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GM technology: Compulsory licensing rules withdrawn after outcry from crop research majors (analysed from The Hindu relevant for GS III, Topic: Environment, GM products and technology)

The Centre has rolled back a notification requiring genetic modification (GM) crop technology developers to license their proprietary traits products on demand and not charge any royalty exceeding 10 per cent of the maximum sale price of seeds.

About Notification:

The notification had said that the licensor of an approved GM technology  for example Monsanto’s Bollgard-II Bt cotton  shall not refuse grant on a license to any eligible seed company wanting to incorporate it into its own hybrids or varieties.

It further mandated the technology developer to award the license for its trait within 30 days of receipt of a request from the licensee. In the event of not meeting the obligation the licensee is deemed to have obtained the license.

Companies View:

According to GM companies this was a infringement into their intellectual property. They said that it takes huge amount of money to produce genetically modified products and giving away technology for free without their consent  would be a financial loss, discourage research and against WTO norms .



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