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    Seed Royalty Agreement

    Wednesday 6th October 2021

    For the rights of commercial exploitation of plant varieties granted under the licence agreement, the licensee shall pay a royalty to the licensor. A royalty may include not only the royalty agreed by the licensor and the licensee, but also all royalties related to the use of the licensed varieties, such as.B. FSS royalties and land royalties. The licence provides access to new technologies (such as hybrid varieties) for livestock and seed companies; Breeding companies can benefit from this new technology without obtaining a license to use the hybrid system itself in the development of varieties. Another advantage, or rather a side effect, is the possibility for breeders to compare their material in the early stages of variety development with that of their competitors. There are two main types of licenses. An awareness of the differences will facilitate the development of the varietal license agreement. On the other hand, it may be more difficult to influence PVP legislation in third countries and it is strongly recommended that licensors collect as much information as possible about the PVP system in a new territory so that they can adapt their licensing strategy accordingly. The development of the private seed sector will increase competition and could accelerate efforts to reach a larger part of the farming community. Small and medium-sized seed companies need to develop their product portfolio through variety licensing (while public institutions could increase profitability by licensing their varieties).


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