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2012 CIOPORA Chronicle

CIOPORA annual magazine on Intellectual Property protection for plant innovations 2012. The magazine was produced in cooperation with FloraCulture International. Read in the 2012 CIOPORA Chronicle edition: - Plant Patents in the United States after the America Invents Act - U.S. plant patents compared to UPOV PBR system - Does Belgian patent law need a breeder’s exemption? - How much open access can breeders afford? - IPP and PBR in Chile - IP protection for plant innovations in Canada and much more...

CIOPORA annual magazine on Intellectual Property protection for plant innovations 2012. The magazine was produced in cooperation with FloraCulture International.

Read in the 2012 CIOPORA Chronicle edition:
- Plant Patents in the United States after the America Invents Act
- U.S. plant patents compared to UPOV PBR system
- Does Belgian patent law need a breeder’s exemption?
- How much open access can breeders afford?
- IPP and PBR in Chile
- IP protection for plant innovations in Canada
and much more...




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April <strong>2012</strong> • www.ciopora.org<br />

The business magazine for horticultural plant breeding<br />

IP protection is a winning<br />

strategy for plant breeders<br />

How much open access<br />

page 26 can breeders afford?<br />

Molecular markers in<br />

page40 ornamental and fruit breeding


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Table of Contents<br />

08<br />

<strong>CIOPORA</strong> serves as the global<br />

source for the international breeding<br />

community<br />

11<br />

12<br />

14<br />

16<br />

A strong lobbying<br />

effort by <strong>CIOPORA</strong><br />

is greatly needed<br />

Plant Patents in the<br />

United States after the<br />

Americas Invents Act<br />

U.S. plant patents<br />

compared to UPOV<br />

PBR system<br />

Selecta questions<br />

whether PBR provide<br />

enough protection<br />

19<br />

Does Belgian patent<br />

law need a breeder’s<br />

exemption?<br />

20<br />

A decision to the<br />

benefit of European<br />

title holders<br />

22<br />

The ‘Versilia’ Case<br />

24<br />

IP protection for fruits<br />

26<br />

How much open<br />

access can<br />

breeders afford?<br />

30<br />

Patents for plantrelated<br />

innovations<br />

in Europe<br />

4 www.<strong>CIOPORA</strong>.org | <strong>CIOPORA</strong> <strong>Chronicle</strong> April <strong>2012</strong>


April <strong>2012</strong> <strong>CIOPORA</strong> <strong>Chronicle</strong><br />

32<br />

PlantHaven<br />

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

accessibility and<br />

communications<br />

34<br />

Conard-Pyle<br />

celebrates its<br />

115th anniversary<br />

35<br />

Meilland believes in<br />

innovation, IP, peace<br />

and friendship<br />

36<br />

IPP and PBR in Chile<br />

39<br />

Learning, networking<br />

and AGM event set<br />

for April 23-27<br />

40<br />

Molecular markers<br />

in ornamental and<br />

fruit breeding<br />

43<br />

Quiz: Test your<br />

knowledge of<br />

Intellectual Property<br />

44<br />

A look at<br />

U.S. ornamental<br />

horticulture<br />

46<br />

IP protection for<br />

plant innovations<br />

in Canada<br />

47<br />

Canadian PBRs<br />

include third<br />

party testing<br />

48<br />

Worldwide successful<br />

enforcement actions<br />

<strong>CIOPORA</strong> <strong>Chronicle</strong> April <strong>2012</strong> | www.<strong>CIOPORA</strong>.org 5


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

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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. The organization<br />

has currently 121 members among which individual breeders,<br />

breeding companies, lawyers and royalty administration services.<br />

Top priority of <strong>CIOPORA</strong> is the constant development<br />

of systems of protection which both, international state<br />

organisations and single states, have provided for the protection<br />

of the intellectual property concerning ornamental and fruit<br />

plants. <strong>CIOPORA</strong> acts as a strong voice to governments on<br />

behalf of the industry.<br />

The Board invites you to join <strong>CIOPORA</strong>. Membership is open<br />

to anyone breeding vegetatively reproduced ornamental and<br />

fruit varieties or having an interest in IP-Protection for such<br />

crops. However, each candidacy is subject to the <strong>CIOPORA</strong><br />

Board's approval.<br />

To become a member email to info@ciopora.org or fax<br />

to +49 40 555 63 703<br />

6 www.<strong>CIOPORA</strong>.org | <strong>CIOPORA</strong> <strong>Chronicle</strong> April <strong>2012</strong>


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A welcome from the President<br />

<strong>CIOPORA</strong> serves as<br />

the global source for<br />

the international breeders<br />

community<br />

a great pleasure for me to<br />

welcome all our friends who,<br />

‘It is<br />

once again, show interest in<br />

our annual publication. This is the<br />

third edition of the <strong>CIOPORA</strong><br />

<strong>Chronicle</strong>, a ‘collection magazine’<br />

edited by FloraCulture International<br />

B.V. in cooperation with<br />

<strong>CIOPORA</strong>, the International<br />

Association of Breeders of Asexually<br />

Reproduced Plants.<br />

I am very glad to underline that this<br />

cooperation is growing and getting<br />

more and more attention from the<br />

flower and fruit industry, and to<br />

confirm that many companies and<br />

professionals from the horticultural<br />

business all over the world have<br />

expressed enormous appreciation for<br />

this effort.<br />

In fact, during my frequent travels<br />

to the five continents, I very often<br />

find one copy of the <strong>CIOPORA</strong><br />

<strong>Chronicle</strong> on the shelves or on<br />

the desks in the offices of flower<br />

companies, and many times I am<br />

asked questions or asked to comment<br />

on the various issues discussed in the<br />

magazine.<br />

This shows once more that CIO-<br />

PORA is perceived by the international<br />

flower and fruit community<br />

as the global source and voice when<br />

it comes to Intellectual Property<br />

matters in horticulture. Additionally,<br />

the efforts made by our organisation<br />

to foster and protect breeders’ rights,<br />

and to establish more and more<br />

awareness worldwide, have not been<br />

in vain.<br />

As in the previous editions, you<br />

will find many interesting articles,<br />

dealing with the hottest topics of our<br />

industry. As usual, we express our<br />

own view, but we also give voice to<br />

our friends, such as growers associations,<br />

scientists and lawyers, who are<br />

invited to contribute to our compre-<br />

hensive vision of the business.<br />

We deal with Intellectual Property<br />

and this is the focus of our day by<br />

day commitment. We cannot forget<br />

that the effects and the benefits<br />

of a strong and fair protection of<br />

breeders’ rights concern the whole<br />

industry.<br />

There cannot be any economic<br />

development without innovation,<br />

and there cannot be innovation without<br />

a solid and effective Intellectual<br />

Property system. This is true for all<br />

businesses and industries, but it is<br />

especially true for highly creative<br />

and trend-setting activities such as<br />

fashion, design, flowers and fruit.<br />

This is why we regard the CIO-<br />

PORA <strong>Chronicle</strong> not only as a tool<br />

to make our organisation known<br />

and appreciated and to make plant<br />

breeders’ rights deeply analysed and<br />

understood, but also as an open<br />

forum where everyone who is willing<br />

8 www.<strong>CIOPORA</strong>.org | <strong>CIOPORA</strong> <strong>Chronicle</strong> April <strong>2012</strong>


to contribute to the development of<br />

our industry by acknowledging the<br />

importance of IP rights, can contribute<br />

and enhance the awareness of<br />

the readers.<br />

I am honoured by the extremely high<br />

level of the contributions, always<br />

written by worldwide known experts.<br />

Without taking away from you the<br />

pleasure of discovering these articles<br />

further, I nevertheless must mention<br />

at least some of the contributions and<br />

make a short comment on them.<br />

First of all, we are all aware that<br />

today, the big discussions in the field<br />

of Intellectual Property for plants are<br />

focused on the protection of Biotechnology<br />

and GMOs, on the use of<br />

patents for plant–related inventions<br />

and on the need for effective and fair<br />

IP protection for both varieties and<br />

plant related inventions.<br />

Implications such as the breeder’s<br />

exemption, the understanding and<br />

the enforcement of EDVs as well as<br />

the increasing number of Patents are<br />

raising increasing concern among<br />

the traditional breeders’ community<br />

and sometimes doubts on the real<br />

effectiveness of the UPOV system.<br />

Our Secretary General, Dr. Edgar<br />

Krieger, one of the masterminds in<br />

IP for plants, draws the picture of a<br />

potential future IP regime for varieties<br />

and plant related inventions.<br />

It is important to mention that<br />

<strong>CIOPORA</strong>’s attention is also constantly<br />

consulted for modifications<br />

or interpretations of the breeders’<br />

rights laws all over the world.<br />

Andrea Mansuino, President of <strong>CIOPORA</strong><br />

In this regard, we have a special view<br />

on the Americas. The U.S., a UPOV<br />

1991 member, has, along with the<br />

Plant Patent a special protection<br />

system for vegetatively propagated<br />

ornamental and fruit varieties and<br />

the new America Invents Act shall be<br />

highlighted, without forgetting the<br />

constant concern for the consequences<br />

brought by the previous<br />

interpretation of article 102 b) in<br />

the Plant Patent Act. This is why<br />

you will also find a comprehensive<br />

comparison between the Plant Patent<br />

and the PBR in the U.S.<br />

Contributions on the trade dynamics<br />

in the Americas, knowing the importance<br />

of the South American fruit<br />

and cut flower productions for the<br />

US market, are also included.<br />

The importance of the American<br />

markets for breeders of ornamental<br />

and fruit varieties is well underlined,<br />

not only by the attention given in<br />

this Special, but also by the decision<br />

taken by the <strong>CIOPORA</strong> Board<br />

to hold the next Annual General<br />

Meeting at Miami Beach, Florida,<br />

one of the best conference venues for<br />

the Americans and the main hub for<br />

Colombian and Ecuadorian flowers<br />

into the US market.<br />

In week 17 a crowd of breeders from<br />

the five continents will meet in<br />

Miami to celebrate the General<br />

Meeting of their association and to<br />

discuss the great topics of the industry.<br />

They will be attending IP seminars<br />

conducted by specialists, crop<br />

sections where the main problems<br />

of different products are discussed,<br />

working groups on hot topics such as<br />

GMOs and minimal distances between<br />

varieties and an International<br />

Conference on IP in the Americas.<br />

This will be held on Wednesday,<br />

April 25th, with contributions from<br />

international speakers.<br />

In my position of tenth President of<br />

<strong>CIOPORA</strong>, I am proud to say that<br />

nowadays, our organisation is a reference<br />

for the breeders’ community all<br />

over the world, and that this Special<br />

is just a small example of many<br />

activities that we constantly developing<br />

for the interest of our industry<br />

and, ultimately, for the “benefit of<br />

the society”.<br />

I wish you good reading.’ |||<br />

<strong>CIOPORA</strong> <strong>Chronicle</strong> April <strong>2012</strong> | www.<strong>CIOPORA</strong>.org 9


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Advocacy and lobbying<br />

The present market<br />

situation is often<br />

characterised by<br />

a supply being<br />

higher than demand.<br />

Although we cannot<br />

say that sales are in<br />

strong decline, there<br />

is definitely some<br />

pressure on the<br />

market with price<br />

levels fluctuating<br />

heavily from one day<br />

to another. Under<br />

these circumstance,<br />

a strong lobbying<br />

effort from<br />

<strong>CIOPORA</strong> is of<br />

utmost importance.<br />

by Jaap N. Kras<br />

A strong lobbying<br />

effort by <strong>CIOPORA</strong><br />

is of utmost importance<br />

If growers suffer, the breeder and<br />

the retailer also suffer. Therefore,<br />

it is in the interest of all potential<br />

partners to cooperate. Cooperation<br />

starts at breeder’s level. A breeder is<br />

often in a rather delicate position as<br />

the industry is incredibly broad in<br />

scope of service and holds a highly<br />

fragmented character. Moreover,<br />

breeding firms face an extremely<br />

high level of competition and the<br />

legal basis to exercise breeder’s rights<br />

is not strong enough.<br />

There are as many opinions as<br />

breeders, but it is in the interests<br />

of all to have one single voice for<br />

the industry in local governments,<br />

supranational organisations, the<br />

European Union, the United<br />

Nations, in multilateral treaties<br />

such as the WIPO and UPOV<br />

treaties on breeder’s rights, patents<br />

and trademarks.<br />

Why are IP rights<br />

a necessity?<br />

As the internationalisation of the<br />

industry steadily progresses to countries<br />

in Asia and Latin America,<br />

not everybody seems to understand<br />

the importance of breeder’s rights<br />

and the opposition against intellectual<br />

property rights, including<br />

breeder’s rights, is growing. Many<br />

of us remember when Italy stated<br />

that it didn’t want to allow patents<br />

on medicines, for moral grounds.<br />

Italians considered it was not ethical<br />

to protect medicines by a patent. We<br />

all know how that ended: nobody<br />

in Italy was willing to invest in<br />

research and Italy didn’t develop any<br />

new medicines for years.<br />

What more can we learn from<br />

history? (the aforementioned ban<br />

on patent rights in Italy doesn’t<br />

Even the legal definition of a breeder is not clear.<br />

exist anymore). History shows that<br />

strong breeder’s rights stimulate<br />

breeding.<br />

As a specific industry evolves from<br />

its pioneers days into an expansion<br />

stage, people start breeding activities<br />

and firms realise the value of<br />

breeder’s rights. People also realise<br />

the value of protecting the fruit of<br />

their own minds by an intellectual<br />

property right. In the early stage of<br />

an economy, everybody can permit<br />

infringement of intellectual properties<br />

of others. There is little to loose.<br />

But as soon as the production<br />

reaches a level that the companies<br />

want to export their products the<br />

need for proper protection of the<br />

varieties starts.<br />

Much work to do<br />

After all those years with breeder’s<br />

right treaties and laws, the discussion<br />

on breeders rights is ongoing.<br />

The legal definition of a breeder<br />

isn’t even clear until now!<br />

Many national breeder’s rights<br />

laws offer the government a penal<br />

weapon to prevent illegal copying<br />

or infringing protected varieties.<br />

In practice, all governments say:<br />

breeders have to protect their rights<br />

themselves and they have to proof<br />

that somebody is misusing their<br />

intellectual property right(s). It is<br />

also up to the breeder’s right owner<br />

to take action against an infringer<br />

and to proof with civil weapons the<br />

misuse and claim the damages.<br />

This has led to the EDV discussions<br />

and, nowadays, the so important<br />

patent – versus breeder’s right<br />

disputes on the breeders’ exemption<br />

(Trips).<br />

I think the truth is in the middle.<br />

We should make the governments<br />

aware of the importance of a<br />

functional breeder’s right system.<br />

The government should create a<br />

transparent clear law system – a law<br />

system that protects the breeder<br />

optimal against infringers.<br />

Only a strong voice of the breeders<br />

helps to explain and clarify these<br />

needs and strengthen the breeders’<br />

position. The international<br />

organisation for the breeders is<br />

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

<strong>CIOPORA</strong> <strong>Chronicle</strong> April <strong>2012</strong> | www.<strong>CIOPORA</strong>.org 11


U.S. Plant Patents<br />

The United States<br />

has recently enacted<br />

significant changes<br />

in U.S. patent law<br />

via the America<br />

Invents Act ("AIA")<br />

that will become<br />

effective on March<br />

16, 2013.<br />

Plant Patents in<br />

the United States after<br />

the Americas Invents Act<br />

The AIA has been hailed<br />

as the biggest change in<br />

American patent law in at<br />

least 60 years. In many ways this is<br />

true. However, for a party seeking a<br />

plant patent, the changes are not as<br />

significant.<br />

Grace period<br />

For example, the AIA has been<br />

rumored to have no "grace period"<br />

as part of a switch to a "first-to-file"<br />

system. This is not true. A "grace<br />

period" is a period before the filing<br />

date a plant patent application (or<br />

PBR application) where certain<br />

activity undertaken in that period<br />

(e.g., sales, public availability, etc.)<br />

will not affect the ability to obtain a<br />

plant patent in the U.S.<br />

Under the AIA provisions, as a<br />

generalization and in layman terms,<br />

any activity related to the plant<br />

to be patented that is intended to<br />

involve, or actually involves, the<br />

public by anyone starts a one (1)<br />

year grace period. A plant patent<br />

application (or PBR application,<br />

followed by a U.S. plant patent application<br />

within one year) must be<br />

filed within this year or the ability<br />

to obtain a plant patent in the U.S.<br />

will be lost.<br />

The above-referenced activity can<br />

be anywhere in the world. Conduct<br />

anywhere in the world triggers the<br />

start of the one (1) year grace period.<br />

This is a change brought about<br />

by the AIA, as the pre-AIA patent<br />

law contains many geographical<br />

limitations, distinguishing the<br />

effects of activity in the U.S. from<br />

extraterritorial activity.<br />

Good news<br />

For a U.S. plant patent application<br />

having an effective filing date of<br />

March 16, 2013 or later, any of the<br />

following events are understood to<br />

create a bar to patentability subject<br />

to an important exception identified<br />

infra:<br />

1. Plant is described in a printed<br />

publication (likely must enable<br />

the reader to reproduce the same<br />

plant) prior to the effective filing<br />

date anywhere in the world.<br />

2. Plant is in public use (nonexperimental<br />

use) prior to the<br />

effective filing date anywhere in<br />

the world.<br />

3. Plant is on sale prior to the effective<br />

filing date anywhere in the<br />

world.<br />

4. Plant is otherwise available to<br />

the public prior to the effective<br />

filing date anywhere in the world<br />

(e.g., provided to another for<br />

non-experimental purposes).<br />

However, if any of 1, 2, 3 or 4 occurs<br />

less than one year prior to the<br />

effective filing date and is attributed<br />

to the conduct of the breeder/inventor<br />

or to the conduct of another<br />

who obtained the plant directly or<br />

indirectly from the breeder/inventor,<br />

such conduct does not count<br />

to create a bar to patentability.<br />

Needless to say, this is good news.<br />

by Travis D. Boone and<br />

Benton S. Duffett, Jr.<br />

Travis D. Boone<br />

Benton S. Duffett, Jr.<br />

Independent development<br />

of the same plant<br />

The independent development of the<br />

same plant by another, if possible,<br />

could be a bar to patentability when<br />

sufficiently early. However, the genetics<br />

of plant breeding is sufficiently<br />

complex that the same new plant<br />

usually is not created today by different<br />

breeders operating independently.<br />

Until plant science reaches this<br />

point, it is extremely unlikely that<br />

the conduct of others can be found<br />

to constitute a bar to the patentability<br />

of a proposed new variety.<br />

Accordingly, a one-year grace<br />

period can be found to persist for<br />

practical purposes. An acceptable<br />

12 www.<strong>CIOPORA</strong>.org | <strong>CIOPORA</strong> <strong>Chronicle</strong> April <strong>2012</strong>


course of action remains for plant<br />

breeders/inventors operating<br />

outside the U.S. to seek PBR within<br />

one year of commercialization in a<br />

country abroad, and to thereafter<br />

seek U.S. plant patent protection<br />

within one year of the filing of such<br />

PBR application.<br />

Priority claim<br />

It will be important at the time of<br />

submission of the U.S. plant patent<br />

application to indicate a priority<br />

claim for the earlier PBR application<br />

under 35 U.S.C. §119(f).<br />

This claim is further perfected<br />

by the timely submission to U.S.<br />

authorities of a certified copy of<br />

the earlier PBR application. Such<br />

certified copy is prepared by the<br />

governmental authority where the<br />

PBR application was initially filed.<br />

Under such circumstance, the effective<br />

filing date of the U.S. plant<br />

patent application will be considered<br />

to be that of the earlier PBR<br />

application. Any potential bar to<br />

patentability created by the conduct<br />

of the breeder/inventor within one<br />

year of the initial PBR application<br />

should be obviated in view of the<br />

sufficiently early effective filing date<br />

that is accorded the U.S. plant patent<br />

application.<br />

Appropriate procedure<br />

So long as the PBR application<br />

was filed within one year of commercialization<br />

abroad, it should be<br />

possible to submit a plant patent<br />

application in the U.S. more than<br />

one year after the commercialization<br />

date so long as the application<br />

is filed in the U.S. within one year<br />

of the initial PBR application. For<br />

example, the following is believed<br />

to be an appropriate procedure to<br />

follow to obtain U.S. plant patent<br />

protection:<br />

• Commercialize in France on April<br />

1, 2013 (with or without a printed<br />

publication);<br />

• File a PBR application in France<br />

on March 1, 2014;<br />

• File a U.S. plant patent application<br />

on February 1, 2015, while<br />

claiming priority to the PBR<br />

fi l i ng.<br />

Accordingly, even with the substantial<br />

changes in the AIA, foreign<br />

plant breeders/inventors continue to<br />

be provided some additional time<br />

to submit a U.S. plant patent application<br />

provided a claim is timely<br />

perfected for taking advantage of<br />

an earlier PBR filing date.<br />

We are reminded that standard<br />

UPOV novelty provisions have<br />

never been a part of the U.S. Plant<br />

Patent Law (35 U.S.C. §161 to<br />

164). The AIA does not change<br />

this. Such typical UPOV provisions<br />

provide that a plant (a) must<br />

not have been offered for sale or<br />

marketed with the agreement of the<br />

breeder longer than one (1) year in<br />

the country where rights are being<br />

sought, or (b) in any other country<br />

longer than six (6) years for a tree or<br />

vine, or longer than four (4) years<br />

for any other plant.<br />

New and revised<br />

procedures<br />

Outside of the grace period context,<br />

the AIA does present some<br />

new and revised procedures that a<br />

plant patent applicant may find of<br />

interest.<br />

For instance, the AIA has revised<br />

the Pre-Issuance Submission<br />

procedures , such that a third party<br />

has a greater opportunity to submit<br />

certain information relevant to<br />

patentability in a competitor's plant<br />

patent application. The USPTO<br />

will then consider the information<br />

during examination of the<br />

application.<br />

Also, the AIA has further revised<br />

the procedures that a third party<br />

can use to challenge a plant patent<br />

after the grant of rights. For<br />

example, there will now be the<br />

possibility for a post-grant review<br />

and an expanded inter-partes reexamination<br />

. These are anticipated<br />

to require high government fees to<br />

initiate, and a significant investment<br />

of attorney time. Comments<br />

and inquiries are welcome. |||<br />

<strong>CIOPORA</strong> <strong>Chronicle</strong> April <strong>2012</strong> | www.<strong>CIOPORA</strong>.org 13


U.S. Plant Patents<br />

Plants can be<br />

legally protected<br />

in many different<br />

ways and protection<br />

varies widely from<br />

country to country.<br />

Examples of types of<br />

protection available<br />

for plants in the U.S.<br />

and/or the European<br />

Community include<br />

U.S. plant patents,<br />

E.U. Community<br />

Plant Variety Rights<br />

(CPVR), U.S. Plant<br />

Variety Protection<br />

(PVP), trademarks,<br />

licenses, trade<br />

secrets and utility<br />

patents for plant<br />

varieties, mutant<br />

genes and methods<br />

of breeding. This<br />

article focuses on<br />

the strengths and<br />

weaknesses of<br />

U.S. plant patents<br />

versus European<br />

Community Variety<br />

Rights laws as they<br />

apply to asexually<br />

reproduced<br />

ornamental and fruit<br />

crops.<br />

by Dr. Robert Jondle<br />

U.S. plant patents<br />

compared to UPOV<br />

PBR system<br />

The U.S. plant patent is<br />

an important option for<br />

protection in the United<br />

States, and is the most common<br />

choice for asexually reproduced<br />

fruit and ornamental plants. The<br />

Plant Patent Act was enacted by<br />

Congress on 13 May 1930 and, as<br />

further amended in 1998, excludes<br />

others from asexually reproducing<br />

the protected plant, and from<br />

using, offering for sale, or selling<br />

the plant so reproduced, or any of<br />

its parts, throughout the United<br />

States, or from importing the plant<br />

so reproduced, or any parts thereof,<br />

into the United States.<br />

The 1998 amendment provided<br />

provisions restricting the importation<br />

of plant parts into the United<br />

States including, for example, fruits<br />

harvested from protected plants<br />

and cut flowers. It is important to<br />

recognise that if fruits, cut flowers<br />

or other plant parts are produced<br />

outside the United States, the plant<br />

patent law comes into effect at the<br />

U.S. border as soon as the item<br />

enters the United States.<br />

Novel, useful<br />

and non-obvious<br />

For a plant patent to be considered<br />

for grant, the new variety must be<br />

novel, useful and non-obvious. The<br />

term of a U.S. plant patent is 20<br />

years from the application’s filing<br />

date, and the plant must not have<br />

been for sale for more than one year<br />

before the filing date of the application<br />

or within one year after filing<br />

for a PBR under the UPOV system.<br />

Unlike the E.U. CPVR, no maintenance<br />

fees are required to be paid<br />

during the life of the plant patent.<br />

Plant patents are considerably less<br />

expensive to obtain and maintain<br />

over the 20 years compared to<br />

an E.U. CPVR, a U.S. PVP or a<br />

regular U.S. utility patent.<br />

In addition, the disclosure requirements<br />

for a plant patent are less<br />

stringent than for a U.S. PVP or for<br />

a regular U.S. utility patent. The<br />

breeder provides a written description<br />

of the new variety reasonable<br />

enough to distinguish it from other<br />

related varieties and photos of the<br />

new variety.<br />

As far as infringement is concerned,<br />

a plant patent holder must prove<br />

that the accused variety was actually<br />

derived asexually from plant<br />

material protected by the patented<br />

variety. Some believe that this is a<br />

critical obstacle in proving infringement<br />

during a legal proceeding,<br />

and thus believe the strength of<br />

protection afforded by a plant<br />

patent is marginalised as compared<br />

to a U.S. utility patent or an E.U.<br />

CPVR certificate.<br />

U.S. Plant Variety Protection provides<br />

protection for seed propagated<br />

(sexually reproduced) crops and<br />

tuber crops. Since fruit crops and<br />

ornamental crops are normally<br />

asexually propagated, U.S. PVP<br />

protection would not be available<br />

and is not discussed further in this<br />

article.<br />

UPOV system<br />

The most common international<br />

protection offered for varieties<br />

is the UPOV system of plant<br />

breeder’s rights such as the CPVR<br />

in Europe. The International Union<br />

for the Protection of New Varieties<br />

of Plants was established by the<br />

UPOV Convention in 1961 with<br />

additional Conventions by the Union<br />

in subsequent years including<br />

the most commonly adopted 1978<br />

and 1991 Conventions.<br />

The E.U. is a member of the 1991<br />

UPOV Convention which requires<br />

that a variety must be new, distinct,<br />

uniform and stable. The novelty<br />

requirement for breeder’s rights requires<br />

that a variety must not have<br />

been sold or otherwise disposed of<br />

in the territory concerned for more<br />

than one year prior to application<br />

for the right, or more than four<br />

years (or six years for trees and<br />

vines) in another country.<br />

For countries under the 1991<br />

UPOV Convention, the scope of<br />

protection extends to harvested<br />

material but the enforcement of<br />

harvested materials has been an<br />

issue, and this remains a major concern<br />

in Europe for ornamental and<br />

fruit crops. In addition, protection<br />

in countries under the 1991 UPOV<br />

Convention extends to varieties<br />

that are essentially derived from the<br />

protected variety.<br />

14 www.<strong>CIOPORA</strong>.org | <strong>CIOPORA</strong> <strong>Chronicle</strong> April <strong>2012</strong>


Plant breeder’s rights do not<br />

restrict breeding activity with a<br />

protected variety. UPOV permits<br />

one member country to conduct<br />

examination of a variety for potential<br />

granting of breeder’s rights<br />

and another member country the<br />

option to choose whether to accept<br />

that evaluation for its own grant.<br />

CPVO<br />

The “Community Plant Variety<br />

Office” is administered by a group<br />

of European Union (E.U.) UPOV<br />

member states whereby plant<br />

breeder’s rights are granted. A major<br />

difference in filing for plant breeder’s<br />

rights in the E.U. compared to<br />

U.S. Plant Patents and U.S. PVPs is<br />

that plant material is submitted by<br />

the breeder (rather than a complete<br />

botanical description as provided<br />

for U.S. Plant Patent and Plant<br />

Variety Protection consideration),<br />

and the variety is grown for examination<br />

in a selected site for that crop<br />

alongside other candidates and/or<br />

standard or established varieties in<br />

the E.U.<br />

In addition to a filing or application<br />

fee, there are fees for examination<br />

for the growing period of the plant<br />

along with annual fees for continued<br />

protection after approval for as<br />

long as the protection is desired or<br />

allowed.<br />

Discussion<br />

The advantages of the U.S. plant<br />

patent protection include the following:<br />

Plant patents are significantly<br />

less expensive than either an<br />

E.U. CPVR certificate or a U.S.<br />

PVP certificate. The total cost to<br />

file and receive a U.S. plant patent<br />

is generally less than $4,000 USD.<br />

There are no yearly annuity fees for<br />

U.S. plant patents and this protection<br />

lasts for 20 years for fruit and<br />

ornamental crops. In addition, the<br />

disclosure requirements for a U.S.<br />

plant patent are less stringent and<br />

no germplasm examination is required.<br />

The breeder provides a written<br />

description of the new variety<br />

reasonable enough to distinguish<br />

it from other related varieties and<br />

photos of the new variety.<br />

However, concerning infringement,<br />

a plant patent holder must prove<br />

the accused variety was actually<br />

derived asexually from plant<br />

material representing the patented<br />

variety. This may be an obstacle in<br />

proving infringement during a legal<br />

proceeding.<br />

The advantages of the CPVR<br />

certificate include having CPVO<br />

scientists conduct independent trials<br />

to compare the new variety with<br />

other commercial varieties if the<br />

new variety is eligible to receive an<br />

E.U. CPVR grant. UPOV allows<br />

for one member country to conduct<br />

an examination of a variety for potential<br />

granting of breeder’s rights<br />

and then another member country<br />

can choose whether to accept the<br />

evaluation for its own grant. With<br />

an issued E.U. CPVR certificate<br />

protection extends to Essentially<br />

Derived Varieties (EDV) that may<br />

be developed and sold by competitors<br />

and also extends to harvested<br />

materials. Some people have recommended<br />

that the E.U. and the U.S.<br />

apply a harmonised PBR system<br />

including DUS testing used to<br />

obtain an E.U. CPVR certificate.<br />

Very few disputes<br />

Obtaining and maintaining an<br />

E.U. CPVR certificate is often<br />

three to five times more expensive<br />

than a U.S. plant patent. Defining<br />

an EDV has proven to be very<br />

difficult for scientists and different<br />

courts have had conflicting decisions<br />

even on the exact same facts.<br />

Also, protection for harvested<br />

materials has had limited success in<br />

Europe.<br />

Currently, it appears the majority of<br />

companies and breeders in the U.S.<br />

have been reasonably satisfied with<br />

the protection provided by the U.S.<br />

plant patent and the very low cost<br />

and quick examination time for obtaining<br />

an issued U.S. plant patent.<br />

There have been very few disputes<br />

or court decisions involving US<br />

plant patents. Many European<br />

companies prefer the E.U. CPVR<br />

system and would like a similar system<br />

implemented in the U.S. This<br />

preference is likely due to the fact<br />

that a U.S. plant patent is restricted<br />

to the U.S. and an E.U. CPVR is<br />

restricted to the E.U. |||<br />

<strong>CIOPORA</strong> <strong>Chronicle</strong> April <strong>2012</strong> | www.<strong>CIOPORA</strong>.org 15


Opinion<br />

The Selecta Group<br />

is a world leading<br />

breeder, producer<br />

and marketer<br />

of vegetatively<br />

propagated<br />

ornamental<br />

plants. Using<br />

groundbreaking<br />

breeding methods,<br />

the Selecta team<br />

develops hundreds<br />

of new breeding<br />

lines each year.<br />

Many of them have<br />

been successfully<br />

introduced in the<br />

market place while<br />

others stand out for<br />

further development<br />

and are now in<br />

validation trials.<br />

Meanwhile, the<br />

Selecta breeders<br />

ask themselves<br />

whether PBR protect<br />

their innovations<br />

sufficiently.<br />

Selecta questions<br />

whether PBR provide<br />

enough protection<br />

The Selecta breeding team<br />

consisting of more than<br />

60 people is active in<br />

developing varieties of more than<br />

40 species in the field of bedding<br />

plants, Poinsettia, perennials and<br />

cut flowers. The results are pretty<br />

impressive: Each year, the company<br />

is able to introduce more than<br />

seventy new varieties with improved<br />

or even new characteristics, a great<br />

number of them being protected by<br />

Plant Breeder’s Rights.<br />

Tidy sum of money<br />

Developing a new variety, from the<br />

first seedling to the final commercial<br />

product, takes at least five years<br />

and costs a tidy sum of money.<br />

The breeder’s privilege embedded<br />

in the PBR law enables anyone to<br />

use a protected variety for his own<br />

breeding work and to crossbreed<br />

with this protected genetic material.<br />

On one hand each breeder can use<br />

a wide range of varieties to develop<br />

new ones to the benefit of the whole<br />

branch. But on the other hand the<br />

law doesn’t differentiate if the variety<br />

used for crossbreeding simply is<br />

a further development of an already<br />

existing one or if it’s a real breakthrough<br />

innovation, something<br />

really new that hasn’t been on the<br />

market before.<br />

Heart, soul and creativity<br />

In this case the initial breeder who<br />

put his heart, soul and creativity in<br />

the development of this innovation<br />

will lose within a few years his USP<br />

(unique selling proposition) and<br />

plenty of varieties coming from the<br />

same genetic source will flood the<br />

market. The winner won’t be the<br />

most innovative breeder but the one<br />

who is the strongest in production<br />

and sales. The main objective of the<br />

PBR system is of course to protect<br />

the IP rights of breeders, either<br />

being individuals, small entities or<br />

large breeding companies, instead<br />

of promoting the rights of producers.<br />

Patents<br />

Taking into account all the money<br />

that was spent the question arises:<br />

Can the breeder receive enough<br />

compensation for his investments?<br />

To ensure this, some larger breeding<br />

companies already decided to<br />

apply for a patent if the level of<br />

invention is good enough at all. The<br />

patent law stipulates that the patented<br />

invention may be used only<br />

for R&D purposes and no product<br />

based on the patented invention<br />

may be marketed without the patent<br />

holder’s approval.<br />

The possibility to apply for a patent<br />

isn’t the answer at all considering<br />

the costs that are much higher<br />

than those to be paid for a Plant<br />

Breeder´s Right and moreover<br />

it often takes a long time until a<br />

patent is finally granted. And let’s<br />

Dr. Ulrich Sander, CTO and CMO of<br />

Selecta Klemm and Board Member<br />

of <strong>CIOPORA</strong> Germany.<br />

not forget the knowhow necessary<br />

to elaborate a patent application.<br />

But are patents really the solution<br />

for all of us? What is the answer<br />

for the average breeder, the huge<br />

number of small and medium-sized<br />

breeding companies that also need<br />

a broad scope of protection of their<br />

IP rights?<br />

Groundbreaking<br />

innovations<br />

If a breeder succeeds in developing<br />

a real innovation, something<br />

unprecedented, he of course wants<br />

to be ensured of the highest possible<br />

scope of protection. There are plenty<br />

of examples for groundbreaking<br />

innovations in our industry:<br />

“Diamond Frost” (Chamaesyce),<br />

“Hot®” (Lobelia), “Garden Girls®”<br />

(Calluna), “Queen®” (double flowering<br />

Kalanchoe), “FlowerPower®<br />

Double” (double flowering<br />

16 www.<strong>CIOPORA</strong>.org | <strong>CIOPORA</strong> <strong>Chronicle</strong> April <strong>2012</strong>


Trixi ® Petticoat<br />

Osteospermum) or “MiniFamous®<br />

Double” (double flowering Calibrachoa).<br />

It often takes many years until<br />

the first varieties can be brought into<br />

the market.<br />

Breeder’s privilege<br />

It goes without saying that innovative<br />

breeders want to avoid their competitors<br />

entering the market with similar varieties<br />

within short. Should everyone try<br />

to get a patent on his invention? Then<br />

the competitors would be completely<br />

banned. As an alternative we could<br />

also imagine to suspend the existing<br />

breeder’s privilege preventing the use<br />

of breakthrough innovations for a<br />

limited period of maybe 5, 8 or 10 years<br />

thus giving the initial breeder enough<br />

technological and economic advantage<br />

to compensate his breeding efforts. His<br />

competitors, on the other hand, won’t<br />

be left out in the rain forever. For us<br />

this seems to be a fair solution for all<br />

parties even though the political implementation<br />

of a possible amendment of<br />

the breeder’s privilege in the PBR law<br />

may not be achieved overnight. |||<br />

Osteospermum FlowerPower ® Double Purple<br />

Calibrachoa MiniFamous ® Double Blue<br />

Calibrachoa MiniFamous ®<br />

Double Pink Vein<br />

Osteospermum FlowerPower ®<br />

Double White Bronce<br />

Selecta’s double flowering<br />

Osteospermum wins<br />

Medal of Excellence<br />

The double flowering Osteospermum series FlowerPower ®<br />

Double, last year’s world novelty, was introduced to the<br />

American audience at the 2011 California Spring Trials under<br />

the name of 3D Osteospermum this spring and has been able<br />

to convince producers, media and reviewers right from the<br />

beginning.<br />

After winning the Taspo Awards in Germany in 2010 in<br />

the category ‘Breeding of the Year’ the double flowering<br />

Osteopsermum varieties could also claim a coveted trophy<br />

in the USA - the Medal of Excellence, an award given by the<br />

Greenhouse Grower magazine. Selecta’s double flowering<br />

Osteospermum varieties could clearly asserted against the<br />

competition and win in two categories.<br />

A panel of notable opinion leaders of the industry honoured<br />

the double flowering varieties with the “Industry’s Choice”<br />

award ranking Selecta among previous award winners like<br />

‘Black Velvet’ (Ball FloraPlant) and ‘Snow Princess’ (Proven<br />

Winners). Also Selecta has been an awardee already ever<br />

since convincing the judges of the Industry’s Choice awards<br />

with a breeding in 2006. With the first double flowering<br />

Calibrachoa variety MiniFamous ® Double Pink Selecta<br />

accomplished the introduction of the most innovative<br />

product once before.<br />

The FlowerPower ® Double varieties could furthermore<br />

convince in the category “Editor’s Choice”. Editor Delilah<br />

Onofrey says, “it’s clear Selecta’s 3D double osteospermums<br />

were the most significant introduction at this year’s<br />

California Spring Trials.”<br />

Last year Selecta started offering four double flowering<br />

varieties in white, pink and purple. The varieties had been<br />

integrated in the successful FlowerPower ® line. This season<br />

two more varieties were added to the line: FlowerPower ®<br />

Double Berry White in white with a high-contrast flower<br />

filling in a berry-like colour and purple tips and<br />

FlowerPower ® Double White Bronce in white with a<br />

romantic bronze-coloured centre. The multi-awarded<br />

varieties of the FlowerPower ® Double line are easy to<br />

cultivate and convince with earliness and a very good shelf<br />

life of the flower. A special characteristic of the double<br />

flowering Osteospermum varieties is the fact that the<br />

flowers stay open even under low light conditions.<br />

<strong>CIOPORA</strong> <strong>Chronicle</strong> April <strong>2012</strong> | www.<strong>CIOPORA</strong>.org 17


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Breeder’s exemption<br />

Does Belgian patent law<br />

need a breeder’s exemption?<br />

Over the past years, much has been said about the alleged need<br />

to introduce a so-called ‘breeder’s exemption’ into patent law.<br />

This exemption essentially allows a breeder to use plant material<br />

of a protected variety for the purpose of breeding other varieties.<br />

Philippe de Jong is a lawyer at Altius (Brussels)<br />

Under the plant variety rights regime,<br />

material of these new varieties can also<br />

be commercialised, unless the new<br />

variety is an essentially derived, not-distinct or<br />

hybrid variety or its material “comes under the<br />

protection of a property right which does not<br />

contain a comparable provision”.<br />

Unfair<br />

Most patent laws do not contain such a “comparable<br />

provision”. This is because, contrary to<br />

plant variety rights law, patent law is not based<br />

on the principle of independence, but rather on<br />

that of dependence: products that incorporate a<br />

patented invention, i.e. depend upon it, cannot<br />

be commercialised without the consent of the<br />

patent holder.<br />

This is often considered as unfair and in a<br />

number of countries legislative action has<br />

already been undertaken to mitigate the alleged<br />

harsh effects of patent law in this respect.<br />

Thus, the French , Swiss and German patent<br />

laws now contain a statutory exemption for<br />

breeding new varieties, but this exemption only<br />

covers the act of breeding, not the subsequent<br />

commercialisation.<br />

Also in The Netherlands, a debate is ongoing<br />

to introduce a breeder’s exemption into Dutch<br />

patent law. Some want this to be a broad<br />

exemption, but it appears that it will become<br />

a limited one. I will not touch upon whether,<br />

generally speaking, these initiatives are desirable<br />

or even needed. Much has already been<br />

said about that. The purpose of this article is<br />

to look at the particular case of Belgium. Since<br />

more and more countries are introducing a<br />

separate breeder’s exemption into their patent<br />

laws, it is interesting to examine whether a<br />

similar initiative is at all required. The answer<br />

seems to be that it is not.<br />

Restrictive research exemption<br />

The aforementioned legislative initiatives in<br />

France, The Netherlands, etc. were triggered<br />

by the fact that, in each of those countries, a<br />

rather restrictive research exemption is in place.<br />

The research exemption under those countries’<br />

patent laws applies only to experiments on the<br />

patented subject-matter (not with). Furthermore,<br />

in the Netherlands the research exemption<br />

will furthermore only cover acts carried<br />

out exclusively for the purpose of experiment.<br />

The reason for the legal changes in these<br />

countries has therefore been to allow the use of<br />

patented material for creating new varieties (i.e.<br />

research with the patented invention), without<br />

requiring a license.<br />

Belgium<br />

In Belgium, the situation is different. Contrary<br />

to the countries referred to above, Belgium has<br />

a rather broad research exemption. According<br />

to the Belgian Patent Law of 1984 (Article<br />

28(1)(b)), “the rights conferred by a patent<br />

do not extend to acts that are committed on<br />

and/or with the subject matter of the patented<br />

invention for scientific purposes”.<br />

The scope of this provision is very similar to<br />

that of the specific breeder’s exemptions introduced<br />

in the aforementioned countries. First of<br />

all, although the terms “for scientific purposes”<br />

are not defined in the law, there seems to be a<br />

broad consensus that they should not be interpreted<br />

too loosely (in the sense of “for purely<br />

scientific purposes”, i.e. with a view to developing<br />

knowledge or the testing of an hypothesis),<br />

but rather broadly (in the sense of “for<br />

combined scientific and commercial purposes”,<br />

i.e. with a view to developing new products).<br />

It is not because the result of an experiment is<br />

subsequently commercialised, that the experiment<br />

would suddenly no longer be “scientific”.<br />

Secondly, the terms “on and/or with” indicate<br />

that it is allowed to use the patented invention<br />

as a tool to develop new products, without<br />

requiring a license from the patentee. In terms<br />

of plant breeding, this provision thus allows<br />

a breeder to use patented material for the<br />

purpose of breeding new varieties.<br />

Germplasm<br />

Access to germplasm – the lack of which is<br />

usually used to argue that the absence of a<br />

breeder’s exemption in patent law is unfair –<br />

is therefore guaranteed. Given the principle of<br />

dependence in patent law, the breeder of the<br />

new variety will not be able to commercialise<br />

plant material of that variety to the extent that<br />

it still contains the patented traits. However,<br />

this is not much different from the situation<br />

under plant variety rights law, where the principle<br />

of independence has been substantially<br />

eroded since the introduction of the concept<br />

of essentially derived varieties. According to<br />

this concept, a new variety whose phenotype<br />

“conforms essentially” to that of the variety<br />

on the basis of which it has been bred (i.e. has<br />

been derived from), will also still infringe the<br />

plant variety certificate for the initial variety.<br />

The research exemption under Belgian patent<br />

law therefore seems to be as close as you can get<br />

to implementing a breeder’s exemption in plant<br />

variety rights terms.<br />

In view of these findings, it can be concluded<br />

that Belgian patent law does not need a<br />

separate breeder’s exemption. |||<br />

<strong>CIOPORA</strong> <strong>Chronicle</strong> April <strong>2012</strong> | www.<strong>CIOPORA</strong>.org 19


Law case<br />

On 20 October<br />

2011 the Court<br />

of Justice of the<br />

European Union<br />

(CJEU) rendered its<br />

judgment in the so<br />

called “Greenstar-<br />

Kanzi Case” 2<br />

strengthening the<br />

position of a licensor<br />

of a Community<br />

Plant Variety Right<br />

(CPVR).<br />

A decision to the<br />

benefit of European<br />

title holders<br />

What are the facts? The<br />

story of the case 3 is<br />

quickly told: The case<br />

is dealing with the apple variety<br />

‘Nicoter’ (CPVR application filed<br />

in 2001).<br />

In December 2004, the licensee<br />

in ‘Nicoter’ (Nicolaï) sold 7,000<br />

trees of the variety to Mr Hustin.<br />

Although the license agreement<br />

provided that Nicolaï may not sell<br />

trees to any third party without<br />

such party having signed an own license<br />

agreement, the trees were sold<br />

with no such agreement in place.<br />

Eventually Greenstar-Kanzi Europe<br />

NV (GKE) became the licensee<br />

of ‘Nicoter’ and, after the CPVR<br />

was granted in August 2005, GKE<br />

discovered that ‘Nicoter’ apples<br />

were sold by Mr Goossens who<br />

had bought them from Mr Hustin.<br />

GKE filed an action against Mr<br />

Hustin and Mr Goossens in<br />

Belgium claiming that the sale of<br />

the apples constituted a CPVR<br />

infringement.<br />

by Thomas Leidereiter 1<br />

The questions of law<br />

The Belgian Hof van Cassatie asked<br />

the CJEU to give a preliminary<br />

ruling on the following questions:<br />

(1) Can the holder of a CPVR or<br />

his licensee bring an action against<br />

anybody exploiting the protected<br />

variety if the plant material this person<br />

is exploiting was bought from a<br />

licensee breaching his license agreement<br />

at the time of the sale? (2) Is<br />

it, in this case, relevant whether the<br />

person buying such material knows<br />

about the limitations contained in<br />

the license agreement?<br />

The decision<br />

On the first question, the CJEU<br />

held that it may constitute a CPVR<br />

infringement if a licensee is in<br />

breach of the limitations set out in<br />

his license agreement at the time<br />

he is selling plant material of the<br />

variety. However, there will only be<br />

an infringement if such limitations<br />

relate directly to the essential<br />

features of the CPVR. As the<br />

CJEU had not been provided with<br />

the license agreement in question,<br />

it had to leave it for the referring<br />

court to assess whether the clauses<br />

in dispute fell un-der this definition.<br />

With regard to the second<br />

question, the CJEU decided that<br />

for judging on the infringement, it<br />

is irrelevant whether the third party<br />

buying the material was aware of<br />

the limitations contained in the<br />

license agreement.<br />

Conclusions for<br />

growers and breeders<br />

The CJEU ruling contains a<br />

positive decision for the holders<br />

20 www.<strong>CIOPORA</strong>.org | <strong>CIOPORA</strong> <strong>Chronicle</strong> April <strong>2012</strong>


of CPVR titles. For Licensees it should now be perfectly clear<br />

that their license agreements constitute more than just pieces<br />

of paper. Breaching them may permanently “contaminate” the<br />

plant material affected. However, one issue, which has not been<br />

dealt with in the decision, is also worth mentioning. It seems<br />

questionable, whether at all a CPVR infringement may have occurred<br />

in the Greenstar-Kanzi Case. When the trees were sold to<br />

Mr Hustin in 2004, no CPVR protection had yet been granted<br />

for ‘Nicoter’. Only provisional protection existed for the variety.<br />

Such protection, however, does not include the right to prohibit<br />

the exploitation of a variety. As the CPVR regulation currently<br />

does not foresee licenses in CPVR applications at all, it might<br />

prove difficult to establish an infringement in the present case.<br />

With a view to the current wording of the law, breeders should<br />

weigh carefully marketing variety constituents of new varieties<br />

before the actual grant of a CPVR. |||<br />

1 LL.M. (Cardiff ), certified IP Lawyer at Luther Rechtsanwaltsgesellschaft<br />

mbH, Hamburg.<br />

2 Judgment of the Court of Justice (First Chamber) of 20 October<br />

2011 in Case C-140/10, reference for a preliminary ruling under<br />

Article 267 TFEU from the Hof van Cassatie (Belgium), made<br />

by decision of 25 February 2010, received at the Court on 17<br />

March 2010, in the proceedings Greenstar-Kanzi Europe NV v<br />

Jean Hustin, Jo Goossens. See also the Floriculture International<br />

<strong>CIOPORA</strong> <strong>Chronicle</strong> of March 2011, p. 15.<br />

3 For further information on the case see also P. van der Kooij,<br />

“Uitputting in het kwekersrecht”, BIE 2011, p. 404; P. de<br />

JONG, “Uit-putting in het kwekersrecht”, IRDI <strong>2012</strong>, p. 91.<br />

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<strong>CIOPORA</strong> <strong>Chronicle</strong> April <strong>2012</strong> | www.<strong>CIOPORA</strong>.org 21


Law cases<br />

In October 1996,<br />

De Ruiter received<br />

claims by several<br />

growers, because<br />

supposedly the<br />

variety Versilia ®<br />

Nirpventyel, owned<br />

by Nirp, showed<br />

growth deficiencies.<br />

At that time, De<br />

Ruiter acted as<br />

agent for Nirp<br />

and represented<br />

this breeder in<br />

Holland. The<br />

growers demanded<br />

compensation<br />

for the royalty<br />

and claimed for<br />

damages.<br />

by Oscar Peters<br />

The ‘Versilia’ case<br />

shines light up the<br />

liability of breeders<br />

In the subsequent period, De<br />

Ruiter settled on behalf of Nirp<br />

with seventeen ‘Versilia’ ® growers,<br />

which led to indemnification<br />

and mutual withdrawal of further<br />

legal action. One particular grower<br />

decided not to settle but to sue De<br />

Ruiter. Afterwards, seven growers<br />

decided that the compensation<br />

received by De Ruiter was not<br />

enough and they summoned their<br />

respective propagator and sued for<br />

cancellation of the contract and<br />

compensation of the propagation<br />

costs of the Versilia plants made by<br />

them. In turn, the four propagators<br />

sued De Ruiter for indemnification<br />

because the propagators took the<br />

position that they had no responsibility<br />

whatsoever with the alleged<br />

growth deficiencies of the variety<br />

‘Versilia’.<br />

The Court of Law decided to treat<br />

all the cases together:<br />

• Grower versus De Ruiter<br />

• Growers versus Propagators<br />

• Propagators versus De Ruiter<br />

The Court of Amsterdam<br />

On September 15th 1999, the<br />

Court of Amsterdam in an interim<br />

or incident judgment ruled that De<br />

Ruiter's defence arguments were<br />

insufficient, however De Ruiter was<br />

invited to prove that the growth<br />

deficiencies were not caused by the<br />

variety itself, but partially due to<br />

climate conditions (‘Versilia’ did<br />

not show any growth deficiencies in<br />

South America) and to incompetence<br />

of the grower to grow the<br />

variety properly (other Dutch growers<br />

were able to produce the variety<br />

without suffering from the alleged<br />

growth deficiencies).<br />

On March 5th 2003, the Court<br />

decided that De Ruiter did not successfully<br />

present its evidence, and<br />

condemned De Ruiter, a verdict<br />

which was appealed.<br />

The Superior Court<br />

of The Hague<br />

The Superior Court of The Haque<br />

in an interim judgment of September<br />

8th 2005, decided to apply<br />

the principle of reverse evidence,<br />

which implies that the burden<br />

of proof lies upon the defendant:<br />

De Ruiter. The Superior Court<br />

also mentioned that it found the<br />

Ruling by the first Court to be not<br />

well sustained in the sense that its<br />

verdict was based on incomplete<br />

evidence, particularly with regard<br />

to a lack of investigation on why the<br />

variety had not shown the alleged<br />

growing problems under different<br />

conditions.<br />

After several attempts to find an<br />

expert to complement this part of<br />

the investigation, as well as many<br />

deliberations and recommendations<br />

of agricultural and horticultural<br />

organisations, on September 22th,<br />

2009 the Superior Court decided<br />

the following:<br />

• Despite all attempts, the claimant<br />

could not find an independent<br />

expert to undertake further<br />

research into the cause of growth<br />

failure;<br />

• Although not proven, but under<br />

the assumption that there was<br />

an existing growth deficiency of<br />

the variety, and given the fact<br />

that the variety was successfully<br />

grown and produced by other<br />

growers in Holland, France,<br />

Ecuador and Kenya, the Court<br />

concluded that the variety had<br />

apparently genotype characteristics<br />

that do express under certain<br />

conditions and not under others,<br />

which is determinative for the<br />

phenomena.<br />

• The Court added that even if<br />

there were an existing genotype<br />

defect of the variety, De Ruiter<br />

could not be held liable for that.<br />

The Court did consider that De<br />

Ruiter had carried out trials in<br />

Holland for a sufficient period<br />

of time before introducing the<br />

variety on the market. During<br />

those trials, no growth deficiencies<br />

occured. A report issued at<br />

the time by the Research Station<br />

for Flower Cultivars in Holland,<br />

judged the variety as "excellent".<br />

De Ruiter therefore did not<br />

know about the alleged defect of<br />

the variety, nor was the company<br />

expected to know about it.<br />

• Moreover, the Court stated that<br />

the license granted to the growers<br />

was related to a natural product<br />

of which not all characteristics<br />

are or can be known. Since the<br />

variety does not come with guaranties,<br />

according to the Court,<br />

the growers may not expect that<br />

the variety performs well under<br />

all kind of conditions. De Ruiter<br />

had successfully argued that<br />

each rose variety has more or less<br />

favourable characteristics, which,<br />

depending on the climate conditions<br />

of the production site, are<br />

being expressed or oppressed. A<br />

newly introduced variety always<br />

22 www.<strong>CIOPORA</strong>.org | <strong>CIOPORA</strong> <strong>Chronicle</strong> April <strong>2012</strong>


Therefore the Superior Court overruled<br />

the Court’s verdict and ruled in favour<br />

of De Ruiter.<br />

contains risks, also with regard to its<br />

growth characteristics and performance.<br />

The Court also referred to<br />

the General Conditions of the Dutch<br />

Association of Rose Breeders (VRV)<br />

in which Article 3.1 of the mentioned<br />

General Conditions stipulates<br />

that damages which result from<br />

unsound or defect plant material<br />

which is caused by a disease or other<br />

conditions and cannot be detected or<br />

controlled, have to be considered as<br />

force majeure. Article 2 of these<br />

General Conditions state that damages<br />

to the plant is to be considered<br />

as the risk of the purchaser after<br />

delivery of the plant, even if Article<br />

5.6 requires that the seller of the<br />

plant guarantees that the plant material<br />

does comply with the generally<br />

accepted quality conditions expected<br />

of such plant variety. Article 8.1<br />

indicates that the seller cannot be<br />

held liable for the performance of the<br />

variety in relation to the cultivation<br />

method used by the buyer.<br />

Rosa 'Versilia'<br />

No proven mistakes<br />

In a parallel verdict, the Superior Court<br />

analysed the relationship and possible<br />

responsibility or liability between De<br />

Ruiter, acting as an agent of Nirp,<br />

in relation to alleged defects of the<br />

variety Versilia, and the position of the<br />

propagator in propagating and selling<br />

the plant material of the variety Versilia<br />

to the grower.<br />

The Court considered that even if the<br />

growth problems were caused by the<br />

variety Versilia´s genotype, which under<br />

certain conditions could have occured,<br />

at the time of delivery of the plant material<br />

by the propagator to the grower,<br />

these characteristics were not shown or<br />

detectable and the delivered material<br />

did comply with the common quality<br />

requirements of the Dutch General<br />

Control Service for Flower Cultivars<br />

(NAKB).<br />

The propagator, according to the Court,<br />

was not aware of any defects of the<br />

variety, nor was the company required<br />

to be aware.<br />

The propagator had delivered exactly<br />

what it was supposed to deliver, plant<br />

material of the variety ‘Versilia’. In this<br />

analysis, it is important to note that the<br />

propagator had not made any proven<br />

mistakes in the propagation process and<br />

that any alleged deficiency of the variety<br />

could not be held against the propagator.<br />

The sales contract of plant material<br />

between a grower and a propagator,<br />

even if the variety Versilia is mentioned<br />

and forms part of the sales contract, in<br />

absence of any guaranties in such sales<br />

contract, cannot generate any expectation<br />

that the variety will be without any<br />

defect.<br />

Also, in this case, the Superior Court<br />

ruled in favour of De Ruiter, and it<br />

exonerated the propagators from any<br />

responsibility of an alleged and supposedly<br />

existing deficiency of the variety<br />

‘Versilia’.<br />

The grower and propagators appealed<br />

to the Supreme Court, which on June<br />

24th 2011, rejected the conclusions<br />

and ratified the verdict by the Superior<br />

Court of Justice. |||<br />

<strong>CIOPORA</strong> <strong>Chronicle</strong> April <strong>2012</strong> | www.<strong>CIOPORA</strong>.org 23


Plant breeders<br />

play a fundamental<br />

role in the fresh<br />

fruit sector, by<br />

providing new high<br />

value varieties<br />

with increased<br />

production,<br />

better quality of<br />

fruit, valuable<br />

organoleptic<br />

qualities, improved<br />

presentation,<br />

durability, etc. In<br />

order to protect and<br />

stimulate the efforts<br />

of these breeders it<br />

is necessary to have<br />

an effective system<br />

for protecting their<br />

intellectual property<br />

rights<br />

by Antonio Villarroel*<br />

Intellectual Property<br />

protection for fruits<br />

The production and marketing<br />

of fresh fruit is one of<br />

the fastest growing agribusinesses<br />

in recent years, with an outstanding<br />

growth figure of 35% for<br />

the period 2005-2009 (from USD<br />

51,686 million to USD 69,562 million)<br />

according to the statistics<br />

provided by the International<br />

Chamber of Commerce (ICC).<br />

However, the features of these fruit<br />

varieties lead to some difficulties<br />

when trying to assure the effectiveness<br />

of their protection under the<br />

UPOV system. We set out below<br />

some of the main problems to<br />

consider.<br />

1) Scope of protection:<br />

a) Object: As already stated, in<br />

the fruit sector (and also in the<br />

flowers or vegetables sector)<br />

the breeders commonly work<br />

on new varieties whose value is<br />

apparent mostly in the harvested<br />

–final- product and not in the<br />

propagating material. However,<br />

the UPOV Convention refers<br />

to the “propagating material”<br />

(the “constituents” in the case<br />

of EU Regulation CE 2100/94 1 )<br />

instead of the new product as a<br />

whole, i.e. the variety and all the<br />

corresponding materials.<br />

Thus, the breeders’ right does<br />

not in principle apply to all<br />

elements of plant material that<br />

constitute the new variety but<br />

only to those elements concerned<br />

with its reproduction. Moreover,<br />

it excludes, except under certain<br />

conditions, other elements such<br />

as the harvested product or<br />

end products derived from the<br />

harvested material. Those conditions<br />

mean both with respect to<br />

the UPOV Convention and the<br />

European Regulation 2100/94,<br />

that the breeder’s right is only<br />

extended to these elements when<br />

the following conditions are<br />

fulfilled:<br />

i) The “unauthorized use” of the<br />

propagating material, and<br />

ii) The absence of a “reasonable<br />

opportunity” for the breeder<br />

to exercise his right on the<br />

propagating material or,<br />

as the case may be, on the<br />

harvested material.<br />

To the extent that neither the<br />

UPOV Convention of 1991 nor<br />

the European Regulation nor<br />

the majority of applicable National<br />

Laws define what should<br />

be understood as “reasonable”, a<br />

considerable and transcendental<br />

degree of judicial uncertainty<br />

has arisen, which in the last<br />

instance leaves the interpretation<br />

to the Courts of each country.<br />

b) Content: The TRIPS (traderelated<br />

aspects of intellectual<br />

property rights) Agreement of<br />

the WTO of April 15th,<br />

1994 (Article 28.1) defines the<br />

exclusive rights which should be<br />

conferred by a patent:<br />

• Manufacture (production or<br />

reproduction)<br />

• Use<br />

• Offer for sale<br />

• Sale<br />

• Importation.<br />

Nonetheless, the sui generis system<br />

defined by the UPOV does<br />

not extend to exclusive rights to<br />

“use” the variety (propagating<br />

material, plants, harvested or<br />

end product), but just to the<br />

following acts in respect of only<br />

the propagating material:<br />

• Production or reproduction<br />

(multiplication),<br />

• Conditioning for the purpose<br />

of propagation,<br />

• Offering for sale,<br />

• Selling or other marketing,<br />

• Exporting,<br />

• Importing,<br />

• Stocking for any of the purposes<br />

mentioned in (i) to (vi),<br />

above.<br />

24 www.<strong>CIOPORA</strong>.org | <strong>CIOPORA</strong> <strong>Chronicle</strong> April <strong>2012</strong>


The exclusion in the UPOV system of<br />

such a reference to the “use” of a protected<br />

variety constitutes an unjustified<br />

(and unfair) limitation as compared to<br />

other intellectual rights such as patents<br />

and in practice curtails the possibilities<br />

of the breeders of new fruit varieties for<br />

enforcing their rights.<br />

2) Provisional protection<br />

The so called provisional protection<br />

available during the period between<br />

the filing or the publication of the<br />

application for the grant of a breeder’s<br />

right and the grant of that right appears<br />

to be recognized under Article 13 of<br />

the UPOV Convention of 1991, which<br />

establishes the need to safeguard the<br />

interests of the breeder, as a minimum<br />

by entitling him to equitable remuneration<br />

from any person who, during such<br />

a period, has carried out acts which,<br />

once the right is granted, require the<br />

breeder’s authorization. This principle<br />

is upheld by the EU in Article 95 of the<br />

EC Regulation 2100/94.<br />

Exclusive rights<br />

to exploitation<br />

However, these legal precepts say nothing<br />

about the ability of the breeder to<br />

oppose the continuing exploitation of<br />

the variety (for example, by selling the<br />

harvested material) propagated without<br />

his authorization during that period,<br />

once the protection has been granted.<br />

In practice, this consideration is very<br />

important due to the prolonged period<br />

of technical examination involved with<br />

many species (in particular with vine<br />

and tree species, which in extreme<br />

cases in the EC have gone on for up to<br />

10 years!!) during which the breeder<br />

is obliged to deliver the variety. We<br />

have already stated that fruit trees may<br />

remain in production for long periods<br />

of up to 20 years in some species like<br />

apples and citrus. In many cases the<br />

breeder is not interested in the so called<br />

“equitable remuneration” (once again<br />

this term is ambiguous and open to<br />

interpretation by each judge, with the<br />

legal uncertainties that this involves)<br />

of whatever third parties may have<br />

acted without authorisation before the<br />

protection is granted, but rather wishes<br />

to oppose such activity and reserve their<br />

exclusive rights to exploitation.<br />

Full protection<br />

Happily, at least in certain countries<br />

such as Spain, the prevailing interpretation<br />

in legal judgments is that provisional<br />

protection, conceived as merely<br />

a right to remuneration, should be<br />

understood as an extension of the full<br />

protection which displays in plenitude<br />

all the rights once the title is granted,<br />

and not just as a pseudo protection<br />

for its whole duration. As a result, the<br />

breeders cannot only claim remuneration<br />

but also oppose the continuing<br />

exploitation when suffering abuses by<br />

third parties for acts done completely<br />

outside their control, assuming that<br />

legal protection is granted. The opposing<br />

interpretation would not only<br />

contradict, in our view, the true spirit of<br />

the UPOV Convention (see article 7.3<br />

of the 1978 Act 2 ) but would also heavily<br />

restrict the effective rights of fruit tree<br />

breeders and therefore encourage third<br />

parties with unhealthy intentions to<br />

reproduce varieties, without the risk<br />

of their unauthorised operations being<br />

reversed. |||<br />

* Antonio Villarroel is a lawyer and<br />

general manager of GESLIVE, A.I.E.<br />

1 Under the European Regulation<br />

2100/94, ‘materials’refers to both the<br />

‘constituents’and to the ‘harvested<br />

material’.<br />

Constituents: entire plant or parts of<br />

plants as far as such parts are capable<br />

of producing new entire plants (such<br />

as seeds, cuttings, grafts, etc.)<br />

Harvested material: grains, fruits,<br />

fl owers, etc.<br />

2 Provisional protection […]<br />

Any Member State of the Union may<br />

provide measures to protect the breeder<br />

against abusive acts of third parties<br />

committed during the period between<br />

the filing of the application for<br />

protection and the decision thereon.<br />

<strong>CIOPORA</strong> <strong>Chronicle</strong> April <strong>2012</strong> | www.<strong>CIOPORA</strong>.org 25


Interview<br />

FCI had the<br />

honour to speak<br />

with <strong>CIOPORA</strong>’s<br />

Secretary General,<br />

Dr Edgar Krieger,<br />

who stressed that<br />

requesting the<br />

protection of an<br />

innovative idea<br />

is certainly more<br />

justified than<br />

allowing the copying<br />

of everything. “If we<br />

allow the copying of<br />

everything, soon we<br />

will have nothing to<br />

copy anymore.”<br />

How much<br />

open access can<br />

breeders afford?<br />

FCI: Dr. Krieger, <strong>CIOPORA</strong><br />

is well known for being a<br />

strong advocate for effective<br />

IP protection for plant varieties.<br />

This seems to be a tough job<br />

nowadays...<br />

<strong>CIOPORA</strong>'s Secretary general Dr. Edgar Krieger, “I am confident that the<br />

ornamental and fruit breeders will find a common position for an IP-system,<br />

which provides effective long-term and sustainable protection.”<br />

EK: “To advocate for strong IP<br />

rights is currently not en vogue.<br />

Today we see, for example, a loud<br />

and emotional opposition against<br />

ACTA, the Anti-Counterfeiting<br />

Trade Agreement, which has<br />

the purpose of establishing<br />

international standards for the<br />

enforcement of Intellectual Property<br />

Rights. The opponents even<br />

claim that free access to all kind<br />

of information and intellectual<br />

property is even a human right.<br />

This is not entirely true. Article<br />

27, 2 of the Universal Declaration<br />

of Human Rights says: Everyone<br />

has the right to the protection of<br />

the moral and material interests<br />

resulting from any scientific,<br />

literary or artistic production of<br />

which he is the author. So, not<br />

the free access to everything,<br />

but the protection of Intellectual<br />

Property is a human right.”<br />

FCI: So, breeders who ask for<br />

effective protection of their varieties<br />

demand their human rights?<br />

EK: “Requesting the protection<br />

of an innovative idea is by all<br />

means more justified than allowing<br />

the copying of everything.<br />

Otherwise, if we allow the copying<br />

of everything, soon we will<br />

have nothing to copy anymore.”<br />

FCI: Some people claim that IP<br />

protection is a game between<br />

the big and the small players,<br />

and that IP protection also must<br />

protect the small ones.<br />

EK: “Of course, protection of the<br />

small players (meaning the weak<br />

ones) is a request that hardly<br />

anyone can reject. But in IP protection,<br />

it is not about small versus big.<br />

IP protection is about supporting<br />

innovation. IP-Protection should<br />

not differentiate whether the innovator<br />

is small or large. Nevertheless,<br />

we can also add that Intellectual<br />

Property, by protecting innovation,<br />

basically gives a great opportunity<br />

to small (but creative) companies,<br />

and also individuals, to build up a<br />

business without huge investments<br />

in administration, production or<br />

infrastructure, since it is based on<br />

licensing and not necessarily on<br />

industrial production.”<br />

FCI: One could say that removing<br />

or limiting the breeders’ exemption<br />

would primarily be harmful<br />

to small breeders.<br />

EK: “Is that really true? I can easily<br />

argue that a full breeder’s exemption<br />

is harmful to small breeders.<br />

If a small innovative breeding<br />

company, or even a single innovative<br />

breeder developed a unique,<br />

brand-new, outstanding variety,<br />

how would he be protected if he<br />

obtained a Plant Breeders´ Right?<br />

Because of the breeders´ exemption<br />

his (large) competitors could easily<br />

access his variety once it is on the<br />

market and could rapidly breed<br />

something “similar”. Using their<br />

marketing power, it would be easy<br />

for them to squeeze out the initial<br />

innovative breeder from the market.<br />

Would you call this effective<br />

protection of the small ones?”<br />

FCI: Isn’t this too pessimistic?<br />

EK: “I personally know an innovative<br />

breeder who experienced this a<br />

26 www.<strong>CIOPORA</strong>.org | <strong>CIOPORA</strong> <strong>Chronicle</strong> April <strong>2012</strong>


The more innovative a new variety is, the more protection it deserves.<br />

decade ago, and he is still disappointed<br />

with the lack of IP protection<br />

for varieties. I also heard about<br />

a breeder who refuses to release his<br />

unique, brand-new material on the<br />

market because he feels that it is not<br />

effectively protected and is afraid<br />

that he would immediately lose<br />

control over the material once it is<br />

made public.”<br />

FCI: How could this be solved?<br />

EK: “We need to protect innovation,<br />

and the more innovative a<br />

new variety is, the more protection<br />

it deserves. I dare to say that some<br />

new varieties on the market are<br />

not very innovative, but just slight<br />

improvements of existing varieties.<br />

Some even only contain cosmetic<br />

changes. But some varieties are<br />

truly innovative, such as the double<br />

flowered Kalanchoe, double flowered<br />

Osteospermum, the Ice Peach,<br />

the Kumato or the Sunpatiens.<br />

Two years ago, I created the term<br />

“groundbreaking innovations“ for<br />

such innovations. These groundbreaking<br />

innovations are currently<br />

not protected by PBR.”<br />

FCI: Why not?<br />

EK: “Everybody can breed with<br />

both protected varieties and<br />

groundbreaking innovations. If<br />

somebody uses a groundbreaking<br />

variety in his breeding programme,<br />

i.e. if he crosses and selects, he<br />

can develop a variety which is<br />

significantly distinct from the<br />

groundbreaking variety, having,<br />

for example, another colour. But in<br />

this case it would still contain the<br />

groundbreaking innovation, e.g. the<br />

double flowering. He can bring this<br />

new variety on the market without<br />

restrictions, because the EDV<br />

protection currently does not cover<br />

such varieties.”<br />

FCI: Is Patent Protection the<br />

solution?<br />

EK: “If the Plant Breeders´ Rights<br />

system does not provide the solution,<br />

the innovative breeders will<br />

be forced to switch over to patents.<br />

Although plant varieties cannot<br />

be protected by patents in Europe,<br />

we are currently seeing the trend<br />

of more and more patents being<br />

applied for plant related inventions.<br />

Additionally, some governments and<br />

stakeholders, mainly in Europe, are<br />

trying to prevent patents in the plant<br />

world. Moreover, in the U.S., patents<br />

are being granted, where people<br />

doubt if they include an inventive<br />

step or where the ‘inventions’<br />

seem be very obvious. This does<br />

not increase among breeders in a<br />

functioning patent system.<br />

One can doubt whether patents are<br />

the best solution. One of the reasons<br />

is that patents are much more expensive<br />

than PBRs. Patent are a costly<br />

activity as money is needed for prior<br />

search, patent attorneys and administration.<br />

Who can pay all these<br />

costs? Currently the costs present a<br />

natural barrier for small inventors to<br />

obtain patents. Playing the devil´s<br />

advocate, I could say: Currently, the<br />

small innovators are especially badly<br />

off: The PBR is not strong enough<br />

to protect their innovations, and the<br />

patent is too expensive for them. Is<br />

that fair?”<br />

FCI: So, what could the solution<br />

be?<br />

EK: “In general, the UPOV Plant<br />

Breeders´ Rights system is considered<br />

as the tailor-made protection<br />

system for varieties. In my opinion,<br />

considering the balance between<br />

open access and exclusivity in the<br />

UPOV system, the focus is on open<br />

access, incarnated in the breeders’<br />

exemption. This weakens the protection<br />

of existing innovations. In<br />

fact, when speaking with breeders,<br />

more and more are questioning<br />

the current breeders´ exemption<br />

and some even would like to have<br />

the breeders’ exemption removed<br />

completely.”<br />

FCI: Removing the breeders’<br />

exemption completely sounds<br />

quite tough…<br />

EK: “Indeed. When we look for<br />

solutions in order to protect innovation,<br />

we should be careful and<br />

should not throw out the baby with >>><br />

<strong>CIOPORA</strong> <strong>Chronicle</strong> April <strong>2012</strong> | www.<strong>CIOPORA</strong>.org 27


Interview<br />

the bath water. Another approach is<br />

to suspend the breeders’ exemption<br />

for a defined period of time, for<br />

example five, eight or ten years.”<br />

FCI: How can that work? Who<br />

can control if I use a protected<br />

variety in my lab?<br />

EK: “The breeders’ exemption consists<br />

of two components: The access<br />

to protected material and its use for<br />

further breeding and the marketing<br />

of the breeding result. While the first<br />

component can be done in secret, the<br />

marketing of the product, necessarily<br />

occurs in public. Using modern<br />

molecular techniques it would be<br />

rather easy to control if a variety is<br />

on the market which has been bred<br />

on the basis of an existing protected<br />

variety.”<br />

FCI: What would be the main<br />

result of such an approach?<br />

EK: “The main result of such an<br />

approach would be to give a longer<br />

period to the first breeder during<br />

which he can enjoy his exclusive<br />

right. When the PBR system was<br />

created in the 1950s, the lifecycle of<br />

varieties was longer than today, and<br />

it took much longer to breed a new<br />

variety, particularly a variety which<br />

showed a high degree of similarity<br />

to an existing one. Nowadays, this<br />

can be done within two years. This<br />

is too short to earn a sufficient return<br />

on investment, particularly not for<br />

groundbreaking innovations. In this<br />

regard, this approach would be a<br />

reaction to the changes in breeding<br />

technology and the speed of<br />

breeding. Furthermore, the approach<br />

would not stop the development of<br />

new varieties, because free access<br />

to the protected material would<br />

remain.”<br />

FCI: If the breeders´ exemption<br />

were to be suspended, would that<br />

mean that during an ‘exclusive<br />

exploitation period’ nobody would<br />

be allowed to market a variety<br />

bred on the basis of a protected<br />

initial variety anymore?<br />

EK: “Nobody would be allowed to<br />

market such a new variety without<br />

Maybe varieties<br />

could be classified<br />

according to their<br />

level of innovation.<br />

the authorisation of the title holder<br />

of the initial variety. If the breeder<br />

of the initial variety would grant a<br />

license, the new variety could, of<br />

course, be exploited.”<br />

FCI: Are there any further possible<br />

solutions?<br />

EK: “I mentioned before that the<br />

more innovative a new variety is, the<br />

more protection it deserves. Maybe<br />

varieties could be classified according<br />

to their level of innovation. The<br />

tenth red variety of a species, even<br />

if it is slightly improved in one or<br />

two characteristics, may deserve less<br />

protection than a brand-new interspecific<br />

hybrid. I would imagine that<br />

experts can easily agree on whether<br />

a variety is a mere improvement or<br />

a groundbreaking innovation. For<br />

groundbreaking innovations the<br />

protection could be stronger.”<br />

FCI: In the patent laws of most<br />

EU countries, the U.S. and Japan<br />

there is no such thing than the<br />

breeders´ exemption, i.e. nobody<br />

is allowed to use patent protected<br />

material for further breeding.<br />

In some countries, e.g. France<br />

and Germany, patent protected<br />

material can be used for breeding,<br />

but the result is not allowed to be<br />

marketed if it still contains the<br />

patented invention.<br />

EK: “In order to promote overall<br />

innovation breeders should continue<br />

to have free access to protected material<br />

for further breeding and also to<br />

material which contains a patented<br />

invention. But if the breeding result<br />

comprises the patented invention,<br />

its marketing should require the<br />

authorisation of the patent holder.<br />

This approach also sufficiently protects<br />

the patent holder, whose main<br />

interest is to cover the marketing of<br />

any commercial plant that comprises<br />

his patented invention. Therefore,<br />

the German and French patent approach<br />

might be a model for future<br />

handling of the issue. Also, in the<br />

PBR system the critical part is not<br />

the free access to protected material,<br />

but the (almost) free marketing of<br />

the results of the breeding work.<br />

Therefore, another partial solution<br />

could be the strengthening of the<br />

EDV-concept. In fact, the EDV<br />

concept already constitutes a limitation<br />

to the breeders´ exemption,<br />

because it limits the free exploitation<br />

of the breeding-result, if the newly<br />

developed variety is essentially derived<br />

from a protected initial variety.<br />

This limitation is effective for the<br />

entire duration of the protection of<br />

the initial variety for up to thirty<br />

years. But the current EDV concept<br />

cannot protect a groundbreaking<br />

variety, if this is used in a breeding<br />

programme, including crossing and<br />

selection, and a significantly different<br />

variety – including the groundbreaking<br />

innovation – is bred.”<br />

28 www.<strong>CIOPORA</strong>.org | <strong>CIOPORA</strong> <strong>Chronicle</strong> April <strong>2012</strong>


FCI: But the breeders do not seem<br />

to be united in their interpretation<br />

of the EDV concept.<br />

EK: “In fact, there are different views<br />

on what is an EDV is. The main reason<br />

for this is the unclear language<br />

of the EDV provision. If you find<br />

indefinite terms in a law, such as<br />

‘essentially’ and ‘predominantly’, this<br />

significantly weakens the clarity of<br />

the law. On the other hand, different<br />

breeders have different business<br />

models and interests, which makes<br />

it more difficult to find a common<br />

standpoint. Nevertheless, the breeders<br />

are jointly aware of their need for<br />

stronger protection and <strong>CIOPORA</strong><br />

has approved a position on EDV<br />

which surely represents the opinion<br />

of the majority of its members.”<br />

FCI: Some people claim that if the<br />

breeders´ exemption were limited,<br />

this would foster the creation of<br />

monopolies.<br />

EK: “Do we have monopolies in the<br />

automotive industry? The IP Protection<br />

in the automotive, pharmaceutical<br />

or electronic industry is patents,<br />

hence a much stronger protection<br />

than the PBR system, and we do not<br />

have monopolies there. Currently we<br />

have a full breeders’ exemption, and<br />

nevertheless we see a rapidly growing<br />

number of horizontal and vertical<br />

mergers in the business, resulting in<br />

larger and larger companies. In the<br />

U.S. plant varieties are protectable<br />

by patents and plant patents, and do<br />

we have monopolies there? No. IP<br />

Protection is not about monopolies,<br />

it is about the protection of innovation.<br />

With the breeders´ exemption<br />

it is easy for companies to take-over<br />

innovations from others, at a very<br />

low price, in fact for nothing. If, for<br />

example, a small innovative company<br />

in the field of biotechnology develops<br />

a high-level innovation and protects<br />

it by Patents, the competitors have to<br />

pay a market price if they want to use<br />

the invention or – what often happens<br />

– they buy the whole company.<br />

In both cases the small innovators<br />

receive a fair return for their investment<br />

and for their creativity.”<br />

FCI: If the PBR system were<br />

changed as you describe, would<br />

this solve all the breeders’ problems?<br />

EK: “IP protection works in two<br />

directions: horizontally and vertically.<br />

Horizontal protection means<br />

protection against easy take-over<br />

of the variety by a competitor. The<br />

approaches I described might solve<br />

many of these issues. Vertical protection<br />

means downstream protection<br />

against unauthorised propagation,<br />

the production of harvested material<br />

and the trade with such illegal<br />

products. Here, we have other issues<br />

which are equally negative for<br />

breeders, such as the weak protection<br />

of harvested material and the<br />

absent protection for processed<br />

material, not to mention the huge<br />

difficulties breeders have in enforcing<br />

their rights in many countries.<br />

<strong>CIOPORA</strong> continuously strives to<br />

close these gaps as they harm the<br />

entire industry: without innovation<br />

and its effective protection breeders,<br />

growers, wholesale and retail would<br />

be unable to increase their turnover,<br />

as has been happening in the last<br />

decades.”<br />

FCI: Do you expect that all breeders<br />

would support a strengthening<br />

of the PBR system in the way you<br />

described?<br />

EK:. “<strong>CIOPORA</strong> is the international<br />

organisation of breeders of<br />

vegetatively reproduced ornamental<br />

and fruit varieties. Breeders of such<br />

varieties hold the vast majority of all<br />

PBR titles in the world and are very<br />

active in IP protection. The breeders<br />

within <strong>CIOPORA</strong> will soon develop<br />

a position for the solution of their<br />

problems. It will require discussions,<br />

because, particularly in regard to<br />

the horizontal protection, there are<br />

many different interests. However,<br />

I am confident that the breeders will<br />

find a common position for an IP<br />

system, which provides long-term,<br />

sustainable, effective protection, by<br />

taking into account the changes in<br />

the industry and in the breeding<br />

techniques and the fact that, for the<br />

Using modern molecular techniques it will<br />

be rather easy to control if a variety is on the<br />

market which has been bred on the basis of<br />

an existing protected variety.”<br />

developed economies, innovation is<br />

one of the few tools to stay competitive.<br />

Regarding vertical protection,<br />

the position of <strong>CIOPORA</strong> has<br />

been clear for more than fifty years:<br />

Breeders need more effective downstream<br />

protection.”<br />

FCI: Will UPOV and the national<br />

governments be happy to change<br />

the situation?<br />

EK: “In my experience, both UPOV<br />

as well as many national governments<br />

are very open and receptive for<br />

the views of the breeders. Nevertheless,<br />

it sometimes seems that change<br />

is not a high priority of governmental<br />

organisations.”<br />

FCI: Dr. Krieger, you pin-pointed<br />

many open issues in the PBR<br />

system. Can they be solved under<br />

the UPOV System?<br />

EK: “Probably not all of them can<br />

be solved under the UPOV 1991<br />

Convention but of course they<br />

can be solved the way UPOV and<br />

the stakeholders have solved past<br />

challenges: by an evolution of a<br />

system that has proven to be able to<br />

adjust itself from time to time, in<br />

accordance with an ever changing<br />

economical, technical, legal and<br />

social environment.” |||<br />

<strong>CIOPORA</strong> <strong>Chronicle</strong> April <strong>2012</strong> | www.<strong>CIOPORA</strong>.org 29


Patents<br />

Parallel to the<br />

progress of genetic<br />

engineering<br />

in relation to<br />

living material,<br />

patentability of<br />

plants and plant<br />

material has<br />

received greater<br />

attention. This<br />

attention is<br />

supported by the<br />

attempt of large<br />

breeding companies<br />

to obtain patents for<br />

new breeding results<br />

and for methods of<br />

producing plants,<br />

resulting in plant<br />

material with<br />

desired specific<br />

characteristics.<br />

by Dr. Gert Würtenberger<br />

Patents for plant-<br />

related innovations<br />

in Europe<br />

Due to the specific protection<br />

of plant varieties<br />

provided by the UPOV<br />

system, patentability of inventions<br />

related to plant varieties and<br />

essentially biological methods for<br />

the breeding of plants has been<br />

excluded. Thus, protection for plant<br />

varieties is possible provided that a<br />

breeding result is not limited to a<br />

specific variety and fulfils the usual<br />

patent requirements of “novelty”,<br />

“result of inventive activities”<br />

and “commercial applicability”.<br />

Equally, patent protection is in<br />

principle open for microbiological<br />

processes or products resulting of<br />

such processes. “Essentially biological”<br />

is defined in the relevant laws<br />

and rules as “entirely consisting of<br />

natural phenomena such as crossing<br />

or selection.”<br />

Biological breeding<br />

Patentability of plant varieties is<br />

not only excluded if the same are<br />

the result of biological breeding<br />

methods but equally if they have<br />

been obtained through genetic<br />

engineering methods as far as such<br />

working results have to be defined<br />

as a variety. This encompasses all<br />

breeding varieties, including clones,<br />

lines, traits and hybrids, which<br />

are sufficiently distinct from other<br />

varieties, uniform and stable. As the<br />

special protection for plant varieties<br />

relates only to the plant as such,<br />

patent protection for plant cells, for<br />

example, in principle is possible as<br />

well as microbiological products in<br />

the sense of the patent laws.<br />

Guidance cases<br />

As for the patentability of methods<br />

to create new plants or plant material<br />

and the patentability of such<br />

methods, this question is more<br />

complex than the patentability of<br />

plant material.<br />

The difficulties in deciding whether<br />

patent protection should be granted<br />

Poinsettia breeding work.<br />

Photo credits: Selecta Klemm<br />

for breeding methods has become<br />

evident. Two of the most recent<br />

attempts of an internationally<br />

active breeding company to obtain<br />

a patent for methods of producing<br />

plants, known in the public<br />

under the catch words “Broccoli”<br />

and “Tomato” cases, give some<br />

guidance as to what extent such<br />

breeding methods may be open to<br />

patent protection.<br />

In short, in the “Broccoli” case,<br />

the applicant applied for grant of<br />

a European patent for a method<br />

for the production of Brassica<br />

oleracea with certain levels of<br />

glucosinolate(s) pertaining a number<br />

of (back)crossing and selection<br />

steps in which molecular markers<br />

were used. Certain forms of<br />

glucosinolate(s) are assumed to have<br />

anti-cancerous activities.<br />

In the “Tomato” case patent protection<br />

was claimed for a method<br />

of breeding tomato plants which<br />

produce tomatoes with reduced<br />

fruit water content containing steps<br />

of crossing, collecting, growing,<br />

pollinating and selecting.<br />

Markers<br />

While in the “Broccoli” case the<br />

process for which the applicants<br />

applied for grant of a European patent<br />

not only included interference<br />

or activities of human beings but<br />

also technical means in the form<br />

of markers, the breeding process<br />

claimed for protection in the<br />

“Tomato” case involved only<br />

activities of human beings.<br />

In both cases, therefore the question<br />

arose whether the methods<br />

and the products resulting from<br />

these methods were essentially<br />

biological in the aforementioned<br />

sense. Moreover, in the “Broccoli”<br />

30 www.<strong>CIOPORA</strong>.org | <strong>CIOPORA</strong> <strong>Chronicle</strong> April <strong>2012</strong>


Photo credits: Selecta Klemm<br />

Pelargonium breeding section at Selecta Klemm.<br />

Dr. Gert Würtenberger<br />

case the additional question had to<br />

be answered whether application<br />

of markers in the breeding process<br />

per se is an element which allows<br />

the conclusion that the breeding<br />

method was not of an essentially<br />

biological nature.<br />

European Patent Office<br />

The enlarged Board of Appeal of<br />

the European Patent Office which<br />

was asked to decide on these issues<br />

emphasised that a non-microbiological<br />

process for the production<br />

of plants which contains or consists<br />

of the steps of sexually crossing,<br />

the whole genomes of plants and of<br />

subsequently selecting plants is in<br />

principle excluded from patentability<br />

as being essentially biological.<br />

The fact that such process contains<br />

steps of crossing and selection<br />

which have to be regarded as<br />

technical in their nature does not<br />

change the qualification of the<br />

afore-mentioned steps as essentially<br />

biological. In contrast, if an additional<br />

step of a technical nature<br />

such as introduction of a trait into<br />

the genome or a modification of<br />

a trait in the genome of the plant<br />

produced, such process would not<br />

be excluded from patentability. The<br />

introduction or modification of<br />

such a trait would not be regarded<br />

as result of the natural mixing of<br />

the genes of the plants chosen for<br />

sexual crossing.<br />

Decision<br />

In light of the decision of the enlarged<br />

Board of Appeal of the European<br />

Patent Office it is clear that<br />

if the desired change of the plants<br />

is solely based on sexual crossing,<br />

the process is excluded from<br />

patentability. Although crossing,<br />

selection, backcrossing and further<br />

steps in the breeding process<br />

involve human interference, the<br />

process as such nevertheless has to<br />

be regarded as essentially biological<br />

as it mainly depends on natural<br />

phenomena.<br />

On the other hand, a process<br />

involving inserting a gene or trait<br />

into a plant by genetic engineering,<br />

in principle, is patentable as it does<br />

not rely on recombination of whole<br />

genomes in the natural mixing of<br />

plants. However, such a claim may<br />

not contain crossing and selection<br />

steps. Otherwise, such a process<br />

would be regarded as essentially<br />

biological and, thus, excluded by<br />

law from patentability.<br />

Case-to-case basis<br />

The decisions of the enlarged<br />

Board of Appeal of the European<br />

Patent Office, thus, have brought<br />

some clarification to the extent<br />

to which breeding methods or<br />

methods creating new plant material<br />

not limited to specific plant<br />

varieties will be open to patent<br />

protection. The problem remains,<br />

however, what the necessary additional<br />

technical interference within<br />

the method of sexual crossing and<br />

selection needs to be in order to<br />

make such process open to patent<br />

protection. For the time being, this<br />

can only be decided on a case-tocase<br />

basis. |||<br />

<strong>CIOPORA</strong> <strong>Chronicle</strong> April <strong>2012</strong> | www.<strong>CIOPORA</strong>.org 31


Opinion<br />

PlantHaven is an<br />

independent agency<br />

assisting plant<br />

breeders worldwide<br />

in bringing their<br />

new plant varieties<br />

to market. What<br />

IP challenges do<br />

company owners<br />

Geoff and Maureen<br />

Needham foresee for<br />

the future?<br />

PlantHaven values<br />

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

and communications<br />

Geoff Needham<br />

When Maureen from New<br />

England and Geoff from<br />

“old” England embarked<br />

on a lifelong career in the nursery<br />

industry, they had no idea where<br />

that road would take them.<br />

For the first twenty years, Geoff<br />

and Maureen were successful nursery<br />

growers in Sussex, UK, being<br />

able to expand their business steadily<br />

as members of the Farplants<br />

marketing cooperative of which<br />

Geoff was for some years managing<br />

director. Geoff and Maureen<br />

were witnesses to the early days of<br />

new variety promotion in the UK<br />

garden center market which gave<br />

them an understanding of the profit<br />

potential offered by promotable and<br />

exciting new plant varieties. These<br />

experiences and early contacts led<br />

to the Needham’s decision in 1997<br />

to emigrate (for Maureen, to return)<br />

to America where they established<br />

breeders’ agency PlantHaven, Inc.<br />

in Santa Barbara, California.<br />

Profitable relationships<br />

From its very beginnings, PlantHaven<br />

sought to establish profitable<br />

relationships between creative<br />

independent breeding programmes<br />

and innovative propagators, growers<br />

and marketers. Due to the<br />

diversity of PlantHaven varieties<br />

the company has developed an<br />

intentional reputation for creating<br />

markets and production opportunities<br />

for niche crops of above-average<br />

margin and surprising volume<br />

potential. Growers tell PlantHaven<br />

that niches are becoming more<br />

interesting, and PlantHaven likes to<br />

keep a constantly changing treasure<br />

chest of opportunities for growers.<br />

Geoff & Maureen Needham<br />

Closest possible<br />

interaction<br />

The PlantHaven method involves<br />

closest-possible interaction with<br />

each breeding program - to the<br />

point that PlantHaven’s market<br />

expertise becomes integral to the<br />

breeding and new development<br />

process. PlantHaven’s own team<br />

includes experienced former growers<br />

with research and technical<br />

expertise, plant marketers and<br />

project managers. Each project<br />

goes through all the classic stages<br />

of new product development from<br />

market research to secure private<br />

trials, then feedback to the breeding<br />

program prior to near-market trials<br />

and the crafting of a long term<br />

value maximizing strategy. Directly,<br />

or through third party contracts,<br />

PlantHaven’s service includes<br />

clean stock holding, plant variety<br />

protection, trademark registration,<br />

licensing, promotion and royalty<br />

administration.<br />

Attention to detail<br />

In deciding which breeding projects<br />

to accept, PlantHaven looks for<br />

focus and attention to detail, with a<br />

commitment to true novelty. If the<br />

project involves a less well-known<br />

genus then the prospect of achieving<br />

low cost production in relation<br />

to perceived value becomes critical.<br />

PlantHaven has, or is willing to<br />

develop, the expertise to manage<br />

a wide range of breeding programmes,<br />

from vegetative annuals<br />

to volume perennials to impulse<br />

shrubs and trees. As former growers<br />

themselves, Geoff and Maureen are<br />

determined that a “PlantHaven”<br />

variety is a proven and profitable<br />

variety, with a long life expectancy.<br />

New product development is an<br />

expensive and sometimes risky undertaking<br />

for everyone involved in<br />

the process, including the licensees<br />

who commit their own substantial<br />

resources to commissioning new<br />

varieties.<br />

32 www.<strong>CIOPORA</strong>.org | <strong>CIOPORA</strong> <strong>Chronicle</strong> April <strong>2012</strong>


PlantHaven<br />

International<br />

In 2011, PlantHaven became Plant-<br />

Haven International, signifying<br />

that the company has expanded its<br />

services worldwide as the propagation,<br />

distribution and marketing of<br />

high volume new genetics has itself<br />

become global, requiring a unified<br />

management approach. PlantHaven<br />

applies an international perspective<br />

from the outset, resulting in<br />

greater efficiencies and reduced<br />

management costs for the breeding<br />

program. PlantHaven’s international<br />

clients include award-winning<br />

breeding programmes PENHOW<br />

(Diascias and Nemesias), REAL-<br />

FLOR (Gaillardia and Leucanthemum),<br />

WHETMAN PINKS<br />

Dianthus, already brands in their<br />

own right – together with The University<br />

of Hawaii (Colocasias) and<br />

North Carolina State University<br />

(Cercis) whose breeding is the very<br />

best of its class.<br />

<strong>CIOPORA</strong>’s great value<br />

Looking to the future, PlantHaven<br />

understands that its independent<br />

breeder clients expect a high degree<br />

of integrity and professional competence<br />

in order to advance and<br />

protect their position in a rapidly<br />

changing and complex multinational<br />

industry. Familiar disciplines<br />

of plant variety protection must<br />

be combined with an appreciation<br />

of branding strategies in which<br />

breeder, producer and retailer all<br />

wish to stake a claim and build<br />

value. Geoff and Maureen and<br />

team are enjoying meeting these<br />

new challenges, in the knowledge<br />

that their clients can continue to<br />

focus on their breeding endeavours.<br />

Fortunately, access to information<br />

and professional assistance is<br />

readily available to any company<br />

that wishes to constantly improve.<br />

As PlantHaven approaches its first<br />

ten years of membership in CIO-<br />

PORA, Geoff and Maureen find<br />

ever greater value in networking<br />

with and learning from industry<br />

peers at <strong>CIOPORA</strong>’S meetings,<br />

workshops and seminars. The common<br />

objectives and the camaraderie<br />

of <strong>CIOPORA</strong> members is always<br />

evident, and new members with<br />

new experiences are welcomed<br />

and encouraged. The <strong>CIOPORA</strong><br />

Board and working groups devote<br />

exceptional time and expertise to<br />

advancing the quality and accessibility<br />

of international plant variety<br />

protection, identifying trouble spots<br />

and weak links for future targeted<br />

action. Geoff and Maureen have<br />

come to particularly value the<br />

accessibility and communications<br />

from Dr. Krieger and his colleagues<br />

in the Hamburg office.<br />

Whetman Pinks<br />

Future<br />

Geoff and Maureen see that breeders’<br />

returns are under pressure from<br />

increasing costs of variety protection<br />

whilst average variety market<br />

life reduces. In consequence,<br />

breeders are choosing not to protect<br />

all of their releases: a policy which<br />

is fraught with risk for the very system<br />

of variety protection for which<br />

breeders and <strong>CIOPORA</strong> fought for<br />

so long.<br />

Geoff and Maureen are also concerned<br />

that the US is effectively a<br />

bystander in the process of evolving<br />

a global system of plant variety protection.<br />

The US Plant Patent system<br />

is eighteen years short of its centenary,<br />

the oldest plant variety system<br />

in the world – but has barely advanced<br />

since its enactment. Whilst<br />

the protection of varieties by patent<br />

is a great asset, not least for enforcement,<br />

the US industry should begin<br />

to weigh the deficiencies in scope<br />

for the future needs of professional<br />

breeding programmes and therefore<br />

the industry itself. Controversially<br />

perhaps, PlantHaven favors an early<br />

study of the feasibility of achieving<br />

a “best-of-all-worlds” combination<br />

of patent protection together with<br />

a true minimum distance UPOV<br />

regime, resulting from high quality<br />

variety examination within the US<br />

or by the taking over of suitable<br />

foreign examinations.<br />

No doubt, some of these challenges<br />

will feature in the meetings and<br />

discussions at <strong>CIOPORA</strong>’s AGM<br />

in Miami. Geoff and Maureen will<br />

be there! |||<br />

<strong>CIOPORA</strong> <strong>Chronicle</strong> April <strong>2012</strong> | www.<strong>CIOPORA</strong>.org 33


Company profiles<br />

Founded in 1897,<br />

the Conard-Pyle<br />

Company celebrates<br />

its 115th year in<br />

business this year.<br />

In its early years<br />

the company was<br />

primarily a general<br />

retail mail order<br />

nursery with a<br />

specialty in roses.<br />

Over time, it evolved<br />

into a wholesale<br />

nursery growing<br />

a wide range of<br />

hardy ornamental<br />

plants, and more<br />

recently a licensing<br />

and genetics<br />

company specialized<br />

in representing<br />

breeders around<br />

the world and<br />

directly breeding<br />

woody plants<br />

and perennials.<br />

In addition, the<br />

company produces<br />

plugs, liners and<br />

bare root plants<br />

of its protected<br />

varieties in its<br />

facilities in the<br />

United States in<br />

Pennsylvania and<br />

California.<br />

Conard-Pyle celebrates<br />

its 115th anniversary<br />

Throughout its history, The<br />

Conard-Pyle Company<br />

has worked with breeders<br />

around the world. The most significant<br />

of these relationships is with<br />

the rose breeding firm, Meilland<br />

International, with which it is also<br />

celebrating an anniversary in <strong>2012</strong>:<br />

working together for 80 years.<br />

Over this period, Conard-Pyle has<br />

introduced and patented more than<br />

250 varieties created by Meilland,<br />

including the world’s most famous<br />

rose, Peace, and other enduring<br />

varieties like the Meidiland series of<br />

shrub roses and most recently the<br />

Drift series of groundcover roses.<br />

Both professionals<br />

and amateurs<br />

Although professional breeders<br />

represent most of the varieties<br />

introduced over the years by<br />

Conard-Pyle, there have been<br />

several amateur breeders whose<br />

varieties the company has brought<br />

to market as well. Kathleen<br />

Meserve, a housewife from Long<br />

Island, was breeding Ilex in her<br />

back yard as a hobby. She sent a<br />

number of them for test at Conard-<br />

Pyle, and over the years the nursery<br />

patented and marketed over a<br />

dozen of her creations, including a<br />

group called The Blue Hollies and<br />

another called The China Hollies,<br />

both of which set new standards for<br />

ornamental merit and hardiness.<br />

Bill Radler, the head of a botanic<br />

garden by profession, had been<br />

Greenhouses at Conard-Pyle<br />

breeding roses in his basement<br />

for years and sending the best to<br />

Conard-Pyle. One of these, a bright<br />

red, very floriferous and highly<br />

disease-resistant shrub rose, stood<br />

out above all others at Conard-<br />

Pyle’s Pennsylvania and California<br />

test fields. Introduced as The Knock<br />

Out® rose, it revolutionized the<br />

rose industry in the USA. In the 12<br />

years since its introduction over 50<br />

million plants of The Knock Out®<br />

series of roses have been sold.<br />

Perennials and PBR<br />

Most recently, Conard-Pyle has<br />

been actively and aggressively<br />

breeding perennials and shrubs<br />

through its NovaFlora division.<br />

Originally created as a biotech<br />

company to breed ornamentals via<br />

genetic engineering, NovaFlora is<br />

now focused on bringing advanced<br />

technology to traditional breeding.<br />

Two dozen patents have been, or<br />

soon will be, applied for on its<br />

recent work.<br />

Conard-Pyle believes that a strong<br />

system of plant protection based<br />

on plant breeders’ rights and plant<br />

patents is the best way to encourage<br />

innovation in the green industry,<br />

which will in result wonderful new<br />

plant varieties for consumers and<br />

a means for rewarding the creative<br />

hard work of breeders around the<br />

world. |||<br />

Most recently, Conard-Pyle has been actively and aggressively<br />

breeding perennials and shrubs through its NovaFlora division.<br />

34 www.<strong>CIOPORA</strong>.org | <strong>CIOPORA</strong> <strong>Chronicle</strong> April <strong>2012</strong>


When he first<br />

came to the States<br />

in 1935, Francis<br />

Meilland, (Alain’s<br />

father),and his<br />

American friend<br />

Robert Pyle (from<br />

The Conard-Pyle<br />

company ) could<br />

not imagine that<br />

close to eighty<br />

years later their<br />

story would still<br />

serve the purpose<br />

of illustrating<br />

Intellectual<br />

Property applied<br />

to vegetatively<br />

reproduced plants<br />

(ornamentals and<br />

fruit varieties).<br />

Meilland believes in<br />

innovation, IP, peace<br />

and friendship<br />

Developed prior to World<br />

War II by Francis Meilland,<br />

‘Golden State’ (US<br />

Pl.Pat. 303) was his first rose for<br />

the United States (*). Following<br />

this, came ‘Peace’ which remains a<br />

symbol for the House of Meilland<br />

as it was one of the early varieties to<br />

be patented in the USA (US Pl.Pat.<br />

591) and widely distributed. That<br />

variety provided the basis of a long<br />

term vision and strategy based on<br />

IP rights: first create and/or select<br />

novelties, and then ensure their<br />

peaceful exploitation through the<br />

relevant intellectual property tools<br />

available.<br />

Exciting results<br />

Since then, because rose breeders<br />

are always looking into the future,<br />

the House of Meilland has invested<br />

lots of energy, human and financial<br />

resources and of course passion to<br />

widen the usage of its rose genetics<br />

to serve different objectives, always<br />

hoping that this year’s cross-pollination<br />

will yield exciting results<br />

for rose lovers to enjoy, eight to ten<br />

years from now.<br />

Famous varieties and brands have<br />

been developed over the past<br />

years including Meceisar PAPA<br />

Robert Pyle (President of Conard Pyle) and Francis Meilland in a<br />

production field of the PEACE rose in 1948 in the West Grove, PA.<br />

MEILLAND®, Meivildo YVES<br />

PIAGET® or Meiviolin EDEN<br />

ROSE® / PIERRE DE RONSARD®<br />

in the Traditional Garden, but<br />

also the wide palette of landscape<br />

roses, with the MEIDILAND® and<br />

KNOCK OUT® series, as well as the<br />

Fresh Flower varieties, among which<br />

the latest red Tea Hybrid Meikatana<br />

SAMOURAI®, was protected and<br />

distributed in 47 countries.<br />

DRIFT ® Roses<br />

Recently, in addition to these innovations,<br />

the DRIFT® Roses come<br />

as “the next big thing for small<br />

gardens”, being a cross between<br />

full-size groundcover roses and miniature<br />

roses, and consumer demand,<br />

thanks to their toughness, disease<br />

resistance and repeat-blooming<br />

nature.<br />

In the present year <strong>2012</strong>, Francis<br />

Meilland would have turned 100<br />

years (if he was still alive). As one of<br />

the funding members of CIO-<br />

PORA, one can assume that, as a<br />

breeder and pioneer, he would have<br />

conveyed his great acknowledgements<br />

to <strong>CIOPORA</strong> for being<br />

permanently dedicated to the<br />

acquisition and sharing of IP knowledge<br />

to protect new varieties for<br />

the benefit of all those concerned in<br />

the ornamental and fruit sectors.<br />

Just believe in innovation, IP and<br />

also peace and friendship. |||<br />

(*)The first plant ever patented in the<br />

US, under the 1930 Plant Patent<br />

Act, is a rose variety (US Pl.Pat.1)<br />

New Dawn.<br />

<strong>CIOPORA</strong> <strong>Chronicle</strong> April <strong>2012</strong> | www.<strong>CIOPORA</strong>.org 35


International PBR systems<br />

As a country with<br />

the goal of becoming<br />

an agricultural<br />

export powerhouse,<br />

Chile cannot avoid<br />

focusing attention<br />

on intellectual<br />

property rights,<br />

which profoundly<br />

affect this goal and<br />

these commercial<br />

activities. Such<br />

awareness is not yet<br />

enough in Chile, but<br />

hope exists for an<br />

improvement in the<br />

future.<br />

by Gabriela Paiva<br />

IPP in Chile and new<br />

related to PBR and agr<br />

Chile is a leading country in<br />

the southern hemisphere<br />

in counter-seasonal exports<br />

of commercial fruit. Chile is the<br />

largest exporter of table grapes in<br />

the world, the largest exporter of<br />

apples in the southern hemisphere<br />

and also a very substantial exporter<br />

of cherries, peaches, nectarines, and<br />

plums.<br />

Main issues<br />

Currently, the main issues in Chile<br />

are regarding intellectual property<br />

(IP) rights for plants and seeds is<br />

the pending law bill authorizing<br />

signature and ratification of the<br />

UPOV ’91 Treaty and the related<br />

law bill to modify existing Chilean<br />

Law 19.342 to adapt it to the<br />

UPOV ‘91 Treaty.<br />

Another important issue is the<br />

strong actions in Chile in the field<br />

of anti-trust and free competition<br />

in agriculture. This past year, the<br />

Economic National Prosecutor<br />

in Chile has imposed record antitrust<br />

penalties on the agricultural<br />

sector. Also, in 2011, the Chilean<br />

agricultural industry successfully<br />

worked with anti-trust authorities<br />

in South Korea to obtain large fines<br />

for anti-trust activities in South<br />

Korea by Zespri (the New Zealand<br />

kiwi marketing desk) that damaged<br />

the South Korean consumers and<br />

the Chilean agricultural industry, a<br />

case which has global consequences<br />

for agricultural IP owners and their<br />

licensees.<br />

Current Status<br />

of UPOV ’91<br />

There are two law bills pending<br />

before the Chilean Congress related<br />

to the UPOV ’91 treaty. One is a<br />

bill for the Chilean Congress to approve<br />

the ratification of the UPOV<br />

’91 Treaty, allowing the Chilean<br />

President authorisation to be able to<br />

ratify the Treaty. The other pending<br />

law is the modification of the<br />

current Chilean Law 19,342 to<br />

adapt it to UPOV ‘91.<br />

A draft of this second law bill was<br />

sent to Congress by the Government<br />

on December 22, 2008.<br />

Chile was obligated to ratify<br />

UPOV ‘91 before January 1st<br />

2009, according to the IP Chapter<br />

in the Free Trade Agreement<br />

between Chile and the United<br />

States of America. Chile also had<br />

the same obligation and deadline<br />

in Free Trade Agreements signed<br />

with Japan and Australia.<br />

Delay<br />

Currently, both the pending law<br />

bills are being revised by the Chamber<br />

(Cámara de Diputados) and<br />

have passed to the Senate, which<br />

has already revised the proposed<br />

text. During the Senate revision,<br />

a group of senators filed a lawsuit<br />

with the Constitutional Tribunal<br />

of Chile arguing that the ratification<br />

of UPOV ‘91 was contrary<br />

to Convention 169 of the Work<br />

International Organisation, another<br />

treaty ratified by Chile that protects<br />

property and other rights of the<br />

native people of Chile.<br />

36 www.<strong>CIOPORA</strong>.org | <strong>CIOPORA</strong> <strong>Chronicle</strong> April <strong>2012</strong>


developments<br />

icultural products<br />

trust trade activities by Zespri, their<br />

New Zealand competitors. Zespri<br />

had been leveraging their intellectual<br />

property rights for various kiwi<br />

varieties through contracts with<br />

South Korean retailers, in which<br />

the retailers were asked to exclude<br />

Chilean kiwi products from their<br />

stores.<br />

The Chilean exporters successfully<br />

demonstrated to the South Korean<br />

antitrust authorities that the South<br />

Korean consumers suffered price<br />

damage (in the form artificially<br />

high kiwi fruit prices) because of<br />

Zespri’s conduct. Based on the<br />

Chilean exporter’s claims and<br />

their economic information, the<br />

South Korean antitrust authorities<br />

rescinded all of Zespri’s offending<br />

contract clauses, and levied a<br />

fine of almost $400,000 USD for<br />

their illegal activities. This case is<br />

a model for how antitrust laws can<br />

be used to enhance and maintain<br />

healthy competition between the<br />

agricultural industries in competing<br />

countries.<br />

If you need more information just<br />

contact me at gabriela@paiva.cl. |||<br />

The Constitutional Tribunal issued<br />

a formal decision that the articles<br />

in the law bill pending to adapt<br />

Chilean Law 19.342 to UPOV<br />

’91, did not violate the Chilean<br />

Constitution and were not contrary<br />

to any part of Convention 169<br />

because they do not adversely affect<br />

indigenous people’s rights in Chile.<br />

Now the discussion on the pending<br />

law bills is in its final stages in Congress<br />

and should be passed during<br />

the year <strong>2012</strong>. However, the delay<br />

of more than three years has been a<br />

great detriment to the rights of the<br />

breeders, licensors and licensees of<br />

plant variety protection registrations<br />

in Chile.<br />

Chilean Antitrust<br />

Enforcement Actions<br />

In 2010, a new government was<br />

elected in Chile, and one of its goals<br />

has been to increase the enforcement<br />

of free competition law. The<br />

Economic National Prosecutor’s<br />

office has been very active since<br />

then, and they have investigated<br />

and imposed the largest fines in<br />

Chile’s antitrust history (hundreds<br />

of millions of U.S. dollars) in the<br />

case of pharmacy collusion and in<br />

the on-going case of collusion in<br />

chicken industry association.<br />

Chile has also established a new<br />

focus in Agricultural Antitrust<br />

Prosecution, which works under<br />

the authority of the Economic National<br />

Prosecutor. The Agricultural<br />

Antitrust Prosecution is currently<br />

investigating the activities of several<br />

of the major agricultural industries<br />

in Chile such as milk, corn and the<br />

mentioned chicken industry association.<br />

These are areas that must be<br />

considered in any licensing activity<br />

in Chile.<br />

The antitrust laws of South Korea<br />

were also successfully used by the<br />

Chilean kiwi exporters, when they<br />

complained about unfair and anti-<br />

Gabriela Paiva<br />

* Gabriela Paiva H., is executive<br />

director of Global Licensing<br />

Association Ltda in collaboration<br />

with Patrick H. Ballew, U.S.A.<br />

consultant of the same. Both are IP<br />

lawyers at Paiva & CIA (Chile) and<br />

Ballew Law in the United States.<br />

More information at www.globallicensing.cl<br />

and www.paiva.cl<br />

All rights reserved Gabriela Paiva<br />

and Patrick H Ballew, March <strong>2012</strong>.<br />

<strong>CIOPORA</strong> <strong>Chronicle</strong> April <strong>2012</strong> | www.<strong>CIOPORA</strong>.org 37


LAW FIRM WITH<br />

FLOWER POWER<br />

Smithuijsen Winters & De Vries. Solicitors specialized<br />

in the horticultural and agricultural sector, including fl owerbulbs.<br />

- litigation and dispute resolution<br />

- plant breeder’s rights<br />

- licensing<br />

- contracts<br />

50 years of legal expertise in agri & bulbs.<br />

Clients in Europe, Australia, Asia, South America and Africa.<br />

Offi cial legal adviser of the Royal General Bulb Growers’ Association (KAVB).<br />

Your contact solicitor: Lucas Koning.<br />

Located near Amsterdam Airport<br />

t 0031 23 517 51 00 w swdv.nl<br />

The same<br />

in green?<br />

www.vondst-law.com<br />

Your innovation.<br />

Our passion.<br />

advocaten<br />

advocaten<br />

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Vondst is a compact specialized law firm<br />

based in Amsterdam that deals exclusively<br />

with intellectual property law, ICT,<br />

pharmaceuticals & life sciences.<br />

Vondst knows IP<br />

Patents and technology, plant variety<br />

rights, trademarks, copyrights and product<br />

design.<br />

Vondst knows Horticulture<br />

We represent and assist a wide range of<br />

clients within the horticultural and agricultural<br />

sector including flower and seed<br />

breeders, growers, packaging companies<br />

and machine manufacturers. Our firm is a<br />

member of Plantum NL and <strong>CIOPORA</strong>.<br />

Vondst knows Plant<br />

Variety Rights<br />

We assist in maintaining, exploiting<br />

and enforcing PVRs in and outside the<br />

EU. We have extensive experience in<br />

litigation concerning the enforcement<br />

of PVRs, including cases involving<br />

essentially derived varieties (EDVs).<br />

We also advise and litigate about the<br />

granting of Dutch and Community<br />

PVRs, questions of variety naming and<br />

licensing issues.<br />

Find out more?<br />

Visit www.vondst-law.com or call<br />

+31 (0)20 5042000 and ask for<br />

Tjeerd Overdijk or Hidde Koenraad.


AGM <strong>2012</strong><br />

Intercontinental<br />

knowledge-transfer<br />

and networking<br />

are the central<br />

notions of the<br />

upcoming Annual<br />

General Meeting of<br />

<strong>CIOPORA</strong>, which<br />

will take place in<br />

Miami Beach from<br />

April 23 to 27, <strong>2012</strong>.<br />

While with regard<br />

to the content the<br />

focus of the AGM<br />

will be on novelties<br />

and challenges of<br />

IP Protection for<br />

plant innovation in<br />

the Americas, the<br />

educational events<br />

will constitute the<br />

core form this year’s<br />

AGM week.<br />

by Anna Kaehne<br />

Learning, networking<br />

and AGM event set<br />

for April 23-27<br />

The <strong>CIOPORA</strong> programme<br />

in Miami Beach will set<br />

off with the Intellectual<br />

Property Seminars designed to<br />

meet the individual interests of<br />

the participants. The <strong>CIOPORA</strong><br />

members mainly interested in IP<br />

protection regulations in EU will<br />

be introduced into the most important<br />

traits of the Plant Breeders’<br />

Rights, followed by a presentation<br />

on patents for plant innovations<br />

and a lecture on trademarks.<br />

The participants with business<br />

interests in U.S. are invited to<br />

deepen their knowledge on patents<br />

and plant patents and learn from<br />

the leading American IP experts<br />

in the U.S.-oriented IP seminar.<br />

The patentability of plant-related<br />

inventions and varieties, the limits<br />

of patent protection and the basics<br />

of patent litigation, as well as<br />

trademarks and other forms of<br />

IP protection in the U.S will be<br />

approached and explained. The<br />

late afternoon of April 23 will be<br />

dedicated to meetings of the CIO-<br />

PORA Crop Sections. The work<br />

of the members will be rewarded<br />

at the welcome reception in the<br />

picturesque garden of the Palms<br />

Hotel.<br />

Working Group<br />

meetings<br />

The Working Group meetings on<br />

DUS and Molecular Techniques as<br />

well as the Annual General Meeting<br />

of <strong>CIOPORA</strong> will take place<br />

on Tuesday, April 24. Besides the<br />

internal matters of the association,<br />

the current situation in UPOV and<br />

the status of IP Protection for plant<br />

innovation in various countries<br />

are on the agenda. The day will be<br />

rounded up in the familiar atmosphere<br />

at the AGM Dinner.<br />

IP Conference<br />

The International IP Conference<br />

on April 25 is planned as a<br />

culmination of the week. Not only<br />

members, but also guests are welcomed<br />

to participate in the conference<br />

and deliver their insights on<br />

the inter national situation in IP.<br />

A comprehensive overview of<br />

the latest developments in the<br />

Patent and Plant Patent law in the<br />

U.S.A, a comparative analysis of<br />

plant patents and Plant Variety<br />

Rights (PVR), new developments<br />

in UPOV as well as the situation<br />

with IP protection in South<br />

America and Canada are the main<br />

topics of the conference.<br />

Educational programme<br />

The best theoretical learning<br />

always needs some practice. That<br />

is why the business excursions for<br />

ornamentals and fruits will also<br />

serve as parts of the week’s educational<br />

programme. Networking<br />

events for finding new business<br />

contacts and strengthening of the<br />

good old ones is on the agenda for<br />

the closing days of the AGM week<br />

<strong>2012</strong>.<br />

<strong>CIOPORA</strong> sincerely hopes to<br />

see all the old and new friends in<br />

Miami. |||<br />

The luxurious Palms Hotel is the perfect<br />

venue for <strong>CIOPORA</strong>’s upcoming AGM.<br />

<strong>CIOPORA</strong> <strong>Chronicle</strong> April <strong>2012</strong> | www.<strong>CIOPORA</strong>.org 39


Marker technology<br />

DNA markers were<br />

invented in the<br />

eighties of the<br />

previous century.<br />

They were advocated<br />

at that moment<br />

as “New tools for<br />

an old science” by<br />

Tanksley in 1989.<br />

They were (and still<br />

are...) considered to<br />

be more performing<br />

than isozyme and<br />

morphological<br />

markers. It was<br />

stated even earlier<br />

in 1983 when<br />

discussing the<br />

application of<br />

isozyme markers in<br />

breeding:<br />

Molecular markers in<br />

ornamental and fruit<br />

breeding: a historical<br />

perspective<br />

by Jan de Riek<br />

plant breeders are<br />

fortunate to have simple<br />

“Today,<br />

techniques available for<br />

utilizing protein markers in breeding<br />

programs. These markers coupled<br />

with the promise of DNA markers<br />

make the prospect excellent for a<br />

rapid development of new breeding<br />

methodologies that take advantage<br />

of these modern technique.”<br />

(Tanksley, 1983).<br />

Among the documented application<br />

of unmapped markers, he<br />

listed:<br />

• Measurement of genetic variability<br />

• Estimation of outcrossing rates<br />

• Identification of sexual and parasexual<br />

hybrids<br />

• Identification of haploid-derived<br />

plants from anther culture<br />

• Introgression of genes from wild<br />

species<br />

• Determination of genetic purity<br />

of hybrid seed lots<br />

• Identification of breeding stocks<br />

in perennial nurseries<br />

• Varietal patenting and protection<br />

Limitations<br />

The term ‘marker assisted selection’<br />

(MAS) still had to be invented;<br />

however, markers for ‘gene tagging’<br />

and genetic linkage maps were wellknown.<br />

The tomato map was considered<br />

to be the most elaborated.<br />

The first positive report of MAS<br />

also refers to tomato and dates<br />

back to 1974 by the introduction<br />

of nematode resistance in tomato,<br />

linked to an acid phosphatase by<br />

Rick & Fobes.<br />

Perceived limitations at that time<br />

could be both structural, as only<br />

a limited number of applicable<br />

monogenic traits of agronomic importance<br />

were available, and technological,<br />

as tight linkage (


RFLP<br />

The introduction of RFLP gave<br />

again a boost to the idea of what<br />

we now call “molecular breeding.”<br />

(Tanksley et al. 1989).<br />

“Now restriction fragment length<br />

polymorphism (RFLP) linkage maps<br />

are being constructed for most major<br />

crop plants and these maps provide<br />

a more direct method for selecting<br />

desirable genes via their linkage to<br />

easily detectable RFLP markers.<br />

The integration of RFLP techniques<br />

into plant breeding promises to: (1)<br />

Expedite the movement of desirable<br />

genes among varieties, (2) Allow the<br />

transfer of novel genes from related<br />

wild species, (3) Make possible the<br />

analysis of complex polygenic characters<br />

as ensembles of single Mendelian<br />

factors, and (4) Establish genetic relationships<br />

between sexually incompatible<br />

crop plants. In the future, high<br />

density RFLP maps may also make it<br />

possible to clone genes whose products<br />

are unknown, such as genes for disease<br />

resistance or stress tolerance.”<br />

Despite the enthusiasm, does this<br />

mean that at this moment, there<br />

still is a lack of technological resources<br />

to meet the demands from<br />

the breeding industry? Research<br />

during the last decades has added<br />

fundamental knowledge from both<br />

model species and crops. This has<br />

revealed the mechanisms behind<br />

many important features e.g. the<br />

understanding of disease resistance.<br />

But quite often, extra knowledge<br />

also demonstrated the complexity<br />

behind, tempering the initial<br />

expectations. When considering<br />

available marker technologies, one<br />

moved from anonymous markers<br />

to candidate genes, from 5<br />

markers per chromosome to an<br />

average of 1 SNP marker per 1000<br />

bp and a whole scala of candidate<br />

genes. Throughput tremendously<br />

increased by more data points per<br />

run every year or new technology<br />

platform introduced. Especially,<br />

current automated fingerprinting<br />

systems result in an enormous<br />

labour reduction. And finally, new<br />

statistical techniques and appropriate<br />

software tools fit the need for a<br />

more sophisticated data analysis.<br />

>>><br />

The costs of implementing molecular breeding can be controlled by doing the simple things in house and outsourcing<br />

the advanced technology.<br />

Some rules of thumb<br />

Some rules of thumb for application of markers versus phenotypic selection<br />

in breeding for ornamentals and fruits<br />

New combinations using “exotic” germplasm<br />

– Aiming for “lucky shots” Phenotype<br />

– Interspecific hybrids, “far”... Markers will NOT help you<br />

– Introgression, against background Markers supported by phenotype<br />

Disease resistance (and other “simple” traits)<br />

– Reliable screening test Phenotype<br />

– Few genes, difficult screening Markers<br />

– Many genes, difficult screening Phenotype supported by markers<br />

Plant quality, traits related to culture conditions<br />

– Easy screening Phenotype<br />

– Difficult screening, clear genetics Markers<br />

– Time consuming, progeny testing Phenotype but invest in markers<br />

– Screening and genetics difficult Important traits only: QTL mapping<br />

<strong>CIOPORA</strong> <strong>Chronicle</strong> April <strong>2012</strong> | www.<strong>CIOPORA</strong>.org 41


Marker technology<br />

Time periods for valorization of innovations are generally underestimated.<br />

Better, faster, cheaper<br />

To sum it up, one can state that<br />

we can do it better, faster, cheaper,<br />

more performing. We mainly<br />

use it for control of the breeding<br />

framework: to characterize the<br />

genetic diversity of gene pools and<br />

wild relatives, for identification<br />

and variety protection and for the<br />

characterisation of hybrids, lines<br />

and purity control. The application<br />

of MAS is much more limited<br />

to the introgression of monogenic<br />

traits, gene pyramiding, selection<br />

against unwanted background but<br />

quantitative traits are still a major<br />

hurdle. The rate of success is likely<br />

to increase due to developments in<br />

gene-based marker development,<br />

more efficient QTL mapping procedures,<br />

and lower cost genotyping<br />

systems. However, some fundamental<br />

issues remain to be resolved,<br />

particularly regarding complex<br />

traits, before marker-assisted selection<br />

reaches its full potential in<br />

breeding programs. These include<br />

the development of high throughput<br />

precision phenotyping systems<br />

for QTL mapping, improved<br />

understanding of genotype by environment<br />

interaction and epistasis,<br />

and development of publicly available<br />

computational tools tailored<br />

to the needs of molecular breeding<br />

programs.<br />

Realistic expectations<br />

In the –omics era, having available<br />

next-generation sequencing, high<br />

throughput phenotyping, genotyping,<br />

expression profiling and<br />

metabolite assays, biotechnologists<br />

steadily expand the promising but<br />

sometimes still very expensive tools<br />

available for crop improvement.<br />

Breeders tend to be pragmatic and<br />

result-oriented; therefore, some<br />

skepticism and reluctance to start<br />

intensive and long-lasting initiatives<br />

in molecular breeding are just<br />

caution. Moreover, such an effort<br />

needs to be integrated, intensive,<br />

long-lasting and avant-garde, affecting<br />

the total breeding and selection<br />

procedure, to be successful. A<br />

gradual, well-planned introduction<br />

is probably the only way, also<br />

to keep it affordable for the size<br />

of industry ornamental and fruit<br />

breeding has. Keeping in mind the<br />

overall breeding objectives for a specific<br />

crop or group of species that<br />

make the portfolio of a company<br />

might help to decide.<br />

The best chance<br />

for success<br />

Investments in marker technology<br />

will always be expensive.<br />

However, with the risk of missing<br />

the train, the longer one waits, the<br />

cheaper the technology and to more<br />

advanced the (public) available<br />

knowledge. Are there crop specific<br />

markers or candidate genes obtainable<br />

or do they have to be developed?<br />

If you choose a technological platform,<br />

it is probably outdated before<br />

you master it, so, why not have it<br />

to be outsourced? For technology,<br />

it is difficult to estimate the return<br />

on investment because one can<br />

not foresee completely long term,<br />

strategic and synergistic effects.<br />

This also depends on the company<br />

strategy or tradition for investment<br />

in breeding: is it considered as high<br />

versus low risk? Especially, time periods<br />

for valorisation of innovations<br />

are generally underestimated. However,<br />

positive side effects e.g. some<br />

type of investment enables “other”<br />

work to be done (not less work), are<br />

often not taken into account. The<br />

daily working cost of implementing<br />

molecular breeding can be controlled<br />

by doing the simple things<br />

in house but to outsource advanced<br />

technology. Also, phenotyping and<br />

the current selection scheme has a<br />

cost, one should make an honest<br />

estimate for it. Only well-planned<br />

initiatives that are integrated and<br />

incorporate a clever management<br />

and mining of all breeding data<br />

have the best chance for success. |||<br />

42 www.<strong>CIOPORA</strong>.org | <strong>CIOPORA</strong> <strong>Chronicle</strong> April <strong>2012</strong>


Quiz<br />

Test your knowledge of<br />

Intellectual Property<br />

Proof your<br />

knowledge in IP<br />

matters and win a<br />

free participation<br />

in a <strong>CIOPORA</strong> IP<br />

seminar.<br />

Do you consider yourself an expert on IP?<br />

In order to take part in the competition:<br />

1. Remove the page with the questionnaire from<br />

the magazine;<br />

2. Fill in the answers and send it to <strong>CIOPORA</strong><br />

via email (info@ciopora.org),<br />

fax (+49 (0)40-555-63-703)<br />

or mail (P.O. Box 13 05 06, D-20105 Hamburg,<br />

GERMANY) by May 31, <strong>2012</strong>.<br />

3. The winner of the prize – a free participation in a<br />

<strong>CIOPORA</strong> IP Seminar – will be chosen in a raffle<br />

from all the correctly answered questionnaires.<br />

4. The winner will be informed directly and<br />

announced on the <strong>CIOPORA</strong> website on 18 June.<br />

www.ciopora.org<br />

Name:<br />

Company:<br />

1. How many members does UPOV currently have?<br />

2. The most recent member of UPOV is<br />

3. The only country which still is member<br />

to the UPOV 1961 Convention is<br />

Please tick the correct answer!<br />

4. I can protect my apple-variety in the U.S. by:<br />

Plant Patent<br />

Patent<br />

Plant Breeders’ Right Trademark<br />

5. The easiest way to protect my gerbera variety<br />

in the European Union is:<br />

to seek for PBR protection in all<br />

27 member-states of the EU<br />

to seek for CPVR<br />

to seek for a European trademark<br />

6. The application fee for a CPVR currently is:<br />

1,200 EUR 500 US$<br />

900 EUR 300 EUR<br />

7. Which one of the following statements is true:<br />

Nobody is allowed to breed with an EDV<br />

An EDV must have separate PBR protection in<br />

order to enjoy the protection of its initial variety<br />

In any case an EDV is eligible for PBR protection<br />

In Australia it’s upon the Secretary in the department<br />

of the PBR office to decide whether a<br />

variety is an EDV or not<br />

8. If material of a variety has been sold or otherwise<br />

marketed with the consent of the title-holder, the<br />

PBR for said material is:<br />

null- and void<br />

terminated<br />

exhausted<br />

suspended<br />

9. If a variety is not clearly distinguishable from<br />

an existing protected variety,<br />

it is an Essentially Derived Variety of this<br />

initial variety<br />

it is not eligible for PBR protection<br />

I can freely commercialize it<br />

10. Which of the following statements is false:<br />

A holder of a U.S. Plant Patent can exclude others<br />

from:<br />

asexually reproducing the protected plant<br />

selling the plant so reproduced<br />

importing the plant so reproduced<br />

exporting the plant so reproduced<br />

Please send back the completed questionnaire to<br />

the <strong>CIOPORA</strong> office until 31 May, <strong>2012</strong>.<br />

✁<br />

<strong>CIOPORA</strong> <strong>Chronicle</strong> April <strong>2012</strong> | www.<strong>CIOPORA</strong>.org 43


Country profile<br />

Ornamental<br />

horticulture in the<br />

U.S.A. is a diverse<br />

industry. Domestic<br />

production is<br />

composed primarily<br />

of floriculture and<br />

nursery crops but<br />

includes many<br />

related crops, as<br />

defined by the<br />

U.S. Department<br />

of Agriculture’s<br />

National Agricultural<br />

Statistics Service<br />

in its 2009 Census<br />

of Horticultural<br />

Specialties. This<br />

Census provides<br />

the latest and most<br />

comprehensive data<br />

set, as it covers<br />

all 50 states and<br />

is the most recent<br />

survey of many of<br />

the crop areas for<br />

the industry. Data<br />

reflect the 2009<br />

calendar year and<br />

were collected in<br />

2010. Results of<br />

the Census were<br />

released as a<br />

special part of the<br />

2007 Census of<br />

Agriculture effort in<br />

December 2010.<br />

by Marvin N. Miller<br />

A look at U.S.<br />

ornamental horticulture<br />

The 2009 Census of Horticultural<br />

Specialties reported<br />

on 21,585 firms with total<br />

sales of $11,687,323,000. This<br />

compared with 23,758 firms with<br />

total sales of $10,599,298,000 in<br />

1998, when the last Census was<br />

conducted. As a result of the 9.1%<br />

drop in firm numbers and the<br />

10.3% increase in sales over the 11-<br />

year period, the average firm sales<br />

increased over 21% from $466,136<br />

to $541,456. Still, accounting for<br />

inflation, which has risen over 30%<br />

over the 1998 to 2009 period as<br />

measured by the Consumer Price<br />

Index (CPI), the effective change in<br />

real dollars over the period has been<br />

negative. Yet, not all parts of the<br />

horticultural specialties have fared<br />

equally, so a more in-depth analysis<br />

is warranted.<br />

U.S. floriculture<br />

U.S. floriculture is defined to include<br />

the production of cut flowers,<br />

cut cultivated greens, potted flowering<br />

plants (for indoor use), foliage<br />

plants (for indoor or patio use), and<br />

the production of bedding/garden<br />

plants, which includes both annuals<br />

and perennials. There were 12,009<br />

floriculture producers reporting<br />

production and sales in 2009, down<br />

from 13,809 in 1998, a 13.0% drop<br />

in producer numbers, and each of<br />

these segments recorded declines in<br />

total operations producing for the<br />

segment.<br />

Overall, in 2009, producers accounted<br />

for $5,018,449,000 in<br />

sales; this was an increase of 12.4%<br />

from the 1998 sales figure.<br />

The bedding/garden plant segment<br />

is by far the largest component<br />

of this total, accounting for<br />

$3,149,701,000 (62.7%) of these<br />

sales (45.9% of these were annuals,<br />

while 16.8% were perennials).<br />

Potted flowering plants accounted<br />

for $871,474,000 of the 2009 sales<br />

(17.4% of floriculture), foliage<br />

plants accounted for $509,873,000<br />

(10.2%), cut flowers accounted<br />

for $403,254,000 (8.0%), and cut<br />

cultivated greens accounted for<br />

$84,148,000 (1.7%).<br />

Imports<br />

An aspect of the U.S. floriculture<br />

industry which may not be immediately<br />

obvious is that the majority<br />

of the cut flowers and many cut cultivated<br />

greens sold in the U.S. are<br />

imported, with Colombia accounting<br />

for the biggest share. Other<br />

countries contributing in a major<br />

way to the U.S. supply include<br />

Ecuador, Mexico, the Netherlands,<br />

and several other Latin American<br />

countries, though other countries<br />

from around the globe contribute<br />

smaller quantities.<br />

With the exception of Canada,<br />

which has almost identical<br />

phytosanitary regulations as the<br />

U.S., there are very few imports<br />

of finished plant materials in<br />

other segments of the floriculture<br />

(or nursery) parts of the industry<br />

because of concerns over potting<br />

media. However, the U.S. does import<br />

a lot of starter materials from<br />

Consumer expenditures have surpassed the levels of 2008.<br />

off-shore producers in the forms of<br />

seeds, cuttings, bare root materials,<br />

bulbs, and some tissue cultured<br />

plantlets.<br />

Nursery stock<br />

When it comes to nursery stock<br />

produced and sold, the Census<br />

reported a 1.6% increase in the<br />

number of nursery producers in<br />

2009 to 8,441 operations from<br />

the 8,305 operations reporting<br />

in 1998. Sales increased 24.3%<br />

over the 11-year period to<br />

$3,850,363,000 in 2009. (Again,<br />

this did not keep pace with the<br />

increase in inflation as measured<br />

by the CPI.) Broadleaf evergreens<br />

($793,290,000), coniferous evergreens<br />

($651,092,000), deciduous<br />

shrubs ($647,155,000), deciduous<br />

shade trees ($560,057,000), fruit<br />

and nut plants ($382,773,000),<br />

deciduous flowering trees<br />

($343,651,000), landscaping palms<br />

($169,395,000), ornamental grasses<br />

($124,261,000), bareroot herbaceous<br />

perennials ($12,850,000) and<br />

other woody ornamentals and vines<br />

($165,839,000) were the crop segments<br />

included in the 2009 nursery<br />

numbers.<br />

44 www.<strong>CIOPORA</strong>.org | <strong>CIOPORA</strong> <strong>Chronicle</strong> April <strong>2012</strong>


Other crop categories<br />

Several other crop categories are<br />

profiled in the 2009 Census as<br />

well, and many, though not all,<br />

are related to the floriculture and<br />

nursery segments of the horticulture<br />

industry. For example, there<br />

were sales of $601,657,000 in cuttings,<br />

plugs, liners, tissue cultured<br />

plantlets and prefinished plants in<br />

2009; these were used as inputs<br />

for floriculture (78%) and nursery<br />

(22%) crops. There were also sales<br />

of $48,512,000 in dried bulbs,<br />

corms, rhizomes and tubers; again,<br />

these are inputs used by floriculture<br />

producers. And there was U.S.<br />

production of flower seeds valued<br />

at $30,825,000, which went into<br />

commercial floriculture production,<br />

as well as consumer applications,<br />

e.g., seed packets.<br />

In addition, the 2009 Census of<br />

Horticultural Specialties reported<br />

on some other ornamental horticulture<br />

industry segments. For<br />

example, $876,847,000 in sales of<br />

sod, springs or plugs were sold by<br />

the turf segment of the industry<br />

in 2009, and this was up 5.0%<br />

from the 1998 volume. There<br />

were also sales of aquatic plants<br />

($287,722,000, down 5.0% from<br />

1998) and sales of Christmas trees<br />

($249,821,000, down 2.5% from<br />

1998) recorded for 2009.<br />

Food crops<br />

Though not specifically ornamental<br />

in nature, the Census also captures<br />

a few other horticultural segments<br />

deemed part of the horticultural<br />

specialties for this survey, as many<br />

of these crops are greenhouse<br />

produced. These include food<br />

crops grown under protection<br />

($553,270,000, up 148.5%<br />

from 1998) and the production<br />

of transplants for commercial<br />

vegetable and strawberry production<br />

($330,647,000, up 111.6%),<br />

vegetable seeds ($89,031,000, down<br />

4.4%), short rotation woody crops<br />

($2,173,000, down 82.8%), and<br />

tobacco transplants ($9,728,000,<br />

down 6.7%).<br />

Changes<br />

Since this Census was conducted,<br />

the industry has changed dramatically.<br />

In 2009, the U.S. economy<br />

The majority of cut flowers and many cut<br />

cultivated greens sold in the US, are imported.<br />

was beginning what has been<br />

termed “The Great Recession,” the<br />

largest economic downturn since<br />

the Great Depression of the late<br />

1920s and 1930s. As a result, firm<br />

numbers have dropped, as has crop<br />

value. This has been felt throughout<br />

much of the ornamental horticulture<br />

industry, especially in the<br />

nursery subsector, as new construction<br />

has been severely impacted<br />

by the recession. Food crops have<br />

been an exception, as there has been<br />

great interest in vegetable and fruit<br />

gardening in recent years.<br />

Slow recovery<br />

Statistically, recovery has begun,<br />

but most economists believe that<br />

full recovery will be a long and<br />

slow event, even though consumer<br />

expenditures overall have now<br />

surpassed the levels of 2008, prior<br />

to the recession.<br />

Unfortunately for the ornamental<br />

horticulture industry, the consumer<br />

is spending differently than prior to<br />

the recession. Demographic trends<br />

suggest that the largest group<br />

of consumers, the Baby Boom<br />

generation, has begun to retire. The<br />

generation that follows, Generation<br />

X, is approximately 11 million<br />

fewer in number, hence fewer goods<br />

and services are required overall for<br />

any age-related consumption, e.g.,<br />

new homes.<br />

The long-term outlook is positive,<br />

however, as the following generation,<br />

Generation Y, is even larger<br />

than the Baby Boom generation.<br />

However, it will be a number of<br />

years before many in this genera-<br />

Deciduous<br />

flowering trees<br />

8.9%<br />

Fruit and<br />

nut plants<br />

9.9%<br />

Nursery Crops<br />

$ 3.850 Billion<br />

2009 Census of Horticultural Specialties<br />

Other woody<br />

ornamentals<br />

and vines 4.3%<br />

Bareroot herbaceous perennials 0.3%<br />

Ornamental grasses 3.2%<br />

Landscaping palms 4.4%<br />

Perennials<br />

16.8%<br />

Deciduous shrubs<br />

16.8%<br />

Floriculture Crops<br />

$ 5.018 Billion<br />

2009 Census of Horticultural Specialties<br />

Annuals<br />

45.9%<br />

tion are ready to purchase homes or<br />

the horticultural goods and services<br />

that can spur long-term industry<br />

growth. |||<br />

Broadleaf evergreens<br />

20.6%<br />

Coniferous evergreens<br />

16.9%<br />

Potted flowering plants<br />

17.4%<br />

Foliage Plants<br />

10.2%<br />

Cut flowers<br />

8.0%<br />

Cut cultivated greens<br />

1.7%<br />

<strong>CIOPORA</strong> <strong>Chronicle</strong> April <strong>2012</strong> | www.<strong>CIOPORA</strong>.org 45


International PBR systems<br />

For more than<br />

20 years Canada<br />

has had IP<br />

protection for<br />

plant varieties, in<br />

the form of the<br />

Plant Breeders’<br />

Rights Act, based<br />

on the 1978 UPOV<br />

Convention. Since<br />

1998, varieties of<br />

all plant species<br />

have been eligible<br />

for plant variety<br />

protection<br />

in Canada.<br />

Administration<br />

of the Act is the<br />

responsibility of<br />

the Plant Breeders’<br />

Rights Office,<br />

which is part of<br />

the Canadian Food<br />

Inspection Agency.<br />

by Sandy Marshall<br />

IP protection for plant<br />

innovations in Canada<br />

In implementing the legislation,<br />

Canada opted to have a “breeder<br />

testing” system for PBR. This<br />

means that the conduct of comparative<br />

trials to establish distinctness,<br />

uniformity and stability (DUS) of a<br />

new plant variety is the responsibility<br />

of the applicant. An examiner<br />

from the PBR office visits the trials<br />

to verify that UPOV test guidelines<br />

have been followed and that the<br />

candidate variety meets the requirements<br />

of DUS.<br />

Flower versus<br />

fruit varieties<br />

Ornamental plant breeders represent<br />

the majority of PBR applicants<br />

in Canada. Of the 305 applications<br />

filed in 2011, 218 (approximately<br />

70%) were for ornamental varieties.<br />

Applications for fruit varieties consistently<br />

represent about 5% of total<br />

applications, with approximately<br />

half of those being from domestic<br />

breeders.<br />

The vast majority of Canada’s<br />

ornamental plant applications are<br />

from foreign breeders – nearly 98%<br />

in 2011. For many overseas breeders<br />

the process of obtaining a breeder’s<br />

right in Canada has been facilitated<br />

by the establishment of several<br />

private companies specialising in<br />

DUS testing. Independent, third<br />

party testing has provided a practical<br />

alternative for international<br />

breeders when trials are required<br />

to be conducted in Canada. At the<br />

present time, these companies are<br />

testing mainly ornamental and<br />

fruit varieties; however, there is<br />

also a company which specialises in<br />

potatoes.<br />

Peer review<br />

After trials have been completed<br />

and examined by the PBR office,<br />

the test data, variety descriptions<br />

and photos are submitted to the office<br />

for review. Variety descriptions<br />

Ornamental plant growing in Thunder Bay, Ontario.<br />

and photos are then published in<br />

the Plant Varieties Journal, which<br />

is available to the public via the<br />

internet. Following the publication,<br />

there is a 6 month objection period,<br />

after which, if there are no valid objections,<br />

a candidate variety can be<br />

granted rights. This period of peer<br />

review is an important component<br />

of Canada’s PBR system.<br />

In some circumstances, rather<br />

than growing trials in Canada,<br />

applicants are able to purchase the<br />

official results of foreign trials, if<br />

they were conducted in a UPOV<br />

member country, following UPOV<br />

test guidelines. Even in cases where<br />

the determination of DUS is based<br />

on a foreign trial, a variety description<br />

and photograph is published in<br />

Canada’s Journal and the final decision<br />

to grant rights is made after the<br />

expiration of the objection period.<br />

Enforcement<br />

As with other forms of intellectual<br />

property protection, enforcement<br />

of Canadian breeders’ rights is<br />

the responsibility of the holder of<br />

those rights. The Act does not give<br />

authority to customs officials or<br />

crop inspection staff to apprehend<br />

infringers. Several tools are<br />

utilized by the ornamental and fruit<br />

industries to enforce breeders’ rights<br />

including the use of flowering only<br />

(non-propagation) agreements and<br />

licensing contracts. There are a few<br />

companies active in Canada that<br />

will assist breeders with royalty collection,<br />

administration, compliance<br />

and monitoring services.<br />

UPOV 1991<br />

Although Canada signed the 1991<br />

UPOV Convention, the legislation<br />

remains based on UPOV 78, so<br />

that the UPOV 1991 Act is not yet<br />

ratified by Canada. Public consultations<br />

which have been conducted<br />

in recent years have indicated<br />

strong stakeholder support for<br />

amending the Act. With a current<br />

political climate that seems favourable,<br />

supporters of UPOV 91 are<br />

cautiously optimistic that initiatives<br />

to include PBR Act amendments<br />

in the Canadian government’s<br />

legislative agenda will be successful.<br />

|||<br />

46 www.<strong>CIOPORA</strong>.org | <strong>CIOPORA</strong> <strong>Chronicle</strong> April <strong>2012</strong>


International PBR systems<br />

The Canadian Plant<br />

Breeder’Rights<br />

(PBR) programme<br />

has a unique system<br />

for examining<br />

the distinctness,<br />

uniformity, and<br />

stability (DUS)<br />

of new varieties.<br />

This system is<br />

referred to as a<br />

third party testing,<br />

or breeder testing,<br />

where DUS trials<br />

are not conducted<br />

at government<br />

facilities, but<br />

rather it is the<br />

responsibility of the<br />

breeder to organise<br />

a comparative trial.<br />

by Brenda Cole*<br />

Canadian PBRs include<br />

third party testing<br />

Third party testing requires a<br />

breeder to establish a PBR<br />

trial site within Canada at<br />

his or her choosing, whether this is<br />

with a grower or specialised company.<br />

At times, breeders may utilize<br />

a growers’ premise to conduct their<br />

trials, however most growers find<br />

the PBR requirements too onerous<br />

and incompatible with core business<br />

activities.<br />

In practice, most international<br />

breeders use companies that are<br />

specialised in the administration<br />

of PBR to conduct their DUS trials.<br />

Most Canadian bred varieties<br />

are tested by the breeders at their<br />

nursery, university or government<br />

research facility.<br />

Regulatory oversight<br />

Regulatory oversight of third party<br />

testing is an important component<br />

to the success of breeder testing.<br />

For most crop species the Canadian<br />

authorities provide the trial coordinator<br />

with detailed technical forms<br />

based on UPOV guidelines in effort<br />

to standardize the variety descriptions<br />

prepared for candidate and<br />

reference varieties. The Canadian<br />

authorities inspect each DUS trial<br />

in Canada to observe and record<br />

that the new variety is distinct,<br />

uniform and stable. During the<br />

inspection they will also verify that<br />

the trial meets certain standards set<br />

out for plant health, plant number,<br />

and to assess the suitability of the<br />

reference varieties. All results of the<br />

examination are published quarterly<br />

in the on-line Plant Varieties<br />

Journal to allow an opportunity for<br />

the public to comment.<br />

Greater scrutiny<br />

The DUS trials for many ornamental<br />

and fruit crops are conducted at<br />

centralised locations. These trials<br />

are managed to ensure that each<br />

new variety can be cross-compared<br />

Greenhouse grown trials for DUS testing.<br />

to competitor varieties, as well as<br />

have an array of reference varieties<br />

at one location for comparison.<br />

From a government perspective, the<br />

program is cost-effective as many<br />

varieties can be assessed during a<br />

single inspection period. As well,<br />

having a number of varieties within<br />

a species tested at a single location<br />

allows for greater scrutiny of the<br />

new candidates against a pool of<br />

reference varieties.<br />

Nonetheless, there are a limited<br />

number of breeding companies<br />

securing Plant Breeders’ Rights in<br />

Canada, with several opting not<br />

to legally protect their varieties. As<br />

a result, many new varieties that<br />

are commercially available are not<br />

assessed for DUS in Canada. A<br />

company’s decision not to protect a<br />

variety is most often fiscally based<br />

and reflects both a company’s<br />

market share and a variety’s market<br />

potential in Canada.<br />

Policy under review<br />

Canadian policy for DUS examination<br />

is under review. Currently,<br />

authorities allow breeders to<br />

purchase DUS reports, in lieu of a<br />

trial, for a range of crops including<br />

the major species such as Pelargonium,<br />

Poinsettia, pot Chrysanthemum<br />

and pot Roses. This is an<br />

attractive option to many breeders<br />

as it reduces overall costs and<br />

simplifies the management of their<br />

IP. The reluctance of the Canadian<br />

government to allow the purchase<br />

of foreign test results for all species<br />

lies in the risks that determination<br />

of distinctness can be dependent on<br />

environment. It is highly anticipated<br />

that Canadian policy in this area<br />

will change to accommodate more<br />

species in the future. |||<br />

* The author, Brenda Cole is agent<br />

at BioFlora Inc.. This is a private<br />

company that specialises in services<br />

to help breeders protect new plant<br />

varieties in Canada. In addition<br />

to administering Canadian Plant<br />

Breeders’ Rights (PBR) applications,<br />

BioFlora is active in conducting<br />

greenhouse and field grown trials<br />

for DUS testing.<br />

<strong>CIOPORA</strong> <strong>Chronicle</strong> April <strong>2012</strong> | www.<strong>CIOPORA</strong>.org 47


Enforcement<br />

GESLIVE is a nonprofit<br />

organisation<br />

owned by plant<br />

breeders. As a<br />

services subsidiary<br />

of ANOVE, the<br />

association<br />

representing the<br />

plant breeding<br />

industry in Spain,<br />

it is dedicated<br />

to managing<br />

and defending<br />

intellectual property<br />

rights of new plant<br />

varieties.<br />

The objective of this<br />

article is to provide<br />

some examples<br />

of the successful<br />

defense of<br />

intellectual property<br />

rights of new plant<br />

varieties, from a<br />

global perspective.<br />

by Antonio Villarroel*<br />

Worldwide successful<br />

enforcement actions<br />

The first condition for effectively<br />

defending rights<br />

of a protected variety is the<br />

capacity to determine when those<br />

rights have been breached. For this<br />

purpose we need tools which allow<br />

us to confirm whether suspicious<br />

material belongs to our variety but<br />

has nonetheless been reproduced<br />

illegally.<br />

Deficiencies in<br />

the legal system<br />

The aforementioned issues are especially<br />

pertinent for the ornamental<br />

and fruit sectors, regarding their<br />

particular characteristics when<br />

compared to other agricultural<br />

sectors. The added value provided<br />

by the breeder is essentially perceived<br />

in the final product, which is<br />

mostly sold when fresh. The flower<br />

and fruit industry are largely global,<br />

and have witnessed a gradual progression<br />

of production areas from<br />

the consumer countries to third<br />

party countries, many of which the<br />

protection of intellectual property<br />

rights is evidently inadequate, either<br />

due to deficiencies in the legal system<br />

or delays in their procedures.<br />

These factors together can make it<br />

exceedingly difficult for the breeders<br />

to exercise their rights against<br />

unauthorised third parties.<br />

Genetic identification<br />

Fortunately, in recent times the<br />

techniques for genetic identification<br />

of varieties have become highly<br />

refined as a result of molecular<br />

biomarkers (SNPs or micro satellite<br />

types) which permit breeders to<br />

conclude with very small error<br />

margins, if virtually any vegetable<br />

material or a sample of material<br />

belongs to one of their protected<br />

varieties. The acceptance of that<br />

kind of analysis in legal cases for<br />

the infringement of plant breeder<br />

rights appears to be being consolidated<br />

in many countries, at least as<br />

prima facie evidence which reverses<br />

the burden of proof onto the other<br />

party. It is important to take into<br />

account however, that certain<br />

safeguards can help to ensure the<br />

legal value of such analyses, such<br />

as being able to track the source of<br />

the samples; the impartiality of the<br />

laboratory which does the analysis.<br />

Adequate licensing<br />

policy<br />

One factor which in our experience<br />

is crucial for the global enforcement<br />

of plant breeder rights, especially<br />

where the variety has been reproduced<br />

in third party countries, is<br />

the use of tools to track the product<br />

and identify its source as either legitimate<br />

or otherwise. An adequate<br />

licensing policy, together with<br />

effective contracts architecture, is a<br />

Geslive found out that the<br />

‘Nadorcott’mandarin was<br />

extended through numerous<br />

regions of Spain and that<br />

many growers and farmers<br />

were reproducing or planting<br />

it illegally.<br />

key factor in verifying the legitimate<br />

origin of products on the market.<br />

Attention should be paid however<br />

to the antitrust regulations as not all<br />

stipulations will comply and we may<br />

find it problematic, for example, to<br />

establish “black lists” of producers<br />

and traders suspected of violating<br />

our intellectual property rights.<br />

In order to guarantee the legitimacy<br />

of our products in the market, we<br />

have, in some cases, developed<br />

identification systems based on<br />

specific labels linked into a database<br />

accessible via internet.<br />

These systems not only make a<br />

huge contribution to combating<br />

illegal production, but also serve<br />

to provide greater control for plant<br />

breeders over licensed production<br />

and the collection of royalties based<br />

on the sales of end products (flowers,<br />

plants or fruit).<br />

48 www.<strong>CIOPORA</strong>.org | <strong>CIOPORA</strong> <strong>Chronicle</strong> April <strong>2012</strong>


Successful cases<br />

Due to the aforementioned combination,<br />

the creation of a genetic<br />

data base for protected varieties<br />

which facilitates the rapid and<br />

secure identification of samples in<br />

combination with the system for<br />

tracing products from the originating<br />

plant through to the final<br />

product in the market, we have<br />

recently been able to mount an<br />

efficient defense of the property<br />

rights of our members and customers<br />

with respect to breaches of<br />

their plant breeder rights.<br />

The following are some good<br />

examples:<br />

In Spain, the control of the production<br />

of the protected mandarin<br />

wvariety “Nadorcott”.<br />

In this case, when GESLIVE was<br />

asked by the breeder to manage<br />

its Spanish licenses, we found that<br />

this variety was extended through<br />

numerous regions of Spain and that<br />

many growers and farmers were<br />

reproducing or planting it illegally.<br />

Regarding the impracticability of<br />

starting legal action against such<br />

a large number of individuals and<br />

entities, the only viable strategy<br />

was to invite an increasing number<br />

of these growers to voluntarily<br />

regularise their orchards, and to<br />

support them in marketing their<br />

products under specific labels, while<br />

at the same time moving against<br />

the distribution of fruit from illegal<br />

sources –or, in other words, that<br />

which does not carry such a label.<br />

The result of these actions was<br />

that after four years, 800 growers<br />

Greenhouse trials of new lettuce varieties, Spain.<br />

were legally producing the variety,<br />

involving more than 2 million<br />

plants and 40 traders. 15 million<br />

euros were recovered, which had<br />

originally been considered beyond<br />

our reach.<br />

This same system has been introduced<br />

in other countries where<br />

“Nadorcott” is grown under license<br />

(in Morocco, South America, South<br />

Africa etc.), which has allowed<br />

the breeder both to inhibit illegal<br />

propagation and production and<br />

to detect and intercept exports of<br />

illegal fruit produce to the EU.<br />

The fight against the illegal production<br />

of protected seedless table<br />

grape varieties in various countries<br />

(Spain, North Africa, etc.). In this<br />

case, the production of new high<br />

value varieties of seedless table<br />

grapes has been afflicted of late<br />

by increasing multiplication and<br />

illegal production in a number of<br />

countries. Unfortunately, the legal<br />

procedures in the countries of<br />

origin tend to be difficult, exceedingly<br />

slow and of uncertain outcome.<br />

This has obliged the breeders<br />

to adopt a meticulous system of<br />

licensing together with systems<br />

for identifying legitimate products<br />

in the market, involving tracking<br />

them from authorized orchards set<br />

up under license. These tools have<br />

made it possible to detect a number<br />

of fruit dispatches from illegal<br />

producers, in many cases identified<br />

by customs and required to be<br />

legalised.<br />

Due to these actions, European<br />

retailers have also become increasingly<br />

aware of the importance of<br />

collaborating with the breeders and<br />

respecting their intellectual property<br />

rights, as the only way of assuring<br />

the added value from the new<br />

varieties of fruit and flowers. |||<br />

* Mr Antonio Villarroel is a lawyer<br />

and general manager of GESLIVE,<br />

A.I.E.<br />

<strong>CIOPORA</strong> <strong>Chronicle</strong> April <strong>2012</strong> | www.<strong>CIOPORA</strong>.org 49


50617 Wuesthoff-Logo 10.11.2005 9:10 Uhr Seite 1<br />

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

NEW HORIZON ORCHIDS<br />

OS International<br />

PROCOVAMI<br />

ROYON CONSULT<br />

Royal Berries S.L.<br />

SUNNY GRONNEGYDEN ApS<br />

La Villetta Srl<br />

advocaten<br />

Beijing Hengda<br />

Ciopora Suppporters<br />

<strong>CIOPORA</strong> encourages the pursuit of joint<br />

activities in areas of mutual interest with its<br />

so-called supporters. Contrary to the <strong>CIOPORA</strong><br />

members, a <strong>CIOPORA</strong> Supporter doesn’t represent<br />

a breeding company or law firm but can be, for<br />

example, a grower, a propagator, or a supplier of<br />

software. <strong>CIOPORA</strong>’s current Supporters are:<br />

Distel Software, André Briant and Nevado Roses.<br />

50 www.<strong>CIOPORA</strong>.org | <strong>CIOPORA</strong> <strong>Chronicle</strong> April <strong>2012</strong>


April <strong>2012</strong> • www.ciopora.org<br />

The business magazine for horticultural plant breeding<br />

Colofon<br />

The <strong>CIOPORA</strong> <strong>Chronicle</strong> is a special edition of<br />

<strong>CIOPORA</strong> and the monthly business magazine on<br />

worldwide floriculture FloraCulture International.<br />

All rights reserved © <strong>2012</strong>. No portion of editorial<br />

may be reproduced in any form without written<br />

permission of the publisher. Publisher is not liable for<br />

advertisements using illegally obtained images.<br />

Editorial & Administration Offices<br />

FloraCulture International B.V.<br />

Business address: Legmeerdijk 313, 1431 GB Aalsmeer<br />

Postal address: Postbus 1081, 1430 BB Aalsmeer<br />

T (31)152 136 764<br />

Editor-in-chief: Ron van der Ploeg (ron@floracultureinternational.com)<br />

with the kind assistance of Dr. Edgar Krieger (edgar.krieger@ciopora.org).<br />

Contributing writers: Brenda Cole, Travis Boone, Bruno Etavard, Ben Duffett,<br />

Robert Jondle, Philippe de Jong, Anna Kaehne, Jaap Kras, Edgar Krieger,<br />

Thomas Leidereiter, Andrea Mansuino, Sandy Marshall, Marvin Miller,<br />

Geoff Needham, Gabriela Paiva, Oscar Peters, Jan de Riek, Antonio Villarroel<br />

and Gert Würtenberger.<br />

Photography: FloraCulture International and <strong>CIOPORA</strong><br />

Cover photograph: Bianca Fenne (with special thanks to Lex+)<br />

Publisher: FloraCulture International B.V. (jaap@floracultureinternational.com)<br />

Printer: Habo DaCosta<br />

Designers: Dirk van der Burgh, Aryen Bouwmeester<br />

Advertising Sales Offices<br />

Dennis Seriese (dennis@floracultureinternational.com)<br />

Angie Duffree (angie@floracultureinternational.com)<br />

M (31) 62 21 65 220<br />

IP protection is a winning<br />

strategy for plant breeders<br />

How much open access<br />

page 26 can breeders afford?<br />

Molecular markers in<br />

page40 ornamental and fruit breeding<br />

<strong>CIOPORA</strong> Members & Supporters<br />

BECOME A MEMBER OF <strong>CIOPORA</strong><br />

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

the interests of breeders of asexually reproduced ornamental and<br />

fruit varieties worldwide. The organization has currently 121 members<br />

among which individual breeders, breeding companies, lawyers and<br />

royalty administration services. Top priority of <strong>CIOPORA</strong> is the constant<br />

development of systems of protection which both, international state<br />

organisations and single states, have provided for the protection of the<br />

intellectual property concerning ornamental and fruit plants. <strong>CIOPORA</strong><br />

acts as a strong voice to governments on behalf of the industry. The board<br />

invites you to join <strong>CIOPORA</strong>. Membership is open to anyone breeding<br />

vegetatively reproduced ornamental and fruit varieties or having an<br />

interest in IP-Protection for such crops. However, each candidacy is<br />

subject to the <strong>CIOPORA</strong> Board's approval.To become a member email to<br />

info@ciopora.org or fax to +49 40 555 63 703<br />

HOW TO BECOME A SUPPORTER<br />

You are a natural person or company prepared to support and foster<br />

the objectives, purposes and policy of the association, but do not fulfil<br />

the requirements for membership in <strong>CIOPORA</strong>? Please contact <strong>CIOPORA</strong><br />

at the address as featured on this page.<br />

<strong>CIOPORA</strong>’s current Supporters are: Distel Software, Hawita Gruppe,<br />

FloraCulture International, André Briant and Nevado Roses.<br />

Contact details<br />

For further information about<br />

<strong>CIOPORA</strong> please contact<br />

the administrative office in<br />

Hamburg.<br />

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

P.O. Box 13 05 06<br />

D-20105 HAMBURG<br />

GERMANY<br />

T (49) 40 555 63 702<br />

F (49) 40 555 63 703<br />

www.ciopora.org<br />

info@ciopora.org<br />

Advertising Index<br />

COMPANY PAGE WEBSITE<br />

Altius Advocaten ............................................................18 ...................................... www.altius.com<br />

Beijing Hengda Agforest ..............................................21 ..................... http://yupvpeg.oinsite.cn/<br />

<strong>CIOPORA</strong> ....................................................................26-29 ....................................www.ciopora.org<br />

Danziger “Dan” Flower Farm ........................................3 .................................www.danziger.co.il<br />

Fides ..................................................................................10 ............................................ www.fides.nl<br />

Jondle Associates ..........................................................18 ..............................www.jondellaw.com<br />

Lex+ ...................................................................................10 ................................................ www.lex.nl<br />

Meilland International ...................................................52 ................................ www.meilland.com<br />

COMPANY PAGE WEBSITE<br />

NIRP International ...........................................................18 .................www.nirpinternational.com<br />

Plant Haven International ...............................................7 ........................... www.planthaven.com<br />

Royalty Administration International..........................21 ......................www.rai-worldwide.com<br />

Selecta Klemm GmbH & Co. KG ...........................16-17 ..........................www.slectawordl.com<br />

Smthuijsen, Winter & de Vries ....................................38 ..................... www.swdv-advocaten.nl<br />

The Conard-Pyle Co. ........................................................2 ......................... www.conard-pyle.com<br />

Vondst Advocaten ..........................................................38 ........................... www.vondst-law.com<br />

This index is provided as a service to our readers. The publisher does not assume responsibility for errors or omissions.<br />

Visit FloraCulture International advertisers on the internet by linking to their Websites from our Digital Online Advertiser Index at<br />

www.floracultureinternational.com. For readers who do not have internet access, please send your request for additional information from<br />

any of our advertisers to FloraCulture International B.V. (Vondelstraat 162, 1054 GW Amsterdam, The Netherlands). Be sure to include your name,<br />

company name, address, faxnumber and the name(s) of the companies about which you would like to receive additional information.<br />

<strong>CIOPORA</strong> <strong>Chronicle</strong> April <strong>2012</strong> | www.<strong>CIOPORA</strong>.org 51

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