Monsanto Wants Extended Seed Royalties 

DAVID DECHANT / Cropchoice 22may03

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Colorado farmer David Dechant translated the following notes from the Monsanto Argentina website. Following that is news about Monsanto's intention to charge Brazilian exporters for any Roundup Ready varieties making it into their shipments.

Monsanto has joined Nidera, which is a leading Argentine seed company, and other seed companies in Argentina, in asking for extended royalties on seed. Below is my translation of a website discussing it.

It is unclear to me how seed companies will enforce it. Monsanto cites Argentina's seed law, but I don't think it contains any requirements about extended royalties, unless it has changed. Seed Law 20.247 is very similar to our Plant Variety Protection Act (PVPA) the last time I looked.

The rate Monsanto is asking is higher than Nidera's, at US $1.50 for every 25 kilos as compared with Nidera's US $2 for every 50 kilos. These rates are far below what US farmers pay in technology fees.

American farmers should know that Monsanto accepts an alternative to its all out seed-saving prohibition here, but seed saving with conditions as in extended royalties can also cause a lot of problems. Still, the royalty is far less than what Monsanto charges US farmers in tech fees and they don't have to pay extra to buy new certified seed every year.

Extended Royalties

The result of the important development and research programs that Monsanto has carried out for many years give us the highest technology in products for agricultural productivity growth. These advances have permitted farmers to always be able to count on having the best technology. The implementation of the commercial system of extended royalties seeks to protect the rights of developers of new varieties.

Application of this system

With the release of every new variety, information will be published whether or not the extended royalty system will apply to that variety. Once released under this system, extended royalties will be in force every time that the producer (farmer) multiplies seed. This system will apply only to the Republic of Argentina. The varieties that are being commercialized under this method are: AW 2886, AW 3702, AW 3982, AW 4403, AW 4500, AW 5522, AW 5581, AW 7110.

Amount and Form of Payment

Upon purchasing original Monsanto seed, the price is that shown on the current list in force, with a special emblem on the invoice mentioning which system the purchased variety falls under. Following the purchase of the seed and before the next crop year begins, the producer needs to make a sworn statement attesting to the amount of seed saved for planting. After turning over the sworn statement, Monsanto will emit a debit note for royalties of the value of US $1.50 for every 25 kilos (55 pounds) of seed. This mechanism will repeat itself every time the farmer saves seed bought under this system.

Penalties for non-compliance

The non-compliance of the terms accepted by the producer upon buying the variety, whose terms of sale are explicitly written and explained, brings along commercial and/or punitive actions that the public offering of the variety in question specifies.

Rights which the payment of royalties give the producer

The producer may plant the kilograms of saved seed declared in the season corresponding to his declaration. But he cannot market (sell or trade) this seed, being that it is not fiscalized (certified) by SAGPy A (ex INASE Seed Law no.20.247)

Regalía Extendida

Los importantes programas de desarrollo e investigación que Monsanto realiza desde hace muchos años, nos dan como resultado la más alta tecnología en productos para el crecimiento agropecuario. Estos avances le han permitido al productor contar siempre con la mejor tecnología. Con la implementación del sistema comercial de Regalía Extendida se busca proteger los derechos de obtención de las nuevas variedades.

Vigencia de este sistema

Con el lanzamiento de cada nueva variedad se informará si la misma entra o no dentro del sistema de Regalía Extendida. Una vez lanzada bajo este sistema, tendrá vigencia cada vez que el productor multiplique. Este sistema se encuentra vigente únicamente para la República Argentina. Las variedades que se comercializan bajo esta modalidad son: AW 2886, AW 3702, AW 3982, AW 4403, AW 4500, AW 5522, AW 5581, AW 7110.

Monto y forma de pago

Al momento de compra de la semilla original a Monsanto, el precio es el de la lista vigente con una leyenda especial en la factura haciendo mención al régimen de comercialización de la variedad comprada. Previo a la campaña posterior a la compra de la semilla, el productor deberá realizar una declaración jurada de la cantidad de semilla reservada para la siembra. Después de entregada la declaración jurada, Monsanto emitirá una nota de débito en concepto de pago de Regalías por un valor de u$s 1,5 por cada 25 kg de semilla. Este mecanismo se repetirá cada vez que el productor reserve semilla comprada bajo este sistema.

Penalidades por incumplimiento

El incumplimiento de las obligaciones aceptadas por el productor al comprar la variedad cuya forma de comercialización está explícitamente publicada y comunicada, traerá aparejado las acciones comerciales y/o penales que especifica la oferta pœblica que incluye la variedad en cuestión.

Derechos que otorga el pago de Regalía al productor

El productor puede resembrar los kg declarados guardados para la siembra de la campaña que corresponda a esa declaración. Pero no podrá comercializar (vender o canjear) esta semilla, ya que no se encuentra fiscalizada por la S.A.G.P. y A. (ex INASE Ley de semillas N0 20.247)

My Notes: SAGPyA, a.k.a. Secretary of Agriculture, Livestock, Fishing, and Food
INASE, the National Institute of Seeds, has been dissolved.
Seed Law 20.247 is very similar to the US's PVPA and still operative
Source of Monsanto Spanish text: http://www.monsanto.com.ar/secciones/productos/soja/regalia/msps_r.asp

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