Thursday, December 31, 2009

Corporate food giant Monsanto uses patents to bully small farmers and strangle competition
December 14

It has been a very impressive year for the Associated Press. A few months ago, Julie Jacobson of the AP published tragic photos of a US Marine after both of his legs were blown off in Afghanistan. Not only did she receive a verbal whip lashing from the Obama Administration, but for a brief moment, a respected and mainstream media outlet exposed Americans to the graphic and utter horror of war.

While scanning over the New York Times today, I was pleased to see that the AP is now currently investigating the corporate food giant Monsanto, accusing them of
using its wide reach to control the ability of new biotech firms to get wide distribution for their products, according to a review of several Monsanto licensing agreements and dozens of interviews with seed industry participants, agriculture and legal experts.

Monsanto has had a long history of bullying their way around the country and the AP should be commended for adding to their laundry list of sins. But despite the article's claims, Monsanto's excesses are the products of state intervention, not capitalism.

Monsanto owns patents on the genes of nearly 90% of America's soy and corn products, and when these seeds eventually blow onto neighboring smaller farmers, Monsanto sues them for a violation of their intellectual property "rights." They have even sued farmers for saving Monsanto's patented soybean seeds.

Monsanto uses its government-granted monopoly to intimidate and violate the true property rights of its neighbors, which exposes intellectual property (IP) for the misguided policy that it is.

Human beings have inherent rights in their bodies and in their homesteaded property (the manipulation of matter) that can never be violated. These rights come not from God or governments, but from our reason, and as social beings who depend on each other for survival, enforcement of these rights is essential for cooperation. As the great Ayn Rand put it:

The right to life is the source of all rights—and the right to property is their only implementation. Without property rights, no other rights are possible. Since man has to sustain his life by his own effort, the man who has no right to the product of his effort has no means to sustain his life.

IP law, however, creates artificial scarcity out of a non-scare entity (ideas) by giving individuals a government-backed monopoly on its use and distribution for an arbitrary amount of time. This protection violates the rights of other individuals by putting restrictions on how individuals, like the farmers against Monsanto, use their property.

There is also virtually no evidence suggesting that intellectual property law encourages inventions, creation, and boosts the arts. In fact, when examining the record of anarchic or near-anarchic market societies and institutions (like medieval Iceland and common/merchant law), property rights were better respected, peaceful commerce expanded, and technological innovation flourished; and all of this without the government club.

Monsanto is an all too common feature of the US economy: a statist creature that benefits from patents, licensing, and farm subsidies to strangle its less politically-favored competitors. It also doesn't hurt having one of their former attorneys, Justice Clarence Thomas, upholding plant patents in the highest government court in the land.

Luckily, supporters of organic and local farming are starting to wake up and realize that their industry would be far better off in freer markets, liberated from the government's controls (whether indirectly through IP or directly through subsidies) that allow the strong to legally prey on the weak.

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This article originally appeared in SF's (d)N0t blog.

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