IPRs in Agriculture: Implications for Seed Producers and Users

Economic theory highlights the critical importance of excludability in encouraging private research and development in the agri-food sector. Without it, private research will languish and social welfare could suffer. Since 1970 governments around the world have recognized this and strengthened the legal protections for biotechnology processes and products (e.g. patents, plant breeders’ rights and trademarks). These new rights have been integrated into a complex system of public and private protections for intellectual property in this sector. Consequently, this new policy spurred significant private investment in biotechnologies and related agri-food products, but a number of policy concerns have arisen. There are now concerns that the structure and level of intellectual property protection may be changing the structure of the industry, reducing competition, stifling socially desirable diffusion and use, impeding followon innovations and ultimately redistributing economic returns towards agrochemical and seed companies and way from farmers and consumers.