Economic governance of property rights: comparative analysis on the collection of royalties in genetically modified soybean seeds

Abstract

This paper examines the governance of property rights on genetically modified (GM) soybean seeds. Specifically, the article undertakes a comparative analysis on the collection of royalties in GM soybean seeds in the U.S. and Brazil. For each country, the authors describe the regulatory framework governing the protection of biotechnology innovations in agriculture and investigate the mechanisms of royalty collection in GM soybean seeds. The paper also offers econometric evidence linking the capture of value on biotech innovations and the protection mechanisms deployed by biotech firms. The results suggest that, subject to the institutional environment, firms may choose to transact a GM attribute separated from the seed, building specialized governance structures framed around the genetic attribute and not around the seed as a whole.

Royalties para cultivares, legislação e regulação: Uma meta-análise

“…Os direitos de propriedade sobre inovações genéticas em sementes de soja, como a inserção de genes engenheirados, estão sujeitos a fácil apropriação porque as características biológicas da semente, ou seja, a auto reprodutibilidade (devido a autofecundação predominante na espécie) e como facilmente coloca essas inovações em acesso público. Como resultado, as empresas realizam esforços de proteção por meio do desenvolvimento de arranjos organizacionais, a fim de obter os royalties sobre a tecnologia (Monteiro & Zylbersztajn, 2013).…”

Veblen’s Institutional Approach and Agribusiness Coordination

“…Widespread cropping was performed by farmers with the use of seeds that crossed borders illegally. At the same time MAPA, the Brazilian Agriculture Office maintained its support to Monsanto and approved the patent registry of five cultivar varieties of GM soybeans developed by the Monsoy division (Monteiro & Zylbersztajn, 2013). …”

Heterogeneity of Property Rights Strategies in A Global Context: The Case of Genetically Modified Soybean Seeds

“…The mechanism for collecting royalties on GM soybean seeds in Brazil's Southern region sheds light on an interesting phenomenon. The property rights protection strategy used by Monsanto was based on unbundling the attribute ‘tolerance to glyphosate’ from the seed, which introduced a particular way to negotiate about the attribute regardless of the way the seed was purchased or acquired (Monteiro and Zylbersztajn, ). This strategy is relevant because the collection of royalties is based on seeds purchased in the black market and on saved seeds.…”

“…As noted by Monteiro and Zylbersztajn (, ), the development of biogenetics has introduced a new competitive paradigm in the seed sector. Any seed may be viewed as a technology vector that consists of different characteristics, whereby a GM seed represents a specific case in which one or more seed attributes are not normally attainable by the species under natural conditions.…”