Plant Variety Protection and Royalty Collection in Germany

Plant Variety Protection and Royalty Collection in Germany Meeting of AMSEM on 19. 02. 2013 Klaus Schlünder

Plant Variety Protection 2 12. 02. 2013 BDP/KWS

Definitions in German PVP Act • • 3 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 seed use of crops harvested on the own farm as seed • Placing on the market sell or offer free of charge or store with a view to offering or selling or making available to others 12. 02. 2013 BDP/KWS

Objectives of Plant Variety Protection (PVP) l l l 4 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 12. 02. 2013 BDP/KWS

Yield improvement by active breeding 5 12. 02. 2013 BDP/KWS

Farm Saved Seed (FSS) – Obligations of Processors l Ensure identity of material processed l Notify seed treatment on request of the holder of PVP l 6 Infringements lead to: Ø Preventive injunction / forbearance commitment Ø Claim of damages by holder of PVP 12. 02. 2013 BDP/KWS

Farm Saved Seed – Obligations of Farmers l l l 7 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 Ø Seed used outside own farm Ø Purchased seed Infringements lead to: Ø A preventive injunction / forbearance commitment Ø Claim of damages by holder of PVP 12. 02. 2013 BDP/KWS

German Seed Association and Structure 8 12. 02. 2013 BDP/KWS

Licencing System for Cereals 50 PVPR owners organized in 14 distribution centres seed multiplication licence grants licence for seed multiplication and distribution ca. 5800 seed multipliers produce certified seed deliver basic seed ca. 250 subdistribution and organization companies BS deliver basic seed ca. 100 distribution and organization companies pay licence fee notifys amounts of basic seed / certified seed sold sale of certified STV checks adherence to terms of contract 9 12. 02. 2013 BDP/KWS pay licence fee seed

Strategy to promote certified seed ratio Seed Quality Seed Certification Organisation/ Structure/Agreements 10 12. 02. 2013 BDP/KWS Partners/Network Communication/ PR Improved certified seed ratio Farm Saved Seed Pricing/value for money Black Market/ License Agreement Compliance

STV – founded in 1952 11 4 staff members black market control and license contract monitoring (Bonn) 7 staff members farm saved seed royalty collection (Bonn) 7 field staff (Germany) 9 staff members farm saved seed royalty collection (Gießen) 12. 02. 2013 BDP/KWS

Core activities of STV • • • 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 - 12 12. 02. 2013 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) BDP/KWS

Funding of STV • • 13 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 12. 02. 2013 BDP/KWS

Funding of STV Breeders Fiduciary account Cereals Potato Pulses Farm Saved Seed STV Black Market & License Agreement Compliance 14 12. 02. 2013 BDP/KWS Farm Saved Seed

Collection of Farm Saved Seed Remuneration Explanatory Note and Farm Saved Seed Notification Form sent back to STV Sending of Invoices and Credit Advice Fee Collection 15 12. 02. 2013 BDP/KWS Notification Reminder Request for notification sent by lawyer Filing an action for notification

Example of timelines – collection of FSS-Remuneration l l l 16 April 2013 STV sends declaration form and list of varieties concerned to farmers l Sowing in autumn 2012/spring 2013 l 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 2013 Farmer pays invoice June 2014 STV distributes collected farm saved seed royalties to breeders 12. 02. 2013 BDP/KWS

FSS Remuneration invoiced (Mio. €) (Sttus: 11. 02. 2013) 17 17

FSS declaration send (NBE) with evidence (AHP) (Status: 11. 02. 2013) number 18 18

Returns of FSS declarations (NBE) with evidence (AHP) (Status: 11. 02. 2013) 19

To farmers allocated processed volumes by STV (Status: 11. 02. 2013) 20 20

Better Regulations Discussions and possible impacts 21 12. 02. 2013 BDP/KWS

Better Regulations Discussions l Options: delete, sustain, modify l 22 Under the „modify“ scenario: 12. 02. 2013 Ø Horizontal Regulation Ø Crop specific technical annexes Ø Harmonisation of DUS Ø Harmonisation of VCU Ø Enhanced envolvement of private bodies in certification Ø Delete exemptions Ø Improve definitions BDP/KWS

Seed Certification Seed trader Seed processor Closure (of bags) Certification body Seed certificate Official (or private accredited labs) Quality check (Official or) private Sample taking Official (or private) Field inspection Breeder (MD company) 23 Marketing 12. 02. 2013 BDP/KWS Application / Registration bulk delivery to farmer to breeder, MD, processor to certification body

Thank You very much for your kind attention 24 12. 02. 2013 BDP/KWS