Basic material purchasing manual

A manual has been created by the international growers’ organization AIPH (International Association of Horticultural Producers), through the cooperation of its members, providing text and explanations for growers to conclude licensing agreements for basic material. This refers to licensing agreements that may be entered into for the exploitation of plant varieties protected by national and international breeders’ rights. These contracts deal with the terms of purchasing, scope and duration of the license and payment of royalties.

The AIPH notes that processors are increasingly signing exclusive contracts with growers. Breeders’ rights holders are increasingly applying a restrictive policy on issuing growing material for the new varieties they cultivate. More and more often, conditions are being attached to this, sometimes imposing extensive restrictions, e.g., no more than a certain quantity of the new variety may be grown and harvested and the variety can then be sold only under restrictive conditions.

Breeders’ rights holders and licensees are known to have a large degree of freedom in deviating from legislation and regulations in licensing agreements. In contrast, a licensee has limited options for infringing on licensing agreements that have already been signed. The question, however, is whether growers are sufficiently aware of the conditions that are contrary to the law that are sometimes imposed by breeders’ rights holders regarding basic material.

This manual is intended to contribute to increased awareness and therefore provides information on the position of growers buying growing material from suppliers of basic material by means of licensing agreements. The manual also contains a checklist to help growers and give them an insight into the negotiation stage and final conclusion of the licensing agreement. The checklist provides an explanation of the negotiating position of the growers and defines terms used in the business of basic material. The VBN is a member of the AIPH and endorses this manual.

The basic material purchasing manual can be downloaded from this page.