Wrightson taking legal action to sink seed pirates

By Yoke Har Lee

Farm services company Wrightson is taking legal action against seed pirates alleged to be growing, harvesting and selling its proprietary Concord Ryegrass seed.

Wrightson's action is similar to moves by companies such as Microsoft against software pirates copying proprietary products.

The general manager of Wrightson Seeds, Mark Hurley, said seed piracy had to be stopped if the country was to continue to be recognised as a production base for proprietary seeds.

Concorde Ryegrass was being sold at discounted rates on the commercial and black markets in both New Zealand and Australia, he said.

So far, the company's action has led to one out-of-court settlement in the North Island. Other settlements are being pursued.

One legal action has been filed, after Wrightson successfully applied for a court order to seize documents from a company. A hearing date has yet to be set.

Mr Hurley said Wrightson had spent close to $20 million on research and development. Concord Ryegrass was just one example of that investment.

"In recent months, Government ministers, business leaders and prominent researchers have again underlined the urgent need for this country to put more resource and effort into expanding our research and development capability."

This was so New Zealand could move away from being price-taking commodity traders and increase its high-end, value-added offerings on world markets.

Sales of uncertified seed were an industry problem, not just a Wrightson one, as the practice had an impact on all areas of the trade.

Seed pirates, he said, caused contract growers who played by the rules to lose seed production opportunities. The country also lost export returns.

Farmers who planted second-rate seed risked losing both income and production.

Wrightson Seeds, he said, held the right over the Concord Ryegrass cultivar under the Plant Variety Rights Act 1987, and had contracted growers to produce the seed.

"While there is a widely held view that the maximum penalty of $1000 prescribed in the act makes the illegal activity attractive, there is also provision for extensive exemplary damages."

Damages could exceed the maximum penalty by many tens of thousands of dollars.