The Limits of intellectual property rights: Lessons from the spread of illegal transgenic seeds in India

N. Lalitha (), Carl E. Pray () and Bharat Ramaswami ()
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N. Lalitha: Gujarat Institute of Development Research, Ahmedabad
Carl E. Pray: The State University of New Jersey

Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers from Indian Statistical Institute, New Delhi, India

Abstract: Genetically modified seeds have to be approved by biosafety regulators before they can be commercialized. Illegal seeds are, however, common in many developing countries including Brazil, China and India. They potentially pose dangers to biosafety and also undermine the intellectual property rights of firms that own the genetically modifed traits. Their unchecked spread has been attributed to the near impossibility of enforcement when potential violators involve millions of small farmers. Based on a survey of cotton growers in Gujarat, India in 2004, and an examination of the structure of cotton seed production this paper finds that the government, in fact, possesed the information and means to enforce the law. A contingent valuation exercise reveals high relative valuations for illegal seeds correlated with the perceived costs of pesticide application. We discuss how that matters to the political cost of enforcement and to socially optimal policies

Keywords: Intellectual Property Rights; Biosafety Regulation; Genetically Modified Seeds; Transgenic Varieties; Bt Cotton (search for similar items in EconPapers)
JEL-codes: K42 O34 Q16 (search for similar items in EconPapers)
Date: 2008-03
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