Even in cases where a technology is novel and patented, it may be dependent on earlier developments, and so cannot be freely used even by the inventor. Therefore, from these first transgenic seeds a rather complicated IPR pedigree emerges. At issue is the so-called freedom to operate , which can be defined as legal access to all the technologies required to launch a product. Already with a single-trait transgenic plant, the IPR issues are extremely complex. Any IPR holder of even one element could block the commercialization of an insect-tolerant variety based on this package of technologies.
Alternative packages are equally complicated.
Because of the difficulties of sorting through various IPRs, the cost of doing seed business will increase, as will the likelihood of litigation. Freedom to operate will become even more complicated as companies seek to bundle traits to gain competitive advantage. A second generation of transgenic crops are likely to contain both input traits, such as insect resistance and herbicide tolerance, and output traits like altered oil and protein quality. The current restructuring of the seed industry is being driven by technology and IPR issues. The winners in this process will be those companies that are able to deal with the complexities of IPR and bring their products onto the market.