鈥檚 not straight forward like 鈥極h, I have a new wiper blade.鈥� It鈥檚 not the same thing.鈥�
It鈥檚 not the same thing to seed companies like either. The company sells seed to corn and soybean farmers in Nebraska, Kansas, Iowa and Missouri. Almost all of Seitec鈥檚 seeds contain patented gene traits, which means Seitec pays royalties to companies like or for rights to the technology.
RoundUp Ready soybeans may have established the biotechnology trend in agriculture nearly 20 years ago, but Seitec co-owner Dennis Bracht points out farmers have other options. Monsanto released soybeans in 2009. Another major seed company, Bayer, has its own herbicide tolerant soybean called . Still, many farmers like the original.
鈥淭oday, our top selling bean is a RoundUp Ready 1 soybean,鈥� Bracht said. 鈥淎nd it was our highest yielding soybean bean this past year too.鈥�
Bracht will continue offering those soybeans after RoundUp 1 goes off-patent, when he no longer has to pay royalties. That means savings for farmers. Bracht estimated up to a $10 discount on a $40 bag of seed.
鈥淭o me, we don鈥檛 need to overthink the combine,鈥� Bracht said. 鈥淲e put a lot of investment into our research. We go with the (seeds) that obviously yield the most and provide the best combination of agronomics.鈥�
That鈥檚 the window that opens up for farmers when RoundUp 1 goes generic 鈥� cheaper seed that still works. But it鈥檚 not clear how wide that window will open because of additional legal protections on seed genetics and regulatory requirements for GM crops.
The ideal for some farmers would be to pack up beans from the field to reuse as seed. But Monsanto has taken more than 140 farmers to court for trying to do that with RoundUp Ready beans.
Among them is Indiana farmer Vernon Bowman, . Bowman purchased soybeans from a local grain elevator to use as seed for his second crop of soybeans in the growing season. Because much of the seed still carried the RoundUp Ready gene, Monsanto claimed Bowman owes the company technology fees.
Bowman argues that since other farmers paid fees on the soybeans the first time they were planted, Monsanto鈥檚 patent should not apply the second time around. The Supreme Court is expected to make its ruling on Bowman v. Monsanto before the end of June.
So when the patent expires can farmers start bagging their RoundUp Ready beans? Not necessarily, Seitec鈥檚 Bracht said.
鈥淲ith seed it gets a little bit more complicated than that,鈥� said Bracht. 鈥淚t鈥檚 beyond just trait. It鈥檚 trait and genetics.鈥�
Seeds have multiple layers of legal protection. The genetic trait in RoundUp 1 seeds may go generic but it is often paired with a seed variety that has its own separate patent. It鈥檚 called . Companies like DuPont Pioneer, for instance, are telling farmers that even after Monsanto鈥檚 RoundUp Ready patent expires, .
According to Tom Clemente at the University of Nebraska Lincoln, the idea behind the patents is to cover the cost of innovation.
鈥淭he blockbusters that do make it through have to cover the losses of all the things that didn鈥檛 make it through,鈥� said Clemente. 鈥淣ow, there鈥檚 fairness in things, right? Once the patent is up there should be generic versions available.鈥�
So farmers may not see a ton of savings. Plus, there鈥檚 one more reason there is likely a limited window for generic RoundUp Ready seed: international trade.
To allow exports of RoundUp Ready soybeans, Monsanto prepared reams of research to convince regulators in places like China, Japan and the European Union that the genetically modified soybeans were safe. Clemente said it would be hard to replicate that effort.
鈥淲hen you鈥檝e got that deep of pockets, you can do it,鈥� Clemente said. 鈥淏ut a small little startup company or a university? They鈥檙e never going to be able to do it. Not even close.鈥�
If no one keeps the paperworkd for the RoundUp 1 trait up-to-date with foreign countries and trade groups, generic RoundUp 1 soybeans cannot be sold overseas.
The major seed companies have signed on to when a patent is ready to expire. Monsanto has pledged to maintain regulatory responsibility for RoundUp 1 through the year 2021.
The question is whether any competitors will be prepared to take up the job after that. If they don鈥檛, it may be a sign the gene that changed the course of agriculture has finally grown obsolete.
