Members of the [Vermont] House were debating a bill that would make seed manufacturers, not farmers, liable if the seeds cause damage to someone else's land. (See more).

Here the genetically modified farmers are presumed to be doing the damage. However, Coase pointed out the reciprocal nature of these types of problems. After all, there wouldn't be a problem if the organic farmer weren't there.

The real question is what are the transactions costs of agreeing to a solution? Apparently more than the costs of lobbying.