A4.4 BENEFITS TO THE BREEDER

The main benefit to the breeder from end point royalties is that it bypasses the farmer-saved-seed exemption in the Plant Breeder's Rights Act and enables the grantee of PBR to receive a payment on varieties that are traditionally re-sown with seed saved from the previous crop. In some industries this is significant (eg grains) and mechanisms such as hybrid varieties and the more recent terminator technologies (which prevent reproduction) have been used by breeders to overcome the farmer-saved-seed exemption.

Breeders of tree crop varieties may also benefit from end point royalties after the initial sale of propagating material as these crops are only replanted after several years. End point royalties would help to keep the initial purchase price of propagating material at a reasonable level. However breeders should also consider the benefits of retaining a royalty over propagating material but paid to the breeder in annual payments over 3-5 years.

Therefore breeders need to very clear that their rights relate to the propagating material and should not do anything to diminish their ability to get a return in exchange for giving others permission to use or sell that material. There is not a "one answer fits all" as plant species are quite different in their growing patterns and a risk assessment needs to be undertaken based on the particular variety in question

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