Plant Variety Protection and Royalty Collection in Germany

Meeting of AMSEM on 19.02.2013Klaus Schlünder

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Plant Variety Protection

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Definitions in German PVP Act

BDP/KWS12.02.2013

• Variety distinctive, sufficiently homogeneous and stable collection of plants

• Harvested crops• Propagation material Plants and parts of plants including seeds intended for

the cultivation of plants or other cultivation purposes→ propagation material by nature not fit for other than propagating purposes (e.g. beet seed)→ propagation material by choice also fitting for other purposes (consumption)

• Farm saved seeduse of crops harvested on the own farm as seed

• Placing on the marketsell or offer free of charge or store with a view to offering or selling or making available to others

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Objectives of Plant Variety Protection (PVP)

Re-funding of the plant breeders´ investments Incentive for innovation in plant breeding

Legal basis for licence and multiplication agreements Conferring an injunctive right in case of infringement

Providing access for further research and breeding Basis for an efficient and competitive agriculture

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Yield improvement by active breeding

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Farm Saved Seed (FSS) – Obligations of Processors

Ensure identity of material processed

Notify seed treatment on request of the holder of PVP

Infringements lead to: Preventive injunction / forbearance commitment Claim of damages by holder of PVP

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Farm Saved Seed – Obligations of Farmers

Notify use of FSS on request of the holder of PVP Pay a fee for the use of farm saved seed Small farmers exempted from payment

No FSS if Seed used outside own farm Purchased seed

Infringements lead to: A preventive injunction / forbearance commitment Claim of damages by holder of PVP

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German Seed Association and Structure

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Licencing System for Cereals

50 PVPR owners organized in 14

distribution centres

ca. 250 sub-distribution and

organization companies

ca. 5800 seed multipliers ca. 100 distribution

and organization companies

sale of certified

seed

grants licence for seed multiplication and

distribution

seed multiplication licence pay licence

fee

pay licence fee

deliver basic seed

deliver basic seed

produce certified seed

produce certified seed

BS

notifys amounts of basic seed / certified

seed sold

STVchecks adherence to terms of contract

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Improved certified

seed ratio

Seed Quality

Seed Certification

Organisation/Structure/Agree-

ments

Partners/NetworkCommunication/

PR

Pricing/value for money

Black Market/License Agreement

ComplianceFarm Saved Seed

Strategy to promote certified seed ratio

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STV – founded in 1952

4 staff membersblack market controland license contract

monitoring(Bonn)

7 staff membersfarm saved seedroyalty collection

(Bonn)

7 field staff(Germany)

9 staff membersfarm saved seedroyalty collection

(Gießen)

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• Monitoring of license agreements compliance / Contract development

• Fighting black market• Contract management, withdrawal for own use

• Farm saved seed remuneration collection on behalf of the PVR owners

• Distribution of rebates for purchases of certified seed• Services for the seed industry

- Centralised management of all license agreements

- Individual investigations for breeding companies

- Quality assurance activities for certified seed

Seed sampling

Certification of seed treatment plants (planned)

Core activities of STV

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• Start of Reporting Year• STV drafts an annual budget• Breeders pay their annual contributions on a fiduciary account of

STV (prorata multiplication area or variety turnover)

• STV annual expenses financed from fiduciary accounts• Funds resulting from STV audits and farm saved seed royalty

collection credited to fiduciary accounts

• End of Reporting Year• STV makes account of actual expenses• reimburses breeders contributions• bills actual expenses to breeders• distributes returns on STV audits and farm saved seed royalty

collection to breeders

Funding of STV

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Breeders

Fiduciary account

Cereals

Fiduciary account

Potato

Fiduciary account

Pulses

Fiduciary account

Farm Saved Seed

Black Market & License Agreement Compliance

STV

Farm Saved Seed

Funding of STV

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Collection of Farm Saved Seed Remuneration

Explanatory Note and Farm Saved Seed Notification

Form

Farm Saved Seed Notification Form sent back to STV

Sending of Invoices and Credit Advice

Fee Collection

Notification Reminder

Request for notification sent by lawyer

Filing an action for notification

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April 2013STV sends declaration form and list of varieties concerned to farmers

Sowing in autumn 2012/spring 2013 Cereals, Pulses, Potatoes

June 2013 Farmer sends declaration form to STV

August 2013 STV generates farm saved seed invoices and sends them to farmers

September 2013Farmer pays invoice

June 2014STV distributes collected farm saved seed royalties to breeders

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Example of timelines – collection of FSS-Remuneration

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FSS Remuneration invoiced (Mio. €)(Sttus: 11.02.2013)

0,0

1,0

2,0

3,0

4,0

5,0

6,0

7,0

8,0

9,0

10,0

97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12

8,6

7,68,0

5,7 5,5 5,45,7 5,7 5,5

5,2

5,7

8,18,4 8,4

9,2abgeschlossene WJ

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FSS declaration send (NBE) with evidence (AHP)(Status: 11.02.2013)

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0

10.000

20.000

30.000

40.000

50.000

60.000

70.000

05/06 06/07 07/08 08/09 09/10 10/11 11/12

number

NBE sent without AHP with AHP

number

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Returns of FSS declarations (NBE) with evidence (AHP)(Status: 11.02.2013)

010.00020.00030.00040.00050.00060.00070.00080.00090.000

100.000110.000

05/06 06/07 07/08 08/09 09/10 10/11 11/12

Number

NBE sent without evidence still open with evidence still open

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To farmers allocated processed volumes by STV(Status: 11.02.2013)

20

0

100.000

200.000

300.000

400.000

500.000

600.000

700.000

07/08 09/10 11/12

dt

Cereals of that winter wheat

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Better Regulations

Discussions and possible impacts

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Better Regulations Discussions

Options: delete, sustain, modify

Under the „modify“ scenario:

Horizontal Regulation

Crop specific technical annexes

Harmonisation of DUS

Harmonisation of VCU

Enhanced envolvement of private bodies in certification

Delete exemptions

Improve definitions

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Seed Certification

Marketing

Closure (of bags)

Seed certificate

Quality check

Sample taking

Field inspection

Application / Registration Breeder (MD company)

Official (or private)

(Official or) private

Official (or private accredited labs)

Certification body

Seed trader

Seed processor

to certification body

to breeder, MD, processor

bulk deliveryto farmer

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Thank You very much for your kind attention

BDP/KWS12.02.2013