Home     |     About Us     |      Focus Areas     |     Publications     |    Get  Involved    |      Contact Us    |     Donate 

LEGAL ISSUES

Liability Issues Related to Genetically Engineered Organisms

Amit Kumar

The issue under debate is the need to devise specific provisions for liability for damage that may occur by introducing GEOs into the environment.

For almost a decade, the development and commercialization of genetically engineered plant varieties such as Bt cotton have drawn a lot of attention.  While most of the attention has concentrated on the pros and cons of introducing genetically engineered organisms (GEOs) into the environment, little consideration has been given to the potential negative consequences of the introduction of GEOs into the environment.  It is increasingly clear that GEOs will be introduced into the environment, with and without the sanction of the Genetic Engineering Approval Committee (GEAC), as in the case of the Bt cotton illegally planted in Gujarat.  It is therefore imperative to address not only the conditions under which GEOs should be commercialized -  an issue which is still under debate – but also to devise specific provisions concerning liability for damage that may occur as a result of their introduction into the environment.

The basic legal framework governing GEOs (both GE crops and GE food products) in India is the Environment (Protection) Act, 1986.  The Central Government has formulated the rules for the Manufacture, Use, Import, Export and Storage of Hazardous Micro-organisms, Genetically Engineered Organisms or Cells in 1989, that have been effective since 13/9/1993 (the ‘Rules’).  These rules have clubbed the meaning of GEOs with hazardous substances.  So rather than being specifically treated, GEOs are clubbed together with hazardous substances regardless of the specificities associated with GEOs. 

These rules do not address the issue of liability which will have to be governed by the general rules on liability.  The general rules are, however, insufficient to deal with certain kinds of specific environmental damage.  The Bhopal Gas Tragedy is a case in point where existing tort laws proved to be insufficient to deal with the case and led to the development of statutory instruments such as the Public Liability Insurance Act 1991.

Currently, we have general liability rules both at the national and international level except a few specific liability regimes that have been adopted to supplement general rules for hazardous activities such as nuclear energy, the transboundary movement of hazardous wastes or the carriage of oil.  It is necessary to develop separate liability rules for biotechnology because of the specific and novel challenges linked to the introduction of GEOs into the environment.

The introduction of GEOs into the environment can have negative environmental impacts like the dangers linked to the instability of the genetic material and the possibility of further changes in the genetically engineered organisms, the transfer of genes to other organisms and the potential for transgenic varieties to create new weeds leading to the displacement or disappearance of wild species.  A recent study in the UK showed that wildlife suffered damage during field trials of GE sugar beet and spring rape.  The study indicated that the occurrence of fewer weeds may substantially reduce the availability of seeds important in the diets of some birds.  Further, it indicated that these crops may exacerbate long-term decline of flowering weeds, including those that are important as food resources for seed-eating birds.

Other areas where liability issues will arise, is the contamination of organic crops by transgenic seeds.  In such cases, farmers have provided contractual warranties regarding the organic status of their crops.  Due to established standards for organic crops and contractual obligations, the unintended presence of GEOs in organic and GE–free crops may result in lost market opportunities or prevent possible premium rates from being obtained.  Socio-economic concerns also arise where GEOs contribute to displacing existing plants.  Where displaced plants are basic food crops, their disappearance may have negative consequences for the fulfilment of basic food needs.

Property rights like intellectual property rights associated with GEOs, may affect the farmer growing non-transgenic crops on account of patent violation because in practice, GEOs introduced into the environment can find their way beyond field borders into which they have been introduced and their seed may find their way to the lands of farmers who do not grow transgenic crops and therefore do not pay royalties to the company holding the patent.  The patent holder may thus claim for infringement of the patent.  This has already happened in Canada where Monsanto sued a farmer, Percy Schmeiser, for infringement of a patent.  The judgment made it clear that Schmeiser was liable to pay Monsanto whether he was aware of the presence of the protected seeds or not.

Currently, Austria and Germany appear to be the only major countries to have addressed liability issues relating to GEOs through specific legislation.  Both these countries impose strict liability for particular types of loss caused by GEOs.  Under Austrian law, in the event of an accident involving GEOs, the releasing company will be liable for any harm to health, property, or the environment, and must return the property to its “original” state.  German law imposes liability for injury to property or human health “caused by characteristics of an organism created in a biotechnological process”.  German regulations place liability at the “manager” level of the installation, which is likely to expose GE farmers (as installation managers) to liability exposure.  German law also makes liability insurance mandatory for GE operators.

In India too, it would be necessary to develop separate liability rules for GEOs bearing in mind the specific and novel challenges linked to the introduction of GEOs into the environment, escape of GE seeds and ‘contamination’ of non-GE seeds, or failure of containment measures with regard to GEOs.  The right to be “GE-free” is a ‘fundamental right’ that must be preserved as it goes to the heart of the responsibility that farmers have to ensure that their actions do not impact on others.  Strict liability should be imposed on operators for the damage caused by the GEOs.  A compensation fund should be established, paid by levies on the biotechnology industry to provide relief for victims of genetic contamination.  Insurance or assurance bonds should be made compulsory.  The liability regime would need to constantly evolve because of the uncertainties involved in the use of GEOs and be amended to address future scenarios of risk and liability.

×Genenews HomeØ                                                                                                                                               NextØ