Ch. 11— Economic Considerations • 253 
requires that data be shared as long as compen- 
sation is offered. The terms of the compensation 
are subject to arbitration if the parties cannot 
agree. The other protection only applies to new 
pesticides (new active ingredients), not to new for- 
mulations of old ingredients. It gives exclusive use 
of the data to the data owner for 10 years unless 
the data owner explicitly agrees to sell the right 
to use the data. 
The Supreme Court recently decided in Ruck- 
elshaus v. Monsanto (26) that these provisions of 
FIFRA are constitutional. For data submitted be- 
fore 1972 or after 1978. there is no expectation 
of a proprietary interest, thus nothing is taken; 
for data submitted between those years, the com- 
pensation and arbitration provision, in combina- 
tion with the Tucker Act, provides adequate com- 
pensation. (See also the Environmental Protection 
Agency's regulations at 40 CFR 1984 ed. 152; 40 
FR 30884.) 
SUMMARY AND 
The total dollar cost of animal acquisition and 
maintenance is directly related to the length of 
time animals stay in the laboratory. With no ac- 
curate source of data on various species’ length 
of stay, it is impossible to calculate the total cost 
of animal use. Analysis of the factors involved in 
the costs of animal acquisition and maintenance 
indicates that a reduction in animal use will be 
accompanied by a reduction in cost— although the 
proportionate savings will be less than the propor- 
tionate decrease in the number of animals used. 
Many of the issues involved with using animals 
in research and testing have economic implica- 
tions, although they do not lend themselves well 
to rigorous quantitative economic analysis be- 
cause many considerations are nonmonetary. A 
highly contested concern, for example, is the 
propriety of using unclaimed pound animals in 
laboratory studies. 
An area of animal use that is of major economic 
importance is biomedical research, which contrib- 
utes to health care through the development of 
drugs, medical devices, diagnostic techniques, and 
surgical procedures. Health care accounts for 
Congress has recognized the important business 
interest in keeping information from competitors, 
but it also supports the public’s “right to know” 
and the Federal Government’s need to know. An 
important barrier to the sharing of confidential 
business information among agencies is the differ- 
ing standards and procedures for handling it. The 
ad hoc interagency Toxic Substances Strategy 
Committee, coordinated by the Council on Envi- 
ronmental Quality, thought it would be necessary 
to pass legislation permitting the sharing of con- 
fidential data between health and environmental 
agencies (32). Such legislation would establish a 
need-to-know standard, require uniform security 
procedures for the data to be shared, impose uni- 
form penalties for disclosure, and provide for 
notification of the data submitted by the data 
holder at least 10 days prior to transfer. 
CONCLUSIONS 
over 10 percent of the Nation’s gross national 
product, or $355 billion in 1983. The results of 
research with animals might also reach the pub- 
lic through patented products. Although data on 
humans may also be required, and although 
nonanimal or in vitro methods are sometimes 
sufficient, many such patent applications use ani- 
mals to show that the invention is useful. 
Another use of animals with economic impor- 
tance is toxicological testing, used to ensure that 
new products are sufficiently safe. One type of 
product for which such testing is of major con- 
sequence to public health is in the development 
of pesticides, which affect virtually all Americans 
through the production and contamination of 
food. The Environmental Protection Agency has 
estimated that 90 percent of all households use 
some pesticide product. 
Whole-animal tests can be far more costly than 
in vitro and nonanimal alternatives, largely be- 
cause they are labor-intensive. The incentives to 
find alternatives to the LD 50 and Draize tests are 
primarily nonmonetary, however, as these tests 
can be performed for $1,000 to $2,000. This is 
