MAKING GENETIC MODIFICATION SAFE FOR NEW ZEALAND AND VICE VERSA
Zac Hanley & Kieran Elborough1
Thirty months ago the Royal Commission on Genetic Modification recommended that the country should `proceed with caution' in the use of Genetic Modification (GM)2. The government responded by imposing a two-year `period of constraint' in which applications for
approved release of GM animals or plants would not be accepted, and to use this time to make legislative changes and conduct other research. The nascent New Zealand biotechnology industry cooperated by also withholding applications for field tests, thus creating a de facto
moratorium on GM outside the laboratory. After two years, the social, political, and scientific context has changed in many ways, some idiosyncratic to the local situation, while others are common to the global experience of adapting to biotechnology. It has been a busy time.
GM Regulations Then and Now
The Environmental Risk Management Authority (ERMA) approves all field testing and releases of GM organisms under the authority of the Hazardous Substances and New Organisms (HSNO) Act of 19963. In 2001 the Royal Commission judged their system to be rigorous and
sufficient, albeit bureaucratic and onerous at times. Recent law changes have therefore enhanced or clarified the existing system while making changes to improve workability. Formerly, low-risk modifications, such as of laboratory E. coli, were still subject to a similar approvals process as larger-scale field releases through ERMA; such low-level approvals are now handled appropriately by the local Institutional Biological Safety Committees, saving
considerable time and cost. Another legal peculiarity required bacterial fermentations over ten litres to be approved differently from smaller batches; such cases are now judged on risk and containment, not capacity.
More changes plugged gaps discovered in applying the law to the real world. For example, the 1996 law covering general release of a GMO such as a modified crop did not allow any post-release conditions to be imposed whatsoever. There is now a `conditional release' category, allowing ERMA to specify ongoing containment standards such as destruction of GM plant reproductive structures, to impose restrictions on use, and to require post-release inspections. Monitoring is treated as an aspect of biosecurity, and civil penalties can now be imposed for violations of post-release conditions such as containment breaches. Approvals can now reflect the relative risk posed by a given GMO on a case-by-case basis, a disappointment for anti-GM lobbyists who have campaigned for a one-ban-fits-all scenario (see below). The law now also protects company confidentiality to some degree, where in the past any trade secrets disclosed as part of field testing applications would be posted on government Web sites
for the public (and the competition).
One amendment was urgent: medicines incorporating or manufactured using genetic modification once required multiple approvals. But governments must be able to act swiftly to protect their people from attacks using biological agents. And New Zealand is economically dependent on agricultural exports and therefore on the health of its national herds. A government cannot be hamstrung by a complex approvals process that could prevent a timely response to a human or animal health emergency. Examples of the devastation that can be caused by such events are easy to find, from BSE and Foot and Mouth Disease in livestock through to anthrax. The New Zealand approvals process has now been streamlined.
A Broader View
The government also used the breathing space of the `moratorium' to devise a Biotechnology Strategy for New Zealand4. While this is a political document and therefore well padded with promises to improve education, foster partnerships, and create centers of excellence, it also contained much of consequence. One result was a bill out-lawing human reproductive cloning. Another was changes in funding policy, which mean more money for
biotechnology and for studies of its impact. Collaborations between state- and privately-funded science are also encouraged with grants going preferentially to market-led research. Such measures build public and business confidence.
The Patent Act (1953) is at last under review. The patentability of plants and animals (but not plant varieties) remains, but humans, their genetic material, and their medical treatments will become unpatentable. The definition of patentability will be harmonized with the Australian one: the invention must be a "manner of manufacture" that is "novel, involves an inventive step," and "has a credible, specific and substantial utility"5. Patents will be refused if commercial exploitation will endanger human, animal, or plant life or health or will seriously prejudice the environment.
New Zealand is a signatory of the International Convention for the Protection of New Varieties of Plants 1991 (UPOV91) and offers Plant Variety Rights as a form of intellectual property6. These rights are to be updated in order that rights holders can control "essentially derived" varieties that are simple (obvious) changes to their intellectual property. Farm-saved seed will be exempt, however, from charges of infringement, and "breeders' rights" will provide seed companies with the ability to develop new varieties using protected varieties or their essential derivatives. (The status of GM "essential derivatives" is unclear, but patenting of such inventions would be more
appropriate in any case.) New Zealand cannot conform fully to UPOV91 until local issues over the ownership or stewardship of natural resources have been resolved with the indigenous Maori. Such issues are unique features of New Zealand, which have impinged on the GM debate.
Another is seen in the amendment of the HSNO Act to allow the executive government to commandeer the GMO approvals process under certain conditions that are not purely
economicthe importance of cultural, ethical, and spiritual consequences of release is recognized. All New Zealand laws must be interpreted with reference to the principles
of the Treaty of Waitangi, the founding agreement between the Maori peoples and the late-arriving Europeans7.
Upping The Anti
Meanwhile, the legislature has not been the only organization working late these last two years. Anti-GM protesters successfully dominated the news as the `period of constraint' ended last October. They used a billboard advertisement featuring a naked, blank-faced woman on all
fours who was (a) attached to a milking machine via her four breasts, and (b) tattooed (or branded) on her hip with the letters `GM'. On an earlier occasion the same group had invaded the main chamber of parliament and stripped to their pink underclothes. This triumphant run of excellent publicity management came to an end after a confrontation with Fonterra, New Zealand's largest dairy company and main export earner. The group mistakenly alleged that
the company would "genetically modify milk with human genes"8 when the license in question was for the use of certain DNA marker types in dairy cattle
breeding9. The debate was not enriched by the egregious intellectual poverty on display and within months the group had disbanded, their figurehead (a British former pop
singer) leaving the country vowing to return.
Since that time, only groups such as Aotearoa Genetic Engineering Action Network and Peoples Moratorium Enforcement Agency have been given airtime after trumpeting the use of non-violent "direct action" against "legitimate targets." In truth there has been little activity over the New Zealand summer; many of the anti-GM groups have restricted themselves to updating their Web sites.
The last three years in New Zealand have demonstrated that laws and society will always struggle to keep apace of technological developments and their consequences. We have also seen that the unique mix of cultures, peoples, and environment in a nation will flavor the coming changes in unpredictable ways. It is certain that the GM debate is not yet over, and it is clear that, with the changes described here and the social and political climate, that New Zealand is nevertheless bracing itself for the biotechnology future.
References
1. Disclaimer: opinions expressed are authors' own and do not necessarily reflect those of any organizations or institutions
2. `Reporting In: The New Zealand Royal Commission on Genetic Modification' by Hanley and Elborough in ISB News Report September 2001;
http://www.isb.vt.edu/news/2001/news01.sep.html#sep0105
3. For more information see http://www.ermanz.govt.nz
4. Available from the Ministry of Research Science & Technology (http://www.morst.govt.nz)
5. For more information see
http://www.med.govt.nz/buslt/int_prop/patentsreview/cabinet/index.html
6. For more information see
http://www.med.govt.nz/buslt/int_prop/plantvarietyreview/cabinet/index.html; PVRs in New Zealand are administered by a government department online at http://www.pvr.govt.nz
7. For more information see http://www.waitangi-tribunal.govt.nz
8. `Pull The Other One Madge' by Emma Tankersley in Rural News 7-Oct-02;
http://www.ruralnews.co.nz/article.asp?channelid=32&articleid=4807. A copy of the controversial billboard accompanies this article.
9. `Dairy Giant Closes Door On Mothers' Anti-GM Group' by Simon Collins in The New Zealand Herald 2-Oct-03; http://www.nzherald.co.nz/storydisplay.cfm? thesection=news&thesubsection=&storyID=3526609&reportID=53009
Zac Hanley & Kieran Elborough1
Consultants in Plant Biotechnology
New Zealand
biotech@greengenz.com

TOXIC VERDICTS FOR A TOXIN PATENT
Phillip B. C. Jones
Two February decisions transformed Mycogen's patent on synthetic Bacillus thuringiensis toxin genes. The U.S. Patent and Trademark Office (PTO) eliminated 12 of
the patent's 14 claims, and the Court of Appeals for the Federal Circuit severely limited the scope of the remaining two. Who said change is good?
PTO
In 1983, Michael J. Adang and John D. Kemp filed a patent application on "Insect Resistant Plants." They assigned the application to Agrigenetics Research Associates Ltd. and then to Lubrizol Genetics Inc. During the next decade, four patent applications were filed in this lineage, which lost John Kemp as a named inventor but gained three new inventors and Mycogen Plant Science Inc. as assignee. U.S. Patent No. 5,380,831 issued in 1995 with 12 claims to methods of designing synthetic Bacillus thuringiensis toxin genes for expression in plants and two claims to a particular Bt toxin gene disclosed in the patent.
A year later, the PTO declared an interference to determine who had been the first to invent the claimed methods. It was not the PTO's idle curiosity that instigated this proceeding; the United States grants patents to the first party who invents the claimed subject matter. Squaring off against the `831 patent were two patent applications assigned to Monsanto; one named Kenneth A. Barton and Michael J. Miller as inventors, and the other named David A. Fischhoff and Frederick J. Perlak.
After hearing testimony and examining laboratory records and exhibits, the PTO's Board of Patent Appeals and Interferences decided that Fischhoff and Perlak had beat the other parties in inventing the methods described in claims 1 to 12 of the `831 patent. Consequently, those claims are no longer enforceable.
The Board released its 200-page decision on February 2. Several weeks later, the Federal Circuit rendered its opinion on the `831 patent.
DOE!
Mycogen v. Monsanto began in May 1995 when the Environmental Protection Agency decided that Monsanto could commercialize its New Leaf potato, a genetically modified plant that expressed Bacillus thuringiensis CryIIIA delta-endotoxin. Mycogen quickly filed a
lawsuit against Monsanto in a California district court alleging, among other things, that Monsanto infringed claims 13 and 14 of the `831 patent. Nine years later, the Federal
Circuit resolved this issue in Monsanto's favor. The court based its decision on law that did not exist when Mycogen filed its lawsuit.
The outcome of the case hinged on the doctrine of equivalents (DOE). In the United States, a patentee can allege that a defendant infringed patent claims literally or equivalently. A plaintiff can establish literal infringement by showing that every feature itemized in a patent claim is found in the defendant's product or process. If the defendant has not literally infringed, the plaintiff can argue that the accused product or process should be deemed equivalent to the patented invention. The DOE sanctions this expansion of patent claim scope to prevent a person from dodging literal infringement with trivial modifications of
the patented invention.
A patent claim provides public notice about the scope of a claimed invention. Since the DOE creates ambiguity about claim scope, courts have devised rules to limit its application, rules such as prosecution history estoppel. A prosecution history is a public record containing correspondence between a patent applicant and a patent examiner. This record may reveal that the applicant persuaded the examiner to issue a patent by revising claims to narrow their scope. During litigation, the patentee will be forbidden ("estopped") from relying on the DOE to recapture claim scope surrendered during patent prosecution to obtain the patent.
Mycogen's patent application had originally included a broad claim to a "synthetic gene designed to be highly expressed in plants comprising a DNA sequence encoding an insecticidal protein which is functionally equivalent to a native insecticidal protein of Bt." The patent examiner, concerned about the unpredictability of foreign gene expression, had rejected this claim. The examiner insisted that Mycogen's application could only support a claim to the synthetic Bt toxin gene described in the patent disclosure. Mycogen eventually pursued claims focused on this gene and obtained a patent.
Monsanto's synthetic Bt toxin gene has a nucleotide sequence that differs from Mycogen's claimed nucleotide sequence by about 19 percent. Since Monsanto does not literally infringe the patent claim, Mycogen alleged infringement under the DOE. Monsanto countered by arguing that the patent applicant had narrowed the claims for purposes of patentability, and therefore, prosecution history estoppel prohibited Mycogen from asserting the DOE against Monsanto. At this point, things get tricky.
Prosecution history estoppel should prevent Mycogen from using the DOE to expand its claims to encompass all forms of synthetic Bt toxin genes. After all, the examiner had rejected this broad scope. But what about equivalents lying in the territory between all synthetic Bt toxin genes and the particular claimed synthetic Bt toxin gene?
Rules about the effect of prosecution history estoppel changed several times since Mycogen had first filed its lawsuit. In 2002, the U.S. Supreme Court's Festo Corp. v. Shoketsu opinion established new rules about prosecution history estoppel, and a year later, the Federal Circuit published its interpretation of the Festo decision.
In the Mycogen case, prosecution history estoppel created a presumption that Mycogen's claims 13 and 14 are limited to the specified Bt toxin gene. According to the new rules, Mycogen has three options for overcoming this presumption: (1) show that Monsanto's alleged equivalent gene would have been unforeseeable at the time that Mycogen had narrowed its patent claims; (2) show that the reason for narrowing the claims was not directly relevant to Monsanto's alleged equivalent; or (3) show that there was "some other reason" that Mycogen could not have described the alleged equivalent.
Mycogen tried to rebut the presumption by arguing that Monsanto's synthetic gene had been unforeseeable. Noting that Mycogen had tried to claim all functionally equivalent Bt toxin genes, however, the court declared that Mycogen had foreseen the possibility of an assortment of synthetic Bt toxin genes that included the accused equivalent
gene. This meant that Mycogen did not rebut the presumption on the basis of unforeseeability and could not assert the DOE to expand claim scope to cover Monsanto's gene.
Anyone who owns rights to a patent on a gene or protein should take heed of this case. The decision does not mention evidence that the patent applicants had foreseen Monsanto's Bt toxin gene. Rather, the patent applicants had tried to use a functional description to claim a genus of Bt toxin genes. Yet the court decided that the patent applicants' wishful thinking had rendered Monsanto's particular gene "foreseeable." The Federal Circuit issued its Mycogen decision as an unpublished opinion that may not be cited as precedent. This does not prevent the court from consistently following the Mycogen v. Monsanto reasoning about unforeseeability in future cases.
Selected References
Barton v. Fischhoff v. Adang, Patent Interference No. 103,781. Available at:
http://www.uspto.gov/web/offices/dcom/bpai/bpai.htm.
Festo Corp. v. Shoketsu Kinzoku Kogyo Kabushiki Co., 535 U.S. 722 (2002).
Festo Corp. v. Shoketsu Kinzoku Kogyo Kabushiki Co., 344 F.3d 1359 (Fed. Cir. 2003).
Mycogen Plant Sci. v. Monsanto Co., 2004 U.S. App. LEXIS 3001 (Fed. Cir. Feb 20, 2004).
Phillip B.C. Jones, PhD., J.D.
Spokane, Washington
PhillJones@nasw.org
BOOK REVIEW: CONSEQUENCES OF CROP-WILD HYBRIDIZATION
Allison Snow
Review of N. C. Ellstrand, 2003. Dangerous Liaisons? When Cultivated Plants Mate With Their Wild Relatives. Johns Hopkins University Press. Baltimore & London. 244 pp. Cost (hardcover) $65.00
Norman Ellstrand's new book about hybridization between crops and wild relatives will be of interest to many readers of this newsletter. The book's title is a bit of a mouthful, but its contents are intriguing, informative, and easy to swallow. One of the book's greatest attributes is that it can be understood and appreciated by lay readers and experts alike. With insight, originality, and scholarship, Ellstrand brings together classical and current knowledge about crop genetics, hybridization, and evolutionary ecology in a single, comprehensive treatment. Few academics understand population genetics deeply enough to tackle this job. Even fewer are familiar with empirical studies of both natural and agricultural systems, and none can match Ellstrand's command of how all of these topics apply to
in situ germ-plasm conservation, the recent evolution of new weeds, and risk assessment of genetically engineered crops.
The book focuses on the extent to which crops cross-pollinate with wild relatives and the evolutionary consequences of this process. The first section deftly explains basic principles of population genetics. These chapters are filled with interesting examples of how gene flow, selection, and genetic drift shape the genetic structure of plant populations. Hybridization and the long-term persistence of crop alleles in wild populations are explored in detail. The middle part of the book examines evidence for spontaneous hybridization between domesticated plants and their wild relatives. Ellstrand focuses on the 25 most important
food crops, including tropical species like cassava, cowpea, coconut, and oil palm. Understanding the genetics and reproductive biology of major food plants is useful
for predicting effects of both crop-to-wild and crop-to-crop gene flow.
The third and final part of the book discusses the possible "dangers" of crop-wild mating, with three chapters devoted to genetically engineered crops. Evaluating the consequences of gene flow is much more difficult than showing that it happens. Ellstrand explores these "so what" questions in a very balanced way. To some people, the mere presence of transgenes in other populations represents a type of "genetic pollution." Ellstrand explains why this may be more of a concern to bioethicists and others than to population biologists. His discussion of how crop genes, and transgenes in particular, can have detrimental, neutral, or beneficial effects on genetic diversity is excellentthis section should be required reading for all who wish to understand whether and when specific crops might threaten the biodiversity of local landraces or wild germplasm. He devotes less attention to ecological effects of transgenes, but what is covered is accurate and up-to-date. A final chapter discusses physical and biological options for confining unwanted gene flow.
In summary, this engaging and user-friendly book is a wonderful resource for ongoing biosafety discussions worldwide. It includes hundreds of cited references and a comprehensive index. I highly recommend it for everyone who cares about gene flow issues in agriculture and conservation biology. For more information about the author, see
http://www.facultydirectory.ucr.edu/index.html.
Allison Snow
Ohio State University
snow.1@osu.edu

FAO E-MAIL CONFERENCE: BIOTECHNOLOGY IN FOOD PROCESSING
The FAO Electronic Forum on Biotechnology in Food and Agriculture will host an e-mail conference on biotechnology in food processing in developing countries. The moderated conference is freely open to everyone and runs from 14 June to 9 July 2004. All messages will be placed on the Forum website (http://www.fao.org/biotech/forum.asp). To join the Forum send an e-mail to mailserv@mailserv.fao.org leaving the subject blank and entering the following text on two lines:
subscribe BIOTECH-L
subscribe biotech-room3

ISB News Report
207 Engel Hall
Virginia Tech
Blacksburg, VA 24061
The material in this News Report is compiled by NBIAP's Information Systems for Biotechnology, a joint project of USDA/CSREES and the Virginia Polytechnic Institute and State University. Any opinions, findings, conclusions, or recommendations expressed in this publication are those of the author(s) and do not necessarily reflect the view of the U.S. Department of Agriculture, or Virginia Tech. The News Report may be freely photocopied or otherwise distributed without charge.
ISB welcomes your comments and encourages article submissions. If you have a suitable article relevant to our coverage of the agricultural and environmental applications of genetic engineering, please e-mail it to the Editor for consideration.
Ruth Irwin, Editor (rirwin@vt.edu)
To have the News Report automatically e-mailed to you, send an e-mail message to
news@nbiap.biochem.vt.edu
and type subscribe newsreport [your name] in the message section. Do not include a signature file or additional text. To unsubscribe, send e-mail to news@nbiap.biochem.vt.edu and type unsubscribe newsreport [your name] in the message section, or e-mail isb@vt.edu with your request.
Connect to http://www.isb.vt.edu for internet access to ISB News Reports, textfiles, and databases.
Information Systems for Biotechnology, 207 Engel Hall, Virginia Polytechnic Institute and State University, Blacksburg, VA 24061, tel: 540-231-3747, fax: 540-231-4434, e-mail:
isb@vt.edu