The analysis of transgene silencing effects in plants and other eukaryotic
organisms has revealed novel mechanisms of epigenetic regulation that are b
ased on recognition of nucleic acid sequence homology. These homology-depen
dent gene silencing phenomena are characterized by an inverse relationship
between copy number of a particular sequence and expression levels. Dependi
ng on whether promoter regions or transcribed sequences are repeated, silen
cing occurs at the transcriptional or post-transcriptional level, respectiv
ely. Different silencing effects involving DNA-DNA or RNA-DNA associations
in the nucleus, and RNA-RNA interactions in the cytoplasm appear to reflect
distinct host defense responses to parasitic sequences, including transpos
able elements (TEs), viroids and RNA viruses. Natural epigenetic phenomena
that resemble transgene silencing effects often involve endogenous genes co
mprising recognizable TE sequences or rearrangements generated by TEs and c
an thus be interpreted in terms of host defense systems. A genome defense t
hat inactivates TEs by methylation might have been recruited during evoluti
on to regulate the transcription of plant and vertebrate genes that contain
remnants of TE insertions in promoter regions.