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BEST PRACTICES:
Norway's 'no' to stricter plant breeders'
rights
In 2005, the Norwegian government decided to reject
a bill proposing substantially stricter plant breeders' rights, which would
enable Norwegian membership in UPOV based on its 1991 Act. Norway's commitment
to Farmers' Rights was a main argument for turning down the
bill.
UPOV was adopted in 1961 to ensure that member states would
acknowledge the achievements of breeders of new plant varieties by making
available to them exclusive property rights for a given period. There was a
need to develop a system better suited than the existing patent system to the
needs of plant breeders, to ensure continued access to plant varieties for
breeding purposes. Therefore wide exemptions were to be allowed from the
property rights for breeders and also for farmers. The Convention on which UPOV
is based entered into force in 1968 and has been revised several times, each
time with increasingly restricted exemptions for breeders and farmers. Today
most member countries adhere to either the 1978 Act or the 1991 Act of UPOV.
Norway is member of UPOV based on the 1978 Act and upholds its right to
continue as a member on the basis of that Act.
There are important
differences between the 1978 and the 1991 UPOV Acts with regard to coverage,
period, scope and exemptions. The 1978 Act covers plant varieties of nationally
defined species or genera, whereas the later Act covers plant varieties of all
genera and species. The protection period is minimum 15 years under the first
Act and minimum 20 years under the later Act. The protection scope under the
1978 Act is production for the purposes of commercial marketing, offering for
sale and marketing of propagating material of a protected variety. To this, the
1991 Act adds, inter alia, exporting, importing, and stocking for the
above purposes of the protected material. Breeders are free to use a protected
variety to develop a new variety under the 1978 Act, but not if it requires
repeated use of that variety. Under the 1991 Act this exemption is restricted,
and it is not permitted to produce varieties which are essentially derived from
a protected variety or which are not distinguishable from such a variety.
Farmers are free to use their harvested material from a protected variety for
any purpose under the 1978 Act. Under the later Act, however, national
governments are entitled to decide whether farmers shall be allowed - within
reasonable limits and safeguarding the legitimate interests of the rights
holder - to reuse the harvest of protected varieties on their own land holdings
without the authorization of the rights holder. Exchange or sale of such
material is not allowed.
The Norwegian bill was put forward because the country's plant
breeding industry had been privatized a few years earlier. The government then
in power had expected that the breeding industry would gradually adapt to
market forces, and that the costs could be covered through royalties on plant
varieties. Therefore the breeding industry suggested changing the legislation
on plant variety protection to conform to the UPOV Act of 1991, with Norway
thereby becoming a member of UPOV'91. This would provide necessary but still
not sufficient financial means for the small but vital plant breeding industry
in the country. In January 2005, the bill was sent out on hearing. Firm
protests came, particularly for two reasons: (1) if adopted, the new law would
limit the customary rights of farmers to save, reuse and exchange farm-saved
seeds and propagating material - which they still do to some extent. (2) It
would transfer the costs to the Norwegian farmers, as they would have to buy
propagating material for each season. For some species, small-scale farmers
could reuse their farm-saved seeds or potatoes, but this would require payment
of royalties. Even the breeding industry, while supporting the proposal,
suggested further exemptions for farmers.
In September, a new Labour
coalition government was elected, and an earlier board member of the largest
farmers' union became Minister of Agriculture and Food. One of his first
decisions was to reject the law proposal on UPOV'91 membership because, as he
stated, it would be detrimental to Farmers' Rights. This caused great
exultation among farmers. A few months later, the same minister ensured that
financial allocations were made to the breeding industry in order to compensate
for the lost income. As the breeding industry in Norway is small and hardly
profitable, but still vital to the country's agriculture, this was an important
move.
The decision to reject the bill, and thereby membership in UPOV
'91, must be seen as a victory for Farmers' Rights in Norway. On the other
hand, it does not mean that Norway has come even half as far as India in this
regard. Norway has adopted regulations from the European Union on seed
certification and distribution which prohibit the exchange of seed and
propagating material among farmers, to comply with its commitments to the
European Economic Area ( EEA to which Norway, as a non-EU member,
belongs). Neither the authorities, the breeders, nor other central stakeholders
support this regulation, and consideration is being given to how this can be
amended to be more in line with Farmers' Rights. Thus the Norwegian achievement
must be said to be a partial success.
How can this (partial) success be
explained? An important reason is probably that multinational seed corporations
are almost non-existent in the Norwegian seed market, due to the very special
agricultural conditions in the country (short growing season, but much
daylight, even when it gets colder) and the limited seed market. Furthermore,
the main breeding company is partly owned by a farmers' cooperative. Thus,
there has been some, but not much, lobbying from the breeding industry in
Norway. Furthermore, both the academic world and farmers' organizations were
involved in the hearings, and could voice their analyses and concerns to the
authorities. This process paved the way for the final no, when the new
government came to power, with a new Minister of Agriculture and
Food.
What can other countries learn from this experience? Countries
belonging to the WTO are obliged to implement the TRIPS Agreement, and many
argue that the best way of implementing its article 27.3(b) is to follow the
model of the UPOV Convention. Some of these advocate compliance with the 1978
Act of the UPOV Convention and others with the 1991 Act. Those favouring the
1991 Act emphasize that this version provides the most extensive protection for
plant breeders, whereas those endorsing the 1978 Act maintain that this was the
version of UPOV in force when the TRIPS Agreement was adopted. In 1999, the
International Association of Plant Breeders for the Protection of Plant
Varieties (ASSINSEL) arranged an international congress with representatives of
more than 1000 seed companies, where they recommended that developing countries
should adopt sui generis systems based on the 1991 Act.
Norway's
continued adherence to UPOV 1978 - while at the same time being a WTO member -
shows that it is possible to comply with the provisions on intellectual
property rights for plant varieties in the TRIPS Agreement on the basis of UPOV
1978. However, UPOV 1978 was closed for membership in 1998, and new memberships
are possible only for UPOV 1991. Countries seeking to implement the provisions
of the TRIPS Agreement pertaining to plant variety protection may use UPOV 1978
as a model, but will then not be accepted as members of UPOV. Nevertheless, the
Norwegian experiences show that they would fulfil the requirements for
compliance with the TRIPS agreement in this regard.
(This text is
based on Regine Andersen
(forthcoming, 2008): Farmers' Rights in Norway - A Case
Study)
Pages in this
sub-section:
SUCCESS STORIES FROM THE REALIZATION OF THE RIGHT TO SAVE,
USE, EXCHANGE AND SELL FARM-SAVED SEED
India's Protection of Plant
Varieties and Farmers' Rights Act
Norway's 'no' to stricter plant
breeders' rights
Circumventing the law in the Basque Country |
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