Jacob Clay Interdisciplinary paper rough draft Dr. Idziak and Dr. Schnee The Ethics of Monsanto Patenting Practices and Its Effects on the World: Roundup Ready Soybeans The ethical issue of patenting the Roundup Ready Soybean by Monsanto will be highlighted in this essay, and will consider the consequences of the patent on such a useful plant on the world. Unfortunately, Monsanto has already successfully patented many plants and thusly genes in plants as well. For this paper I will be specifically looking at the “Roundup Ready” gene found in Genetically Modified Soybeans that Monsanto refers to as Genuity Roundup Ready 2 Yield Soybeans. There is much to be cautious about in the Genetically Modified Organisms (GMO’s) produced by Monsanto corporation, but first of all is it ethical to patent genes? The Roundup Ready soybean, also known as glyphosate-tolerant soybean line 40-3-2 produced by Monsanto is a good thing for society to produce. I will argue using the ethical theory of Hedonistic Utilitarianism that the patenting of the Roundup Ready Soybean has negative consequences for a prosperous society and is not ethically permissible due to the actions of Monsanto on farmers in a monopolistic market condition. Method for creating Genetically Modified Organisms or Transgenic-Organisms Restriction Endonucleases have allowed us to produce transgenic organisms especially in the engineering of the soybean plant. The way restriction endonucleases work, is that these enzymes cut the sequence of the DNA at specific sites called restriction sites. These enzymes are very specific, each restriction endonucleases recognizes a different restriction site. Once the enzyme finds the correct spot on the DNA sequence, it proceeds to cut or splice the DNA, sometimes in staggered cuts. Because the enzymes make staggered cuts it produces fragments with single stranded over hangs. The single stranded overhangs are complimentary to each other and thus the fragments are sticky to each other. Because the fragments of DNA cut with same restriction enzymes always have the same single stranded overhangs, cutting human DNA and Bacterial DNA with the same restriction endonuclease allows the production of recombinant DNA. The restriction endonucleases provide for the splicing of the gene sequence and allow for a new gene to enter into the sequence and then put it all together to form a new organism. Roundup Ready soybeans are tolerant to the herbicide Roundup because each soybean seed has the Roundup Ready gene injected into it through gene gun process. The potential for the technology was discovered when a plant scientist first noticed a common garden flower (geranium) that was not killed by the herbicide Roundup. The scientist felt if he could identify the gene in the flower that enabled it to resist the herbicide, and then transfer that gene to a soybean plant, the soybean plant would then also become resistant to the herbicide Roundup. Scientists were able to identify and isolate that gene on the DNA strand of the geranium. Next, that gene was attached to gold dust. Finally, this gold dust, with the gene attached, was blasted into a soybean plant. The gene combined with the gold dust penetrates the plant tissue and the gene makes its way into the plant cells. The seeds were tested by planting the seeds and then spraying the plants with Roundup. Any plants that survived the Roundup were kept, and any that died were discarded as well as their seeds since they did not carry the gene. The ones that survived were then harvested for their seeds which would all contain the Roundup Ready gene. To illustrate how this particular gene is so important, and why it is so useful to the world, the way that roundup ready soybeans are genetically modified in order to withstand the herbicide roundup will be discussed, and will lead into the discussion of whether or not this patent is ethically permissible. The pesticide 'Roundup' works by inhibiting an enzyme that is necessary for the plant to produce certain aromatic amino acids, killing the plant. The targeted enzyme is called 5enolpyruvyl shikimate-3-phosphate synthetase, or EPSPS. (Pieter Windels) The genetic modification in Roundup Ready soybeans involves incorporating the gene found on the Geranium version of this enzyme, (from Agrobacterium species, strain CP4) into the soybean plant, giving the soybean protection from Roundup. In this way, the soybeans and any weeds can be sprayed with Roundup, killing the weeds and leaving the soybeans. Furthermore, the Glyphosate in Roundup will not move through soil to affect non-target vegetation, nor will it move through soil and enter root systems of other plants. For reasons explained later, this has an impact on why it is not ethically permissible to patent the Roundup Ready Soybean along with how the herbicide does not move into groundwater and this lessens the risk of pollution through this means. Soybeans are a major player in the food industry in the USA as well as internationally. This Genetically modified seed is good for society on the whole, because it allows farmers to use less herbicide than before. This is not only good for the farmers disposable income thus the reduced price in crops, but it is also better for the environment to use the least amount of herbicide as possible. When food prices are lower, the aggregate utility increases, this is because soybeans are used not just in human diet, but it also affects the price of feed for animals since many of their feed are soy based. Another major factor that soy plays is that is also in may processed foods as well. When cheaper prices can be attained for the base product of soy beans, then everything that soy goes into becomes cheaper, which is very good for the economy, thus beneficial for the whole of society. Another way the GMO can benefit society is the decreased use of herbicide. The following graphs will allow one to visualize the importance and significance of these GMO’s can help with the reduction in herbicidal use. One may also notice the significant amount of GM soybeans in both the United States Market, but also Argentina’s and Brazil’s soybean markets as well. This allows for a more global impact that the Roundup Ready soybean has on the market. The latest study conducted by the United States Department of Agriculture indicates that in 2011, 239.15 million metric tons of Soybean crop was produced making it the 5th most produced crop in the world. (usda) “The Soyfoods Association of North America reports that U.S. sales of soy foods reached $3.9 billion in 2003, continuing an 11-year trend of 15% average annual increases. According to the United Soybean Board’s 2004–2005 Consumer Attitudes About Nutrition report, 25% of Americans consume soy foods or beverages at least once per week, and 74% view soy products as healthy.” (Barret) ecosystem of the local environment and produce some type of a super weed, one impervious to the herbicide due to cross breeding of a soybean plant and some other type of foliage found in the natural environment. (Carman) This would be bad for the environment and it would also be bad for the state of the farm as well. The super weed could quickly outgrow and out compete everything in its ecosystem now that it would be impervious to the active ingredient in Monsanto’s herbicide- glyphosate. Another negative consequence is that it could also leave the farm itself in a state of uncontrollable weed growth. The entire world depends on soybeans grown in Iowa and the rest of the Mid-West in various food industries such as livestock feed, manufactured food, dairy, meat, etc. The world would not be ready for all the ill effects of a reduced soybean crop harvest, not only would there be a severe reduction in the food supplied to the world, but there would also be a sharp increase in the prices of a wide range of food due to the fact that soybeans are a vital part in almost every food industry. According to Iowa State University, there are more than 120 different ways that the Soybean can be manipulated for human consumption, 75 different ways for the Soy bean to be used in Industrial fashions, and 9 different ways for the soybean to be transformed into food for livestock. (ISU) Ethical consideration To begin with our consideration for the ethical permissibility of the patent, we must first look at where the patent comes from and what a patent actually does in the real world. A patent is awarded to an inventor or discoverer of something new and novel by the Federal Government in the United States. The federal government grants a monopoly to that inventor over the invention or discovery, because it outlaws the commercial or private production of that invention or discovery without the patent holder’s permission. So the patent holder gains considerable power in the market place and that power held by Monsanto is used directly for the advantage of Monsanto and for the detriment of everyone else in the world indirectly. This will be supported by the Utilitarian calculus later in the essay. Another positive consequence of the Roundup Ready Soybean under Utilitarian logic is that since there is less pollution as a result of this product, due to the fact that only one herbicide which does less harm to the environment is employed by the Roundup herbicide used in conjunction with the soybean. If there is less pollution then there are a multitude of benefits to the earth which we all need to survive. The water supply is safer thanks to this product, the soil has less chemicals in it that affects the soil’s health. It also is a benefit to farmers in these seven ways according to Padgette: The use of crops containing the Roundup Ready gene will enable farmers to utilize glyphosate for effective control of weed for effective control of weed pests and to take advantage of this herbicide’s beneficial features. Crops with these genes can positively impact current agronomic practices by: 1) offering the farmer a new wide spectrum weed-control option 2) allowing the use of environmentally sound herbicide 3) providing a new herbicidal mode of action for in-crop weed control (which has not resulted in weed resistance development in over 20 years, based on extensive use history of glyphosate) 4) increasing the ability to treat weeds on an “as needed” basis (flexibility of use) 5) offering less dependence on herbicide before planting 6) providing an excellent fit with no-till systems, which results in increased soil moisture, while reducing soil erosion and fuel use 7) providing cost effective weed control, not only because roundup herbicide may be less expensive than most current options, but because the total number of herbicides used may be reduced compared to the farmer’s current weed management program. (Padgette) Since the plant is so useful to farmers it indirectly positively affects the consumer. This is true, due to the economic analysis of market structures and competition between farmers. Since the farming industry satisfies perfect competition qualifications: identical product, many firms, consumer knowledge, and low barriers to enter the market, the farming industry can be properly analyzed using a neoclassical analysis on the effects of an product with perfect competition. “In a competitive market, less expensive factors of production” (in this case seeds) “can be translated into less expensive products for consumers due to competition between firms lowering their prices in order to stay in business.” (Block) And there are many positive outcomes for the environment as well the main one being the reduction in herbicidal use with fewer applications of Roundup, as Carpenter illustrates, “Growers who were using high cost conventional programs may have switched to a Roundup Ready program with one application, thereby reducing their costs.” (Carpenter) Since there is also a decrease in cost due to dually using Roundup ready Soybeans and the herbicide Roundup, it is another positive consequence, because it helps the farmers by lowering their expenses on herbicide. However, since the seed is patented, it grants a monopoly over the entire industry to a single firm, Monsanto. And more importantly as to why the patent is unethical, is because it restricts the number of Roundup Ready Soybeans sold on the market place, so in effect it is limiting the amount of positive influences that can be made in the environment. According to the theory of Utilitarianism, which decides that the proper course of action is the one that maximizes utility, which is defined as maximizing happiness and reducing suffering, Monsanto has the ability to satisfy this claim, if they did not patent their products. In order to satisfy this claim that Monsanto by not patenting their products would do more good for more people, we must take a look at the Calculus involved in Utilitarianism. The equation for deciding whether Utilitarianism supports a decision is as follows: the amount of a good/bad bad consequence creates times the number of people affected times the certainty of it occurring (taken form the Elearn document: sample case study analysis—Utilitarianism. Idziak) In the equation the highest possible score for a category is 100 and the lowest score is – 100. With that being said there are many positive consequences for obliterating the patent held on the Soybean, and relatively few negative consequences for not patenting it. First let us begin with analyzing the amount of utility gained from having a patent: Monsanto would keep its monopoly and have above normal profits o 50x1x80%=40 The less the amount of soybean exposed to the environment, the less likely it would occur for a super weed to occur o -80X85X1%=-68 Patenting the bean will prohibit companies from hiring workers to produce more soybeans o -75X0X100%=0 There would be a less than optimal amount of soybeans in the market o -10X 10X90%= -90 If the soybean remained patented, there would be higher prices for farmers o -60X5X75%=225 If the patent were allowed to go through, there would be continued harassment of farmers by the monopoly Monsanto o -33X50X50%=-825 If there is a summation of the consequences of patenting the Soybean, we will find that the final number will come out to be: -718 Now let us look at the alternative of not patenting the Round up Ready Soybean: we will find that the outcome is strikingly different Not patenting the bean provides more companies producing the bean thus making the cost of farming soybeans more affordable. o 60X5X75%=225 There would be more jobs created in manufacturing the bean if free markets existed (no patent) o 75X 30 X90%= 2025 There would be a friendlier environment between Monsanto and farmers if free market conditions existed. (no patent) o 33X 50 X50%=825 If there were no patent, the seed would be made available across the globe replacing the conventional soybean crop at a greater rate than monopolistic conditions thus furthering the amount of good the soybean does (with the patent) o 15X5X95%= 71.25 Due to the increased usage of roundup ready soybeans across the globe, the risk for creating a “super weed” grows. o -80X95X5%=-380 Monsanto loses customers to competitors thus lowering the profit margin o -75X 5 X 95= -356 If sum up all the numbers for the alternative of not patenting the gene will find the total amount of utility gained from this option is 2,410. That is a difference of over 3,000 utility points I chose these numbers based on the economic knowledge that I possess through my work in Economics here at Loras as well as running numbers through the US department of Agriculture’s source cited below. This analysis claims that the amount of soybeans containing the Roundup Ready Gene produced would be exponentially greater in a free market condition where there is not patent. Not only because of there being more producers to create these special soybeans, but there would also be a lower price than if Monsanto did not have a monopoly due to competitive market conditions. As an innovator, Monsanto is ready to make larger and more productive crop yields thanks to the ever advancing technology that they put into their seed. And they deserve to be awarded for their ingenuity, just because they do not possess a patent, does not mean that they are at a level playing field with everyone else in the market. Not only do they have a head start over al of the companies, but they also have an indispensable advantage over everyone else and that is name brand recognition. Since they are the ones who created the organism, consumers naturally place more of their trust in the company who creates it, because they know what they are doing. However, because Monsanto is a huge benefit to farmers and farmer’s customers, in other words—everyone in the world, if other companies are not allowed to participate in the production of these beans, then it is merely limiting the amount good things that can be done by these beans. Although there is one alteration to the genome, the developments in the seed that they produce are significantly different than what is found in a soybean plant before genetically modifying it than the seed found in nature. The biggest difference is the fact that it is impervious to the use of the herbicide Roundup, another product of Monsanto and the herbicide would kill or at least significantly stunt the growth of all other soybean plants found in nature, while leaving the Roundup Ready Soybean unharmed. I believe that it is not ethical for Monsanto to patent these genes as well as the others it owns, because it provides an unfair balance of power over one company. All of the bad things that Monsanto is capable of doing, for example hold farmers from not planting the seeds they produce on their own land to plant for next season is allowed due to their patent. As mentioned before, it restricts the amount of producers, so farmers have no other choice but to buy from Monsanto in order to receive these plants so Monsanto may not treat the farmers with the same amount of customer service that there would be if there was competition, for example Monsanto regularly sues farmers for having plants on their land that they did not buy form Monsanto that season, even if the plant was planted there by accident. In Conclusion, I regard Roundup Ready Soybeans as a good thing but not only for Monsanto to produce, and sell but for many other companies as well and I think that is why under Utilitarianism, not patenting the Roundup Ready Soybean would be ethically permissible while holding a patent is not. Smarter seeds like these are the way of the future, and can provide a lot of good things for Humans to gain happiness from but happiness gained form the seeds is severely limited by the monopoly granted to Monsanto. In the ethical theory of Utilitarianism, Monsanto’s seeds improve aggregate social utility, in other words, it produces better consequences for human well-being, and this is through reduced price levels of food, not only in soybeans, but also everything that the soybean goes into. Roundup Ready seed also satisfies Utilitarian theory by reducing the level of herbicide in use by farmers. This is good for the environment; because of the reduced levels of pollution in the environment that herbicide produces. So it minimizes the amount of sadness or harm done to society as well. Roundup Ready Soybeans are perfectly good to use and there should be more crops like this such as corn being produced to withstand the effects of herbicide. And again the amount of good that they do to the entire world would be amplified a great deal if there were no patents. Works Cited Barret, Julia R. "The Science of Soy: What Do We Really Know?" US National Library of Medicine. The National Center for Biotechnology Information, June 2006. Web. 18 Oct. 2013. <http://www.ncbi.nlm.nih.gov/pmc/articles/PMC1480510/>. Block, Walter, William Barret, and Stuart Wood. "AUSTRIAN ECONOMICS, NEOCLASSICAL ECONOMICS, MARKETING, AND FINANCE." THE QUARTERLY JOURNAL OF AUSTRIAN ECONOMICS 5.2 (2002): 58. Mises Institute. Web. 18 Oct. 2013. Carman, Judy. "The Problem with the Safety of Roundup Ready Soybeans." 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