Proceedings of the Fifth Asian Regional Maize Workshop - Search ...
Proceedings of the Fifth Asian Regional Maize Workshop - Search ...
Proceedings of the Fifth Asian Regional Maize Workshop - Search ...
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
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