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Monsanto May Have To Repay 10 Years of GM Soya Royalties In Brazil

scibri writes "Biotech giant Monsanto is one step closer to losing billions of dollars in revenues from its genetically-modified Roundup Ready soya beans, after the Brazilian Supreme Court ruled the company must repay royalties collected over the past decade. Since GM crops were legalized in 2005, Monsanto has charged Brazilian farmers royalties of 2% on their sales of Roundup Ready soya beans. The company also tests Brazilian soya beans that are sold as non-GM — if they turn out to be Roundup Ready, the company charges the farmers 3%. Farmers challenged this as an unjust tax on their business. In April a regional court ruled against Monsanto, though that ruling has been put on hold pending an appeal. The Supreme Court, meanwhile has said that whatever the final ruling is, it will apply throughout the whole country."

10 of 377 comments (clear)

  1. Too much control by Midnight+Thunder · · Score: 5, Insightful

    To have one company have total control over a food source is disturbing. They essentially have a monopoly and have risked destroying non GM crops through cross-contamination and I think it should be Monsanto that should be paying damages to farmers who do not want to deal with GM crops.

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  2. Broken business model. by RightSaidFred99 · · Score: 5, Interesting
    If Monsanto can't find a way to make money on their product without special government intervention like this, their business model is broken. The point where they make money should be (only) when they sell their product to a farmer. All this bribery and whatnot to get special laws or to abuse existing laws to prop up their business model is nonsense.

    And I'm not even against GM foods, I find most of those people to be clueless Luddites. I'm just against their corrupt business model enabled by corrupt governments.

  3. Re:Remove the yoke of Monsanto! by Picass0 · · Score: 5, Insightful

    It's not every day you see someone make the RIAA and MPAA look like amateurs.

  4. Finally, sanity in the courts by gstrickler · · Score: 5, Insightful

    I know patents protect against independent invention, reverse engineering, etc. but if your product produces seed that "infects" another field or wind blows those seeds to another field, you are NOT entitled to royalties on those seeds.

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    1. Re:Finally, sanity in the courts by Overzeetop · · Score: 5, Insightful

      Monsanto shouldn't be allowed to assert rights on second generation seeds. If they want to protect their GM products, they need to make them sterile.

      Imagine if a company used their patented method to modify your genes to fix a genetic defect in you. For $100,000 they cured your diabetes. Then what would happen if they asserted that you owed them an additional $100,000 for every child you had, and every grandchild born within the patent term? If you didn't pay per child, and they were found to have the fixed gene, you owed them $150,000 each.

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      Is it just my observation, or are there way too many stupid people in the world?
  5. Re:Remove the yoke of Monsanto! by Jeng · · Score: 5, Insightful

    And how do those genes get in the seed?

    Are you seriously suggesting that there are illegal seed factories out there making generic versions of Monsanto's seeds?

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  6. Re:Remove the yoke of Monsanto! by h4rr4r · · Score: 5, Insightful

    Why should the farmers pay for seed that Monsanto freely pollinated? No one forced Monsanto to let their plants spread that genetic material. They could require their growers to keep their plants only indoors.

    Farmers should be able to sue Monsanto for contaminating their fields if anything.

  7. Re:Remove the yoke of Monsanto! by Anonymous Coward · · Score: 5, Informative

    They're called bees.

  8. Re:Remove the yoke of Monsanto! by Bigby · · Score: 5, Interesting

    Mod parent up! A farmer can't help it if his field is being polluted by Monsanto's seed...even if it might be financially beneficial. If a coal mine created a pile of coal and the pile started spilling over into my property, then there are 3 options:

    1. The coal mining company sues me for having their coal on my property (at no fault of my own)
    2. I sue the coal mining company for putting their coal on my property
    3. We call it a truce, and I just keep and sell the coal on my property

  9. Re:Remove the yoke of Monsanto! by sjames · · Score: 5, Informative

    The thing is, we now know for a fact that plants can be bread for roundup readiness without 'stealing' Monsanto's gene (because it's been done), using only more conventional breeding and selection techniques. We also know that there are weeds growing wild that have the necessary resistance to roundup and that they are close enough to canola to breed with it. We know this because now that fields are being drenched in roundup routinely, we have weeds that are resistant to it.

    Further, until Monsanto started it's war on everything not Monsanto, it was understood that the proprietary nature of a trait in a plant died once it crossed with someone else's plants. That is, you have some very special variety of corn. I am free to plant my perfectly ordinary corn on my adjoining property AND select for the amazing traits of your corn in the resulting future generations. I can even do so until I fully recreate your very special corn down to the last gene (but in practice I would stop once I had the desirable traits and had bread out undesirable ones, I wouldn't need or want a perfect copy).

    Actual ownership of the gene itself is quite new and on somewhat shaky ground, especially since the gene was NOT created by designing a sequence of amino acids necessary to create the wanted trait, it was found and inserted into the genome.

    A wrinkle you're missing is that Monsanto's traits actually contaminated the line of canola that Schmeiser had been developing using conventional breeding techniques for his own use for many years. He was faced with a choice of destroying years of his own work or just pretending the Monsanto gene didn't exist.

    And that's the big issue. Monsanto crops contaminate the genome of non-Monsanto crops, then Monsanto sues the victim.