Intellectual property rights for commercial crops have become in-
creasingly controversial as plant breeders have sought to protect their
investment through licensing and royalties, and farmers, in particular
ecologically-oriented farmers, have promoted seed-saving as a conser-
vation measure. Plant breeders have argued that seed saving reduces
sales to breeders and that the imposition of royalties is necessary to
maintain sales and to compensate them for the intellectual property
invested in commercial varieties. These issues are explored here. In
this paper, an optimal control model of seed purchase decisions in the
presence of seed saving is developed. The model is used to analyze
the impact of both point of sale royalties and end-point royalties on
seed puchase decisions. The two approaches to levying royalties are
then compared and policy conclusions drawn
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