2. Plant Variety Protection and Royalty Collection in Germany Meeting of AMSEM on 19.02.2013 Klaus Schlünder

3. 2 Plant Variety Protection 12.02.2013 BDP/KWS

4. 3 Definitions in German PVP Act BDP/KWS 12.02.2013 Variety distinctive, sufficiently homogeneous and stable collection of plants Harvested crops Propagation material Plants and parts of plants including seeds intended for the cultivation of plants or other cultivation purposes → propagation material by nature not fit for other than propagating purposes (e.g. beet seed) → propagation material by choice also fitting for other purposes (consumption) Farm saved seed use of crops harvested on the own farm as seed Placing on the market sell or offer free of charge or store with a view to offering or selling or making available to others

5. 4 Objectives of Plant Variety Protection (PVP) Re-funding of the plant breeders´ investments Incentive for innovation in plant breeding Legal basis for licence and multiplication agreements Conferring an injunctive right in case of infringement Providing access for further research and breeding Basis for an efficient and competitive agriculture 12.02.2013 BDP/KWS

6. 5 Yield improvement by active breeding 12.02.2013 BDP/KWS

7. 6 Farm Saved Seed (FSS) – Obligations of Processors Ensure identity of material processed Notify seed treatment on request of the holder of PVP Infringements lead to:  Preventive injunction / forbearance commitment  Claim of damages by holder of PVP 12.02.2013 BDP/KWS

8. 7 Farm Saved Seed – Obligations of Farmers Notify use of FSS on request of the holder of PVP Pay a fee for the use of farm saved seed Small farmers exempted from payment No FSS if  Seed used outside own farm  Purchased seed Infringements lead to:  A preventive injunction / forbearance commitment  Claim of damages by holder of PVP 12.02.2013 BDP/KWS

9. 8 German Seed Association and Structure BDP/KWS 12.02.2013

10. 9 Licencing System for Cereals 50 PVPR owners organized in 14 distribution centres ca. 250 sub- distribution and organization companies ca. 5800 seed multipliers ca. 100 distribution and organization companies sale of certified seed grants licence for seed multiplication and distribution seed multiplication licence pay licence fee deliver basic seed produce certified seed BS notifys amounts of basic seed / certified seed sold STV checks adherence to terms of contract 12.02.2013 BDP/KWS

11. 10 Improved certified seed ratio Seed Quality Seed Certification Organisation/ Structure/Agree- ments Partners/Network Communication/ PR Pricing/value for money Black Market/ License Agreement Compliance Farm Saved Seed Strategy to promote certified seed ratio 12.02.2013 BDP/KWS

12. 11 STV – founded in 1952 4 staff members black market control and license contract monitoring (Bonn) 7 staff members farm saved seed royalty collection (Bonn) 7 field staff (Germany) 9 staff members farm saved seed royalty collection (Gießen) 12.02.2013 BDP/KWS

13. 12 Monitoring of license agreements compliance / Contract development Fighting black market Contract management, withdrawal for own use Farm saved seed remuneration collection on behalf of the PVR owners Distribution of rebates for purchases of certified seed Services for the seed industry -Centralised management of all license agreements -Individual investigations for breeding companies -Quality assurance activities for certified seed  Seed sampling  Certification of seed treatment plants (planned) Core activities of STV 12.02.2013 BDP/KWS

14. 13 Start of Reporting Year STV drafts an annual budget Breeders pay their annual contributions on a fiduciary account of STV (prorata multiplication area or variety turnover) STV annual expenses financed from fiduciary accounts Funds resulting from STV audits and farm saved seed royalty collection credited to fiduciary accounts End of Reporting Year STV makes account of actual expenses reimburses breeders contributions bills actual expenses to breeders distributes returns on STV audits and farm saved seed royalty collection to breeders Funding of STV 12.02.2013 BDP/KWS

15. 14 Breeders Fiduciary account Cereals Fiduciary account Potato Fiduciary account Pulses Fiduciary account Farm Saved Seed Black Market & License Agreement Compliance STV Farm Saved Seed Funding of STV 12.02.2013 BDP/KWS

16. 15 Collection of Farm Saved Seed Remuneration Explanatory Note and Farm Saved Seed Notification Form Farm Saved Seed Notification Form sent back to STV Sending of Invoices and Credit Advice Fee Collection Notification Reminder Request for notification sent by lawyer Filing an action for notification 12.02.2013 BDP/KWS

17. 16 April 2013 STV sends declaration form and list of varieties concerned to farmers Sowing in autumn 2012/spring 2013 Cereals, Pulses, Potatoes June 2013 Farmer sends declaration form to STV August 2013 STV generates farm saved seed invoices and sends them to farmers September 2013 Farmer pays invoice June 2014 STV distributes collected farm saved seed royalties to breeders 12.02.2013 BDP/KWS Example of timelines – collection of FSS-Remuneration

18. 17 FSS Remuneration invoiced (Mio. €) (Sttus: 11.02.2013) 17

19. 18 FSS declaration send (NBE) with evidence (AHP) (Status: 11.02.2013) 18 number

20. 19 Returns of FSS declarations (NBE) with evidence (AHP) (Status: 11.02.2013)

21. 20 To farmers allocated processed volumes by STV (Status: 11.02.2013) 20

22. 21 Better Regulations Discussions and possible impacts 12.02.2013 BDP/KWS

23. 22 Better Regulations Discussions Options: delete, sustain, modify Under the „modify“ scenario:  Horizontal Regulation  Crop specific technical annexes  Harmonisation of DUS  Harmonisation of VCU  Enhanced envolvement of private bodies in certification  Delete exemptions  Improve definitions 12.02.2013 BDP/KWS

24. 23 Seed Certification Marketing Closure (of bags) Seed certificate Quality check Sample taking Field inspection Application / Registration Breeder (MD company)  Official (or private) (Official or) private Official (or private accredited labs) Certification body Seed trader  Seed processor  to certification body  to breeder, MD, processor bulk delivery to farmer 12.02.2013 BDP/KWS

25. 24 Thank You very much for your kind attention BDP/KWS 12.02.2013