Plant variety rights: Framework for evaluating recent research and continuing issues

Abstract

The economic literature concerning Plant Variety Rights is surveyed in this paper. It is shown that there is insufficient information about the consequences of Plant Variety Rights (PVR) to make dogmatic assertions about their economic value. The mechanisms by which PVR affect the plant breeding, seeds and farming industries are briefly described. It is shown that theoretical economics arguments cannot be used to substantiate the existence of net economic benefits from PVR. Examination of the net economic effects of PVR requires detailed knowledge of their operation in practice. In the review of empirical evidence on the impact of PVR, particular attention is paid to the relationships between PVR and (1) increasing plant yields; (2) the corporate structure of the plant breeding and seeds industries; (3) the interaction between private breeders and the State; and (4) international trade. Several other related issues are also briefly mentioned. It is argued that on none of these issues is adequate information available from which to determine the economic consequences of PVR. Consequently it is argued that it is currently impossible to form a definitive overall judgement as to the net economic effects of PVR, or similar methods of establishing intellectual property rights in plant varieties.