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http://www.thinkgene.com/patent-for-a-pig-the-privatization-of-genetic-information/ -
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So, I can't patent a gene itself, but I can patent every known procedural permutation of "a method for diagnosing, identifying, or manipulating a phenotype using gene X." The problem is that I think practically, patenting every known procedure regarding a gene is effectively patenting gene the itself (without actually doing so).
I'm not a legal expert in this by any stretch of the imagination, so additional comments by experts are welcome.