A3.2 Why have End Point Royalties

Many industries are promoting the concept of end-point royalties as a fairer system to assist breeders get a return on their investment while keeping the cost of propagating material at a reasonable level. Peter McCormack from the grains industry sums it up:
"As far as royalties are concerned there is a strong push from many industry sectors for a system of end-point or crop improvement royalties on delivered grain to replace royalties on seed, thereby decreasing the initial seed cost.

Dovuro Seeds (licensee for Monsanto canola) has published an explanation of the end point royalty system for Monsanto-owned canola varieties. It also highlights that there may be a difference in approach taken by owners of varieties which are vertically integrated companies compared to smaller private breeders and public sector breeders, who do not wish to be involved in the complex distribution and quality assurance process outlined by Dovuro.

Proponents of end point royalties are of the view that such a system would help share the risk both of crop failure, variety failure and farmer saved seed giving a reasonable return and manageable costs for all parties.

Click "More Info" for a summary of the issues relating to end point royalties

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