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Proceedings of the Fifth Asian Regional Maize Workshop - Search ...

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There are at least four basic principles by which <strong>the</strong> private seed sector operates:<br />

1) Breeding and associated technologies must create significant value.<br />

2) Protection <strong>of</strong> <strong>the</strong> products must be possible.<br />

3) Industry must be able to recover added value through adequate pricing.<br />

4) Farmers must significantly benefit if <strong>the</strong>y are to pay higher prices for hybrid seeds.<br />

Table 5. Historical representation <strong>of</strong> seed industry development in developed countries and type<br />

<strong>of</strong> protection available.<br />

Type Of Prolection<br />

Slid Slid CerUnc.Uon Slid Cerllllc.Uon Slid C.rllnc.Uon Slid entille.Uon<br />

CerUllc.Uon Tr.de S'cret T'~d. S.cr,' Tr,de Sicret<br />

.<br />

Trade SICret<br />

PYR PYR Amended PYA<br />

Par.ntl Amended PI,.n"<br />

---<br />

--<br />

Embryonic Growth Meture ProJecled<br />

UnUI 1930 1930-1980 1980-1980 1980-1990 1990'<br />

Creating value<br />

Value creation can be in <strong>the</strong> form <strong>of</strong> cost savings, or extra earnings. For example, if a<br />

variety has a built-in tolerance to insects, it needs minimal or no application <strong>of</strong> expensive<br />

insecticides and <strong>the</strong>refore results in cost savings. The same is true <strong>of</strong> disease resistance. In<br />

<strong>the</strong> case <strong>of</strong> drought tolerant varieties, savings result from decreased costs incurred in irrigation.<br />

An increase in harvestable yield results in extra income to <strong>the</strong> farmer. An increase in<br />

quality traits, such as high oil content or better quality oil, high quality protein (tryptophane<br />

or methionine), or high quality starch, etc. results in higher income to <strong>the</strong> farmer because <strong>of</strong><br />

better prices.<br />

Irrespective <strong>of</strong> whe<strong>the</strong>r <strong>the</strong>re are savings or extra income, both lead to extra value which<br />

has been created through breeding or associated technologies. The magnitude <strong>of</strong> value creation<br />

should eventually be reflected in <strong>the</strong> price at which seed <strong>of</strong> <strong>the</strong> new variety can be sold. This<br />

value-added pricing concept is new in <strong>the</strong> seed industry, but it is rapidly catching on.<br />

Protecting value<br />

In those countries where Intellectual Property Rights (IPR) exist, new plant varieties can<br />

be legally protected. IPR includes trade secrets, plant variety rights (PVR) and patents. The<br />

importance <strong>of</strong> trade secrets has been discussed earlier under "Availability <strong>of</strong> Hybrids". The<br />

essential principles <strong>of</strong> PVR and patents are discussed below.<br />

Plant varieties protected by PVR must comply with internationally recognized criteria for<br />

distinctness, uniformity, stability, and novelty. Two important principles <strong>of</strong> PVR protection are<br />

"breeder's exemption" and "farmer's privilege".<br />

The breeder's exemption clause <strong>of</strong> PVR allows a protected variety to be freely used for<br />

fur<strong>the</strong>r breeding after commercialization by its owner. Partly because <strong>of</strong> <strong>the</strong> advent <strong>of</strong> biotech-<br />

229

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