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2014 CIOPORA Chronicle

CIOPORA annual magazine on Intellectual Property protection for plant innovations 2014. Produced in cooperation with FloraCulture International. Read in the 2014 issue: - Innovation bridges gap between tradition and future - Challenges of modern horticulture - IP Solutions for the Future: Creative Barcode - ‘Mission FUTURE’: CIOPORA’s position papers on IP - Enforcement reform: an Australian story - Trademarks and variety denominations - harmonization underway? and more...

CIOPORA annual magazine on Intellectual Property protection for plant innovations 2014. Produced in cooperation with FloraCulture International.

Read in the 2014 issue:
- Innovation bridges gap between tradition and future
- Challenges of modern horticulture
- IP Solutions for the Future: Creative Barcode
- ‘Mission FUTURE’: CIOPORA’s position papers on IP
- Enforcement reform: an Australian story
- Trademarks and variety denominations - harmonization underway?
and more...

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The business magazine for horticultural plant breeding<br />

JUNE <strong>2014</strong><br />

WWW.<strong>CIOPORA</strong>.ORG<br />

<strong>CIOPORA</strong> POSITION<br />

PAPERS ON IP<br />

Interview with Andrea Mansuino<br />

and Dr. Edgar Krieger<br />

IP SOLUTIONS<br />

FOR THE FUTURE<br />

Creative Barcode<br />

MISSION ‘FUTURE’<br />

The best way to predict<br />

future is to create it<br />

(P. Drucker)


Table of Contents<br />

07<br />

Innovation bridges gap<br />

between tradition and future<br />

10<br />

The importance<br />

of being different<br />

12<br />

Challenges of<br />

modern horticulture<br />

16<br />

Crop Sections as<br />

backbone<br />

of the association<br />

20<br />

IP Solutions<br />

for the Future:<br />

Creative Barcode<br />

24<br />

Combatting<br />

online trademark<br />

infringement in<br />

ornamental and<br />

fruit varieties<br />

26<br />

‘Mission FUTURE’:<br />

<strong>CIOPORA</strong>’s position<br />

papers on IP<br />

30<br />

Preparing for<br />

future markets<br />

for major fruits<br />

4 www.FloraCulture.eu | <strong>CIOPORA</strong> <strong>Chronicle</strong> June <strong>2014</strong>


June <strong>2014</strong> <strong>CIOPORA</strong> <strong>Chronicle</strong><br />

33<br />

Poinsettia breeding<br />

is a world of regions<br />

34<br />

Patents - a fruitful<br />

alternative for PVRs?<br />

36<br />

Trademarks and<br />

variety denominations<br />

- harmonisation<br />

underway?<br />

38<br />

Protecting Plant<br />

Variety Rights in<br />

Ukraine<br />

39<br />

Breeding,<br />

imagination and<br />

market vision<br />

40<br />

Enforcement reform:<br />

an Australian story<br />

42<br />

Different Italian<br />

routes against<br />

counterfeiters<br />

44<br />

Ecuador: changes<br />

are in the works<br />

46<br />

Growers’ perspective<br />

on the role of<br />

effective IP protection<br />

48<br />

Productive IP debate<br />

in realm of flowers<br />

<strong>CIOPORA</strong> <strong>Chronicle</strong> June <strong>2014</strong> | www.FloraCulture.eu 5


<strong>CIOPORA</strong> Members<br />

Aris®<br />

BallFloraPlant<br />

0-C, 91-M, 76-Y, 0-K (red) 100-C, 0-M, 91-Y, 6-K (green)<br />

Beijing Hengda<br />

CADAMON<br />

Deutschland<br />

E.G. Hill co. inc<br />

Become a member of <strong>CIOPORA</strong><br />

<strong>CIOPORA</strong> is an international, non-governmental organisation<br />

representing the interests of breeders of asexually reproduced<br />

ornamental and fruit varieties worldwide. <strong>CIOPORA</strong> has currently<br />

117 members including individual breeders, breeding companies, IP<br />

lawyers and royalty administration services. Top priority of <strong>CIOPORA</strong><br />

is the constant development and enhancement of systems of Intellectual<br />

Property Protection for plant innovation, which include Plant Breeders’<br />

Rights, Patents, Plant Patents and Trademarks. <strong>CIOPORA</strong> acts as a<br />

strong voice of the industry in regard of IP protection. The association<br />

enjoys the observer status at the Community Plant Variety Office<br />

(CPVO) and the International Union for the Protection of New<br />

Varieties of Plants (UPOV).<br />

The Board invites you to join <strong>CIOPORA</strong>’s global member community.<br />

The persons eligible for membership are defined in the <strong>CIOPORA</strong>’s<br />

bylaws. Each member candidacy is subject to approval by the<br />

<strong>CIOPORA</strong> Board.<br />

More information about membership: www.ciopora.org.<br />

Contact us: info@ciopora.org<br />

Tel: +49 (0)40-555-63-702 or Fax: +49 (0)40-555-63-703<br />

6 www.FloraCulture.eu | <strong>CIOPORA</strong> <strong>Chronicle</strong> June <strong>2014</strong>


From the President<br />

Innovation bridges<br />

gap between<br />

tradition and future<br />

Andrea Mansuino.<br />

This year, the Ciopora <strong>Chronicle</strong> features Alice in Wonderland on its front cover. You may ask<br />

why?<br />

Named after the young protagonist of Lewis Carroll’s book, the Alice-in-Wonderland syndrome<br />

is a disorienting condition that affects human perception. Sufferers may experience size distortion of<br />

other sensory modalities that make them believe that the world around them is bigger than reality.<br />

We, breeders, seem to suffer from this syndrome sometimes. We dream with our eyes wide open, we watch<br />

reality and see it differently, often bigger or more colourful. We have visions and work hard to make<br />

them a reality, sometimes only with our imagination to guide us.<br />

<strong>CIOPORA</strong> was founded in 1961 in Geneva. I am proud to say that my father co-signed the bylaws<br />

that established the specific rules of guidance by which the newly formed association was to<br />

function. I am equally proud to be the fourth generation of the Mansuino family of plant breeders<br />

who have worked tirelessly for decades developing innovation, with an inexhaustible passion<br />

and drive. I fully agree that breeding, propagating, growing and trading flowers is a business.<br />

But innovation, in whatever business and area of human interest, cannot only be motivated by<br />

economic targets. As there cannot be economic development without research and innovation,<br />

I believe that there cannot be innovation without a vision, without inspiration, passion, culture,<br />

tradition, emotions, intelligence, and love.<br />

Innovation has its roots in tradition, because it changes what already exists into something new<br />

and, possibly, something better. Innovation looks into the future, because it only takes shape after<br />

the creator has developed a clear vision, and worked hard in order to make it real.<br />

I vividly remember how enthused my father, aunts and great-uncle were about new colours and<br />

flower shapes, showing me black and white pictures of new carnations and small-flowered roses<br />

that boasted much more colour than the best 3D screen images of today.<br />

I was a child, but from that moment on I had decided that my destiny was to follow in my family’s<br />

footsteps, to keep dreaming and working for dreams to come true.<br />

Times have changed. For today's plant breeding is not about beauty alone. The breeders are also<br />

interested to know whether a new variety can be considered clearly distinguishable from another<br />

one, thus deserving own protection even if the colour on the back of a leaf is somewhat greener or<br />

thorns are slightly more curved. Nowadays, innovation consists of snatching away a gene from a<br />

cabbage and plugging it into a daisy.<br />

Have times really changed? Maybe not. Ornamental plant breeding continues to be a world of<br />

highly visionary entrepreneurs. Still, many breeding companies (whether small or big) do believe<br />

that innovation is the expression of a vision and needs to be rewarded and protected.<br />

There is a reason why children at school still study history. Because they learn how to shape their<br />

future thanks to experiences and visions of their ancestors.<br />

>>><br />

<strong>CIOPORA</strong> <strong>Chronicle</strong> June <strong>2014</strong> | www.FloraCulture.eu 7


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From the President<br />

Breeder’s meeting at Sanremo-based<br />

Mansuino Nurseries. The year was 1956.<br />

Left to right: Harry Wheatcroft (Wheatcroft<br />

Roses, UK), Vittorio Barni ( Rose Barni,<br />

Italia), Quinto Mansuino (Mansuino Rose,<br />

Italia), Gene Boerner (Jackson & Perkins<br />

Roses, U.S.A.), Ada Mansuino (Mansuino Rose,<br />

Italia), Domenico Aicardi (Rose Aicardi,<br />

Italia), Alain Meilland (Meilland International,<br />

France). Photo credits: from the Mansuino<br />

private photograph collection.<br />

There is also a reason why <strong>CIOPORA</strong> today advocates for a better protection for innovation, and<br />

for a deeper respect for those who have really improved the world of plants and continue to do<br />

so. Inside our association we have been discussing and debating for years now, the importance<br />

of granting a strong protection to innovative varieties, and also about the need to create a fair<br />

environment for those who are granted a protection title for their new varieties, and obviously want<br />

to exploit their rights and enforce them against piracy and plagiarism.<br />

As we will read in this fifth edition of the <strong>CIOPORA</strong> CHRONICLE, our recently held Annual<br />

General Meeting in The Hague, was a very important and extremely successful one. For four days,<br />

our members exchanged ideas and research findings while participating in IP workshops and in<br />

the full audience session about innovation, its effective protection, progress and vision.<br />

A survey made by an external advisor has outlined weaknesses and strengths of <strong>CIOPORA</strong>, and<br />

this has been the basis for discussion on where we want to see our organisation in five years from<br />

now. Constructive criticism will carry productive consequences, and we will all work together to<br />

improve our ‘family’.<br />

The debate on the new position of <strong>CIOPORA</strong> on Intellectual Property has brought significant<br />

results, and members have agreed on <strong>CIOPORA</strong>’s position, including many fundamental aspects<br />

for a better protection of innovation. The new <strong>CIOPORA</strong> Board will now include members from<br />

Europe, the USA and Oceania with a very well balanced composition that covers many countries<br />

and many different fruit and ornamental crops. I am very positive about the future of <strong>CIOPORA</strong>.<br />

We have made big steps towards the future, without forgetting tradition.<br />

In a way, today’s <strong>CIOPORA</strong> is like its breeder members, deeply rooted in tradition and with a clear<br />

vision for the future. We all agree that innovation bridges the gap between tradition and future!<br />

Not only Alice but also <strong>CIOPORA</strong> and the breeders’ community as a whole share the same<br />

syndrome. We see the world around us as bigger, more colourful and more promising. A vision<br />

where, in the future, innovation will be stimulated by a system of rewards and a safe environment<br />

for our rights.<br />

<strong>CIOPORA</strong> <strong>Chronicle</strong> June <strong>2014</strong> | www.FloraCulture.eu 9


Opinion<br />

The importance<br />

of innovative<br />

breeding, not only<br />

for horticulture but<br />

also for the society<br />

at large cannot be<br />

stressed enough.<br />

The importance<br />

of being different<br />

by Jaap N. Kras<br />

Seen from the commercial<br />

viewpoint, the urge to differentiate<br />

yourself and your<br />

products in the marketplace has<br />

grown tremendously. Western<br />

markets are showing market saturation<br />

in ornamentals, so the pressure<br />

to reinvent flower shops and garden<br />

centres increases. Meanwhile,<br />

consumers have lost their taste for<br />

fresh fruits, urging fruit growers to<br />

promote consumption by bringing<br />

new and different varieties onto the<br />

market.<br />

Main message<br />

Over the past decades, we have<br />

learned that there are basically two<br />

methods of selling your product:<br />

being cheaper than your competitor<br />

or being unique. For years, the<br />

pressure of competition forced<br />

growers to produce larger volumes<br />

for a cheaper price with a major<br />

focus on efficient production.<br />

As a result, breeders launched<br />

new varieties that featured a faster<br />

growth and higher yield per m².<br />

There are many examples, but a<br />

quick look at the current range of<br />

available tulips, Gerberas, roses,<br />

Chrysanthemums and even<br />

Phalaenopsis is sufficient to<br />

demonstrate this tendency.<br />

Higher productivity is the<br />

ornamental breeding industry’s<br />

motto. But the truth is that while<br />

increasing labour costs will force<br />

the industry to further automatise,<br />

growers in general are no longer<br />

able to produce more and at lower<br />

costs. Being different is the main<br />

message for the future.<br />

Reviving crops<br />

When the life cycle of a product<br />

comes to an end, new products<br />

have to be introduced, whether it is<br />

new challenging crops or improved<br />

varieties of already existing cash<br />

crops. The success of Hydrangea,<br />

Ranunculus and Phaleanopsis<br />

over the last decades is a perfect<br />

Rose breeders perfectly understand the importance of being different<br />

(Photo credits: Roses Forever).<br />

example of how growers successfully<br />

introduced new crops, how<br />

varieties constantly change and<br />

revive the existing rose, tulip, lily<br />

and Chrysanthemum industries.<br />

Currently, we are blessed with an<br />

enormously wide range of products<br />

with plenty of new crops making<br />

us stand out among our competitors.<br />

To stimulate professional<br />

breeding, the breeders should be<br />

offered a reasonable return on<br />

investment. Individual breeders<br />

are often family-based, small to<br />

medium sized companies with little<br />

influence on governmental and<br />

institutional decisions from the EU<br />

or the UPOV. So the cooperation of<br />

breeders in industry associations is<br />

necessary to provide guarantees for<br />

the future.<br />

<strong>CIOPORA</strong> in search<br />

of answers<br />

At the beginning of April, I had the<br />

honour to visit <strong>CIOPORA</strong>’s Annual<br />

General Meeting in The Hague,<br />

the Netherlands. Two topics on<br />

the agenda of the <strong>CIOPORA</strong> IP<br />

Workshops caught my attention:<br />

EDV and Minimum distances.<br />

The questions that arose during<br />

the course of the discussion on<br />

these topics included: When do we<br />

have a new variety and does this<br />

new variety fall under the scope of<br />

protection of an existing variety?<br />

In my opinion, both subjects are<br />

two different angles of the same<br />

problem that should have been<br />

solved when the UPOV convention<br />

on Plant Breeders’ Right was signed<br />

in 1961. A third subject on the<br />

agenda was the ‘exhaustion’, since<br />

in certain situations exhaustion can<br />

be a threat for the breeder.<br />

Wider distance<br />

between varieties<br />

A wider distance between varieties<br />

is the general answer. Often people<br />

give the example of a grower who<br />

accidentally has found a mutant in<br />

his flower bed or greenhouse. The<br />

saying goes as follows: a grower purchases<br />

starting material of a protected<br />

variety, pays the royalty fee and<br />

drives home to grow flowers. After<br />

planting he comes across a mutant.<br />

He can now apply for a new PBR<br />

10 www.FloraCulture.eu | <strong>CIOPORA</strong> <strong>Chronicle</strong> June <strong>2014</strong>


on this mutant without having<br />

to do anything else, but realising<br />

that a new mutant is an improvement<br />

and has a commercial value.<br />

The breeders claim this mutant<br />

should fall under the rights of the<br />

original title owner. If we widen the<br />

minimum distances between varieties,<br />

most mutants will fall under<br />

the right of the original applicant.<br />

Indeed, this happens sometimes<br />

and such mutants cause problems.<br />

But other breeders are worse.<br />

EDV<br />

What does history teach us? As<br />

soon as a breeder introduces a new,<br />

original and commercially successful<br />

variety, many other breeders<br />

jump on the band wagon and, with<br />

the breeders exemption in their<br />

hand, start breeding with this new<br />

variety in order to create a very close<br />

‘relative’ of the already successfully<br />

introduced variety.<br />

To close this gap, the 1991 act of<br />

UPOV introduced the concept of<br />

EDV - a horse behind the carriage.<br />

Indeed, you can have a new PBR<br />

on that variety, but as your variety<br />

is essentially derived from another,<br />

already protected variety, you still<br />

need the permission of the title<br />

holder of the initial variety. My<br />

answer is that EDV is an impractical<br />

classroom solution. First, we had<br />

one problem: is the new variety<br />

different enough to grant the<br />

variety a new PBR? EDV doubles<br />

this problem: not only do we have a<br />

new variety, but the next question<br />

is whether this new variety is essentially<br />

derived from an existing<br />

variety?<br />

It’s time to develop a system<br />

that will help us to accept wider<br />

distances between varieties. EDV<br />

makes the problem, which UPOV<br />

tried to solve with the introduction<br />

of it, twice as big.<br />

There are more strange rules in the area of Plant Variety<br />

Rights. First, included in the text of the Convention<br />

and in the laws is a rule that also stipulates that existing<br />

varieties can be protected by a PBR as long as they are<br />

not commonly known. Then, this stupidity is rectified<br />

by making an even more questionable rule. Plant<br />

Breeders’ Rights can only be granted to those, who have<br />

performed breeders’ activities.<br />

Where does it all end?<br />

The general meeting of <strong>CIOPORA</strong> adopted a paper on<br />

Minimum Distance that gives hope that this neverending<br />

discussion might end: sufficient minimum<br />

distances between varieties, clear distinguishability,<br />

which implies a sufficiently broad distance between two<br />

varieties in regard to their important characteristics for<br />

the crop in question. |||<br />

About the author<br />

Jaap Kras is an industry veteran and owner<br />

and publisher of FloraCulture International.<br />

www.fides.nl


Opinion<br />

It is no secret that<br />

since the Industrial<br />

Revolution our world<br />

has been changing<br />

rapidly, constantly<br />

challenging the<br />

society and the<br />

world economy to<br />

swiftly adapt to the<br />

new circumstances<br />

and the latest<br />

technology. This has<br />

been an evolutionary<br />

process: those who<br />

remained ignorant<br />

to the persistent<br />

ticking of the clock,<br />

those who failed<br />

to recognise new<br />

opportunities and<br />

to metamorphose<br />

in accordance<br />

to the changing<br />

environment,<br />

often found<br />

themselves outrun<br />

by the time and<br />

the system. Today<br />

is no exception<br />

as our digitalised,<br />

urbanised,<br />

globalised and a<br />

somewhat greener<br />

society unfolds<br />

itself before our<br />

eyes. The Ciopora<br />

<strong>Chronicle</strong> asked four<br />

horticultural experts<br />

to share their views<br />

on how the latest<br />

tendencies of the<br />

social and economic<br />

development are<br />

affecting the green<br />

sector and how<br />

it should react<br />

to the changing<br />

circumstances.<br />

Challenges of<br />

modern horticulture<br />

Stepping up to the challenge of digital<br />

Most breeders today maintain<br />

a website, but miss out on the<br />

opportunity to effectively use<br />

the internet for their marketing<br />

activities. Many websites<br />

are poorly structured and<br />

outdated. In a world where<br />

people rely on the internet for<br />

information, there is an urgent<br />

need for breeders to step up<br />

their online game in order to<br />

stay competitive and gain a<br />

better understanding of their<br />

customers’ preferences.<br />

Social media<br />

isn’t the solution<br />

Many companies turn to social<br />

media in order to inform potential<br />

clients about their products. A recent<br />

report (E-commerce Quarterly<br />

EQ4 2013 by Monetate) on the<br />

usefulness of social media states that<br />

social media are not effective for<br />

business-to-business (B2B) promotional<br />

activities. When professionals<br />

are looking for products online,<br />

they start at Google.com (or another<br />

search engine), rather than passively<br />

checking Facebook updates.<br />

by Pieter Kroese<br />

Overview of product interest from buyers of the Russian Federation<br />

(April <strong>2014</strong>). Individual percentages reflect total percentage of inbound<br />

search from the Russian Federation on FlorAccess.com<br />

Measuring search<br />

behaviour leads to<br />

insights<br />

If you knew what your potential<br />

clients are looking for, wouldn’t<br />

that create valuable insights for<br />

your business? Wouldn’t it be<br />

wonderful to see how interested the<br />

Turkish or UK market is in your<br />

new creations? What would really<br />

benefit the horticulture industry is<br />

to collaborate and create a common<br />

platform: a central place on the<br />

internet where everyone’s assortment<br />

can be found and that could<br />

be used to aggregate and analyse<br />

search behaviour. Such a platform<br />

captures more data than individual<br />

websites simply because it offers<br />

a much wider assortment.<br />

Subsequently it allows you to<br />

understand what your customers<br />

are looking for.<br />

It’s already happening…<br />

We have developed FlorAccess.com<br />

with the sole goal to bridge exactly<br />

this gap for the floriculture supply<br />

chain. It informs buyers from<br />

around the world about assortment,<br />

availability and source. It is<br />

independent and allows all parties<br />

throughout the supply chain to<br />

inform the market about their<br />

products, novelties and availability.<br />

It produces and distributes<br />

12 www.FloraCulture.eu | <strong>CIOPORA</strong> <strong>Chronicle</strong> June <strong>2014</strong>


Making sustainability a reality<br />

information about product<br />

preferences in all the corners<br />

of the globe based on search<br />

behaviour, which facilitates<br />

the B2B chain in assessing<br />

where to direct marketing and<br />

logistical activities.<br />

Get valuable<br />

information to boost<br />

your business<br />

So once we understand what<br />

people are looking for, how will<br />

this benefit the industry? Just<br />

think of the amount of time<br />

and money spent on product<br />

development in horticulture.<br />

There are few industries where<br />

product development is still<br />

so disconnected from a true<br />

understanding of the demand.<br />

The internet can’t shorten the<br />

cycle of product development,<br />

but it can provide valuable<br />

customer input along the way<br />

and accelerate introduction<br />

of new varieties by informing<br />

the right channels at the right<br />

time. When used effectively,<br />

this is how floriculture companies<br />

can use the internet to<br />

adapt to their rapidly changing<br />

environment. |||<br />

About the author<br />

Pieter Kroese is managing<br />

director of FlorAccess.com.<br />

Before becoming involved<br />

with FlorAccess in 2012, Pieter<br />

had held various strategic<br />

management positions and had<br />

been active in both the fruit<br />

& vegetables and floriculture<br />

industries.<br />

Plants are good for the<br />

environment. They play a crucial<br />

role in the functioning of our<br />

world and, rather than causing<br />

environmental problems, are<br />

one of the key weapons in the<br />

battle against global warming<br />

and many more of the worlds’<br />

problems. With this huge benefit<br />

on the side of the industry it<br />

becomes even more important<br />

to ensure plant production<br />

measures up to ever increasing<br />

sustainability standards.<br />

Expectations come from NGO<br />

campaigners, retailers, legislation,<br />

certification schemes and business<br />

corporate responsibility. Key challenges<br />

relate to the management of<br />

scarce resources and the avoidance<br />

of environmental pollution. Specific<br />

challenges vary between countries<br />

and continents.<br />

Water<br />

For many countries the scarcity<br />

of water, possibly linked with<br />

climate change or other practices,<br />

is a significant challenge that<br />

could lead to some areas being<br />

unable to produce crops as ‘higher<br />

priority’ users take precedence. The<br />

need for production to be water<br />

efficient, without costing so much<br />

that it reduces viability, is a major<br />

challenge for many producers as is<br />

the threat of water restrictions on<br />

the end customer.<br />

by Tim Briercliffe<br />

Growing media<br />

The industry is also frequently<br />

questioned on its use of other<br />

natural resources. The sustainability<br />

of growing media and the<br />

environmental concerns associated<br />

with the use of peat is a challenge<br />

for some countries, whereas others<br />

are forced to find alternative energy<br />

sources as the cost of fuel for<br />

heating, and transport makes heated<br />

glasshouse production in some<br />

countries uneconomic.<br />

Crop protection<br />

Tighter regulatory environmental<br />

controls worldwide are also reducing<br />

the availability of pesticides. The<br />

maintenance of a robust crop<br />

protection armory is critical for<br />

growers so the challenge of quality<br />

crop production with minimal use<br />

of pesticides is a reality now that<br />

will only get tougher.<br />

With an increase in the global<br />

trade in plants many countries<br />

are becoming more aware of the<br />

threats posed by imported pests and<br />

diseases as well as non-native plant<br />

species. The industry must take a<br />

responsible approach here, ensuring<br />

only the movement of plants that<br />

do not introduce or spread pests and<br />

diseases, to avoid more movement<br />

restrictions in future. Consumers<br />

and governments will not tolerate<br />

a trade that damages its own<br />

environment. Pest Risk Analysis by<br />

some countries can also slow down<br />

the introduction of new plants,<br />

presenting a significant business<br />

challenge to some businesses.<br />

Waste minimisation<br />

Waste minimisation is important<br />

for business productivity but also<br />

has a significant environmental<br />

benefit. How growers deal with this<br />

issue in future is an important area<br />

and includes approaches taken to<br />

plastic plant pots where the ability<br />

to recycle and minimise carbon<br />

footprint will increasingly influence<br />

consumer purchasing behavior.<br />

Opportunities<br />

However, with challenges come<br />

opportunities. Strong environmental<br />

credentials provide business<br />

advantage as demonstrated through<br />

significant global membership of<br />

sustainability-based certification<br />

schemes. Also the benefits of<br />

green planting in urban areas,<br />

as shown through more worldwide<br />

enthusiasm for ‘Green City’<br />

concepts, will also drive this market<br />

in the future. The world needs a<br />

robust plant production industry<br />

and as long as the sector keeps<br />

addressing the challenges faced then<br />

we can all look forward to a future<br />

that is sustainable in every sense.<br />

The AIPH Environment & Plant<br />

Health Committee regularly debates<br />

these issues to find international<br />

solutions. |||<br />

About the author<br />

Tim Briercliffe is Secretary General of<br />

the AIPH, the International Association<br />

of Horticultural Producers.<br />

>>><br />

<strong>CIOPORA</strong> <strong>Chronicle</strong> June <strong>2014</strong> | www.FloraCulture.eu 13


Opinion<br />

Understanding the implications<br />

of the Global Village<br />

Photo credits: Frank Bonnet<br />

Flowers, once seen as a seasonal<br />

product in European markets,<br />

have become an all year round<br />

commoditised product. It is<br />

nowadays standard to harvest a<br />

rose in Kenya today and for it to<br />

be delivered through a complex<br />

logistical network to a customer’s<br />

home almost anywhere in the<br />

world within 24 hours.<br />

The floriculture industry, populated<br />

by a diverse range of businesses<br />

contributing to the overall supply<br />

chain (from breeders, propagators<br />

and growers to shippers, whole<br />

salers, distributors, retailers and<br />

florists), today faces increasing horizontal<br />

and vertical competition in<br />

every part of its value chain due to<br />

globalisation. In particular, the industry<br />

has seen a shift of production<br />

from the developed countries and<br />

the entry of developing countries<br />

into a global trading system over<br />

the past 20 years, resulting in<br />

increasingly interdependent<br />

economies from a macro-economic<br />

perspective. This process has been<br />

accelerated by the rapid development<br />

of and access to international<br />

communications, technology,<br />

freight logistics and marketing. The<br />

recent global recession has further<br />

prompted demand for reduced<br />

prices on the floriculture market –<br />

rather than for reduced quantities.<br />

by Herman de Boon<br />

Trends & challenges in the flower value chain<br />

(CBI Centre for the Promotion of Imports from developing countries).<br />

Michael E. Porter<br />

Concepts, such as those proposed<br />

by Professor Michael E. Porter from<br />

Harvard Business School, suggest<br />

that globalisation is driven by the<br />

need of companies and national<br />

governments to maintain their<br />

market share and competitiveness<br />

through adaptive and innovative<br />

business solutions. There is a lot of<br />

evidence of numerous innovative<br />

responses to the globalisation challenges<br />

today in the fields of plant<br />

breeding, greenhouse technology,<br />

energy and water saving systems,<br />

integrated pest management,<br />

post-harvest management, waste<br />

reduction, sea transport, electronic<br />

sales platforms, distribution hubs,<br />

and supply chain optimisation.<br />

Golden triangle models<br />

‘Public – private sector – people’<br />

models are increasingly demonstrating<br />

significant benefits in the<br />

globalisation of the industry. These<br />

developments, alternatively described<br />

as “golden triangle” models,<br />

are characterised by governments<br />

creating an environment that<br />

enables innovation and knowledge<br />

sharing, with industry recognising<br />

that profitability is linked to social,<br />

environmental and financial<br />

risks and civil society adopting a<br />

monitoring role with respect to<br />

compliance and sustainability.<br />

International organisations such as<br />

<strong>CIOPORA</strong> and Union Fleurs also<br />

positively contribute to globalisation<br />

by bringing together industry<br />

players to address supply chain<br />

issues in a coordinated and precompetitive<br />

way and seeking to<br />

optimise the enabling and regulatory<br />

environment for the benefit of<br />

the value-chain. In this way issues<br />

that were traditionally dealt with on<br />

an individual basis are now brought<br />

into an international arena for<br />

discussion and resolution.<br />

Sustainability<br />

These issues are not limited to<br />

the business environment but<br />

also pertain to the social and<br />

environ mental responsibilities<br />

of the floriculture industry.<br />

Globalisation has improved the<br />

access to information and increased<br />

the demand for sustainably<br />

produced goods. To address the<br />

wider concerns of consumers, civil<br />

society and investors about where<br />

the product comes from, how it<br />

is produced, how people producing<br />

it are treated and what are the<br />

environmental and social impact of<br />

its production and do so in an efficient<br />

and responsible manner, the<br />

sector has pro-actively and increasingly<br />

engaged in coordinated and<br />

transparent schemes such as, most<br />

recently, the Floriculture Sustainability<br />

Initiative (FSI), an innovative<br />

pre-competitive multi-stakeholders<br />

platform.<br />

Opportunities<br />

Globalisation of the floriculture<br />

industry has created numerous<br />

challenges but has equally fostered<br />

many opportunities, including<br />

a greater efficiency in the supply<br />

chain and in the use of natural<br />

resources, income and lifestyle<br />

enhancement in developing<br />

economies, and increased choice<br />

and competitively priced products<br />

for consumers. The entrepreneurial<br />

and innovative capabilities of all industry<br />

players across the floriculture<br />

value-chain will determine how<br />

they are going to meet the challenges<br />

and remain profitable in an<br />

ever increasingly competitive and<br />

global business environment. |||<br />

About the author<br />

Ir. ing. Herman de Boon is president<br />

of Union Fleurs, the International<br />

Flower Trade Association,<br />

since <strong>2014</strong> and chairman of VGB<br />

(Vereniging van Groothandelaren<br />

in Bloemkwekerijproducten),<br />

the Dutch association for the<br />

wholesale trade in flowers and<br />

plants, since 2002.<br />

14 www.FloraCulture.eu | <strong>CIOPORA</strong> <strong>Chronicle</strong> June <strong>2014</strong>


Exploring the urban jungle<br />

In the next 15 years, 60% of the world's<br />

population will be living in cities with<br />

over one million inhabitants. This trend<br />

will severely impact the scope and<br />

manner in which plants are used – and<br />

hence have a profound impact on our<br />

industry as a whole.<br />

The world's population is currently at just<br />

over 7 billion; the projections for the next 40<br />

to 50 years predict that we will be reaching<br />

between 9 and 10 billion before population<br />

growth levels off, or indeed slowly start to<br />

decline. More and more people are already<br />

fleeing the countryside and moving to cities<br />

and urban areas.<br />

Scarce outdoor green areas<br />

In urban areas, space for outdoor green<br />

areas is already scarce – and getting scarcer<br />

still. Full-scale city gardens and parks are<br />

becoming rare – and yet urban developers are<br />

realising that plants and gardens play a vital<br />

role in filtering and sequestering pollutants,<br />

improving urban microclimates, creating and<br />

securing environmental niches for plant and<br />

animal species in urban areas. New ways of<br />

using plants are being implemented: vertical<br />

gardens are all the rage, guerilla gardening<br />

has become a global trend, and breeders are<br />

churning out petite versions of well-known<br />

crops that take up less space and are better<br />

adapted to urban environments.<br />

Urban gardening<br />

Furthermore, all the denizens of urban areas<br />

need sustenance. Instead of trucking fresh<br />

by Garry Grueber<br />

In urban areas, space for outdoor green areas is already scarce – and getting scarcer still<br />

(Photo credits: Garry Grueber).<br />

produce halfway across continents<br />

to feed the hungry hordes of citydwellers,<br />

we are already seeing a<br />

strong trend towards utilitarian<br />

urban gardening, and even urban<br />

agriculture. New cultivation and<br />

lighting methods are transforming<br />

high-rise rooftops, abandoned<br />

factory buildings and derelict<br />

subterranean tunnels into verdant<br />

production greenhouses that provide<br />

truly fresh produce to the urbanites<br />

without the cost and environmental<br />

impact of long-distance transport.<br />

Quality of living<br />

Lastly, we should not forget the vast<br />

impact that plants and green spaces<br />

have on the overall quality of living<br />

in urban environments. Mankind<br />

is, and always will remain, a product<br />

of nature, genetically hardwired<br />

to appreciate and yearn being<br />

surrounded by living things. For our<br />

industry, increasing urbanisation<br />

is not only a challenge, but also a<br />

huge opportunity. Looking forward,<br />

our industry will need to develop<br />

and offer water-wise plant varieties<br />

that will thrive well in the often<br />

hostile urban environment, require<br />

little space, provide year-round<br />

interest and uses. Our combined<br />

knowledge and expertise in growing<br />

and breeding plants will be more<br />

important than ever in tomorrow's<br />

increasingly urbanised world. |||<br />

More and more<br />

people are<br />

already fleeing<br />

the countryside<br />

and moving to<br />

cities and urban<br />

areas (Photo<br />

credits: Garry<br />

Grueber).<br />

About the author<br />

Garry Grueber has been involved in product development<br />

for over three decades. He has worked closely with many<br />

breeders from around the world, and has been involved<br />

in the successful introduction of many new product lines,<br />

varieties and marketing concepts over the years. He is<br />

now a managing partner in Cultivaris North America LLC<br />

and Global Breadfruit.<br />

<strong>CIOPORA</strong> <strong>Chronicle</strong> June <strong>2014</strong> | www.FloraCulture.eu 15


Voices of the industry<br />

<strong>CIOPORA</strong> unites<br />

breeders of many<br />

different plant<br />

varieties, both in<br />

ornamentals and<br />

fruits. In order to<br />

achieve a better<br />

IP protection<br />

for breeders’<br />

innovations, it is<br />

necessary to listen<br />

out to all of the<br />

voices among their<br />

ranks. The <strong>CIOPORA</strong><br />

Crop Sections<br />

are the groups of<br />

like-minded plant<br />

breeders who, in<br />

spite of competition,<br />

come together to<br />

discuss the most<br />

persisting problems<br />

in their crops,<br />

including cut roses,<br />

Gypsophila, pot<br />

plants, carnation and<br />

fruits. It is hardly<br />

surprising that the<br />

Crop Sections form<br />

the backbone of<br />

<strong>CIOPORA</strong>.<br />

Crop Sections as backbone<br />

of the association<br />

<strong>CIOPORA</strong> Crop Section Gypsophila<br />

is going strong<br />

Established at the association’s<br />

AGM 2013 in Angers, France, the<br />

Crop Section Gypsophila is the<br />

newest addition to the Ciopora<br />

family.<br />

Gypsophila paniculata is a species<br />

of flowering plant of the Caryophyllaceae<br />

family, native to central and<br />

Eastern Europe. It is a herbaceous<br />

perennial with lots of branching<br />

stems covered in clouds of tiny<br />

white flowers in summer. Due to its<br />

gentle and airy look the crop is commonly<br />

referred to as ‘baby's breath’.<br />

Thanks to the outstanding<br />

performance of modern varieties,<br />

Gypsophila is an important crop<br />

for growers, wholesalers and florists<br />

alike. It is impossible to imagine<br />

contemporary floral designs and<br />

bouquets without this marvellous<br />

flower.<br />

Key issues<br />

The Ciopora Crop Section<br />

Gypsophila represents six companies<br />

from the Netherlands, Israel,<br />

by Ingrid Slangen<br />

Gypsophila flowers (Photo credits: Selecta Klemm).<br />

Japan, Spain/Germany and the<br />

USA/Colombia that are active in<br />

breeding and worldwide distribution<br />

of Gypsophila varieties. They<br />

decided to join forces to discuss<br />

and handle the topics of common<br />

interest. Since the foundation of<br />

the group a year ago, four meetings<br />

have been held in France, Colombia<br />

and in the Netherlands, which<br />

shows the need within the industry<br />

to exchange ideas and to discuss<br />

key issues, such as the tremendous<br />

increase of PBR fees in Ecuador or<br />

the illegal propagation of Gypsophila<br />

varieties in different countries.<br />

Genetic database<br />

As its first major project, the group<br />

decided to set up a genetic database<br />

for Gypsophila varieties. The core<br />

purpose of such a database is to<br />

have a tool to identify varieties and<br />

thus to stop illegal production and<br />

propagation of varieties owned or<br />

sold by the group members. Five<br />

of the six group members will<br />

participate in the project and are<br />

ready to hand in their varieties to be<br />

analysed. After a detailed discussion<br />

within the group, members chose<br />

the Dutch institute Naktuinbouw<br />

to carry out the genetic analysis.<br />

16 www.FloraCulture.eu | <strong>CIOPORA</strong> <strong>Chronicle</strong> June <strong>2014</strong>


Crop Section Fruit offers members<br />

many benefits<br />

The Crop Section Fruit has grown<br />

substantially over the past years;<br />

it now covers many countries<br />

worldwide, which makes the<br />

Section a valuable source of<br />

information for its members.<br />

During the last meeting of the<br />

Section in March <strong>2014</strong> in The<br />

Hague, some final questions<br />

were discussed together with a<br />

representative of Naktuinbouw,<br />

and the project can soon be<br />

given the go-ahead. The set-up<br />

of the DNA database is definitely<br />

a significant milestone<br />

for the breeders and distributors<br />

of Gypsophila varieties,<br />

but there will certainly follow<br />

further valuable discussions<br />

and important projects useful<br />

for the group and the whole<br />

flower industry.<br />

For more information on<br />

the work of the Crop Section<br />

Gypsophila please contact<br />

the <strong>CIOPORA</strong> Office. |||<br />

About the author<br />

Ingrid Slangen has been<br />

working for Selecta Klemm<br />

since 2005. As the head of the<br />

department “IP and Marketing”<br />

she is responsible for all<br />

questions around Intellectual<br />

Property and together with<br />

her team she takes care of<br />

the worldwide protection and<br />

licensing of a wide range of<br />

Selecta’s bed and balcony<br />

varieties, poinsettias and<br />

cut flowers as well as of<br />

trademarks and patents.<br />

Ingrid is the Chairwoman and<br />

the founder of the <strong>CIOPORA</strong><br />

Crop Section Gypsophila.<br />

A major topic within the <strong>CIOPORA</strong><br />

Crop Section Fruit is the enforcement<br />

of Plant Variety Rights<br />

(PVRs). Depending on a crop, this<br />

can take on many different forms.<br />

Grape breeders, for example, face a<br />

lot of problems due to illegal propagation,<br />

so they are very proactive in<br />

tracking down the illegal plants and<br />

grapes in a multitude of countries.<br />

Not only have they shared their<br />

experiences with different enforcement<br />

procedures within the Fruit<br />

Section, they are now also taking<br />

it a step further by developing a<br />

platform for information sharing in<br />

order to facilitate the identification<br />

of infringements on each other’s<br />

varieties.<br />

Variety identification<br />

A quick and sufficient variety identification<br />

is a major challenge for all<br />

fruit crops, since comparative trials<br />

may take many years. So there is a<br />

keen interest amongst the members<br />

to develop protocols that allow<br />

identification by DNA analysis,<br />

not only in view of enforcement of<br />

Plant Variety Rights, but also to<br />

by An Van den Putte<br />

Photo credits: Better3Fruit.<br />

identify essentially derived varieties,<br />

i.e. mutants.<br />

By developing a joint protocol that<br />

is agreed upon by many breeders,<br />

we hope to increase the credibility<br />

of these techniques. The berry<br />

bree ders, for example, are currently<br />

running a pilot project, which will<br />

be extended to other crops in due<br />

course. A valuable addition in this<br />

respect is the experience of the ornamental<br />

breeders within <strong>CIOPORA</strong>,<br />

as well as the work done by the<br />

<strong>CIOPORA</strong> Working Group<br />

Molecular Techniques.<br />

Knowledge sharing<br />

Apart from these concrete joint<br />

projects, the Crop Section Fruit also<br />

provides its members with more<br />

informal benefits. The members,<br />

even though they are competitors,<br />

are eager to share their knowledge<br />

and experience in obtaining and<br />

maintaining IP rights. This can<br />

be about the practicalities of DUS<br />

trials, quarantine restrictions, issues<br />

with novelty and denominations,<br />

finding a local contact or attorney,<br />

trademarks and the do’s and don’ts<br />

of licensing.<br />

UPOV<br />

<strong>CIOPORA</strong> not only lobbies for<br />

improved and stronger IP rights,<br />

but also focuses on improving the<br />

implementation of the current PVR<br />

regulations.<br />

Thanks to <strong>CIOPORA</strong>’s observer<br />

status in UPOV, a representative of<br />

the <strong>CIOPORA</strong> Crop Section Fruit<br />

can attend the UPOV and CPVO<br />

technical meetings concerning fruit.<br />

This means that the voice of the<br />

breeders is being heard on concrete<br />

issues, such as cost of the DUS<br />

examination, sanitary requirements<br />

for the samples supplied, revision of<br />

technical protocols and guidelines,<br />

and many others topics.<br />

Since the members demonstrated a<br />

growing interest in increasing the<br />

activities of the Crop Section Fruit,<br />

the Section will now, in addition<br />

to the regular meeting during<br />

the <strong>CIOPORA</strong> AGM Week, also<br />

convene during the Fruit Logistica<br />

trade show in Berlin. Companies<br />

who are considering membership<br />

in <strong>CIOPORA</strong> are welcome to attend<br />

this meeting (feel free to contact the<br />

<strong>CIOPORA</strong> Office for details). |||<br />

About the author<br />

An Van den Putte started working for<br />

Better3fruit in 2003 as a researcher;<br />

soon thereafter she took up the<br />

position of Intellectual Property<br />

manager. An handles the worldwide<br />

protection of Better3fruit’s apple and<br />

pear varieties through Plant Variety<br />

Rights, Patents and Trademarks. Her<br />

responsibilities also include enabling<br />

worldwide testing and supporting<br />

Better3fruit’s licensees. She is chair<br />

of the <strong>CIOPORA</strong> Crop Section Fruit.<br />

>>><br />

<strong>CIOPORA</strong> <strong>Chronicle</strong> June <strong>2014</strong> | www.FloraCulture.eu 17


Voices of the industry<br />

Tackling the thorny issues<br />

The International Rose Breeders<br />

Association (IRBA) was founded<br />

in October 1989. It will celebrate<br />

its silver jubilee at the <strong>2014</strong> IFTF<br />

show, which will be held from<br />

November 5 to 7 in Vijfhuizen,<br />

the Netherlands.<br />

IRBA currently has 15 active<br />

member breeders of cut-roses. As<br />

the association had been working<br />

closely with <strong>CIOPORA</strong> regarding<br />

many PBR cut rose issues, it was<br />

decided at the IRBA meeting in<br />

Nice 2005, to join Ciopora as a crop<br />

section which today is known as the<br />

<strong>CIOPORA</strong> Crop Section Cut Rose.<br />

This ‘joint venture’ has strengthened<br />

the ties between both organisations,<br />

resulting in a more productive collaboration<br />

on important PBR issues.<br />

Ecuador<br />

There are different key PBR issues<br />

affecting the rose industry. Ecuador,<br />

for example, has become<br />

a problem for breeders; especially<br />

regarding their annual maintenance<br />

fees for PBR titles.<br />

The country has been imposing the<br />

highest fees for the registration and<br />

maintenance of PBR of any of the<br />

main rose exporting countries. By<br />

teaming up with <strong>CIOPORA</strong>, IRBA<br />

has pointed out the negative impact<br />

on breeders and growers alike.<br />

IRBA and <strong>CIOPORA</strong> have continuously<br />

emphasised that the discounts<br />

of the PBR fees offered by the Ecuadorian<br />

government to the breeders<br />

by Omer Schneider<br />

with breeding programs in Ecuador<br />

do not cure the violation of Article<br />

3.1 of the TRIPS Agreement. IRBA’s<br />

concerns have also been presented to<br />

the EU. Following the IRBA meeting<br />

in The Hague, the Netherlands,<br />

the Ecuadorian government published<br />

a discount structure for fees<br />

that is outlined in this same issue<br />

by Ciopora and IRBA member,<br />

Mr. Dean Rule. Page 44.<br />

Although Ecuador is a very important<br />

market for many cut rose<br />

breeders, there is a general consensus<br />

that within Ecuador most breeders<br />

might restrict availability of certain<br />

niche market varieties that have<br />

been an important part of the mix<br />

of Ecuadorian growers. At the same<br />

time, many breeders are committed<br />

to continue working with the<br />

excellent and honest growers in the<br />

country who have been actively<br />

promoting new varieties, while at<br />

the same time working to stop shipments<br />

from illegal farms at entry<br />

points in export markets.<br />

Russia<br />

Russia is also a quite problematic<br />

market for cut roses. Even though<br />

the rose is the No. 1 flower in Russia,<br />

only 15% of the cut roses on the<br />

market are produced locally. There<br />

are approximately 200 hectares of<br />

cut rose production – most, if not<br />

all, illegal. The current expansion<br />

is estimated at 63 hectares, 30 of<br />

which might be illegal.<br />

In order to get some protection,<br />

breeders must register their varieties<br />

with Gossortkom, the National<br />

Plant Variety Protection Office,<br />

with the objective of striving for<br />

PBR and additionally obtaining<br />

trademark protection. Russia has<br />

acceded to the 1991 Act of the<br />

UPOV Convention, but still needs<br />

to establish mechanisms for market<br />

monitoring and control of alleged<br />

illegal growers. IRBA and <strong>CIOPORA</strong><br />

have a joint venture in place and<br />

are working with a law firm in<br />

Russia to address key issues.<br />

The pertinent question is how<br />

to implement an improved PBR<br />

protection system.<br />

Rosa ‘Paloma’<br />

by Rosen Tantau<br />

(Photo credits:<br />

Rosen Tantau).<br />

Kenya<br />

Recently, the Kenya Flower Council (KFC)<br />

has introduced a Code of Conduct regarding<br />

breeders. IRBA has been working with KFC to<br />

ensure that the code is not restrictive for the cut<br />

rose breeders. Since breeders can’t always be present<br />

at the meetings, the association assigned two<br />

breeder associates in Kenya to represent IRBA<br />

during important KFC meetings and to report<br />

back to IRBA. No decisions were to be made<br />

without IRBA’s approval. By the end of March<br />

<strong>2014</strong> the code KS 1758-2004 was finalised and<br />

approved by IRBA, and a copy was submitted to<br />

the IRBA members and <strong>CIOPORA</strong>.<br />

Mexico<br />

IRBA member and President of <strong>CIOPORA</strong>,<br />

Andrea Mansuino, had recently visited Mexico.<br />

He reported on cut rose production and advised<br />

that most of the production there was illegal.<br />

Though there is a PBR law in place, Mexico has<br />

not been successful with its implementation.<br />

Most of the production is for local consumption.<br />

However, there appears to be some export activity<br />

developing.<br />

It was agreed that <strong>CIOPORA</strong> and IRBA should<br />

develop a joint action plan to address the issues in<br />

Mexico to better protect PBR on cut rose varieties.<br />

Other countries that are continuously monitored<br />

regarding PBR development are Brazil, China,<br />

Ethiopia, and a number of others with emerging<br />

floriculture activities. |||<br />

About the author<br />

For the past 18 years, Mr. Omer Schneider has been chairing the<br />

International Rose Breeders Association (IRBA), which has become the<br />

<strong>CIOPORA</strong> Crop Section Cut Rose IRBA. He is past President of <strong>CIOPORA</strong><br />

(1996-1999) and had been on the Board of the association for 21 years. He is<br />

also past President of AARA (All American Rose Selection). Mr. Schneider<br />

has acquired his extensive expertise in the area of rose breeding and<br />

marketing at Jackson & Perkins Co/Bear Creek Corporation, where he<br />

worked for 36 years, including a decade in role of Sr. Vice President.<br />

<strong>CIOPORA</strong> <strong>Chronicle</strong> June <strong>2014</strong> | www.FloraCulture.eu 19


Profile<br />

Ciopora <strong>Chronicle</strong><br />

sat down with Ms.<br />

Maxine J. Horn, the<br />

founder and CEO of<br />

Creative Barcode,<br />

to talk about IP<br />

Protection in the<br />

digital age.<br />

IP Solutions for the<br />

Future: Creative Barcode<br />

by Anna Kaehne<br />

Imagine how different our world<br />

would be if the ancient scholars<br />

worked and created under the<br />

circumstances of the digital age.<br />

This would be a world, where<br />

Pythagoras blogs on a regular basis,<br />

Aristotle hopes for more clicks for<br />

his explanatory metaphysics videos<br />

on Youchimney.com, and Diogenes<br />

of Sinope seeks to organise flash<br />

mobs via posts on Buzz-from-thebarrel.com.<br />

Their work and ideas<br />

are re-posted and re-tweeted, their<br />

names and their authorship become<br />

lost and forgotten in the jungle of<br />

the digital space. Would the accessibility<br />

and the fast-paced character<br />

of the knowledge created and<br />

shared by these scholars change our<br />

perception of their value? Would<br />

the numerous re-posts without<br />

attribution lead to devaluation of<br />

the original and the oblivion of<br />

their names? And finally: could the<br />

negligence towards the authorship<br />

fundamentally change our cultural<br />

history?<br />

In search for answers the Ciopora<br />

<strong>Chronicle</strong> talked to Ms. Maxine J.<br />

Horn – the expert in questions of<br />

Intellectual Property Protection,<br />

the founder of British Design<br />

Innovation and Innovation Bank,<br />

and the visionary behind Creative<br />

Barcode – the main subject of our<br />

talk.<br />

Maxine, thank you very much<br />

for talking to <strong>CIOPORA</strong>.<br />

Could you explain the role of<br />

authorship in our culture and<br />

how the omnipresence of the<br />

internet with its informational<br />

overload influences the<br />

public perception of this<br />

concept?<br />

“I believe the traditional role of<br />

authorship and man-made creation<br />

has not changed a great deal in<br />

centuries irrespective of the greater<br />

access to knowledge and new<br />

technologies that today influence<br />

Maxine J. Horn, the founder and CEO of Creative Barcode.<br />

and expand a creator’s opportunity.<br />

As such, the internet plays a<br />

positive role in enabling access to<br />

knowledge and creative content for<br />

everyone.<br />

However, in a rush to build an omnipotent<br />

presence, the lead Internet<br />

pioneers, such as the global search<br />

engines, have created their commercial<br />

model based on presenting<br />

everyone else’s digitised work as free<br />

to access, free to view and free to<br />

download and use without permission<br />

or remuneration. I can see how<br />

that works for them!<br />

In general, the public would not<br />

question the concept of free access<br />

to information & digitised product<br />

such as music and film, for example.<br />

And unless they are advised<br />

otherwise, or technology prevents<br />

them from deliberate or inadvertent<br />

illegal download, they will assume<br />

it is fine to carry on, as no one<br />

can track the crime or due to the<br />

general lack of understanding that<br />

it is a crime in the first place.”<br />

In your recent article on<br />

CreativeBarcode.com you<br />

compare the internet to the<br />

Wild West. Could you explain<br />

the nature of this metaphor<br />

in relation to Intellectual<br />

Property?<br />

“At a recent business event, when<br />

the young marketing manager of an<br />

Arts Centre asked what I did, I said<br />

I had developed a new intellectual<br />

property system for copyright in the<br />

digital age. The alarming response<br />

was: “I thought the internet had got<br />

rid of copyright!”<br />

Whilst there remain laws in place<br />

to deal with theft and counterfeiting,<br />

when it comes to the Internet<br />

illegal downloads of commercial<br />

photography, illustration, music,<br />

film, design, there are no widely<br />

cited laws that the average consumer<br />

20 www.FloraCulture.eu | <strong>CIOPORA</strong> <strong>Chronicle</strong> June <strong>2014</strong>


instantly recognises, understands<br />

and abides by.<br />

Therefore, the consumer response<br />

is lawlessness. It’s almost as though<br />

the shop-keeper has left the store<br />

wide open, with no barcodes or<br />

prices on the products and no<br />

cameras or signage advising that<br />

products may not be taken without<br />

permission or payment.<br />

Even if a store was left unattended,<br />

some people would walk on by as<br />

they would understand that taking<br />

products without payment was<br />

‘shop-lifting’ and that it was illegal.<br />

But when it comes to the download<br />

of digital product from the Internet<br />

the general public perception is that<br />

digital equals fast and free.”<br />

In 2010, you launched<br />

Creative Barcode (CB).<br />

Could you tell us about<br />

the core idea behind this<br />

project and its purpose?<br />

“Initially, the focus and purpose<br />

was to assist designers and brand<br />

owners to reduce their risks and<br />

vulnerabilities when seeking to<br />

collaborate whether through open<br />

innovation challenges, business<br />

pitching, co-creation or any other<br />

concept disclosure activity.<br />

In 2012, we expanded the barcode<br />

system to include Rights Reserved<br />

and Permitted Use tags for use by<br />

creators to embed in completed<br />

works displayed online and to principally<br />

communicate to an Internet<br />

user the details of the owner and<br />

their usage terms.<br />

More recently (<strong>2014</strong>), we have<br />

over-hauled Creative Barcode to<br />

make the tags discreet and with an<br />

aesthetically improved design and<br />

easier user interfaces.”<br />

Creative Barcode Logo.<br />

By scanning the QR code or following the link on the IP tag the recipient can immediately access the information about the creator.<br />

The update of this information can be undertaken by every creator anytime in his/her Creative Barcode online account<br />

(Photo credits: Creative Barcode <strong>2014</strong>).<br />

Could you define the major<br />

problems you set out to solve<br />

by means of CB?<br />

“Having founded and run British<br />

Design Innovation for 17 years<br />

(1993 to 2010) I was well aware<br />

of the difficulties encountered by<br />

designers and innovators when<br />

seeking to obtain fair and fast Non-<br />

Disclosure Agreements (NDA)<br />

from corporations.<br />

Within the corporations those<br />

responsible for engaging external<br />

parties in their product, service and<br />

brand development work or open<br />

innovation activities generally sat in<br />

Marketing, R & D or Innovation<br />

departments at middle-management<br />

level. Design and Innovation<br />

is time sensitive and thereby the<br />

process of engaging two sets of<br />

lawyers and a detailed NDA just<br />

to open up a safe conversation was<br />

akin to taking a sledge hammer to<br />

crack a nut.<br />

Many creators who submitted ideas<br />

and concepts to brand owners in<br />

competition with competitors including<br />

the brand’s in-house team,<br />

often found that, whilst told they<br />

had not been successful in winning<br />

a contract, saw a very similar<br />

concept come to market within<br />

12 months launched by the brand<br />

they had pitched to. Naturally<br />

this caused suspicion, angst and<br />

distrust. And those that challenged<br />

the brand owner often discovered<br />

that the IP legal system could do<br />

very little for them as ideas were<br />

not protected and a lack of any<br />

form of agreement in place by and<br />

large would result in a drawn-out<br />

David versus Goliath legal battle<br />

and a substantial legal bill with no<br />

guaranteed outcome in their favour.<br />

We developed the original Creative<br />

Barcode system to overcome these<br />

problems.”<br />

What makes CB unique<br />

among the other systems<br />

of IP protection?<br />

“We have removed the complexity<br />

and reduced the vulnerability when<br />

engaging with third parties and<br />

enabled safe-conversations to take<br />

place at early concept stage. We put<br />

ethics and trust at the heart of the<br />

solution.<br />

When it comes to completed<br />

works displayed online, IP Tags are<br />

visible and the technology creates<br />

a unique URL embedded in the<br />

tag that leads through to the Meta<br />

Data such as creation date, creator’s<br />

>>><br />

<strong>CIOPORA</strong> <strong>Chronicle</strong> June <strong>2014</strong> | www.FloraCulture.eu 21


Profile<br />

contact details, usage terms, source<br />

credit, basic licensing, etc. – all<br />

written in simple laymen’s terms.<br />

IP Tags give the internet user<br />

instant access to clear and useful<br />

information. In that regard it is<br />

easier to understand IP Rights and<br />

more useful than “©copyright. All<br />

rights reserved”.<br />

Uniquely, if an IP Tag has been<br />

applied to 1000 files or applied to<br />

just one photograph distributed<br />

across 100’s of publications and<br />

portals, should the IP Tagged item<br />

or concept be sold outright or the<br />

creator’s address details change, the<br />

Creator simply updates the IP Tag<br />

Meta Data once and it simultaneously<br />

and instantly updates every<br />

single file or image the IP Tag is<br />

applied to worldwide.<br />

NDAs aside, it is also the only early<br />

stage IP safe-disclosure system in<br />

place that forms a legally binding<br />

Trust Agreement.”<br />

Who can make use of CB and<br />

what can be protected by it?<br />

“Anyone with concepts or confidential<br />

information to disclose or<br />

completed works displayed online<br />

and in social media. Whether an<br />

individual, entrepreneur, creative<br />

firm, micro start-up, SME, corporation,<br />

institution or student –<br />

Creative Barcode is their minimum<br />

positive IP system or the first step<br />

IP registration to support a business<br />

in safe-disclosure of information<br />

before there are ready and eligible to<br />

apply for a patent, register a design<br />

or apply for a trademark.<br />

The majority of creators and all<br />

types of business do not realise that,<br />

with the exception of the USA and<br />

China, there is no formal Copyright<br />

registration at national level.<br />

Yet unregistered Copyright, whilst<br />

free and automatic, is harder to<br />

enforce, especially in the circumstances<br />

of the digital age<br />

Therefore, although UK-based,<br />

international Creative Barcode has<br />

stepped into that gap. The Creative<br />

Barcode system is available to all<br />

creators and businesses worldwide<br />

and is endorsed by the World<br />

Intellectual Property Organisation<br />

(WIPO).”<br />

What forms the legal basis of<br />

protection under the CB and<br />

what types of IP tags does CB<br />

offer?<br />

“The CB system offers four types<br />

of IP Tag with differing Meta Data<br />

fields relevant to projects in development<br />

(Blue), completed work<br />

with rights reserved such as a final<br />

design image or photograph (red) ,<br />

completed work with permitted use<br />

such as articles or coding (green)<br />

and a company IP Tag that simply<br />

denotes your commitment to ethical<br />

IP practice (black). Each tag is<br />

created in landscape and portrait<br />

versions and in print, digital and<br />

thumbnail formats to suit a user’s<br />

implementation requirements.<br />

The legal basis of the safe-disclosure<br />

system is through the file transfer<br />

service and acceptance of the Trust<br />

Charter Agreement, which forms<br />

the terms of engagement between<br />

those disclosing and those receiving<br />

concepts and business propositions.<br />

The send, receive and download<br />

transactions are recorded by the<br />

data base where users have access<br />

directly to their own data logs.<br />

If ever needed, these can be used<br />

as a support to an evidence base.<br />

In the instance of completed work<br />

displayed online with an IP Tag, it<br />

is the creators/owners who state in<br />

the Meta Data, whether the item<br />

is free to use with a source credit<br />

or available for license. The creator<br />

is directly contactable to discuss<br />

and agree terms along with, as<br />

applicable, their nominated agent<br />

or lawyer.<br />

Creative Barcode does not get<br />

involved in the deal making or the<br />

terms – we just make it easier and<br />

efficient for parties to agree terms<br />

faster with the added comfort that<br />

CB is an open and ethical third<br />

party witness who the work is<br />

registered with.”<br />

The IP Tags are<br />

available in 6<br />

different sizes in<br />

landscape and<br />

portrait formats<br />

for use in print;<br />

on digital and in<br />

thumbnail images<br />

(Photo credits:<br />

Creative Barcode<br />

<strong>2014</strong>).<br />

Imagine I am a freelance<br />

designer, who often provides<br />

pitches to contractors, and I<br />

am seeking protection for my<br />

ideas and creations. What is<br />

the procedure for obtaining<br />

CB and what comprises<br />

the technical side of its<br />

application to my creations?<br />

“It’s really easy. The designer<br />

would register for CB-Innovation<br />

membership. They would create<br />

their IP Tag simply by selecting a<br />

Blue project tag (see example from<br />

CB member Mellor&Scott). The<br />

designer completes the Meta Data<br />

fields such as title of the project and<br />

Creators names and source credits.<br />

Other fields are automatically<br />

populated such as the member’s<br />

address details and some are<br />

assigned automatically by the<br />

CB database such as creation date,<br />

ID number and unique URL.<br />

The user has very little to do as<br />

the system has been engineered to<br />

do all of the work for them and to<br />

create and output the IP Tag as a<br />

graphic. The IP Tag can then be<br />

inserted into an image using the<br />

CB image editor or the designer can<br />

opt to use their own image editing<br />

software. The IP Tag is copied and<br />

pasted into every document or<br />

PDF and other correspondence the<br />

designer is disclosing to the third<br />

party client.<br />

Files are sent through the file transfer<br />

service to gain acceptance of the<br />

Trust Charter before file download<br />

commences.”<br />

From the CB website, the<br />

users learn that the CB trust<br />

charter has never been<br />

breached. Do you have an<br />

explanation for this success<br />

story? What does CB do<br />

differently from the other<br />

systems of protection?<br />

“It’s all in the simplicity. It’s easier<br />

to uphold the Trust Charter than<br />

it is to breach it. And it’s balanced<br />

where both parties give each other<br />

one legal warranty.<br />

“If the creators’ concept was used<br />

without written permission there<br />

is no loop hole. They either had<br />

permission or they didn’t.”<br />

22 www.FloraCulture.eu | <strong>CIOPORA</strong> <strong>Chronicle</strong> June <strong>2014</strong>


Now, let’s say, the CB trust<br />

charter has been breached.<br />

What are the enforcement<br />

options?<br />

“The first option is for the Creator<br />

to confirm their IP membership of<br />

Creative Barcode and remind the<br />

party in breach of the terms of the<br />

Trust Charter supported by WIPO.<br />

In the few instances where trouble<br />

has flared up and a breach appears<br />

likely to occur, simply drawing CB,<br />

the Trust Charter and WIPO to<br />

their attention has shut the trouble<br />

down and averted a breach.<br />

However, if the party continued<br />

down the wrong path the next<br />

course of action would be to contact<br />

the WIPO mediation department<br />

who would send an intervention<br />

letter free of charge.<br />

If that does not resolve the matter,<br />

the parties are obligated to enter<br />

into a WIPO mediation (costs are a<br />

fixed fee, discounted by 50% to CB<br />

members and to a ceiling cost of<br />

£4,000 shared between the parties)<br />

Enforcement issues and costs have<br />

always been a problem for individuals<br />

and small firms – David and<br />

Goliath syndrome – but Creative<br />

Barcode substantially levels the<br />

playing field. No longer is the<br />

smaller player on their own, instead<br />

they have Creative Barcode and<br />

WIPO at their shoulder.”<br />

Maxine, thank you for telling<br />

<strong>CIOPORA</strong> about Creative<br />

Barcode. Our last question is<br />

of a more general character.<br />

What is, from your point of<br />

view, the major challenge<br />

for IP of our times, and what<br />

can be done to raise the<br />

awareness of the general<br />

public towards intellectual<br />

property and its value for the<br />

society?<br />

“I think, in part you highlighted<br />

this in your introduction. If the<br />

legacy of the digital age is ‘Creator<br />

unknown’ (Orphan Works) and<br />

endless inaccurate attributions<br />

where a source credit simply states<br />

the online publication/portal where<br />

the user discovered the work or the<br />

search engine that returned the<br />

work e.g. Google Images or simply<br />

‘the internet’ then not only will a<br />

Creators livelihood and creative and<br />

innovation journey be eroded, but<br />

over time so will the creative and<br />

cultural history of nations.<br />

Tim Berners-Lee created the www<br />

and his non-commercial offering of<br />

it to the World was given to enable<br />

access to and sharing of knowledge<br />

and to build upon the work of others<br />

to advance innovation. It wasn’t<br />

given to deny Creators a livelihood,<br />

misattribute their work or erode<br />

society’s knowledge of the Original<br />

Source.<br />

The 12 th century theologian and<br />

author John of Salisbury is credited<br />

with the first use of the term ‘standing<br />

on the shoulders of giants’ in his<br />

essay on logic titled Metalogicon.<br />

But best-known for the use of the<br />

phrase is perhaps Sir Isaac Newton<br />

who in his letter to Robert Hooke<br />

in 1676 stated:<br />

"What Descartes did was a good<br />

step. You have added much several<br />

ways, and especially in taking the<br />

colours of thin plates into philosophical<br />

consideration. If I have<br />

seen a little further, it is by standing<br />

on the shoulders of giants."<br />

In modern day terms, the phase is<br />

often used in innovation to mean<br />

using the achievements and understanding<br />

gained by major thinkers<br />

who have gone before and building<br />

upon their work in order to make<br />

intellectual, technological and innovation<br />

progress.<br />

So ironically, one of the biggest<br />

challenges for IP in our times is<br />

to stop the erosion of the original<br />

source and to do that requires<br />

collective action and collective<br />

responsibility.<br />

IP Cartoons a<br />

collaborative work<br />

by Maxine Horn<br />

and Cartoonist<br />

Roger Penwill.<br />

First, Creators must take the time<br />

and the responsibility for marking<br />

their work before publishing it<br />

online.<br />

Publishers should insist that works<br />

submitted contain a unique identifier<br />

such as a Creative Barcode IP<br />

Tag, a Creative Commons license<br />

or the Creators own marque, name<br />

and usage terms.<br />

Finally, a positive communication<br />

programme could be supported by<br />

national governments seeking to<br />

educate consumers in consumer<br />

friendly language and preserve<br />

original source and therefore<br />

creative and cultural history.<br />

I think it would be counter-productive<br />

for Governments and Internet<br />

Service Providers to create just a<br />

retribution process rather than<br />

create a reward based system for<br />

doing the right thing through<br />

loyalty-type schemes.<br />

Creative Barcode has created a<br />

system and process to assist in<br />

preserving Original Source but<br />

now the horse needs to drink.” |||<br />

About the author<br />

Anna Kaehne is a Manager Public Relations & Communications<br />

at <strong>CIOPORA</strong>. She is responsible for association’s internal and external<br />

communications including the relations with press, production of media<br />

and marketing materials offline as well as online. She is the person behind<br />

the <strong>CIOPORA</strong> <strong>Chronicle</strong>, association’s newsletter, press releases, website<br />

and other communication projects.<br />

Anna holds a Magister Degree in<br />

English and Slavic Studies from<br />

the University of Magdeburg,<br />

Germany. In her homeland<br />

– Ukraine – she studied International<br />

Law at the National Law<br />

Academy of Ukraine in Kharkov.<br />

<strong>CIOPORA</strong> <strong>Chronicle</strong> June <strong>2014</strong> | www.FloraCulture.eu 23


Intellectual Property<br />

In today’s global<br />

market, protecting<br />

the trademarks of<br />

ornamental and fruit<br />

varieties online has<br />

become increasingly<br />

important.<br />

Combatting online<br />

trademark infringement in<br />

ornamental and fruit varieties<br />

Breeders face what may appear to be a daunting task of protecting their trademarks online (Photo credits: Morguefile.de).<br />

by Lucas S. Michels<br />

The internet has arguably<br />

become the main channel<br />

for consumer advertising<br />

and retail sales, and knowing how<br />

to protect your trademarks online,<br />

whether through hosted portals<br />

such as Google or Amazon, or<br />

independently through user-owned<br />

sites, has become essential to<br />

managing global brands.<br />

Many challenges<br />

Yet, online trademark protection<br />

poses many challenges as many<br />

major online ad and retail portals<br />

have their own policing and<br />

enforcement limitations, often<br />

requiring brand owners to conduct<br />

their own trademark enforcement<br />

activities, know the particular<br />

intricacies of each portal’s enforcement<br />

system, and seek litigation in<br />

certain instances. The recent U.K.<br />

trademark case Cosmetic Warriors<br />

Ltd. v Amazon.co.uk Ltd. [<strong>2014</strong>]<br />

EWHC 181 (Ch) highlights this<br />

point as although the cosmetic producer<br />

Lush was able to successfully<br />

prevent online retailer Amazon<br />

from buying Google AdWords of<br />

Lush’s trademark-protected brand<br />

name, it required Lush to seek<br />

enforcement of their brand through<br />

multiple measures in order to<br />

do so.<br />

Names being misused<br />

Unfortunately, ornamental and<br />

fruit variety breeders too are increasingly<br />

required to find efficient<br />

and effective methods to prevent<br />

their trademarks from being<br />

misused or misappropriated online.<br />

In our practice, we see such names<br />

being misused online much like<br />

any other product names, e.g., with<br />

fruit-flavoured tobacco and alcohol<br />

products using protected fruit<br />

trademarks without authorisation.<br />

Such misuse not only causes public<br />

confusion as to a breeder’s relationship<br />

to the infringing products, but<br />

as shown, can create an unintended<br />

relationship between breeder’s<br />

registered trademarks and products<br />

or services that have unfavourable<br />

social perceptions. Unsurprisingly,<br />

this may tarnish perceptions and<br />

goodwill consumers have towards<br />

a particular trademark-protected<br />

variety name and its owner.<br />

So what can breeders do to protect<br />

their trademarks without resorting<br />

to costly litigation? The answer is<br />

three-fold as it requires obtaining<br />

trademark protection, monitoring<br />

24 www.FloraCulture.eu | <strong>CIOPORA</strong> <strong>Chronicle</strong> June <strong>2014</strong>


infringing activities, and enforcing<br />

rights against online infringers.<br />

Trademark registration<br />

In order to adequately protect the<br />

trademark of a plant variety online, a<br />

breeder needs to first obtain trademark<br />

protection. This requires registering the<br />

name as a trademark in the countries<br />

where the breeder wishes to conduct<br />

business, and ideally, where major online<br />

advertisement and retail websites<br />

will be hosted. For example, our firm<br />

recently assisted a Canada-based fruit<br />

breeder in registering a trademark for<br />

their new apple variety in the U.S.<br />

Although the U.S. registration was<br />

intended to grant the breeder U.S.<br />

protections in their mark, the U.S.<br />

registration actually gave the breeder<br />

the ability to enforce the trademark<br />

against a number of online infringers<br />

on many of the world’s major online ad<br />

and social media websites. As many of<br />

the world’s major online ad and social<br />

media platforms including Google,<br />

Bing, Yahoo!, Facebook and Twitter<br />

are U.S.-based, any breeder wishing<br />

to protect their varietal names on such<br />

U.S.-based sites may want to consider a<br />

U.S. trademark registration. However,<br />

as such U.S.-based platforms also<br />

have foreign versions of their websites,<br />

a breeder may need to still consider<br />

registering a trademark in the country<br />

where the foreign version of the U.S.-<br />

based website is focused: e.g. a Japanese<br />

trademark to enforce trademark rights<br />

on Google Japan.<br />

Monitoring<br />

Next, breeders need to monitor<br />

infringing online activities. Cost<br />

conscious breeders can self-monitor,<br />

and free reporting mechanisms such<br />

as Google Alerts give breeders readily<br />

available tools to monitor such online<br />

activities. Yet, self-monitoring can be<br />

incomprehensive and time consuming.<br />

Fortunately, companies such as<br />

Coresearch, CSC, and CompuMark,<br />

to name a few, provide helpful monitoring<br />

services.<br />

Enforcement<br />

Lastly, breeders need to enforce their<br />

rights in their marks against online<br />

infringers. Fortunately, there are<br />

several enforcement measures that do<br />

not necessarily require an attorney to<br />

perform. Yet, breeders should tread<br />

cautiously as they have an escalating<br />

effect. Advertising portals and<br />

social media sites, such as Google,<br />

Facebook and Twitter have online<br />

complaint reporting systems that<br />

allow trademark owners or their<br />

agents to submit complaints against<br />

infringing activities on their sites.<br />

These reporting systems generally<br />

have similar complaint requirements,<br />

yet they differ as to their<br />

reputation for assistance with<br />

enforcement activities. For example,<br />

Bing sometimes requires submitting<br />

multiple complaints against an<br />

infringer in order for an infringing<br />

ad to be effectively removed. Google<br />

has consistently refused to remove<br />

ads that infringe U.S. trademark<br />

registrations that were registered<br />

based on secondary meaning –<br />

descriptive trademarks that can be<br />

registred after five years of substantial<br />

and continuously exclusive use<br />

in the U.S. market. The take away<br />

from these differences is to know<br />

how each reporting system works<br />

and adhere to their requirements to<br />

ensure effective enforcement.<br />

Qualified counsel<br />

It is important to note that if an<br />

infringing use of a trademark<br />

is being conducted through an<br />

infringer’s own website, or if one of<br />

the mentioned ad or social media<br />

sites refuses to take action against<br />

a reported infringement, a breeder<br />

may need to seek qualified counsel<br />

in the jurisdiction where the<br />

infringement occurs to assist them<br />

with enforcement activities.<br />

While breeders face what may<br />

appear to be a daunting task of<br />

protecting their trademarks online,<br />

learning and applying registration,<br />

monitoring and enforcement<br />

tools is essential for breeders to<br />

protect their brands and their<br />

investment. |||<br />

About the author<br />

Lucas S. Michels is an intellectual property and<br />

corporate law attorney at Ironmark Law Group,<br />

PLLC in Seattle, Washington, U.S.A. He is also the<br />

author of the cross-border and trade-related IP<br />

blog The IP Exporter (www.theipexporter.com).<br />

<strong>CIOPORA</strong> <strong>Chronicle</strong> June <strong>2014</strong> | www.FloraCulture.eu 25


Intellectual Property<br />

Over the past<br />

18 months,<br />

<strong>CIOPORA</strong> has been<br />

working on the<br />

development and<br />

adoption of its new<br />

position papers on<br />

Intellectual Property<br />

protection for<br />

plant innovations.<br />

The update of the<br />

position papers,<br />

published in 2002<br />

as ‘<strong>CIOPORA</strong><br />

Green Paper’,<br />

was a necessity<br />

arising from the<br />

rapidly changing<br />

conditions of the<br />

horticultural market,<br />

where a stronger<br />

IP protection for<br />

plant varieties<br />

is an important<br />

precondition<br />

and stimulus of<br />

the continuous<br />

innovation, stability<br />

and prosperity of the<br />

industry. Ciopora<br />

<strong>Chronicle</strong> sat down<br />

with the President<br />

of <strong>CIOPORA</strong>,<br />

Mr. Andrea<br />

Mansuino and the<br />

Secretary General<br />

of the association,<br />

Dr. Edgar Krieger to<br />

learn more about the<br />

adopted IP papers<br />

and the association’s<br />

plans for the future.<br />

by Ron van der Ploeg<br />

‘Mission FUTURE’: CIOPO<br />

During its last Annual<br />

General Meeting in The<br />

Hague in April, <strong>CIOPORA</strong><br />

has discussed and approved<br />

position papers on several<br />

aspects of IP protection<br />

for plant varieties. Can you<br />

reveal some more details?<br />

Andrea Mansuino: “In fact the<br />

discussions about <strong>CIOPORA</strong>´s IP<br />

Position have been going on for<br />

years, as IP is the main focus of<br />

our organisation. Formally, the<br />

open debate started with our large<br />

IP Conference in Venlo in 2012,<br />

where several experts discussed the<br />

weaknesses of the current systems<br />

of IP protection for plants. Additionally,<br />

more and more members<br />

expressed concerns about ineffective<br />

protection for their innovations. We<br />

took this as a signal to review the<br />

<strong>CIOPORA</strong> Green Paper, published<br />

ten years ago, which, until now,<br />

comprised the compendium of the<br />

<strong>CIOPORA</strong> Positions on IP Protection<br />

for plants.”<br />

<strong>CIOPORA</strong> is an international<br />

association with members<br />

all over the globe, which<br />

may complicate the process<br />

of discussions of such<br />

complicated matters. How did<br />

you manage to involve your<br />

members in the development<br />

of the Position Papers?<br />

Edgar Krieger: “Right after the<br />

conference in Venlo, we began to<br />

discuss the matter in the <strong>CIOPORA</strong><br />

Board and then started with the<br />

drafting of the first version of a<br />

master document. It soon turned<br />

out that the complete master document<br />

had become very comprehensive.<br />

In order to make it easier for<br />

the <strong>CIOPORA</strong> members to discuss<br />

and decide on the single topics, we<br />

divided it into eight ‘more digestible’<br />

parts by splitting the document<br />

into chapters dealing with<br />

individual subjects, namely Scope<br />

of the Right, EDV, Minimum<br />

Distance, Breeders´ Exemption, Exhaustion,<br />

Patents, Ground-breaking<br />

Innovation, and, for various minor<br />

topics, a document called ‘Additional<br />

Requests’.<br />

Andrea Mansuino: “In fact it<br />

was our Secretary General who<br />

drafted the first version of the documents,<br />

which were then intensively<br />

discussed by the Board and shared<br />

with all members by various means.<br />

Believe me, reading and understanding<br />

dozens of pages of such<br />

complex legal stuff was a hard nut<br />

to crack for the Board, and we spent<br />

numerous hours on it. As a result<br />

of the discussions, we developed<br />

the so-called Board Proposals 1.0,<br />

which were then shared with the<br />

<strong>CIOPORA</strong> members, asking them<br />

for input. At the same time we had<br />

several discussions with groups of<br />

breeders in different countries about<br />

the Board Proposals. After having<br />

received many oral and written<br />

comments from the members, the<br />

Board developed the Board Proposals<br />

2.0, which were then circulated<br />

again among all the members and<br />

served as basis for the discussions in<br />

The Hague. Those discussions were<br />

organised in a very democratic way,<br />

first in smaller specific IP Workshops,<br />

and finally in the general<br />

debate with the whole audience.”<br />

Have all papers been<br />

approved by the AGM<br />

in The Hague?<br />

Andrea Mansuino: “As mentioned<br />

by our Secretary General, we had<br />

prepared eight papers. To approve<br />

eight complex position papers was<br />

an ambitious project, and from the<br />

beginning we had the intention not<br />

to rush through the documents,<br />

but to take the necessary time to<br />

deeply involve our members and<br />

to develop sound and broadly accepted<br />

positions. We had intensive<br />

and very fruitful discussions. The<br />

members were obviously satisfied<br />

with the debate and the entire process,<br />

and at the end four position<br />

papers, namely on Minimum Distance,<br />

Scope of the Right, Breeders´<br />

Exemption and Exhaustion were<br />

Dr. Edgar Krieger<br />

Dr. Edgar Krieger is Secretary<br />

General of <strong>CIOPORA</strong>. He has<br />

extensive experience in the field<br />

of Intellectual Property Protection<br />

for plant innovation. He has been<br />

executing the position of Secretary<br />

General of <strong>CIOPORA</strong> since 2004.<br />

Previously, Dr. Krieger worked as<br />

a lawyer at an international law<br />

firm specialising in IP protection,<br />

and particularly in Plant Breeders'<br />

Rights, advising agricultural<br />

breeders in several hundred court<br />

cases up to the European Court of<br />

Justice. Dr. Krieger has completed<br />

his doctoral dissertation on the topic<br />

‘Farmers' Exemption in Germany’ at<br />

the Philipps University of Marburg.<br />

approved unanimously. We see<br />

this as a big achievement and as<br />

proof that we implemented a good<br />

procedure, particularly taking into<br />

consideration that we did not aim<br />

26 www.FloraCulture.eu | <strong>CIOPORA</strong> <strong>Chronicle</strong> June <strong>2014</strong>


RA’s position papers on IP<br />

at easy compromise positions and<br />

did not ignore problematic topics,<br />

but have taken explicit decisions on<br />

them. This is of course much more<br />

difficult than to approve a “diplomatic”<br />

position which circumvents<br />

the real problems.<br />

In the end, time passed too quickly,<br />

so that we had to stop the discussions<br />

after more than eight hours.<br />

Another discussion, and possibly<br />

an approval of the remaining four<br />

position papers, shall take place<br />

at the next AGM in Tel Aviv in<br />

March 2015.”<br />

In fact, the titles of the papers<br />

indicate that you touched<br />

upon some hot, much debated<br />

topics.<br />

Edgar Krieger: “<strong>CIOPORA</strong> has<br />

more than 50 years history in lobbying<br />

for effective IP protection of<br />

plant breeders. It is well known that<br />

<strong>CIOPORA</strong> sees room for improvements<br />

with regard to the current<br />

level of IP protection for ornamental<br />

and fruit varieties. Therefore we<br />

have updated and will further update<br />

our positions in all areas where<br />

we have identified weaknesses and<br />

loopholes.”<br />

What are the key messages of<br />

the approved position papers?<br />

Edgar Krieger: “All four approved<br />

positions show the desire of the<br />

<strong>CIOPORA</strong> members to have a<br />

more effective protection for their<br />

innovations and to have clearer<br />

rules. For example, the paper on<br />

Minimum Distance, or, in the<br />

UPOV language: When is a variety<br />

considered to be clearly distinguishable<br />

or distinct from another variety?<br />

A sufficiently broad minimum<br />

distance between varieties is one<br />

of the most important requirements<br />

for effective PBR protection.<br />

Without a sufficient distance, the<br />

exclusive right of the holder of<br />

a protected variety is weakened.<br />

If PBR protection is granted for<br />

other, very similar varieties, these<br />

other varieties are considered to be<br />

clearly distinguishable from the<br />

protected variety, and thus fall out<br />

of the scope of the protection of this<br />

variety. If a breeder does not have<br />

exclusivity for his variety, he cannot<br />

grant exclusivity to his propagators<br />

or growers. The competitors of the<br />

propagators or growers can produce<br />

a very similar product. The result<br />

is overproduction combined with<br />

undercutting competition.<br />

In today´s reality, based on the<br />

UPOV 1991 Act, even a very<br />

small difference between two<br />

varieties makes the varieties clearly<br />

distinguishable in the eyes of the<br />

examination offices. Based on<br />

a pure botanical approach, all<br />

characteristics of a species are<br />

considered to be equally essential.<br />

In contrast to the UPOV 1978 Act,<br />

no differentiation is made anymore<br />

between characteristics important<br />

or unimportant for a variety. As a<br />

consequence, even a difference in<br />

one unimportant characteristic can<br />

make a variety clearly distinguishable<br />

from another variety in the<br />

eyes of the examination offices.<br />

<strong>CIOPORA</strong> requests to stop this<br />

trend and to re-establish rules<br />

that safeguard a sufficiently broad<br />

distance between varieties. Some<br />

of the key statements in the paper<br />

read that:<br />

• <strong>CIOPORA</strong> demands a sufficient<br />

minimum distance between<br />

varieties for an effective Plant<br />

Variety Right,<br />

• since new varieties are bred,<br />

selected and introduced mainly<br />

for commercial targets, the requirement<br />

‘clearly’ should be seen<br />

as a judgmental and evaluative<br />

requirement, and should not end<br />

in a simple search of a botanical<br />

difference,<br />

• the requirement ‘clearly distinguishable’<br />

should be assessed on<br />

characteristics important for the<br />

crop concerned,<br />

• differences in only unimportant<br />

characteristics should not lead to<br />

a clearly distinguishable variety.<br />

Andrea Mansuino<br />

Andrea Mansuino is the President of <strong>CIOPORA</strong>.<br />

He has been active in horticultural business since<br />

1987 and is a fourth generation nurseryman,<br />

whose family has been in breeding of ornamentals<br />

for almost a century. Andrea Mansuino owns a<br />

nursery in Sanremo, which, beside the breeding<br />

and production of ornamentals and foliage, is<br />

involved in the production of energy from renewable<br />

resources. Andrea Mansuino is also a shareholder<br />

of the NIRP International, the Director of Research<br />

and Development at NIRP East Africa Ltd. and the<br />

President of the Confagricoltura Liguria. At the<br />

<strong>CIOPORA</strong> AGM <strong>2014</strong> in The Hague, Mr. Mansuino<br />

was re-elected as President of <strong>CIOPORA</strong> for the<br />

second term.<br />

In other words, in order to be<br />

clearly distinguishable, the distance<br />

between two varieties in regard to<br />

their important characteristics must<br />

be sufficiently broad. Particularly<br />

in regard to pseudo-qualitative<br />

characte ristics and quantitative<br />

characteristics, a difference of only<br />

one note in general should not be<br />

considered as a sufficiently broad<br />

distance. The decision should be<br />

made on a crop by crop basis.<br />

>>><br />

<strong>CIOPORA</strong> <strong>Chronicle</strong> June <strong>2014</strong> | www.FloraCulture.eu 27


<strong>CIOPORA</strong><br />

Varieties with the same note in the UPOV testguideline<br />

for a given characteristic should not<br />

be considered to be clearly distinguishable with<br />

respect to that characteristic. The possibility to<br />

search for a difference in a subsequent growing<br />

trial, if such difference was not clear in the<br />

first, properly performed examination should be<br />

eliminated.<br />

The possibility of randomised ‘blind’ testing in<br />

case of doubts over the distinctness of a candidate<br />

variety should also be eliminated. In case of doubt<br />

over distinctness, the candidate variety cannot be<br />

considered to be clearly distinguishable from the<br />

reference variety.<br />

Andrea Mansuino: “I would like to add that we<br />

learned from our members that not in all species<br />

the situation is equally critical. In many cut-flower<br />

crops, e.g. the distances between varieties seem to<br />

be sufficient at the moment. However, the general<br />

UPOV rules, such as TGP 3 and TGP 9, which<br />

are applicable to all species, allow for very small<br />

distances in all crops. Taking this into consideration,<br />

we indeed aim at changing the general<br />

UPOV rules, but intend to ask for the concrete<br />

implementation of broader distances in critical<br />

crops, by amending the respective UPOV Test<br />

Guidelines first. Anyway, the key for success in<br />

this matter is to reach a common understanding<br />

between breeders and PBR offices, including the<br />

examiners, on the purpose of distinctness – that<br />

it is not only about a mere botanical assessment of<br />

varieties.”<br />

You also approved a Position on the<br />

Scope of the Right. What is its target?<br />

Edgar Krieger: “While the Position Paper on<br />

Minimum Distance targets the horizontal scope<br />

of protection, i.e. the relationship between<br />

breeders, the position on the Scope of the Right<br />

targets the vertical scope of protection, i.e.<br />

between breeders, propagators, growers and trade.<br />

First of all, <strong>CIOPORA</strong> requests from UPOV and its<br />

member countries to harmonize the definition of<br />

one of its key terms – propagating material. UPOV<br />

does not offer a definition of propagating material,<br />

and as a result, there are several different definitions<br />

of propagating material in the UPOV countries,<br />

so that one and the same material in one<br />

territory is considered to be propagating material,<br />

while it is harvested material in another. Propagating<br />

material should include any reproductive<br />

or vegetative material of a plant from which,<br />

whether alone or in combination with other parts<br />

or products of that or another plant, another plant<br />

with the same characteristics can be produced. A<br />

harmonised definition is key in a globalised world,<br />

because it causes confusion in the international<br />

trade if material changes its status depending on<br />

the legislation in different territories. Only material<br />

of a variety that is not capable, by any means,<br />

General session of the <strong>2014</strong> AGM – IP debate.<br />

of producing another plant with<br />

the same characteristics should be<br />

considered to be harvested material<br />

in the legal sense.<br />

In regard to harvested material –<br />

such as most fruits – and products<br />

that are directly obtained from material<br />

of a protected variety – such<br />

as juice – <strong>CIOPORA</strong> requests that<br />

these products should be protected<br />

per se, too.<br />

Andrea Mansuino: “Such clarification<br />

and extension of the protection<br />

is in the benefit of the entire<br />

production and trade chain. Clarity<br />

is a precondition to establish fair<br />

competition. Lack of clarity is used<br />

mainly by dishonest players, who<br />

benefit at the cost of the honest.<br />

We know that the licensees of our<br />

breeders want them to enforce<br />

their rights against infringers in a<br />

robust way, in order to establish a<br />

level playing field for all. Therefore,<br />

a sufficiently broad scope of<br />

protection, covering all products of<br />

a variety, is necessary. This will not,<br />

in general, change the situation for<br />

the licensees of the breeders, but<br />

only for the dishonest players.<br />

Additionally, we must face the fact<br />

that several countries in the world<br />

are still not willing to provide effective<br />

IP protection for plants, but<br />

nevertheless stimulate the production<br />

of horticultural products in<br />

their countries and the export of<br />

these products. This creates unfair<br />

competition among countries and<br />

their people and is contrary to the<br />

spirit of the WTO and the TRIPS<br />

agreement, according to which all<br />

countries should have access to the<br />

global trade and in return grant<br />

effective Intellectual Property<br />

protection. The current cascadesolution<br />

in the UPOV 1991 Act,<br />

which allows breeders to enforce<br />

their right on harvested material<br />

only under conditions and limitations,<br />

does not cure this situation<br />

and is not suitable for a globalised<br />

economy since it hampers the international<br />

exploitation of varieties.”<br />

Edgar Krieger: “By the way: in<br />

Patents all manifested products of<br />

an invention fall under the scope<br />

of the Patent. If a plant comprises a<br />

patented gene, the plant and all of<br />

its parts fall under the Patent as long<br />

as they contain the patented gene<br />

and the gene performs its function.<br />

For breeders it is hard to accept that<br />

they should not benefit from equally<br />

effective protection, too.”<br />

You have also re-shaped your<br />

position on the Breeders’<br />

Exemption. The breeders’<br />

exemption is seen by many<br />

people as one of the corner<br />

stones of the UPOV system.<br />

What changes does <strong>CIOPORA</strong><br />

want to see?<br />

Edgar Krieger: “Indeed, the<br />

breeders´ exemption has been<br />

imbedded in the UPOV PBR system<br />

since its beginning and is a unique<br />

feature in IP protection systems.<br />

But what exactly is the breeders´ exemption?<br />

The breeders´ exemption<br />

as it stands today consists of two<br />

components: first, the free use of<br />

protected plant material for further<br />

breeding and, second, the – limited<br />

– commercialisation of the outcome<br />

of such breeding. I have already<br />

written in last year’s <strong>Chronicle</strong> that<br />

the current breeders´ exemption<br />

has a structural weakness. What<br />

<strong>CIOPORA</strong>, therefore, wants is not a<br />

change of the breeders´ exemption,<br />

but a rectification of its structural<br />

weakness.<br />

<strong>CIOPORA</strong> supports a breeders´<br />

exemption that contains the use<br />

of commercialised plant material<br />

of protected varieties for further<br />

breeding. In regard to the second<br />

part of the exemption, <strong>CIOPORA</strong><br />

requests that the commercialisation<br />

28 www.FloraCulture.eu | <strong>CIOPORA</strong> <strong>Chronicle</strong> June <strong>2014</strong>


of any variety, which falls under the<br />

scope of a protected variety, shall<br />

require the authorisation of the<br />

title holder of the protected variety.<br />

The breeders´ exemption should<br />

therefore read: “The breeder’s right<br />

shall not extend to acts done for the<br />

purpose of breeding other varieties.”<br />

What does this mean in<br />

practice?<br />

Andrea Mansuino: “In practice<br />

this means that the breeders´<br />

exemption should contain only the<br />

free use of protected material for<br />

further breeding, but no reference<br />

to the commercialisation of the new<br />

breeding product anymore. If<br />

a new variety which results from<br />

any kind of breeding (i.e. crossing<br />

and selection, mutating, genetic<br />

modification, etc.) falls under the<br />

scope of a protected variety (not<br />

only of the variety that has been<br />

used for breeding the new variety),<br />

it must not be commercialized<br />

without the authorisation of the<br />

title holder of the protected variety.<br />

The concept is similar to the<br />

‘breeders’ exemption’ in the new<br />

Unitary Patent in the EU or in the<br />

Patent law of Germany and France.<br />

In practice, this approach to the<br />

breeders´ exemption does not bring<br />

a change to the current situation,<br />

because already now EDVs, varieties<br />

not clearly distinguishable and<br />

varieties requiring repeated use are<br />

blocked from commercialisation.<br />

The major change for our crops lies<br />

in the broadening of the Minimum<br />

Distance and the clarification of the<br />

EDV concept.”<br />

Finally you have approved a<br />

paper on Exhaustion. What<br />

does exhaustion mean and<br />

what does <strong>CIOPORA</strong> want to<br />

change?<br />

Andrea Mansuino: “Exhaustion<br />

generally means that products,<br />

which have been marketed by the<br />

title-holder or with his consent, in<br />

the protected territory, fall in the<br />

public domain in this territory, so<br />

that the title-holder can exert his<br />

right to said products only once in<br />

this territory. However, the exhaustion<br />

provision in the UPOV 1991<br />

Act is broader than this. It covers<br />

not only acts concerning the plant<br />

material marketed by the titleholder<br />

or with his consent, but also<br />

acts concerning any material derived<br />

from said material. <strong>CIOPORA</strong><br />

requests to limit the exhaustion<br />

in the UPOV system to the common<br />

scope of exhaustion in other<br />

IP laws, i.e. to exclude from the<br />

exhaustion the derived material,<br />

which we feel is unfair. In this regard<br />

the Position Paper on Exhaustion<br />

is a consequence of the Position<br />

on the Scope of the Right, which<br />

extends the protection to harvested<br />

material and processed material.”<br />

Edgar Krieger: “It is obvious and<br />

correlates to the exhaustion rules<br />

in other IP systems that the PBR<br />

in a territory in principle shall be<br />

exhausted for material, which has<br />

been marketed by the title holder<br />

or with his consent in the territory<br />

where the PBR is effective. As far<br />

as material is concerned that is produced<br />

from the material marketed<br />

by the title-holder or with his consent<br />

– let´s call it ‘produced material’<br />

– the PBR should be exhausted<br />

only for produced material, if and<br />

to such extent that its production<br />

has been licensed, and provided<br />

that the produced material is not<br />

subsequently used for other propagation<br />

or multiplication. In the first<br />

instance it is a matter of the parties<br />

concerned (title-holder and licensee)<br />

to draft the scope of the license<br />

and to precisely describe the acts<br />

covered by the license. However, in<br />

that regard it can be assumed that,<br />

if e.g. the title-holder or his licensee<br />

sells apple trees to an apple grower<br />

without any specific agreement, the<br />

apple grower has been granted an<br />

unlimited implied license to produce<br />

and sell apples from these trees<br />

in the territory, where the PBR is<br />

valid. A cut-rose grower buying rose<br />

plants without a specific agreement<br />

has the implied right to produce<br />

cut-roses for the purpose of selling<br />

them – directly or via the trade<br />

chain – to end-consumers in the<br />

territory, where the PBR is valid.<br />

However, exhaustion of any PBR<br />

shall be strictly limited to the very<br />

territory where the PBR is in effect.<br />

The marketing of material in a<br />

protected territory shall trigger the<br />

exhaustion only for this very territory.<br />

Any import of said material or<br />

Dr. Jan de Riek moderates IP Workshop on EDV during the <strong>CIOPORA</strong> AGM <strong>2014</strong><br />

in The Hague.<br />

material produced from it into another<br />

territory, where a (parallel) PBR<br />

exists, requires a separate authorization<br />

(license) of the respective title-holder.<br />

<strong>CIOPORA</strong> is opposed to any form of<br />

international exhaustion.”<br />

It seems that <strong>CIOPORA</strong> has<br />

accomplished a big milestone<br />

at the AGM <strong>2014</strong>. What will<br />

come next?<br />

Andrea Mansuino: “As we mentioned<br />

above, we still have to discuss and<br />

approve the positions on EDV and<br />

Patents, and to develop the concept<br />

of Ground-breaking Innovation. We<br />

will also have further analysis on the<br />

Additional Requests, including many<br />

aspects of the UPOV system which<br />

in our opinion should not be underestimated.<br />

We will do this in the same<br />

transparent and democratic manner<br />

as before, so that hopefully we end<br />

up with a comprehensive updated IP<br />

Position in March 2015.”<br />

Ciopora <strong>Chronicle</strong>: “Thank you for<br />

the interview. We wish <strong>CIOPORA</strong><br />

good luck in its work on the further<br />

Position Papers. We shall be looking<br />

forward to hearing the <strong>CIOPORA</strong> news<br />

after the 2015 Annual General Meeting<br />

in Tel-Aviv.” |||<br />

About the author<br />

Ron van der Ploeg is the editor in<br />

chief of FloraCulture International.<br />

<strong>CIOPORA</strong> <strong>Chronicle</strong> June <strong>2014</strong> | www.FloraCulture.eu 29


Fruits<br />

The range of fruits<br />

now available to<br />

consumers around<br />

the world is large<br />

and continually<br />

expanding. Fruits<br />

also vary in stage of<br />

market development,<br />

from novel to mature<br />

products. All major<br />

fruits, however, face<br />

common forces on<br />

both the demand<br />

and supply sides.<br />

(Photo credits: Better3Fruit).<br />

Preparing for future<br />

markets for major fruits<br />

World Fruit Complex,<br />

Large and Growing<br />

Table 1 shows both the growth<br />

and diversity of the world fruit<br />

complex over the last two decades.<br />

Between 1990-92 and 2010-12,<br />

world population grew by about<br />

30 percent. In all cases except<br />

grapes, world per capita supplies of<br />

fruit grew dramatically faster than<br />

world population. Production of<br />

major fruits, excluding melons and<br />

watermelons, jumped by over 22<br />

kilograms per capita. Growth was<br />

strong both in mainstream fruits<br />

like apples and pears, and in minor<br />

fruits, whether deciduous, citrus,<br />

tropical or berries or miscellaneous<br />

other fresh fruits.<br />

The growth in the size and diverby<br />

Dr. Desmond O'Rourke<br />

All the fruits will be affected<br />

by population shifts, income<br />

swings, changes in consumer<br />

preferences, retail developments,<br />

and public and private efforts to<br />

boost consumption for health reasons.<br />

On the supply side, all fruits<br />

must compete for access to suitable<br />

land, water, energy and labour.<br />

Fruit growers differ in how they<br />

seek to tackle these challenges. The<br />

rest of this article discusses some<br />

of the common challenges being<br />

faced, and the different approaches<br />

being taken.<br />

sity of world fruit production was<br />

stimulated by increasing affluence<br />

in both developed and developing<br />

countries. Consumers demanded<br />

more fruit choices twelve months a<br />

year. Large, chain retailers catered<br />

to these demands as they expanded<br />

around the world and enlarged<br />

their produce sections. Falling<br />

trade barriers and technological<br />

advances enabled fresh fruit to be<br />

delivered over long distances, and<br />

long periods, in excellent condition.<br />

However, it will be very difficult<br />

to slow growth in fruit production<br />

in the near future even if demand<br />

falters. Production has moved<br />

increasingly to more productive<br />

environments. It is now in the<br />

hands of well-capitalized, integrated<br />

firms that manage all the functions<br />

of production, packing, storage,<br />

processing and marketing, and<br />

need early and high production<br />

to justify their large investments.<br />

Market Opportunities<br />

Shifting<br />

The best opportunities for increased<br />

fresh fruit demand are shifting<br />

from the developed world to emerging<br />

markets. Developed countries<br />

face stagnant and aging populations<br />

and slow income growth. They<br />

have low propensity to increase purchases<br />

of mainstream fruits, but are<br />

more apt to purchase high-valued,<br />

novel fruits. Many have been pummelled<br />

by the Great Recession and<br />

the subsequent debt crises. Thus,<br />

there is little prospect that the total<br />

volume of fresh fruit demanded in<br />

the developed world will increase<br />

much in the decade ahead.<br />

In contrast, many emerging<br />

markets have rapidly growing<br />

populations, rising purchasing<br />

power, a growing middle class, a<br />

rapidly modernizing food retailing<br />

sector, and buoyant demand for<br />

many imported fruits.<br />

Consumer<br />

motivations<br />

Consumer motivations for buying<br />

different fresh fruits are becoming<br />

more complicated. Consumers<br />

want access to familiar products,<br />

but also occasionally yearn for<br />

something new or different. As<br />

product choice within individual<br />

fruits, and among fruit categories,<br />

has grown, it has been a challenge<br />

for food retailers to accommodate<br />

the desires of their customers for<br />

both novelty and continuity.<br />

Consumers still care about the<br />

intrinsic attributes of different<br />

fruits, but many are equally concerned<br />

about food safety, sustainability,<br />

status, and ephemeral<br />

concepts like fun or excitement.<br />

30 www.FloraCulture.eu | <strong>CIOPORA</strong> <strong>Chronicle</strong> June <strong>2014</strong>


Table 1. World: Per Capita Supplies of Major Fruits and Fruit Categories, 1990-92, 2000-02 and 2010-12 (kilograms)<br />

Category/Fruit 1990-92<br />

(kg)<br />

2000-02<br />

(kg)<br />

2010-12<br />

(kg)<br />

Change 1990-92 to<br />

2010-12 (%)<br />

Apples 7.73 9.27 10.63 + 37.5<br />

Other Deciduous 6.06 7.76 9.70 + 60.1<br />

Total Deciduous 13.79 17.03 20.33 + 47.4<br />

Total Grapes 10.92 10.10 9.74 – 10.8<br />

Oranges 9.67 9.99 9.86 + 2.0<br />

Other Citrus 5.43 7.05 8.72 + 60.6<br />

Total Citrus 15.10 17.04 18.58 + 23.0<br />

Bananas 9.05 10.82 14.95 + 65.2<br />

Other Tropical 14.33 16.35 19.76 + 37.9<br />

Total Tropical 23.38 27.17 34.71 + 48.5<br />

All Berries 0.77 0.93 1.08 + 40.3<br />

All Other Fresh 2.94 3.95 4.58 + 55.8<br />

Total Fruits 66.90 76.22 89.02 + 33.1<br />

Source: UN, FAO, FAOSTAT database online.<br />

Future certain –<br />

heightened competition<br />

The trends in fruit supplies,<br />

marketing opportunities and<br />

consumer motivations mean that<br />

in the next ten years competition<br />

within the fruit category will become<br />

even more intense. There will be<br />

strong downward pressure on producer<br />

prices. Many firms will seek<br />

to survive by lowering unit costs,<br />

either through more efficient use<br />

of inputs, or through greater output<br />

per hectare. Unfortunately, increased<br />

yields will increase the risk of global<br />

supplies outrunning demand.<br />

Salvation through<br />

breeding advances<br />

Over the last two to three decades,<br />

many progressive fruit growers<br />

have sought to escape the downward<br />

price squeeze in commodity<br />

markets by differentiating their<br />

products through brands,<br />

marks of excellence, protected<br />

geographical indicators or other<br />

methods. However, the small price<br />

premiums earned have helped little<br />

when overall price levels sank.<br />

In contrast, the breeding of new<br />

varieties has brought significant<br />

gains in individual fruit categories.<br />

The development of seedless grapes<br />

and easy-peeler oranges has transformed<br />

those categories. In summer<br />

fruits, there has been a steady<br />

parade of new, named varieties. In<br />

the case of sweet cherries, the focus<br />

was on breeding earlier or later<br />

varieties to lengthen the season and<br />

avoid the dramatic price drops that<br />

used to occur during a single peak<br />

harvest. This effort has so far been<br />

only partially successful.<br />

Can apples be<br />

the exception?<br />

There is much optimism about<br />

the value of breeding new apple<br />

varieties. Varieties such as Jonagold,<br />

Elstar, Gala, Fuji and Braeburn<br />

earned large price premiums<br />

for several years. When those<br />

premiums eroded with increasing<br />

volumes, a consensus developed<br />

among the apple industry leaders<br />

that price premiums could be<br />

maintained for longer periods if<br />

the Intellectual Property of the<br />

new variety was tightly controlled,<br />

the number of trees planted and<br />

volume marketed was limited, and<br />

if the image of the new variety was<br />

protected through tight control of<br />

names, packaging and promotion.<br />

These are usually referred to as<br />

‘managed’ or ‘club’ varieties.<br />

(Photo credits: Better3Fruit). >>><br />

<strong>CIOPORA</strong> <strong>Chronicle</strong> June <strong>2014</strong> | www.FloraCulture.eu 31


Fruits<br />

Apple orchard. (Photo credits: Better3Fruit).<br />

When there were few club varieties,<br />

the club sponsors could select<br />

which individual producers, packers<br />

or marketing firms they wished to<br />

handle their variety. Often, licenses<br />

were granted to firms, producing<br />

districts and countries that were<br />

already highly competitive. The<br />

remaining producers, districts and<br />

countries, fearing that they would<br />

increasingly fall behind, agitated<br />

successfully for their own breeding<br />

programs that could develop new<br />

varieties suitable for local conditions.<br />

At the same time, the drive<br />

to breed winning new varieties<br />

has intensified in university and<br />

government research centres and in<br />

the private sector.<br />

The result of all this activity is<br />

that there are now many new club<br />

varieties competing to attract new<br />

members, a reversal of the past<br />

situation.<br />

Changing motivations<br />

for adopting new<br />

varieties<br />

In the past, the goal of many<br />

breeders was to find a new variety<br />

that could become a blockbuster<br />

like Gala or Fuji. However, the<br />

underlying principle of most club<br />

organizations, namely, maintaining<br />

price premiums through controlling<br />

volume, acts as a natural brake<br />

on extensive production.<br />

In the meantime, most integrated<br />

producer-packer-marketers have<br />

altered their expectations for new<br />

varieties. The large retailers that<br />

they serve want a diverse portfolio<br />

of apple varieties, including, twelvemonth<br />

supplies of major varieties<br />

like Golden Delicious, Gala or Pink<br />

Lady and access to one or more<br />

exclusive varieties so they can<br />

distinguish their apple offerings<br />

from those of competing retailers.<br />

What is a breeder to do?<br />

Given these changing conditions,<br />

breeders and sponsors of new apple<br />

varieties need to view their task as<br />

creating both a new product and<br />

a new business to handle that<br />

product. The new product must<br />

serve a specific need in the marketplace.<br />

It must be distinctive in<br />

physical attributes, in its name, the<br />

market segments it might appeal<br />

to, and the promotional support it<br />

receives.<br />

Breeders need to have clear targets<br />

for where in the market any new<br />

variety will fit. Has it mass market<br />

appeal? Can it appeal to a specific<br />

market segment? Could it be offered<br />

exclusively to selected retailers<br />

for limited periods? Since developed<br />

country markets are so crowded, is<br />

there greater potential in developing<br />

countries? Intensive market research<br />

to answer such questions should<br />

precede all breeding efforts.<br />

Sponsors of new varieties also need<br />

to have a clear business model they<br />

are pursuing, including guidelines<br />

about product, pricing, promotion,<br />

competition, market opportunities,<br />

potential breakeven point, and<br />

other aspects of the future business.<br />

They need to be able to offer the<br />

potential for significant profit to<br />

future club participants.<br />

Don’t forget<br />

the silent majority<br />

While innovation is important to<br />

every industry, it is vital to keep<br />

current mainstream varieties (what<br />

I call the ‘silent majority’) healthy.<br />

Even within the next decade less<br />

than 3 percent of the world apple<br />

production will be club varieties.<br />

Given the intense competition from<br />

so many other fruits and snacks,<br />

and weakening demand among the<br />

young, unless the silent majority<br />

can find a large promotional voice,<br />

the entire apple industry in the<br />

developed world could face further<br />

shrinkage. That fate can still be<br />

avoided. |||<br />

About the author<br />

After receiving a M.A. (1968) and PhD (1970) in agricultural economics at<br />

the University of California, Davis, Dr. O’Rourke was a faculty member in the<br />

Department of Agricultural Economics at Washington State University in<br />

Pullman for 30 years. He specialized in international marketing of fresh fruits.<br />

From 1985 to 2000, he also headed WSU’s IMPACT Center, a multidisciplinary<br />

program that introduced many new agricultural products, new technologies<br />

and new databases on trade issues.<br />

Dr. O’Rourke is the author of four books and numerous professional journal<br />

articles, bulletins, and popular reports. After retiring from Washington State<br />

University In May 2000, he became president of his own consulting firm,<br />

Belrose, Inc. which publishes a monthly newsletter, The World Apple Report<br />

and a number of annual reviews of various fruit crops. The most recent special<br />

study examined ‘Asian Import Demand for Apples, Pears, Sweet Cherries and<br />

Kiwifruit: Potential to 2020.’ He has been a consultant to many government<br />

agencies, industry organizations and large businesses around the world, and is<br />

a frequent speaker at international conferences.<br />

Dr. O’Rourke was a member of the Washington State Governor’s Council of<br />

Economic Advisors from 1993 to 2012, and a reviewer on the Biotechnology<br />

panel for the Washington Technology Centre for over a decade. He is the author<br />

of numerous professional journal articles and four books, including his 1967<br />

book Marketing in Ireland, which was the first Irish textbook on the subject.<br />

32 www.FloraCulture.eu | <strong>CIOPORA</strong> <strong>Chronicle</strong> June <strong>2014</strong>


Company profile<br />

‘Think global,<br />

act local’ is a<br />

frequently used<br />

slogan. But what<br />

exactly does it<br />

imply? A perfect<br />

case study to<br />

explain the<br />

implementation<br />

of this idea is<br />

the Poinsettia<br />

business. Selecta<br />

Klemm reports.<br />

by Richard Petri<br />

Poinsettia is the quintessential<br />

Christmas plant.<br />

Selecta Klemm’s Poinsettia<br />

breeding is a world of regions<br />

Poinsettia is the quintessential<br />

Christmas plant. In 1828,<br />

the American ambassador to<br />

Mexico, Joel Poinsett, discovered<br />

this beautiful shrub growing along<br />

the roadside. He took some cuttings<br />

and planted them in his greenhouse<br />

in South Carolina.<br />

From that day on the plant found<br />

its way in the world. Poinsettia<br />

are used as decoration and as a<br />

gift item during the winter season<br />

around the world. The plant is also<br />

gaining more admirers in East<br />

Asian countries, where the Westernstyle<br />

Christmas celebrations are<br />

becoming increasingly popular.<br />

In Turkey and Egypt, Poinsettia<br />

have a long tradition with no<br />

reference to Christmas.<br />

Demands from growers<br />

and consumers<br />

The business of Poinsettia<br />

means meeting the demands of<br />

thousands of growers and millions<br />

of consumers all over the world.<br />

Selecta has been working for<br />

decades on varieties suited for<br />

different regions becoming one<br />

of the world’s leading Poinsettia<br />

breeders – which highlights Selecta’s<br />

success with this crop. The mother<br />

stock plants are selected, grown<br />

and maintained in East Africa from<br />

where the cuttings are transported<br />

easily and quickly to European<br />

destinations.<br />

The finished product, however,<br />

doesn’t withstand transportation<br />

logistics too easily, which stresses<br />

the importance of local rooting<br />

stations close to the market to keep<br />

logistic lines short and to ensure the<br />

best plant quality for consumers.<br />

Major challenge<br />

Poinsettia breeding itself is another<br />

challenge. Wouldn’t it be nice to<br />

have one universal variety covering<br />

all production requirements and<br />

regional demands?<br />

Apart from the environmental and<br />

climatic impact (i.e. day length),<br />

different production standards,<br />

multiple growing approaches and a<br />

plethora of trading channels require<br />

different Poinsettia varieties for<br />

different European markets.<br />

As red is still the most important<br />

colour of Poinsettia, Selecta is<br />

currently selling a wide range of<br />

different commercial red varieties in<br />

different colour shades. A very large<br />

portion of the portfolio is taken by<br />

Christmas Feelings® Red, one of the<br />

most successful Poinsettia varieties<br />

worldwide. Christmas Feelings® is<br />

definitely a Poinsettia superstar. It is<br />

a variety of great commercial value;<br />

they branch freely and are very<br />

vigorous and productive.<br />

Mediterranean versus<br />

Scandinavian markets<br />

But while this rather compact<br />

variety is so successful in Northern<br />

Europe, the Mediterranean<br />

consumers prefer plants with<br />

a different look. In sun-kissed<br />

countries, people are used to<br />

large Poinsettia plants, grown in<br />

voluminous pots and featuring big<br />

bracts. Selecta has been working<br />

tirelessly on breeding new varieties<br />

to meet these demands and found<br />

the answer in varieties such as ‘Noel’,<br />

Poinsettia growing.<br />

‘Happy Christmas’ or the new<br />

introduction – ‘Christmas Aurora’.<br />

Scandinavian growers, on the other<br />

hand, are specialised in minishaped<br />

plants. Easy packing is<br />

essential for the Danish Poinsettia<br />

industry. Selecta’s ‘Christmas<br />

Eve’ and ‘Christmas Beauty’ are<br />

excellent mini varieties, but again<br />

‘Christmas Feelings®’ has made its<br />

way into the Danish production<br />

with an increasing market share in<br />

the total Poinsettia production.<br />

As consumers are getting more<br />

concerned about the usage<br />

of chemicals in professional<br />

horticulture. Selecta has developed<br />

a new variety, ‘Christmas Glory’,<br />

that can be grown without any<br />

plant growth regulators. It can also<br />

be used for organic production due<br />

to its resistance against any disease<br />

or pest.<br />

This mini excursion into the<br />

European Poinsettia markets shows<br />

that breeding efforts will and<br />

should never stop. With changing<br />

requirements the challenges remain<br />

in Europe – a continent of regions,<br />

a continent of local solutions offered<br />

by Selecta. |||<br />

<strong>CIOPORA</strong> <strong>Chronicle</strong> June <strong>2014</strong> | www.FloraCulture.eu 33


Intellectual Property<br />

Plant breeders<br />

protect their plant<br />

varieties by Plant<br />

Variety Rights,<br />

such as Community<br />

PVRs in the EU,<br />

and Plant Patents<br />

in the US. But can<br />

Patents serve as a<br />

suitable alternative<br />

in the UPOV member<br />

states, including<br />

the EU? The answer<br />

lies in a detailed<br />

analysis of the<br />

current practice in<br />

the area of Patents<br />

for plant related<br />

innovations.<br />

by Dr. Tom H. Wittop Koning<br />

Patents - a fruitful<br />

alternative for PVRs?<br />

Patens are historically intended<br />

for the fields of mechanics<br />

and chemistry, in particular<br />

for new products or methods to<br />

produce new or existing products.<br />

Patents are only granted for inventions<br />

of technical nature that are<br />

novel, inventive and are industrially<br />

applicable. Novelty is given when<br />

the subject matter of the invention<br />

is absolutely novel, i.e. not disclosed<br />

in any way anywhere in the world.<br />

This is in contrast to PVR, which<br />

can still be obtained when the<br />

variety has been commercialized for<br />

less than one year in the country of<br />

protection. An invention is considered<br />

as involving an inventive step<br />

if, in regard to the state of the art, it<br />

is not obvious to the skilled person.<br />

Industrial applicability is given<br />

when the invention can be made<br />

or used in any kind of industry, including<br />

agriculture. However, mere<br />

aesthetical creations are excluded<br />

from patentability, whereas PVRs<br />

focus on ornamental features that<br />

are mainly of aesthetical nature.<br />

Furthermore, plant varieties, as well<br />

as essentially biological processes<br />

for their production, are excluded<br />

from patentability.<br />

Are patents suitable<br />

for breeders?<br />

At first sight, it may therefore be<br />

difficult or even impossible to<br />

obtain a Patent for plants. However,<br />

the above patentability requirements<br />

can indeed be applied to<br />

plants, and for methods of obtaining<br />

thereof, as long as the plants<br />

encompass more than a single<br />

variety and comprise a new technical<br />

feature. Further, the claimed<br />

methods should not be essentially<br />

biological. The presence of a new<br />

technical feature can, for example<br />

be resistance to a certain plague, or<br />

the capacity of prolonged flowering.<br />

However, let us look further into<br />

the possible pitfalls for breeders<br />

when it comes to patenting.<br />

Sakura Cress ® (Photo credits: Koppert Cress).<br />

The breeders’ exemption<br />

The breeders’ exemption is one of<br />

the pillars of the PVR, embedded<br />

in the UPOV treaty. It guarantees<br />

the availability of protected plant<br />

varieties for further breeding. To<br />

those breeders, the exemption<br />

may be very attractive, but less so<br />

for breeders who develop varieties<br />

from scratch or from their own<br />

varieties. The Patent system does<br />

not provide for such exemption, at<br />

least not to such a broad extent. The<br />

EU directive 98/44/EC, which is<br />

implemented in all European jurisdictions,<br />

allows breeders to exploit<br />

a PVR in case the variety would be<br />

covered by a Patent. In that case,<br />

the breeder can apply for a compulsory<br />

license for non-exclusive use<br />

of the Patent. The patentee, in his<br />

turn, will be entitled to a crosslicense<br />

to use the plant variety. So<br />

there is no free use of plant varieties<br />

covered by a Patent. In some states,<br />

such as in the Netherlands, the<br />

Patent act is a bit more lenient<br />

towards breeders. Breeders may<br />

use patented biological material<br />

in order to develop and breed new<br />

varieties. However, once a variety<br />

is developed, the exemption is<br />

exhausted. A breeder cannot exploit<br />

a new plant variety without infringing<br />

the Patent and needs a compulsory<br />

license from the patentee.<br />

Whether such ‘broadening’ of the<br />

exemption confers any comfort to<br />

breeders is highly questionable, but<br />

at least a breeding act as such does<br />

not need licensing.<br />

Is patenting attractive<br />

for breeders?<br />

Yes, it may very well be. One of<br />

the major advantages is the absence<br />

of the breeders’ exemption<br />

strengthening the right of the<br />

patentee. Further, a Patent is<br />

directed to plants comprising a<br />

technical feature, meaning that<br />

not only a single variety, but any<br />

plant comprising the said technical<br />

feature will be protected. A Patent<br />

further offers the possibility to<br />

claim plant progeny, plant parts,<br />

34 www.FloraCulture.eu | <strong>CIOPORA</strong> <strong>Chronicle</strong> June <strong>2014</strong>


such as seeds, flowers, leafs etc., as well<br />

as methods to produce such plants.<br />

Such a method is e.g. patentable when<br />

it comprises a microbiological step, and<br />

fulfills the novelty and inventive step<br />

requirements. For example, a method<br />

to introduce a particular gene into a<br />

plant conferring a new characteristic to<br />

the said plant is patentable.<br />

Is a non-essentially<br />

biological step a must<br />

to qualify for Patent?<br />

Although, as dictated by Art. 53(b)<br />

of the European Patent Convention<br />

and the corresponding national laws,<br />

essentially biological methods are not<br />

patentable, Patents have meanwhile<br />

been granted on plants displaying a<br />

technical effect, that are produced by<br />

conventional breeding techniques.<br />

A European Patent EP1290938 in<br />

the name of Taste of Nature has been<br />

granted for radish plants, obtainable<br />

by screening radish plants for their<br />

ability to produce sprouts having<br />

purple colouring, for selfing and/<br />

or crossing said plants for several<br />

generations and for selecting progeny<br />

with sprouts with purple colouring,<br />

wherein the sprout comprises at least<br />

800 nmol anthocyanins per gram<br />

sprout. This is a plant, obtainable by<br />

conventional breeding techniques. The<br />

invention lies in the fact that it was<br />

observed that purple colour coincided<br />

with a high anthocyanin content, the<br />

anthocyanin having a positive effect<br />

on human health. So the purple colour<br />

was not a mere esthetical aspect (not<br />

patentable as such) but had a technical<br />

effect, namely the provision of a useful<br />

compound or more healthy sprouts.<br />

The sprouts are not regarded as a single<br />

plant variety, as the claimed invention<br />

covers many different offsprings and<br />

progenies thereof, i.e. many different<br />

varieties.<br />

No certainty yet<br />

Nevertheless, last words have not<br />

been yet spoken in this respect. The<br />

European Patent Office has now,<br />

in the latest cases (EP1069819 and<br />

EP1211926) addressed its questions<br />

to the Enlarged Board of Appeal on<br />

whether plants obtained by biological<br />

processes should be excepted from<br />

being patentable, as the method to<br />

obtain such plants is excepted from<br />

Sakura Cress ® (Photo credits: Koppert Cress).<br />

patentability by law. Until a decision<br />

is reached, the European Patent has<br />

now put on hold all Patent prosecution<br />

proceedings, wherein plants produced<br />

by conventional breeding and selection<br />

are claimed. Although these cases<br />

are still pending, the Dutch court in<br />

second instance has recently (May 28,<br />

2013) tried the above radish case and<br />

concluded that a plant, albeit a product<br />

of a biological breeding method that<br />

as such is excluded from patentability,<br />

is not automatically excepted from<br />

patentability. In this case, the radish<br />

plants were held patentable as the<br />

plants were novel and inventive (no<br />

sprouts with purple colour and having<br />

high anthocyanin content were known<br />

or obvious to the skilled person).<br />

Purple anthocyanin containing radish<br />

sprouts would infringe this Patent.<br />

Again: Patents<br />

for breeders?<br />

The Patent system is open for technical<br />

inventions on plants that are not<br />

limited to a single plant variety. If the<br />

plants are produced by a method that<br />

comprises more than just conventional<br />

breeding, the method and the plants<br />

may be patentable. The EPO must<br />

however still decide whether plants<br />

produced by breeding will remain<br />

patentable in the future in Europe.<br />

The tendency seems to be in favour of<br />

patentability. By patenting, breeders<br />

protect their innovative plants from<br />

free use by others for further development<br />

of varieties, conferring improved<br />

protection. |||<br />

About the author<br />

Tom H. Wittop Koning, PhD, is European and Dutch<br />

Patent attorney and partner of the Dutch IP law firm<br />

AOMB, and manages the biotech group from<br />

AOMB’s The Hague office.


Intellectual Property<br />

The final proposals<br />

for a revised<br />

Regulation on<br />

Community<br />

trademarks (CTMR) 1<br />

and a Directive on<br />

the Harmonisation<br />

of the Laws of the<br />

European Member<br />

States (Trademark<br />

Directive) 2 relating<br />

to trademarks<br />

were published<br />

almost a year ago.<br />

They received<br />

positive feedback<br />

from jurists and<br />

stakeholders<br />

alike, but it seems<br />

doubtful whether<br />

stakeholders in the<br />

green business will<br />

always benefit from<br />

the reform of the EU<br />

trademark system.<br />

Trademarks and<br />

variety denominations -<br />

harmonisation underway?<br />

Various names are used as trademarks. Nevertheless, the symbol ® should<br />

only be used if they are, in fact, registered (Photo credits: Thomas Leidereiter).<br />

by Thomas Leidereiter<br />

Most plant breeders assign<br />

not one, but two names<br />

to their newly bred<br />

varieties. In addition to the variety<br />

denomination used for the PVR<br />

application a (word) trademark<br />

is also used. Although the PVR<br />

and the trademark system cover<br />

different objects of protection 3 , the<br />

official variety denomination is also<br />

protected under the PVR laws to<br />

some extent, as it constitutes a<br />

PVR infringement if a protected<br />

denomination is used for another<br />

variety of the same or a similar<br />

species. But what happens in the<br />

event that a variety denomination<br />

and a trademark collide?<br />

A short case study<br />

Breeder A was granted a Community<br />

PVR in 2007 for his<br />

wheat variety ‘DISCUS’. Shortly<br />

afterwards, trademark owner B<br />

filed an application for a Community<br />

trademark also for the term<br />

‘DISCUS’ covering “living plants<br />

and parts of living plants, sowing<br />

seeds, cut flowers in class 31”.<br />

After the grant of protection was<br />

issued, breeder C filed an application<br />

for a perennial ryegrass variety<br />

with the CPVO. As denomination<br />

he proposed, as you might<br />

have guessed by now, the name<br />

‘DISCUS’ also. When B became<br />

aware of the new PVR application,<br />

he filed an objection against the<br />

proposed denomination. In consequence,<br />

A – sister company of C –<br />

filed an application to cancel B’s<br />

trademark claiming, inter alia, that<br />

the trademark exclusively consisted<br />

of a sign that serves to designate the<br />

kind of goods covered by it (i.e.<br />

that it is a generic term). The cancellation<br />

division of the Office for<br />

Harmonisation in the Internal<br />

Market (OHIM) cancelled the<br />

Community trademark ‘DISCUS’<br />

on the ground that it would be<br />

merely descriptive for all goods<br />

covered by the registration and,<br />

thus, could not be monopolised.<br />

The Offices’ reaction<br />

After the DISCUS case revealed<br />

that there are certain overlaps between<br />

both the Community PVR<br />

and the Community trademark<br />

system, representatives of the<br />

Offices gathered and worked out<br />

amended guidelines for the OHIM<br />

trademark examiners. The newly<br />

applied rules read: “Whenever a<br />

CTM application is filed to register<br />

36 www.FloraCulture.eu | <strong>CIOPORA</strong> <strong>Chronicle</strong> June <strong>2014</strong>


a mark containing wording for<br />

live plants, agricultural seeds, fresh<br />

fruits, fresh vegetables or equivalent<br />

wordings, the examiner must<br />

ensure that the term making up the<br />

trademark does not coincide with<br />

the name of a specific plant variety.<br />

In order to verify this, the examiner<br />

will first check the CPVO register<br />

to ascertain if the trademark applied<br />

for happens to coincide with a<br />

plant variety name already entered<br />

in the mentioned register. If the<br />

check shows an identical entry in<br />

the register, the examiner must raise<br />

an objection since plant variety<br />

names entered in the register are<br />

considered to be descriptive and<br />

cannot be monopolised.”<br />

The rules even go on to state:<br />

“Lastly, it should be noted than an<br />

objection should be raised not only<br />

in respect of applied for trademarks<br />

that are identical to (or are slight<br />

variations of) a plant variety name<br />

that appears in the mentioned<br />

CPVO register or is used in trade as<br />

the generic name of a plant variety,<br />

but also in respect of any good and/<br />

or service which can be directly<br />

linked to the plant variety name in<br />

question.”<br />

Or, in short, no Community trademarks<br />

for variety denominations<br />

of a registered Community PVR<br />

should be granted to plants or related<br />

products. The approach seems<br />

reasonable. After all, each variety<br />

must have one free name so that<br />

it can be referred to by everybody<br />

after the PVR has lapsed. And for<br />

everyone who tried to obtain a<br />

US-trademark in class 31, the<br />

situation is familiar. The USPTO<br />

does not accept trademark applications<br />

covering terms that have<br />

already been used as varietal names.<br />

What seemed irritating, however,<br />

is that under the guidelines only<br />

denominations of registered Community<br />

PVR were immediately<br />

considered generic. One might ask<br />

why a distinction should be made<br />

between denominations of varieties<br />

protected on a European PVR and<br />

those ‘only’ covered by national<br />

PVR; not even to mention old varieties<br />

or varieties with lapsed PVR<br />

titles. But OHIM’s revised manual<br />

tried to address this issue as follows:<br />

“Whenever a CTM application<br />

consists of wordings for live plants,<br />

agricultural seeds, fresh fruits, fresh<br />

vegetables or equivalent ones, the<br />

examiner will have to verify, by<br />

means of internet research, whether<br />

the term making up the applied<br />

for trademark coincides with the<br />

name of a specific plant variety<br />

that happens to be already used in<br />

trade”. Admittedly, the outcome of<br />

such research and its interpretation<br />

seems rather unpredictable.<br />

An ‘unlawful<br />

administrative practice’?<br />

Actually, the OHIM decision in<br />

the DISCUS case and the revised<br />

manual for examination seem to<br />

run somewhat contrary to the<br />

European trademark laws in force.<br />

Neither the CTMR nor the current<br />

Trademark Directive mention<br />

plant varieties or their denominations<br />

with a single word. In fact,<br />

variety denominations, according<br />

to the law, can only be excluded<br />

from trademark protection as ‘other<br />

intellectual property rights’. 4 This is<br />

the case for example in Germany.<br />

Under § 13(2)(4) of the German<br />

Trademark Act, the holder of a<br />

PVR title has to bring a court action<br />

5 for the cancellation of a trademark.<br />

A variety denomination is<br />

neither seen as an absolute ground<br />

for refusal nor does it give a right to<br />

oppose a trademark application.<br />

More confusion<br />

underway<br />

To sum up: the future relating to<br />

this issue does not look promising.<br />

While the proposal for a revised<br />

CTMR does declare variety<br />

denominations of registered Community<br />

PVR as absolute grounds<br />

for refusal of a trademark application,<br />

the proposal for a Trademark<br />

Directive remains entirely silent<br />

about variety denominations.<br />

If the revised rules entered into<br />

force unaltered, the confusion<br />

would be complete: denominations<br />

of varieties protected as<br />

Community PVRs will be an<br />

immediate obstacle to Community<br />

trademarks. Whether the examiner<br />

remains obliged to also search for<br />

other customary denominations<br />

is uncertain but not likely. To my<br />

mind, the legislator would be well<br />

advised to consider at least the demand<br />

of the International Chamber of Commerce<br />

6 and to also include denominations<br />

of national PVRs in the CTMR.<br />

Whether the trademark practice in<br />

the individual EU member states will<br />

change is even less foreseeable. As no<br />

harmonisation is intended, one may<br />

only guess how variety denominations<br />

of any kind are going to be dealt with<br />

by the national trademark offices in<br />

the future.<br />

Conclusions<br />

Speaking solely about varietal names,<br />

the envisaged revision of the EU<br />

trademark system is highly detrimental<br />

to legal certainty and, consequently,<br />

to the interests of breeders and other<br />

trademark holders alike. One simple<br />

solution to prevent name collisions,<br />

already adopted by many breeders,<br />

is the use of coded denominations.<br />

A trademark ‘12345PVR’ covering<br />

‘roses’ might at some stage be applied<br />

for, but such cases seem less likely. In<br />

any event, anybody filing a national or<br />

Community trademark application<br />

in class 31 will face a great deal of<br />

uncertainty once the proposals have<br />

been adopted. |||<br />

1. Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE<br />

COUNCIL amending Council Regulation (EC) No 207/2009 on the Community<br />

trademark; COM/2013/0161 final - 2013/0088 (COD)<br />

2. Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE<br />

COUNCIL to approximate the laws of the Member States relating to trademarks;<br />

COM/2013/0162 final - 2013/0089 (COD)<br />

3. The Community PVR system, for example, covers variety constitutes, i.e. plant<br />

material capable of producing plants of the protected variety, while trademarks<br />

are granted for names, logos, sounds, colours, shapes and the like.<br />

4. Within the meaning of Article 4 of the Trademark Directive and Art. 53(2)(b) CTMR.<br />

5. If the trademark holder refuses to withdraw the registration upon a respective<br />

motion before the trademark office.<br />

6. Expressed in their Comments on the European Commission Proposals for Reform<br />

of the EU Trademark System of 1 July 2013.<br />

About the author<br />

Thomas Leidereiter is dealing with Intellectual Property in general and<br />

Plant Variety Rights (“PVR”) matters in particular. After 14 years at a major<br />

German law firm, Thomas Leidereiter recently founded his own firm, Green<br />

Rights, in Hamburg. With an IP background covering trademarks, designs,<br />

copyrights and the law on unfair competition, he is advising clients on<br />

all aspects of protection of plant innovations, including IP licensing and<br />

enforcement. Thomas has been involved in major court cases dealing with<br />

fundamental PVR issues in the ornamental sector as well as questions<br />

of PVR infringements. He is a member of the Expert Committee on the<br />

Protection of Plant Innovations at GRUR, a member of <strong>CIOPORA</strong>, its<br />

lawyers’ panel, and of <strong>CIOPORA</strong> Germany.<br />

<strong>CIOPORA</strong> <strong>Chronicle</strong> June <strong>2014</strong> | www.FloraCulture.eu 37


Intellectual Property<br />

Despite the broad<br />

legal remedies<br />

provided by<br />

Ukrainian Plant<br />

Variety Right (PVR)<br />

laws, enforcement<br />

of Plant Breeders’<br />

Rights (PBR) can<br />

be challenging due<br />

to the rather small<br />

number of judicial<br />

precedents in this<br />

field, which are<br />

primarily confined<br />

to the issues of<br />

authorship, author’s<br />

remuneration and<br />

employee’s varieties.<br />

by Natalia Stetsenko<br />

Protecting Plant Variety<br />

Rights in Ukraine<br />

Having first ratified the<br />

Act 1978 of the UPOV<br />

Convention in 1995,<br />

Ukraine implemented the 1991 Act<br />

of UPOV in 2006 in a new PVR<br />

law providing for protection of all<br />

plant genera and species.<br />

The scope of rights granted to plant<br />

breeders in Ukraine is basically the<br />

same as in any other UPOV member<br />

state. The law simultaneously<br />

provides for both judicial and<br />

administrative measures for PBR<br />

enforcement.<br />

Enforcement of<br />

Plant Variety Rights<br />

The governmental agency responsible<br />

for the enforcement of PVR is<br />

the State Agricultural Inspection of<br />

Ukraine, which was re-organised<br />

in April 2013. This body, also<br />

acting as Ukraine’s representative<br />

before ICTA, OECP and other<br />

international organisations, has<br />

a broad range of competences,<br />

including the right to inspect<br />

producers and sellers of planting<br />

stock. Based on the results of such<br />

checks, the inspection may discover<br />

PVR infringements and initiate<br />

administrative proceedings. It is<br />

also authorised to refer the infringement<br />

records to the prosecutor’s<br />

office and the police if the PVR<br />

infringements comprise elements of<br />

a criminal offence<br />

Civil and criminal<br />

actions<br />

It is possible to bring both civil and<br />

criminal actions against infringers<br />

of PVR. Under the provisions of<br />

the civil code of Ukraine, final<br />

remedies that may be sought<br />

against infringers of all types of<br />

intellectual property rights (PVR)<br />

include injunctions to restrain<br />

infringing actions, claim of<br />

damages for any loss suffered by<br />

the title holder, lost profit, seizures<br />

and destruction of the infringing<br />

material, seizure of materials and<br />

equipment used for production of<br />

the infringing material and their<br />

destruction, publication in press<br />

(Art. 432 of the Civil Code).<br />

Only actual damages can be<br />

claimed. No punitive damages are<br />

provided for by the law. In cases of<br />

patent infringements it is common<br />

practice to calculate damages based<br />

on the provisions of the existing<br />

license agreements or, if there<br />

is no agreement yet, based on a<br />

hypothetical license. This usually<br />

requires a specialised economic<br />

expertise to be conducted by<br />

certified experts.<br />

The civil law also provides for the<br />

right to claim moral damages from<br />

IPR infringers. When evaluating<br />

such cases, courts have to establish<br />

causal relation between the damage<br />

and activities of the defendant.<br />

The criminal code provides for<br />

fines, hard labour, imprisonment<br />

(up to a maximum of six years),<br />

confiscation and destruction of the<br />

infringing goods, equipment and<br />

materials used for their production<br />

(Art. 177 of the Criminal Code).<br />

The latter is supposed to be a strong<br />

deterring tool. However, in practice,<br />

there have been no criminal<br />

cases initiated by the law enforcement<br />

agencies based on PVR<br />

infringement. The involvement<br />

of the police is totally dependent<br />

on the active position of the title<br />

holders, since the proceedings<br />

against crimes covered by Article<br />

177 may be initiated only upon<br />

request of the aggrieved party.<br />

Trademarks rather<br />

than PVR<br />

Although the law provides for a<br />

wide range of legal tools to tackle<br />

PVR infringements, up to the<br />

present time, PVRs have been<br />

rarely used as a ground for legal<br />

actions. There has been less activity<br />

in fruits and ornamentals, but the<br />

seed industry has clearly shown that<br />

the title holders mostly rely on their<br />

trademarks rather than on PVRs<br />

in their efforts to enforce their<br />

intellectual property rights.<br />

The same is the case with border<br />

measures. As of June 1, 2012,<br />

with implementation of the new<br />

Customs Code, the application of<br />

border measures was extended to<br />

plant varieties, which means that<br />

plant varieties protected in Ukraine<br />

can be recorded in the customs<br />

register similarly to trademarks,<br />

inventions, designs and other IPRs.<br />

However, so far no PBRs were<br />

registered with customs.<br />

A matter of time<br />

Under the circumstances of the<br />

lack of relevant legal practice and<br />

specific nature of PVR, trademark<br />

may be used as an alternative tool<br />

for enforcing PVR, both at the<br />

border and within the internal<br />

market. Nonetheless, taking into<br />

account that Ukraine has sufficient<br />

R&D resources, necessary facilities<br />

and expertise for performing DNA<br />

tests and other relevant researches<br />

involved with PVR enforcement, as<br />

well as adequate legal tools provided<br />

by the current laws, building up<br />

a relevant practice in the field of<br />

PVR enforcement is only a matter<br />

of time. |||<br />

About the author<br />

Natalia Stetsenko is an IP lawyer<br />

who has been working with<br />

Pakharenko & Partners, one of the<br />

biggest IP and general law firms in<br />

Ukraine, since 1997. Her practice<br />

focuses on developing IP protection<br />

strategies for domestic and international<br />

clients, IPR enforcement,<br />

patent and trademark litigation.<br />

Natalia also heads the firm's<br />

division responsible for all aspects<br />

of Plant Variety Protection,<br />

registration of PBRs, licensing and<br />

advising on regulatory issues.<br />

38 www.FloraCulture.eu | <strong>CIOPORA</strong> <strong>Chronicle</strong> June <strong>2014</strong>


For centuries,<br />

roses have been<br />

the quintessential<br />

symbol of<br />

love, providing<br />

inspiration to so<br />

many people in<br />

different fields,<br />

especially in<br />

the ornamental<br />

horticulture and<br />

gardening industry.<br />

For a long time, the<br />

history of roses<br />

starts in hands of<br />

passionate and<br />

skilled breeders<br />

who envision and<br />

further develop<br />

existing or new<br />

colours, fragrances,<br />

shapes for specific<br />

or diversified uses<br />

of the Queen of<br />

Flowers.<br />

by Bruno Etavard<br />

Breeding, imagination<br />

and market vision<br />

Although this flower stands<br />

in the centre of the floricultural<br />

industry, the traditional<br />

image of the cultivated rose<br />

is one classic beauty coupled with<br />

tedious pest and disease control and<br />

time consuming pruning year after<br />

year. Being one of the leading rose<br />

breeders, for decades MEILLAND<br />

has been developing both directly<br />

and indirectly, long term investigation<br />

activities aiming to prove this<br />

image wrong and create a World of<br />

Colours®, not only in the cut flower<br />

sector, but also in the garden and<br />

the landscape.<br />

MEIDILAND ® - the first<br />

name ever in landscape<br />

roses<br />

During the 1980s, the situation<br />

in roses changed. After working<br />

patiently with a number of original,<br />

wild looking species, MEILLAND<br />

created and introduced new protected<br />

varieties, defined not only by<br />

improved aesthetics, but a number<br />

of problem solving features for<br />

landscape architects and endconsumers<br />

alike.<br />

At that time the breakthrough<br />

varieties, such as Meigekanu<br />

LA SEVILLANA® and Meidomonac<br />

BONICA® – the first landscape rose<br />

to be granted AARS – were a true<br />

step forward for the market with<br />

their decorative features, but also<br />

due to the ability of these varieties<br />

to be propagated by the own-root,<br />

their suitability to large scale<br />

industrial planting, their tolerance<br />

towards pests and diseases and<br />

extreme weather conditions. These<br />

varieties ranked among the first<br />

ecological and easy-care roses<br />

distributed under the same<br />

umbrella trade name worldwide.<br />

KNOCK OUT ® - the<br />

revolutionary rose family<br />

Since 2000, Will Radler has<br />

certainly revolutionised the way<br />

we think of roses. Working closely<br />

with both Star® Roses and Plants<br />

and MEILLAND during a 15-year<br />

selection process, this amateur rose<br />

breeder brought to the market a<br />

complete range of easy-to-grow<br />

varieties which don’t require any<br />

other special care except annual<br />

pruning in early spring.<br />

With such a rose at hand, the<br />

consumers of the early 21 st century,<br />

should they live in Moscow,<br />

San Francisco or Tokyo, could start<br />

to forget what they know about<br />

roses being difficult to grow.<br />

From Radrazz KNOCK OUT®<br />

(AARS in 2000), the genetics of<br />

the KNOCK OUT® family has been<br />

definitively a further step towards<br />

zero spray target of roses and easycare,<br />

two major expectations of<br />

the end-consumer<br />

DRIFT ® - The next big<br />

thing for small gardens!<br />

The prototype for the DRIFT® series<br />

was first sent for a test in 1992.<br />

At that time, the idea was certainly<br />

right. However, with patience, being<br />

one of the most needed virtues<br />

in rose hybridising, and selection,<br />

the efforts continued for years after<br />

that.<br />

Finally, by 2008 a full set of five<br />

varieties were introduced, showing<br />

the characteristics the market was<br />

looking for: toughness, pest and<br />

disease tolerance and winter hardiness<br />

combined with a suitable size<br />

and repeat-blooming nature.<br />

The low, spreading habit of DRIFT®<br />

does correspond perfectly to the<br />

latest use of the rose by “modern<br />

and new” consumers who have<br />

no time, and less space available<br />

compare to their parents. DRIFT® is<br />

now one of the latest breakthrough<br />

innovation colonising terraces and<br />

small urban gardens.<br />

Timing is everything<br />

Over the past 40 years,<br />

MEIDILAND®, KNOCK OUT®<br />

and DRIFT® are illustrating at<br />

Meilland garden roses (Photo credits: Meilland).<br />

MEILLAND a long term process<br />

in the plant business, looking for<br />

innovations and making them<br />

available according to the markets<br />

needs and requirements.<br />

Of course all the research and<br />

development activities could not<br />

happen without being supported by<br />

the relevant Intellectual Property<br />

tools and related strategies wherever<br />

needed and possible.<br />

Having said that, breeding, imagination<br />

and long-term vision are<br />

the necessary ingredients for<br />

constructing our future. |||<br />

About the author<br />

Bruno Etavard has been active in the<br />

field of plant breeding since 1982. In<br />

1988 he joined Meilland International,<br />

the world leading company in rose<br />

breeding, as a License Manager.<br />

Bruno Etavard has been the member<br />

of IRBA, the International Rose<br />

Breeder Association, since 1988. He<br />

joined the Board of <strong>CIOPORA</strong> in 2010.<br />

He is also a vice-chair of the Crop<br />

Section Cut Rose (IRBA).<br />

<strong>CIOPORA</strong> <strong>Chronicle</strong> June <strong>2014</strong> | www.FloraCulture.eu 39


Intellectual Property<br />

It has long been<br />

felt that the<br />

Australian PBR<br />

regime, although<br />

comprehensive<br />

in legislation,<br />

is impractical<br />

for effective<br />

enforcement by<br />

being too restrictive<br />

and expensive for<br />

most of the PBR<br />

holders in the<br />

ornamental sector.<br />

Enforcement reform: an<br />

The Australian Government<br />

has recognised this concern<br />

from the industry and the<br />

decision was made to review in a<br />

broad and strategic way, the role<br />

of intellectual property and its<br />

contribution to the development of<br />

Australian Industry and charged<br />

the Advisory Council on Intellectual<br />

Property (ACIP) with the<br />

responsibility to fulfil this objective.<br />

Significant developments<br />

It was recognised that significant<br />

developments are occurring at both<br />

a national and an international level<br />

in plant variety development and<br />

exploitation, which have increased<br />

the importance of Plant Breeders’<br />

Rights and their enforcement. The<br />

goal was to review the effectiveness<br />

of Australian PBR enforcement.<br />

ACIP, an independent body that<br />

advises the appropriate Australian<br />

Federal Government Minister<br />

on intellectual property matters,<br />

was tasked to enquire, report and<br />

make recommendations to the<br />

Australian Government on issues<br />

related to the enforcement of Plant<br />

Breeders’ Rights in Australia and<br />

consider possible strategies to<br />

assist Australian PBR holders to<br />

effectively enforce valid rights. It<br />

Accepted<br />

by Chris Prescott<br />

There were a total of 23 recommendations<br />

submitted by ACIP<br />

and the Australian Government<br />

issued the Government’s response<br />

in June 2011 with 15 recommendations<br />

accepted, four accepted<br />

in principle and four rejected.<br />

The following is a brief outline of<br />

the recommendations that were<br />

accepted:<br />

• The PBR Act to be amended to<br />

clarify that harvested material,<br />

that is also propagating material,<br />

is to be considered as such<br />

material even if it is not being<br />

used for that purpose.<br />

• As part of IP Australia’s education<br />

and awareness programs, raise<br />

industry awareness of the opportunity<br />

to have specific taxa<br />

excluded from the farmer’s<br />

privilege exemption.<br />

• Encourage PBR owners to clarify<br />

to growers the conditions of sale<br />

of propagating material and their<br />

obligations in relation to future<br />

generations of it.<br />

• Enable EDV declarations to be<br />

made in respect of any variety.<br />

Currently an EDV declaration<br />

can only be made in respect to<br />

a protected variety<br />

• Retain responsibility for EDV<br />

declarations with the PBRO<br />

(Plant Breeder’s Rights Office)<br />

and ensure the PBRO has the<br />

ability to assess such applications.<br />

This may involve the Plant<br />

Breeder’s Rights Advisory<br />

Committee (PBRAC).<br />

• The jurisdiction of the second tier<br />

of the Federal Court of Australia<br />

to include PBR matters.<br />

This would dramatically reduce<br />

the legal costs of enforcing an<br />

infringement through the courts.<br />

The recommendation was that<br />

some disputes can be handled<br />

in the Federal Circuit Court at<br />

a lower cost and also making it<br />

easier for litigants to use this court<br />

in each Australian state rather<br />

than only in Canberra. It would<br />

also make it easier to obtain court<br />

orders from a judge in issues<br />

relating to customs seizures etc.<br />

This recommendation had been<br />

presented in the lower house of<br />

Parliament in 2013, however due<br />

to the federal election it was never<br />

ratified in the Senate.<br />

• IP Australia facilitates ADR<br />

(Alternative Dispute Resolution)<br />

for parties in dispute by establishing,<br />

maintaining and making<br />

publicly available basic information<br />

on the ADR options for PBR<br />

owners and a register of ADR<br />

service providers with PBR and<br />

plant breeding experience.<br />

ACIP is currently considering<br />

the establishment of an IP dispute<br />

resolution centre. The centre<br />

envisaged by ACIP would provide<br />

mediation, appraisal, validity and<br />

infringement opinion services,<br />

delivered by experts drawn from<br />

a panel on a case-by-case basis.<br />

• Introduce exemplary damages<br />

provisions for PBR: currently,<br />

when the court finds an infringer<br />

guilty, the title holder is only able<br />

to claim lost profits. In the case of<br />

most ornamental infringements<br />

this means that, even though the<br />

right holder has won the case,<br />

the expense of bringing such an<br />

action has left him out of pocket.<br />

With exemplary damages the<br />

court can issue a verdict that<br />

forces the infringer to pay beyond<br />

the lost profits.<br />

• IP Australia focuses its PBR<br />

educational and awareness efforts<br />

on the tertiary sector.<br />

• No changes to be made to<br />

extended rights.<br />

• No changes to be made to s. 17<br />

(conditioning and use of farm<br />

saved seed) in relation to asexual<br />

propagation at this time. Asexual<br />

propagation by plant nurseries<br />

is an exercise of the exclusive<br />

right and is not exempted from<br />

infringement by s.17.<br />

• No changes to be made to<br />

exhaustion of PBR and clarify in<br />

the PBR Act that the mere sale<br />

of propagating material G0 for<br />

purposes of growing and selling<br />

G1 does not necessarily imply a<br />

licence to purchase crop G1.<br />

• No changes to be made to the<br />

pre-grant enforcement provisions.<br />

• The Government takes no action<br />

either in establishing an industry<br />

peak body or collecting agency,<br />

or in relation to the development<br />

of standard contracts and licence<br />

agreements at this time.<br />

40 www.FloraCulture.eu | <strong>CIOPORA</strong> <strong>Chronicle</strong> June <strong>2014</strong>


Australian story<br />

was not a general review of the PBR<br />

legislation, but more precisely it was<br />

a review established to identify difficulties<br />

in enforcement and recommend<br />

solutions to these difficulties<br />

where appropriate.<br />

Although I am not completely<br />

satisfied with all the outcomes of<br />

this review, and there are many<br />

areas that require further reform,<br />

I do, however, feel that ACIP has<br />

Accepted in principle<br />

The following is an outline of the<br />

recommendations accepted in<br />

principle:<br />

• There will be no change to the<br />

operation of farmer’s privilege.<br />

The Government indicated that it<br />

can work with the plant breeding<br />

industry and achieve the recommended<br />

result by better explaining<br />

the operation of section<br />

17 in education and awareness<br />

campaigns.<br />

• An on-going Expert Panel to be<br />

established to provide guidance<br />

and opinions on general issues or<br />

specific cases concerning the<br />

PBR Act and related law. The<br />

Government noted that PBRAC<br />

already has the powers to investigate<br />

technical matters and administrative<br />

matters arising under the<br />

recommended to Government a<br />

well-defined road map that will<br />

assist breeders in the future by<br />

not only protecting their varieties,<br />

but more importantly - making it<br />

more efficient and cost effective to<br />

enforce their IP rights in Australia.<br />

The full ACIP report, as well as the<br />

Government response, is available<br />

online at http://www.acip.gov.au/<br />

reviews/all-reviews/reviewenforcement-pbr/<br />

|||<br />

PBR Act, once these matters have<br />

been referred to the PBRAC by<br />

the Registrar.<br />

• IP Australia to liaise with the<br />

Australian Federal Police (AFP)<br />

and Commonwealth Director<br />

of Public Prosecutions (CDPP)<br />

with a view to increase the<br />

number of investigations and<br />

prosecutions of the PBR infringement<br />

cases.<br />

• Introduce an Information Notice<br />

System into the PBR Act based<br />

on the UK Information Notice<br />

system. IP Australia is to investigate<br />

the feasibility of developing a<br />

cost-effective Information Notice<br />

System to enable PBR owners to<br />

obtain information on the source<br />

of plant material from suspected<br />

infringers.<br />

IP’s central office in Canberra (Photo credits: IP Australia).<br />

Not accepted<br />

• A new “purchase” right to be added to s. 11 (general nature<br />

of PBR). Had this recommendation been accepted it would<br />

have provided the ability for an ‘End Point Royalty’ to be<br />

charged at place of purchase similarly to the pay-by-scan that<br />

is used in the USA.<br />

• Amendment to s. 4 (c) (definition of Essentially Derived<br />

Varieties) by replacing the test for important features with a<br />

test for essential characteristics. This recommendation would<br />

have brought Australia and <strong>CIOPORA</strong>’s positions on EDV<br />

and Minimum Distance closer together.<br />

• Introduction into the PBR Act of the PBR seizure powers<br />

for customs. The rejection of this recommendation places<br />

Australia at odds with other developed nations and makes<br />

global Plant Variety Protection problematic. It is greatly<br />

advisable for a market economy such as Australia, to have the<br />

ability to stop counterfeit material from entering the country<br />

with the use of customs. The rejection doesn’t mean a court<br />

order can’t be obtained to stop infringing product, but adds<br />

an additional step and is counter to the desired reform of<br />

enforcement.<br />

• Protection against mendacious variety declarations.<br />

Photo credits: IP Australia<br />

About the author<br />

Chris Prescott has 30 years of experience in the cut rose industry,<br />

24 of which as the managing director of his own enterprise, Prescott<br />

Roses Pty Ltd. In the course of his carrier he taught commercial rose<br />

growing at Swinburne University and since 1994 he has been working as<br />

Qualified Person (QP) in the Australian PBR Scheme. Chris’ involvement<br />

with Grandiflora, where he is dealing with variety selection and IP<br />

strategies, began in 2004. He is currently in his second term as a member<br />

representing plant breeders at PBRAC (Plant Breeders Rights Advisory<br />

Committee), a committee that advises the Federal Minister for Industry<br />

on issues related to the PBR scheme at IP Australia.<br />

<strong>CIOPORA</strong> <strong>Chronicle</strong> June <strong>2014</strong> | www.FloraCulture.eu 41


PBR enforcement<br />

Against any act of<br />

infringement an IP<br />

title holder with<br />

rights valid on the<br />

territory of Italy<br />

may choose several<br />

ways to enforce his<br />

rights, including<br />

challenging the<br />

alleged infringers<br />

before a criminal<br />

prosecutor.<br />

by Nicola Novaro<br />

Different Italian routes<br />

against counterfeiters<br />

According to the Italian laws,<br />

criminal offences against<br />

the owners of IP titles are<br />

regulated by Articles 473, 474 and<br />

517 of the Penal Code, which were<br />

strengthened by Law 99/2009.<br />

Different penalties<br />

The said provisions foresee different<br />

penalties for various types of<br />

infringements, such as:<br />

• imprisonment for a minimum<br />

term of six months to a<br />

maximum of three years, plus<br />

a monetary fine of a minimum<br />

of €2,500 up to a maximum of<br />

€25,000, in case of infringement<br />

of a registered trademark; or<br />

• imprisonment for a minimum<br />

term of one to a maximum of<br />

four years, plus a monetary fine<br />

of a minimum of €3,500 to a<br />

maximum of €35,000, for the<br />

infringement of patents, designs<br />

or models; or<br />

• imprisonment for a maximum<br />

term of two years, plus a fine of<br />

up to a maximum of €20,000,<br />

for the import, coming into<br />

possession for commercial purposes,<br />

sale or circulation of goods<br />

bearing counterfeit or altered<br />

marks or distinctive signs, or the<br />

violation of other IP rights.<br />

The latter provision may apply to<br />

infringements of Plant Breeders’<br />

Rights.<br />

Law 99/2009 qualifies specific<br />

circumstances of the crime with additional<br />

imprisonment terms from<br />

two to a maximum of six years,<br />

when the illicit acts are involved, for<br />

instance, in cases with substantial<br />

quantities of counterfeit goods or if<br />

the illegal actions are committed<br />

repeatedly and bear signs of an<br />

organised criminal offence.<br />

Administrative sanctions<br />

Additionally, some acts call upon administrative<br />

sanctions to be applied<br />

by administrative bodies, such as<br />

seizure of the counterfeit goods and<br />

Seized tomato plants (Photo credits: AIB).<br />

their disposal within three months<br />

of seizure in case of an evident<br />

infringement of registered marks,<br />

designs and models, or systematic<br />

and willful counterfeiting of other<br />

IP rights (i.e. Illegal propagation).<br />

In case of IP infringement, the<br />

police is responsible for carrying<br />

out the investigation, including<br />

recording of the calls and undertaking<br />

the seizures, which must be<br />

confirmed by a competent court and<br />

may be subject to re-examination.<br />

In addition, further laws contain<br />

other provisions that might be<br />

applicable in cases of IP rights<br />

infringement, such as the administrative<br />

responsibility requirement<br />

(Law 231/2001), stating that<br />

organisations may be held liable for<br />

certain crimes of fraud, committed<br />

or attempted, by members of senior<br />

management and by those working<br />

under the direction or supervision<br />

of thereof. This provision includes<br />

the infringement of Intellectual<br />

Property rights.<br />

Various strategies<br />

worthwhile<br />

A short overview of the Italian<br />

criminal law presented above<br />

already demonstrates that in some<br />

cases it is worth thinking about<br />

various strategies for combating<br />

illegal propagation.<br />

In Italy, it is quite common and frequent<br />

to initiate legal action against<br />

any counterfeiter using the instruments<br />

of civil litigation. However,<br />

it is widely known that the Italian<br />

civil justice can be unsatisfactory in<br />

terms of positive verdicts on merit<br />

cases (although the preliminary<br />

injunctions can be granted quite<br />

swiftly). Even in the case of a positive<br />

outcome for the IP holder, with<br />

awarded damages to be paid by the<br />

infringer, it might be a real nightmare<br />

to collect all the amounts due.<br />

In some cases, however, it might be<br />

necessary to choose the civil path<br />

for various reasons (consumer defence,<br />

legal market, etc.). Over the<br />

course of several years, I have been<br />

advising clients to utilise a number<br />

of alternative tools, such as the instruments<br />

of criminal law, in their<br />

fight against illegal propagation.<br />

On the basis of serious evidence<br />

of infringement, our clients were<br />

advised to report the infringers of<br />

their Plant Breeders’ Rights with<br />

complete information about place,<br />

42 www.FloraCulture.eu | <strong>CIOPORA</strong> <strong>Chronicle</strong> June <strong>2014</strong>


address, names of the farm proprietors,<br />

plant varieties involved, results<br />

of genotypical or phenotypical<br />

tests and so on, that can be useful<br />

information for the enforcement<br />

agencies.<br />

Before the release of denouncement<br />

letters, we had to identify the public<br />

authority for the launch of the antiinfringement<br />

action. Although several<br />

law enforcement bodies could<br />

have become involved, we decided<br />

that the Anti-Fraud Service at the<br />

Ministry of Agriculture (ICQRF)<br />

was the most suitable organisation<br />

due to the technical issues involved<br />

in the investigation process.<br />

Illegal tomato<br />

young plants<br />

The first denouncements were made<br />

against tomato growers suspected of<br />

the illegal propagation of protected<br />

varieties. In the first case in Salerno<br />

province, the results were quite<br />

positive, as ICQRF responded<br />

promptly, and only three days later<br />

two inspectors, guided by an exparte<br />

technical advisor, visited the<br />

facilities.<br />

Some 9,000 young plants were<br />

discovered, and the grower admitted<br />

that these plants had been<br />

vegetatively propagated from a<br />

protected variety. From the analysis<br />

of the plant material found on the<br />

premises of the farm, it became<br />

clear that the seized young plants<br />

constituted only a small part of a<br />

much larger propagation activity,<br />

since the inspection took place at<br />

the very end of the season.<br />

As no plant passport could be<br />

presented for the original plant<br />

material on the basis of which the<br />

vegetative propagation had been<br />

carried out, the following day the<br />

inspectors examined the facilities of<br />

the plant raiser who had supplied<br />

the original material to the grower.<br />

At the moment this case is pending<br />

before the competent Public Prosecutor,<br />

and the alleged infringer runs<br />

a serious risk of being sentenced to<br />

imprisonment and a fine penalty by<br />

a local Court.<br />

A further outcome of this action<br />

was, that the young plants were<br />

seized and even when the lawyer<br />

of the defendant tried to contest<br />

the seizure order, the judge kept<br />

it in force, which resulted in the<br />

perishing of the plants. The investigation<br />

carried out by the Public<br />

Prosecutor in charge was completed,<br />

and we shall soon proceed with<br />

the civil part of the proceedings and<br />

claim damages for the violation of<br />

the Plant Breeders’ Right.<br />

The inspection also led to a<br />

discovery of information on<br />

infringements of other PBRs: on<br />

the basis of the discovered evidence<br />

I filed a formal denunciation<br />

against the involved grower directly<br />

to the Public Prosecutor.<br />

This claim is now pending before<br />

the Public Prosecutor, and we are<br />

monitoring the case and providing<br />

the prosecution with further<br />

documents and information that<br />

we gathered later on, to build up<br />

enough evidence for the initiation<br />

of a criminal case. A press release<br />

about this action, prepared in<br />

co-operation with the ICQRF, was<br />

circulated widely and picked up by<br />

the major industry magazines and<br />

websites.<br />

Lettuce<br />

A second denunciation was made in<br />

the Lazio region. Already a couple<br />

of days after the complaint, ICQRF<br />

inspected a grower and confiscated<br />

some young plants for variety<br />

identification run by the Variety<br />

Registration Office (CRA-SCS).<br />

We are confident that in this case a<br />

criminal case can also soon be initiated<br />

against the alleged infringer.<br />

A third case deals with an infringement<br />

in lettuce. It was discovered<br />

after a variety identification test,<br />

conducted by AIB (Anti-Infringement<br />

Bureau) on suspected varieties<br />

from the market, had confirmed a<br />

match with the protected lettuce<br />

varieties. Based on the results of the<br />

AIB tests, we lodged a denouncement<br />

at ICQRF against a seed<br />

distributor in the Naples region.<br />

In the following week, ICQRF<br />

took action and, accompanied by<br />

our representative, inspected the<br />

premises of the distributor. The<br />

suspected seeds were found and<br />

sampled, and the identification<br />

test of the seed samples is on its<br />

way.<br />

Illegally propagated tomato young plants at the nursery<br />

(Photo credits: AIB).<br />

Partnerships<br />

Further cases are on-going and<br />

we hope to get positive results in<br />

our fight against the infringers.<br />

After these achievements, the AIB<br />

represented by the Breeders Trust,<br />

one of AIB’s sister associations<br />

dealing with infringements in<br />

grasses and seed potatoes, decided<br />

to enter into a formal cooperation<br />

agreement with the ICQRF. It is<br />

expected that a co-operation protocol,<br />

which includes the technical<br />

training of the ICQRF inspectors,<br />

the exchange of information, and<br />

other joint activities, will soon enter<br />

into force.<br />

In conclusion, I would like to<br />

emphasise that the partnerships between<br />

public and private sectors are<br />

absolutely necessary for the effective<br />

battle against the illegal propagation.<br />

Especially, as it becomes more<br />

and more evident that the PBR<br />

infringements harm not only the<br />

title-holders (breeders), but also the<br />

public institutions. |||<br />

About the author<br />

Nicola Novaro obtained his Law Degree in 1996 from the University of<br />

Pavia. In 2000, he became a lawyer after enrolling at the Law Society of<br />

Imperia. During the same year he participated in a Master on Intellectual<br />

Property Rights organised by the IP Centre in Verona. Nicola currently<br />

works as a legal advisor for the worldwide rose breeder NIRP International,<br />

where he handles all IP rights issues. He also acts on behalf of<br />

other companies for trademark, Plant Variety Rights and industrial design<br />

filings before national, regional and international offices.<br />

<strong>CIOPORA</strong> <strong>Chronicle</strong> June <strong>2014</strong> | www.FloraCulture.eu 43


Ecuador<br />

Over the past two<br />

years, Ecuador has<br />

seen a dramatic<br />

increase in PBR<br />

and regulatory<br />

change regarding<br />

IP procedures,<br />

jeopardising the<br />

competitiveness<br />

of the Ecuadorian<br />

flower industry as a<br />

whole. The Ciopora<br />

<strong>Chronicle</strong> reports.<br />

by Dean Rule<br />

Changes are in the works<br />

The snow-capped Cayambe<br />

mountain in the Ecuadorian<br />

Andes has a unique feature.<br />

No other place on the equator has<br />

snow twelve months a year. Farms<br />

producing what many consider the<br />

best quality greenhouse roses in the<br />

world are located on the high altitude<br />

plateaus at a little over 3000<br />

meters above sea level and in the<br />

valley below at about 2.850 meters<br />

above sea level.<br />

From limited production areas in<br />

the 1980s, the rose growing area<br />

in Ecuador has expanded to over<br />

2,500 hectares and expanded out to<br />

farms near the Colombian border<br />

in the north and near Cuenca<br />

in southern Ecuador. Superior<br />

growing conditions combined with<br />

excellent management have and<br />

continue to make Ecuadorian<br />

flowers world renowned.<br />

Newly proposed law<br />

An Intellectual Property Law<br />

passed by the Ecuadorian Congress<br />

and signed by the President in 1998<br />

was implemented in 1999. It gave<br />

the breeders the tools to combat<br />

piracy, offered the growers protection<br />

from unfair competition and<br />

was a key factor leading to the tremendous<br />

growth in the Ecuadorian<br />

production of roses, Gypsophila,<br />

Hypericum and other flowers.<br />

Ecuador is now seven years into a<br />

government that has the slogans<br />

‘Citizens’ Revolution’ and ‘Socialism<br />

for the 21 st Century’. The<br />

Constitution and many basic laws<br />

have been changed.<br />

One proposal is to replace the<br />

Intellectual Property Law with the<br />

Organic Code of Social Economy<br />

of Knowledge and Innovation<br />

(COES). This new law is to change<br />

the legal nature of Intellectual<br />

Property rights into a code, where<br />

increasing what is available in the<br />

public domain is an objective in a<br />

push for creative activities and social<br />

innovation. Key changes proposed<br />

include taking away possible penal<br />

sentences for certain violations of<br />

the Intellectual Property Law.<br />

Superior growing conditions combined with excellent management have and<br />

continue to make Ecuadorian flowers world renowned.<br />

Restrictive policies<br />

In recent years, Ecuador has lagged<br />

far behind its neighbouring countries,<br />

Colombia and Peru. It failed<br />

to attract foreign investment due to<br />

several issues including: problems<br />

with the legal system; lack of trade<br />

agreements that favour production<br />

in Ecuador and exporting to countries<br />

in North America and Europe,<br />

expropriations of foreign owned<br />

investments with varying levels of<br />

compensation and other restrictive<br />

policies.<br />

At the same time, one of the objectives<br />

of the government is to change<br />

the country’s production and export<br />

emphasis from commodities to<br />

value added products. Ecuador is an<br />

OPEC nation, with petroleum as its<br />

largest export, followed by bananas,<br />

flowers, shrimp, coffee and cocoa.<br />

Nevertheless, many do not seem to<br />

understand that a bouquet of flowers<br />

is already a value added product,<br />

bringing in far more income and<br />

providing more employment per<br />

hectare than any other significant<br />

agricultural crop in the country.<br />

Misguided thoughts<br />

A group of small growers with<br />

connections to certain individuals<br />

within the government blamed<br />

their struggles on the cost of royalties.<br />

Some within the government<br />

had the misguided thought that<br />

over 30% of the income of the<br />

farms would be paid as royalties,<br />

when in reality the average is<br />

probably 3-4%. Some government<br />

officials clearly indicated their<br />

intention to make breeders abandon<br />

certain variety registrations, so<br />

that the varieties would pass to the<br />

public domain within Ecuador, and<br />

even stated erroneously that if the<br />

variety was in the public domain<br />

in Ecuador then exports from the<br />

country could not be controlled in<br />

other countries. In response, one of<br />

the changes implemented in 2013<br />

under the current Intellectual<br />

Property Law was the raising of<br />

the fees to register and protect<br />

the genetics of a plant variety to a<br />

total of almost $170,000 over the<br />

twenty year period that the variety<br />

can be protected. The sliding scale<br />

44 www.FloraCulture.eu | <strong>CIOPORA</strong> <strong>Chronicle</strong> June <strong>2014</strong>


increases each year to reach levels<br />

unmatched in any other country<br />

in the world. The initial effect<br />

was three-fold. Many breeders<br />

abandoned protection of some<br />

older varieties in Ecuador and also<br />

greatly restricted the introductions<br />

of new varieties into the country.<br />

Also, actions have been taken in<br />

the European Union showing that<br />

even where Ecuadorian government<br />

officials fail to provide the legal<br />

protection within the country those<br />

actions can be taken in key export<br />

markets.<br />

High wage rates<br />

Ecuador has one of the highest<br />

wage rates of any flower exporting<br />

country. With many growing areas<br />

being in the high altitude tropics,<br />

many farms are spending nearly<br />

60% of their income on labour<br />

costs. High freight rates compared<br />

to their natural competitor and<br />

neighbour, Colombia, have long<br />

affected their position in the more<br />

price competitive segments of the<br />

market.<br />

Labour laws that create long term<br />

obligation for farms also complicate<br />

the competitive position, and many<br />

growers are struggling to survive or<br />

sell out to farms that are better capitalised<br />

and structured to face the<br />

competitive pressures. At the same<br />

time, over 70% of the growing area<br />

is represented by Expoflores, the<br />

Ecuadorian floriculture association.<br />

The Association shares the<br />

position of the breeders (many are<br />

also members of the Association) as<br />

to the importance of proper variety<br />

protection and the damage that<br />

would be caused for all parties if<br />

varieties passed prematurely to the<br />

public domain.<br />

One of the stated objectives of the<br />

Ecuadorian government is to push<br />

breeders to move their operations<br />

to Ecuador and to encourage local<br />

companies to breed varieties to<br />

replace those coming from other<br />

countries. Discounts on a sliding<br />

scale for <strong>2014</strong> are the following:<br />

1. 10% for having a showroom to<br />

display roses that are completely<br />

selected outside the country.<br />

2. 20% for presenting a request for<br />

registration of summer flowers.<br />

Fees of this level make most<br />

summer flowers uncompetitive<br />

compared with other growing<br />

areas in the world.<br />

3. 70% for doing both selections<br />

from codes and final approval of<br />

varieties within Ecuador.<br />

4. 90% for breeding and selecting<br />

the varieties within Ecuador.<br />

Discrimination<br />

in fee levels<br />

Most rose breeders have long been<br />

doing selection from codes and<br />

introduction of varieties within<br />

Ecuador and are eligible for the<br />

70% discount. However, the<br />

discrimination in fee levels is<br />

considered by many a violation<br />

of the TRIPS agreements under<br />

the World Trade Organization to<br />

which Ecuador belongs. With the<br />

implementation of the discount<br />

structure, breeders will be more<br />

inclined to introduce and register<br />

new varieties in Ecuador, and some<br />

additional breeders may implement<br />

breeding programs in the country.<br />

Potential conflicts<br />

The Ecuadorian government is<br />

in the process of negotiations of a<br />

trade and cooperation agreement<br />

with the European Union. The<br />

negotiators for Europe are very<br />

aware of the potential conflicts<br />

between internationally accepted<br />

norms of Intellectual Property<br />

Protection and the current status<br />

of protection within Ecuador.<br />

The highest authorities in Ecuador<br />

may need to decide between the<br />

alternatives of signing a trade agreement<br />

with the European Union or<br />

making major changes to the Intellectual<br />

Property Law, as the new<br />

draft law does not meet European<br />

standards of protection.<br />

The new proposed law, COES,<br />

includes some significant changes<br />

from the current law. The protection<br />

period for most flowers will be<br />

reduced from 20 to 15 years. It may<br />

restrict the registration of natural,<br />

spontaneous mutations based on<br />

the interpretation of clauses in<br />

the law. Use of wild species in the<br />

breeding is restricted. For protection<br />

to apply between the application<br />

for a variety and the granting<br />

Ecuador’s<br />

floriculture is<br />

represented at<br />

major European<br />

floricultural and<br />

horticultural trade<br />

fairs. Here: at<br />

the IFTF 2013 in<br />

Vijfhuizen<br />

(Photo credits:<br />

Anna Kaehne).<br />

of Plant Breeders’ Rights, the possible infringers<br />

must be notified that the registration process is<br />

underway. The door may be left open for “traditional<br />

community farming” of the variety.<br />

Royalties<br />

One of the key areas the Ecuadorian government<br />

wanted to change is the royalties and protection<br />

of certain medications in order to weaken the<br />

position of the large multinational pharmaceutical<br />

companies in changing high prices for certain<br />

proprietary products. One way this has been<br />

approached is the pushing of generic, locally<br />

manufactured medications and the provision of<br />

declaring the free availability of medication for<br />

reasons of public interest, including epidemics.<br />

The draft of the new law includes the provision<br />

that a variety can be forced to become freely<br />

available or mandatory licensing by executive<br />

decree or ministerial resolution upon reasons of<br />

public interest, emergency or national security,<br />

none of which should apply to flower exports.<br />

Restricting access to new varieties<br />

Changes in fees have already affected the Ecuadorian<br />

flowers industry by restricting access to<br />

those varieties important for growers and buyers<br />

serving niche markets. The legal honest growers<br />

that are complying with all their legal obligations<br />

with the Ecuadorian government are forced into a<br />

complicated, uncompetitive position against small<br />

growers or the few illegal larger growers that are<br />

often not completing their obligations in other<br />

areas. Ultimately, the losers will be the consumers<br />

who would otherwise benefit from a greater<br />

supply of premium quality flowers that come from<br />

Ecuador. |||<br />

About the author<br />

Dean Rule is a general manager at Conectiflor SA in Quito, Ecuador and agent<br />

for E. G. Hill Company Inc., Jan Spek Rozen BV and Terra Nigra BV, involved in<br />

breeding, selecting and introducing to the market greenhouse roses.<br />

<strong>CIOPORA</strong> <strong>Chronicle</strong> June <strong>2014</strong> | www.FloraCulture.eu 45


Intellectual Property<br />

The availability<br />

of new varieties<br />

is very important<br />

for society, but<br />

also for breeders,<br />

growers and<br />

farmers. Just think<br />

of new varieties with<br />

disease resistance,<br />

herbicide resistance,<br />

drought resistance,<br />

the ability to<br />

withstand lower<br />

temperatures, salt<br />

tolerance and the<br />

ability to grow<br />

with less fertilizer.<br />

The International<br />

Association of<br />

Horticultural<br />

Producers (AIPH),<br />

representing<br />

ornamental growers<br />

worldwide, shares<br />

this interest with<br />

plant breeders and<br />

this forms the basis<br />

for consultation<br />

with <strong>CIOPORA</strong><br />

and other relevant<br />

organisations.<br />

by Mia Buma<br />

Growers’ perspective on the<br />

role of effective IP protection<br />

The aim of the AIPH standing<br />

Committee for Novelty<br />

Protection is to communicate<br />

the views of growers in relation<br />

to plant novelty protection and<br />

Plant Variety Rights (PVR). AIPH<br />

endorses the UPOV system and is<br />

of the opinion that the system plays<br />

a positive role in the development<br />

of the sector and the relationships<br />

between breeders, propagators,<br />

growers and traders. AIPH is<br />

encouraging countries to accelerate<br />

the implementation of a PBR<br />

system and to bring their legislation<br />

in line with the Act 1991 of the<br />

UPOV Convention. AIPH pleads for<br />

strong and balanced PBR that helps<br />

breeders to act in protection of their<br />

rights and supports growers who<br />

legally use protected varieties.<br />

What kind of right is<br />

Plant Breeders Right<br />

(PBR) exactly?<br />

AIPH believes that the system of<br />

Intellectual Property (IP) protection,<br />

to which PBR belongs,<br />

benefits the progress of mankind<br />

and society. The goal of PBR is to<br />

stimulate plant breeding by means<br />

of an IP system, which ensures that<br />

we (society) accept that certain<br />

entrepreneurs can gain a monopoly<br />

for certain products, for a certain<br />

period of time and under strict<br />

conditions. This matters because it<br />

is important to society to stimulate<br />

intellectual and economic activities<br />

that contribute to technical and<br />

intellectual progress. This in turn<br />

supplies essential and useful<br />

products to society. It holds for<br />

plant breeders as well as all inventors<br />

and creators, including the<br />

holders of patents, designs, etc.<br />

An IP right is an abstract right.<br />

This is the fundamental basic<br />

principle of all IP systems. It means<br />

that a PBR is not a right on a plant,<br />

but it is a product of the mind, an<br />

attainment of the spirit. An abstract<br />

right means that it does not rest<br />

on something tangible like the<br />

ownership of a house – something<br />

you can see and feel – because the<br />

subject of its protection is an idea,<br />

which occurs in the human brain.<br />

It is the Eureka moment! The IPR is<br />

also an absolute right, which means<br />

a right you can exercise against<br />

everyone.<br />

Furthermore, a breeder acquires<br />

a monopoly in the form of a PBR,<br />

but under rather strict conditions.<br />

For example, under the breeders’<br />

exemption PBR only extends to<br />

harvested material if the breeder<br />

had no reasonable opportunity<br />

to exercise his right on propagating<br />

material (Art. 14.3 of UPOV).<br />

Because society benefits from innovation<br />

and technical and cultural<br />

progress, the monopoly makes<br />

an exception to the rules of competition<br />

and the free market forces<br />

that normally apply.<br />

Why are PBRs<br />

so important for<br />

the industry?<br />

When you understand the fundamental<br />

principles of the IP system,<br />

you will see that a PBR is not a sole<br />

right of breeders, but a right of the<br />

society. This means it concerns all<br />

parties involved, including breeders,<br />

growers, producers, traders and<br />

even consumers. Therefore, a PBR<br />

has to be exercised and enforced in<br />

balance with the interests of all the<br />

parties involved.<br />

In short, PBR is not a right that<br />

serves only breeders’ interests,<br />

although sometimes this is mistakenly<br />

assumed by some breeders and<br />

their lawyers and it is clear that the<br />

use of PBR to control the market<br />

should be prevented. The provision<br />

that requires sufficient availability<br />

of the propagating material of protected<br />

varieties at reasonable terms<br />

is important, as is the compulsory<br />

license provision in international<br />

treaties and national laws. Both<br />

provisions aim to prevent absolute<br />

market control. In some national<br />

PBR legislations these provisions are<br />

included (e.g. The Canadian Plant<br />

Breeders’ Rights Act 1990).<br />

Innovation and product renewal<br />

are the basis for progress in the<br />

ornamental sector. Therefore plant<br />

breeding and an effective PBR system<br />

are fundamentally important.<br />

Society in general, and growers<br />

in particular, are interested in the<br />

development of new varieties, and<br />

so AIPH pleads for a strong and<br />

balanced PBR system, which<br />

endorses fair competition. It is<br />

important for growers and farmers<br />

that they are supplied with the<br />

demanded amount of propagating<br />

material at the right time and at a<br />

reasonable (and equally available)<br />

price to ensure fair competition.<br />

What are the key<br />

issues since the<br />

introduction of PBR?<br />

The question about the minimum<br />

distance between varieties has<br />

always been on the list of challenges<br />

for the PBR system. What does<br />

and what does not fall within the<br />

scope of granted PBR, or: when is a<br />

new variety sufficiently distinctive<br />

(innovative) to be granted a PBR?<br />

The issue of Essentially Derived<br />

Varieties (EDV) and the discovery<br />

of a mutant, for which PBR may be<br />

granted, are examples of this issue.<br />

Furthermore, we have to bear in<br />

mind that the question about minimum<br />

distance has to be answered<br />

in light of the legal basis of the PBR<br />

system (the benefit of society!). It<br />

means that the distance between<br />

certain varieties with a very limited<br />

assortment, such as vegetable<br />

varieties (cucumbers, tomatoes and<br />

lettuce), can be smaller than in<br />

trees, bulbs or other crops that are<br />

more time-consuming to breed.<br />

Otherwise, it would be impossible<br />

to obtain PBR titles for varieties<br />

with a limited assortment and this<br />

would stop, rather than stimulate,<br />

46 www.FloraCulture.eu | <strong>CIOPORA</strong> <strong>Chronicle</strong> June <strong>2014</strong>


the breeding of these crops.<br />

For example, if a breeder, after a<br />

25-year long process of breeding<br />

resulting in one good new commercial<br />

apple variety, is granted a PBR,<br />

it is not fair if a competing breeder,<br />

who only adds a slightly or insignificant<br />

charateristic, is granted a PBR<br />

as strong as the first breeder.<br />

In short, the minimum distance<br />

each new variety should fulfil, will<br />

have to be determined individually<br />

on the basis of important variety<br />

characteristics (main characteristics).<br />

The establishment of common<br />

guidelines in this regard has been<br />

agreed at diplomatic conferences to<br />

UPOV 1991, but unfortunately it<br />

has not been completed by UPOV.<br />

In years preceding the Act of 1991,<br />

UPOV was busy formulating the<br />

main characteristics for 10 to 12<br />

important varieties with the goal of<br />

helping to decide if the criteria for<br />

distinctness had been reached.<br />

In October 2013, at the UPOV<br />

seminar on EDV in Geneva,<br />

AIPH once again urged UPOV to<br />

complete these guidelines.<br />

The importance<br />

of PBR for growers<br />

of ornamental crops<br />

The availability of new varieties<br />

is important, for society and for<br />

the industry. It is also vital for<br />

breeders, propagators, growers and<br />

farmers that there is a common<br />

understanding about what a variety<br />

is and when a new variety exists.<br />

Based on this, all parties involved<br />

have to find common ground on<br />

issues such as minimum distances,<br />

EDV and mutants. If we solve these<br />

issues, the current EDV rule, which<br />

has been deemed unworkable,<br />

can be removed from the UPOV<br />

treaty and national PBR laws. If we<br />

succeed in making proper arrangements<br />

concerning the minimum<br />

distance between varieties, the<br />

impractical EDV provision would<br />

become unnecessary.<br />

It is important for growers and<br />

farmers that they are supplied with<br />

sufficient propagating material<br />

in time and at a reasonable price.<br />

However, these issues are sometimes<br />

not easy to discuss with<br />

breeders. It is in everyone's interest<br />

that new varieties are launched and<br />

introduced carefully to avoid unnecessary<br />

underselling and market<br />

disruptions.<br />

From the past we can learn how<br />

in a very short time market shares<br />

can shift and change with the<br />

introduction of new varieties. For<br />

example: Van der Have owned<br />

80% of the world market for grain<br />

in the 1980s. Now Van der Have,<br />

although having since merged<br />

with another firm, only own 10%.<br />

Similarly, Hazera and Danielle<br />

controlled 80% of the world tomato<br />

market in the 1990s. Today, having<br />

also undergone a merger and now<br />

under the name of Vilmorain, they<br />

own only 20%.<br />

This is an important point on<br />

which AIPH also tries to get agreement<br />

with the breeders and on<br />

which the industry could come to<br />

accordance if all involved parties<br />

admitted that the introduction of<br />

new varieties to the market has to<br />

be done restrictively and cautiously.<br />

In that case the market control on<br />

the basis of PBR can be prevented.<br />

Here lies a basic necessity of consultations<br />

between all involved parties<br />

and their associations.<br />

Final remarks<br />

It is clear, from the growers point<br />

of view, that PBR is of social<br />

The representatives<br />

of AIPH and<br />

<strong>CIOPORA</strong> met<br />

during the IFTF<br />

2013 in Vijfhuizen,<br />

the Netherlands,<br />

engaging in a<br />

fruitful discussion<br />

on the role of<br />

PBR for breeders<br />

and growers<br />

(Photo credits:<br />

<strong>CIOPORA</strong>).<br />

importance in general and of commercial<br />

importance for growers in<br />

particular. A good working PBR<br />

system is important for product<br />

differentiation that can provide a<br />

marketing advantage for growers.<br />

AIPH is working on an internal<br />

program with the aim to enhance<br />

the awareness of PBR among its<br />

members and to stimulate growers’<br />

engagement with the subject.<br />

Subsequently, the members will<br />

be able to improve their lobbying<br />

of their respective national governments<br />

on PBR related topics. AIPH<br />

also plans further engagement with<br />

the World Intellectual Property<br />

Organisation (WIPO), the<br />

Agreement on Trade Related<br />

Aspects of Intellectual Property<br />

Rights (TRIPS) and the World<br />

Trade Organisation (WTO). These<br />

organisations have historically not<br />

been involved with ornamental<br />

horticulture; it is time to change<br />

this. |||<br />

About the author<br />

Mia Buma is the Secretary of the Committee for Novelty Protection,<br />

AIPH. In spring 2008, she started her own consultancy bureau, Mia<br />

Buma Advies. Mia is now working freelance for (among others) the Dutch<br />

flower auction FloraHolland, the Dutch Association of Wholesale Trade in<br />

Horticultural Products (VGB) and the International Association of Horticultural<br />

Producers (AIPH). In addition, Mia became increasingly involved<br />

in Plant Variety Protection (PVR) and its relation with other Intellectual<br />

Property rights. She also specializes in arbitration law. With regard to<br />

PVR, Mia is internationally active as Secretary of the Committee for<br />

Novelty Protection for the AIPH. In this capacity she keeps abreast with<br />

all the developments within the PVR field and within UPOV, where she<br />

represents AIPH in its observer status.<br />

<strong>CIOPORA</strong> <strong>Chronicle</strong> June <strong>2014</strong> | www.FloraCulture.eu 47


AGM<br />

The Dutch city of<br />

The Hague was<br />

host to Ciopora’s<br />

AGM <strong>2014</strong> and not<br />

without reason.<br />

As well as being<br />

the political centre<br />

of the Netherlands,<br />

The Hague is also<br />

an international<br />

city of law, peace<br />

and justice. Ideally<br />

located, with<br />

easy access to<br />

motorways, airports<br />

and public transport<br />

and not far from the<br />

Netherland’s most<br />

famous horticultural<br />

region, Westland,<br />

the Hague was the<br />

perfect venue to<br />

forge new plans,<br />

exchange ideas and<br />

research findings<br />

and to adopt<br />

Ciopora’s Position<br />

Papers on IP.<br />

Productive IP debate<br />

in realm of flowers<br />

Discussion on Minimum Distance in the trial station of Naktuinbouw during the business excursion <strong>2014</strong> in Roelofarendsveen.<br />

by Anna Kaehne<br />

Democracy comes first<br />

This year’s motto for the AGM<br />

‘Speak up, be heard!’ invited attendees<br />

to participate in a series of<br />

communication activities undertaken<br />

by <strong>CIOPORA</strong> in preparation to<br />

the AGM <strong>2014</strong>. Whether frequent<br />

updates for the members in form<br />

of circular letters, discussions,<br />

feedback collection, surveys or open<br />

vote – <strong>CIOPORA</strong> employed all the<br />

available tools of open communication<br />

and democratic participation in<br />

order to update and adopt the new<br />

<strong>CIOPORA</strong>’s Position Papers on IP.<br />

Intensive debates<br />

At the IP Workshops dedicated to<br />

this task during the AGM <strong>2014</strong>,<br />

open microphones were quickly<br />

making their way through the<br />

meeting rooms as the members of<br />

<strong>CIOPORA</strong> engaged in intensive<br />

debates on matters as Minimum<br />

Distance, EDV, Patents, Groundbreaking<br />

innovation, Breeders’<br />

Exemption and further important<br />

PBR-related topics. On April 2,<br />

during the general discussion, the<br />

members further deliberated on the<br />

drafts of Position Papers presented<br />

to them over the course of the past<br />

months and voted for their adoption.<br />

As a result of the productive<br />

discussion four Position Papers,<br />

on Minimum Distance, Scope of<br />

the Rights, Breeder’s Exemption,<br />

and Exhaustion, were adopted<br />

unanimously. The next step for<br />

the association is to continue the<br />

discussions and the collection of<br />

feedback on the remaining four<br />

papers in preparation for their<br />

adoption at the AGM in Tel-Aviv<br />

from March 23-26, 2015 (see the<br />

interview with Mr. Andrea Mansuino<br />

& Dr. Edgar Krieger on page<br />

26 for a detailed discussion of the<br />

adopted papers).<br />

Although the AGM in The Hague<br />

was well-attended, <strong>CIOPORA</strong> hopes<br />

to engage even more of its members<br />

in the decision-making process in<br />

Israel next year.<br />

Every vote counts<br />

‘Representation’ was the key word<br />

of the opening AGM speech by<br />

Andrea Mansuino, the President of<br />

<strong>CIOPORA</strong>. Reflecting on his first<br />

presidency term, Mr. Mansuino<br />

underlined that over the past three<br />

years the efforts of the <strong>CIOPORA</strong><br />

Board were focused on strengthening<br />

the representative character<br />

of <strong>CIOPORA</strong> and achieving of a<br />

solid unity among breeders in their<br />

positions on the crucial questions<br />

of IP protection for plants. Further<br />

on, the members were invited to<br />

cast their votes for President and<br />

Board Candidates, which, with the<br />

vast majority of votes, resulted in<br />

the second term for Mr. Mansuino<br />

and the election of two new Board<br />

members: Mrs. Wendy Cashmore<br />

(Plant & Food Research, New Zealand)<br />

and Mr. Andreas Kientzler<br />

48 www.FloraCulture.eu | <strong>CIOPORA</strong> <strong>Chronicle</strong> June <strong>2014</strong>


(Innovaplant, Germany). With<br />

the newly elected members, the<br />

<strong>CIOPORA</strong> Board further enhanced<br />

its geographic representation and<br />

professional expertise. A farewell<br />

and gratitude were expressed to<br />

Mr. Focco Prins, who left the<br />

Board after three years of active<br />

service. Personnel changes were<br />

also reported by the Crop Section<br />

Fruit, who elected Mrs. An van den<br />

Putte (Better3Fruit, Belgium) as its<br />

new Chairwoman and thanked the<br />

founding Chair Mrs. Dominique<br />

Thévenon for her enormous contribution<br />

to the work of the Section.<br />

All hands on deck<br />

The hard work at the day-time<br />

meetings was rewarded by the<br />

AGM Dinner on board the historic<br />

transatlantic ship ss Rotterdam.<br />

The members and special guests<br />

were invited to relax and network<br />

while enjoying a spectacular sunset<br />

on the Maas.<br />

Fresh fodder for the<br />

brain - IP from beyond<br />

our own backyard<br />

Sometimes a brief glance from<br />

outside of one’s box can serve as a<br />

productive source of inspiration.<br />

The main motivation for <strong>CIOPORA</strong><br />

to organize the Open Part of its<br />

AGM was to provide the members<br />

and guests with insights into the<br />

IP practices “beyond their own<br />

backyard”. This year the Open Part<br />

touched upon two “close” and one<br />

external topic: the specifics of the<br />

application of the Nagoya protocol<br />

Left to right: Mr. Bart Kiewiet (Vondst Advocaten, past President<br />

of CPVO), Mr. Antonio Villarroel (<strong>CIOPORA</strong> Board, Geslive) and<br />

Mr. Martin Ekvad (President of CPVO) on board ss Rotterdam.<br />

<strong>CIOPORA</strong> unites breeders from all parts of the world: (left to right) Mr. Burgert van Dyk (Sapo Trust, South Africa),<br />

Mrs. Wendy Cashmore (Plant & Food Research New Zealand) and Dr. Jan de Riek (<strong>CIOPORA</strong> Board, ILVO, Belgium).<br />

by Mrs. Anke van den Hurk<br />

(Plantum), the management of an<br />

impressive IP portfolio in the sector<br />

of consumer electronics by Mr. Jan<br />

de Visser (Philips) and the benefits<br />

of FRAND-licensing by Mr. Leo<br />

Melchers (Syngenta).<br />

“Driving Dutchman” -<br />

Fruit & Ornamental tours<br />

On April 3, at 6 a.m., the early<br />

<strong>CIOPORA</strong> birds boarded the<br />

buses to explore a number of very<br />

interesting locations in the regions<br />

of Aalsmeer and Wageningen. The<br />

business excursion ornamentals<br />

went on a tour through all the<br />

parts of floricultural supply chain,<br />

including the freight forwarder<br />

IPHandlers, the flower auction<br />

FloraHolland and the floral<br />

wholesaler Waterdrinker, whereas<br />

the fruit-interested colleagues<br />

could see and taste the delicious<br />

creations by the strawberry breeder<br />

Fresh Forward and for a brief<br />

moment revisit campus life at<br />

the Wageningen University &<br />

Research Center Plant Breeding.<br />

In the afternoon both groups<br />

rejoined at Naktuinbouw, where<br />

they were warmly welcomed by<br />

the General Manager Mr. John<br />

van Ruiter and his colleagues.<br />

<strong>CIOPORA</strong> would like to express<br />

its gratitude to all the hosts of the<br />

business tour <strong>2014</strong>, which without a<br />

doubt became one of the highlights<br />

of the <strong>CIOPORA</strong> events <strong>2014</strong>.<br />

Left to right: Sheryl and Anthony Tesselaar (Australia)<br />

and Peter Ilsink (Interplant Roses BV), past President of<br />

<strong>CIOPORA</strong>.<br />

For more details visit www.ciopora.org<br />

and follow <strong>CIOPORA</strong> on LinkedIn.org<br />

and Facebook for the latest news on<br />

IP protection for plant innovations and<br />

updates regarding the <strong>CIOPORA</strong> AGM<br />

2015 in Tel-Aviv. |||<br />

About the author<br />

Anna Kaehne is a Manager Public Relations &<br />

Communications at <strong>CIOPORA</strong>. She is responsible<br />

for the association’s internal and external<br />

communications including the relations with press,<br />

production of media and marketing materials offline<br />

as well as online. She is the person behind the<br />

<strong>CIOPORA</strong> <strong>Chronicle</strong>, association’s newsletter, press<br />

releases, website and other communication projects.<br />

Anna holds a Magister Degree in English and<br />

Slavic Studies from the University of Magdeburg,<br />

Germany. In her homeland – Ukraine – she studied<br />

Inter national Law at the National Law Academy of<br />

Ukraine in Kharkov.<br />

<strong>CIOPORA</strong> <strong>Chronicle</strong> June <strong>2014</strong> | www.FloraCulture.eu 49


<strong>CIOPORA</strong> Members<br />

La Villetta Srl<br />

PROCOVAMI<br />

ROYON CONSULT<br />

Royal Berries S.L.<br />

SUNNY GRONNEGYDEN ApS<br />

advocaten<br />

Ciopora Suppporters<br />

How to become a supporter? You are a natural<br />

person or company prepared to support and<br />

foster the objectives, purposes and policy of the<br />

association, but do not fulfil the requirements<br />

for membership in <strong>CIOPORA</strong>? Please contact<br />

<strong>CIOPORA</strong> at the address as featured on this<br />

page. <strong>CIOPORA</strong>’s current Supporters are:<br />

Agri Information Partners, Distel Software,<br />

Hawita Gruppe, Family Tree Farms, FloraCulture<br />

International, André Briant and Nevado Roses.<br />

For further information about<br />

<strong>CIOPORA</strong> please contact the<br />

administrative office in Hamburg.<br />

<strong>CIOPORA</strong><br />

P.O. Box 13 05 06<br />

D-20105 HAMBURG, GERMANY<br />

T (49) 40 555 63 702<br />

F (49) 40 555 63 703<br />

www.ciopora.org<br />

info@ciopora.org<br />

50 www.FloraCulture.eu | <strong>CIOPORA</strong> <strong>Chronicle</strong> June <strong>2014</strong>


The <strong>CIOPORA</strong><br />

<strong>Chronicle</strong> is a<br />

special edition<br />

of <strong>CIOPORA</strong><br />

and the monthly<br />

business magazine<br />

on worldwide<br />

floriculture<br />

FloraCulture<br />

International.<br />

All rights<br />

reserved © <strong>2014</strong>. No portion of editorial may<br />

be reproduced in any form without written<br />

permission of the publisher. Publisher is not<br />

liable for advertisements using illegally obtained<br />

images.<br />

Editorial & Administration Offices<br />

FloraCulture International<br />

Business address: ECA Office 140-21, Legmeerdijk 313,<br />

1431 GB Aalsmeer, the Netherlands<br />

Postal address: Postbus 1081, 1430 BB Aalsmeer, the Netherlands<br />

T (31) 297 769 095<br />

Editor-in-chief: Ron van der Ploeg (ron@floracultureinternational.com)<br />

Editor: Anna Kaehne (anna.kaehne@ciopora.org)<br />

With the kind assistance of Dr. Edgar Krieger (edgar.krieger@ciopora.org)<br />

Contributing writers: Tim Briercliffe, Mia Buma, Herman de Boon,<br />

Bruno Etavard, Gerry Grueber, Maxine J. Horn, Anna Kaehne, Jaap Kras,<br />

Dr. Edgar Krieger, Pieter Kroese , Thomas Leidereiter, Andrea Mansuino,<br />

Lucas Michels, Nicola Novaro, Desmond O’Rourke, Ron van der Ploeg,<br />

Chris Prescott, Dean Rule, Omer Schneider, Ingrid Slangen,<br />

Natalya Stetsenko, An Van den Putte and Dr. Tom Wittop Koning<br />

Photography: FloraCulture International and <strong>CIOPORA</strong><br />

Cover photograph: Evgeny Makarov<br />

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Advertising Index<br />

COMPANY PAGE WEBSITE<br />

<strong>CIOPORA</strong> .......................................................................6, 50 ......................................www.ciopora.org<br />

Conard-Pyle Co. .............................................................3 .............................. www.conard-pyle.com<br />

Danziger “Dan” Flower Farm .....................................2 ......................................www.danziger.com<br />

Fides .................................................................................11 ................................................ www.fides.nl<br />

Innovaplant .....................................................................35 .........................................www.kientzler.eu<br />

IRBA (Int. Rose Breeders Ass.) .................................18 ........................................www.ciopora.org<br />

Meilland International .................................................52 .................................... www.meilland.com<br />

COMPANY PAGE WEBSITE<br />

NIRP International ........................................................25 .....................www.nirpinternational.com<br />

Pakharenko ....................................................................35 ..............................www.pakharenko.com<br />

Royalty Administration International.......................51 ..........................www.rai-worldwide.com<br />

Selecta Klemm GmbH & Co. KG ...............................32 ..............................www.slectaworld.com<br />

Vondst Advocaten .........................................................8 ................................ www.vondst-law.com<br />

Würtenberger Kunze ....................................................8 ...............................................www.wk-ip.eu<br />

This index is provided as a service to our readers. The publisher does not assume responsibility for errors or omissions.<br />

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