Counterfeiting and piracy are endangering farmers, consumers and the environment and threatening future plant science innovation, CropLife International alerts on the occasion of World Intellectual Property Day, which takes place April 26, 2006 around the world.  The plant science industry believes that working in partnership with regulators and law enforcement agencies is critical to resolving such issues, and invites ongoing dialogue with interested partners to find solutions for the best interest of society.

In response to a recent OECD survey on the global impact of counterfeiting activities, due to be released at the end of 2006, CropLife International’s leading companies highlighted intellectual property theft as one of the most pressing problems facing the industry today.

 

“The plant science industry is being defrauded on a daily basis by pirates and counterfeiters,” said CropLife International Director-General, Christian Verschueren. “And because of the illegal nature of this activity, it is extremely difficult for us to quantify exactly how large the problem actually is.”

 

Some conservative estimates indicate that counterfeit plant science products make up 30% of the market in China, 20% of the market in India, and 15% of the market is TAMECIS (Turkey, Africa, Middle East and Commonwealth of Independent States).  In Europe, it is estimated that this illegal market accounts for between 5-7% of companies’ gross sales.   

 

“On World Intellectual Property Day, it is worth highlighting that while industry is bearing the financial cost of this criminal activity, farmers and consumers face very serious safety concerns,” said Verschueren.

 

“Counterfeiters adulterate crop protection products, often with dangerous materials and chemicals, and misrepresent their goods in customs declarations.”

 

He continued, “Crop protection products that are not manufactured to the industry’s exacting standards could be at best ineffective or, at worst, a serious danger to human and environmental health and safety.”

 

A 2005 report by the International Chamber of Commerce BASCAP (Business Action to Stop Counterfeiting and Piracy) showed that in China, the use of a fake insecticide in Huaiyin, Liangshui and Chuzhou, ruined 200 hectares of wheat, destroying the harvest for over 100 farmer households.

 

Additionally, company responses to the aforementioned OECD survey responses uncovered many more examples, such as:

“We call on policymakers, regulators and law enforcement officials to work together with our industry to take urgent action to stop illegal counterfeiting activities,” said Verschueren. 

 

“The illegal trade of counterfeit products must be properly policed and enforced by government authorities,” he said. “They must be also combined with sound economic management, proper infrastructure and efficient institutions to ensure enforcement, as well as appropriate supporting policies and public awareness to bring about the economic, social and cultural benefits they promise.”

 

The plant science industry relies on intellectual property protections to protect its research investments and justify continued innovation.  According to a study commissioned by CropLife International last year, the top 10 agrochemical companies spent $2.25bn, or 7.5% of sales, on research and development (R&D) in 2004.  Another study conducted by CropLife’s European and U.S. associations showed that it takes 8-10 years and around $180-$220 million to develop a new product.

 

For developing countries, strong intellectual property protections are essential step in the path out of poverty - increasing technology transfer and foreign investment, as well as expanding international trade and long-term economic growth. 

CropLife International is the global federation representing the plant science industry.  It supports a network of regional and national associations in 91 countries, and is led by companies such as BASF, Bayer CropScience, Dow AgroSciences, DuPont, FMC, Monsanto, Sumitomo and Syngenta.  CropLife International promotes the benefits of crop protection and biotechnology products, their importance to sustainable agriculture and food production, and their responsible use through stewardship activities.