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Landmark agreement reached in wheat seed piracy case
Berthoud, Colorado
October, 2005

AgriPro Wheat and AGSECO through licensing agreements with the Texas A&M University System recently reached an out-of-court settlement with Tribune Grain of Tribune, Kansas.  The case is unique since independent entities have joined in an action to protect their rights under the Plant Variety Protection Act.  The out-of-court settlement reached between the seed developers and Tribune Grain includes an agreement to cease and desist and a cash settlement of $50,000. 

In the settlement, Tribune Grain admits to selling TAM-110 seed wheat and other proprietary products in violation of the federal Plant Variety Protection Act and Title V of the Federal Seed Act.  Under these laws, Tribune Grain is not authorized to sell, market, expose for sale, deliver, consign, ship, store, dispense to another party or condition proprietary seed without permission from the owners. 

Paul Morano, National Marketing Manager for AgriPro Wheat, says that this out-of-court settlement shows seed developer’s reluctance to immediately involve the court system to solve all matters of intellectual property infringement.  According to Morano, the matter could have been resolved directly in federal court rather than seeking an out-of-court agreement.  “Our focus is to develop the best products possible to add value on the farm.  We are committed to superior genetics and high seed quality.  State certification is the only quality assurance program nationally available to ensure that farmers are receiving high quality seed.  Most variety development programs, including public universities, utilize this type of protection and quality control system.”

According to Jim Sipes, President of AGSECO, “AGSECO is committed to protecting our intellectual property rights.  The only way to ensure a continuing supply of new, superior varieties is to allow the breeder or developer of these varieties to recoup and re-invest in variety development.  Violators of PVPA not only hurt the seed company, they also cheat the producers who lawfully purchase certified seed and support these breeding programs.” 

AgriPro Wheat, AGSECO and the Texas Agricultural Experiment Station are suppliers of basic wheat seed genetics to farmers.  Each seek federal protection to defend its investment in genetics and each make a Title V election to ensure that seed can only be sold under a state certification program.  AgriPro Wheat develops and markets proprietary wheat seed through its network of Associates, to include numerous wheat varieties in the Great Plains such as Jagalene, Cutter, Dumas, Longhorn and Fannin.  AgriPro Wheat Associates also have exclusive marketing rights for TAM 111 and TAM-400, developed by the Texas Agricultural Experiment Station.  AGSECO members also market wheat varieties in the Great Plains to include their proprietary products Westbred Keota, Onaga, Shavano, Protection and Santa Fe.  AGSECO members have an exclusive right to market TAM 110 wheat seed outside Texas.  Both AgriPro and AGSECO have determined that as protected by federal law, seed of their proprietary products may only be sold as a class of certified seed and only through designated seed outlets. 

The Plant Variety Protection Act permits farmers to save their own seed but not to trade or sell any of their production except as grain. Additionally, farmers who purchase illegally traded seed may be subject to penalties similar to those imposed on the seed seller.  According to Mr. Morano, most farmers and seed suppliers understand and abide by the federal seed law.  His advice to farmers, “if in doubt, ask for a tag on the seed you buy.  A legal purchase of a PVPA protected variety will come with a certified seed tag or a bulk seed certificate.  If a seed seller doesn’t have a tag for it, it could be illegal seed.”

AgriPro Wheat, headquartered in Berthoud, Colorado is a part of the wheat business unit of Syngenta, a world-leading agribusiness committed to sustainable agriculture through innovative research and technology.  The Texas Agricultural Experiment Station is a component of the Texas A&M University System in College Station, Texas.  AGSECO is a cooperative of Great Plains seedsmen with their primary business office in Girard, Kansas.

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