TITLE: DAI a Top Banana in Securing Plant Breeders' Rights AUTHOR: Lawrence Kent and King Bash PUBLICATION: Developments (quarterly newsletter of DAI) DATE: Spring 2000 SOURCE: Development Alternatives, Inc URL: http://www.dai.com/pdfs/Developments_Spring_2000.pdf NOTE: DAI is a private consulting firm based in Bethesda, Maryland, USA. It is popularly viewed, at least in countries like the Philippines, as a "front organisation" for the US government since it carries out a lot of contract work for them. While the following report was published three years ago, it is still very instructive about how plant breeders' rights laws get established in developing countries. All of the projects it accounts for were funded by USAID ( http://www.usaid.gov ). "The key to DAI's strategy in the Philippines [was] to separate PVP from controversial issues of GMOs and the rights of indigenous communities." Developments | Spring 2000 DAI A TOP BANANA IN SECURING PLANT BREEDERS' RIGHTS Lawrence Kent and King Bash In the first half of the 20th century, in an attempt to encourage agricultural research, the United States began issuing patents to plant breeders. Through these patents, breeders were given exclusive ownership rights over the commercial use of varieties for a predetermined number of years. By the second half of the century, many Western countries had adopted similar patent systems for plants and had developed a streamlined legal mechanism to protect the rights of breeders, a system known as plant variety protection (PVP). The experience of these countries shows that an effective PVP system provides incentives for plant breeders to develop new, improved plant varieties. Over the past 10 years, interest in PVP has grown considerably in the developing world, as governments have come to appreciate the importance of rewarding their breeders and encouraging the development of improved varieties. Effective PVP systems encourage foreign plant breeders and seed companies to introduce their proprietary varieties without fear that they will be pirated with impunity. The World Trade Organization requires its members to develop PVP systems in accordance with the Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement, signed by more than 140 countries. The development of PVP legislation and implementation capacity is not simple, and a number of countries -- Nicaragua, Egypt, the Philippines, Morocco, and Sri Lanka -- have turned to DAI projects for assistance. PROMOTING PVP WORLDWIDE In Nicaragua, the Ministry of Industry and Trade developed draft legislation for plant variety protection in 1998, but the legislation did not meet international standards as established by the International Union for the Protection of New Varieties of Plants (known by its French acronym, UPOV). Meeting UPOV standards is essential in assuring international seed companies that a PVP law is comprehensive and their varieties can be protected. DAI's Seed Production Improvement Project assembled a team of PVP experts from Colombia, Costa Rica, the United States, and Uruguay to recommend changes needed in the draft law to make it UPOV-compliant. Subsequently, DAI conducted 15 public seminars and workshops to raise awareness and build support. The PVP legislation generated heated debate in the National Assembly. Misinformed environmental groups raised objections and attempted to link PVP with genetically modified organisms (GMOs), despite the fact that PVP is unrelated to the approval of GMO releases. The Ministry of Agriculture countered the environmentalists' arguments, explaining that PVP encourages traditional breeding, increases crop diversity, and reduces susceptibility to pests, thereby improving agricultural productivity. In November 1999, the National Assembly passed the PVP law. After the law's passage, DAI provided technical support to implement the PVP system. DAI sent public officials on a study tour to review the PVP system in Argentina, which, like the United States, relies on data submitted by breeders, rather than field trials conducted by government agencies, to assess PVP applications. DAI also provided support in defining regulations for implementing the PVP law, including application and registration procedures. DAI continues supporting PVP databank management and training. In Egypt, the Agricultural Policy Reform Program responded to a government request in 1998 to provide support for developing PVP legislation. DAI and the government decided to address the details of PVP through a ministerial decree, which is relatively easy to issue, and to address the broader issues of PVP in a short chapter of a more comprehensive law on intellectual property rights. This strategy allowed the People's Assembly to support PVP without being able to introduce changes in the detailed decree that could threaten its conformance with UPOV standards. In 1999, DAI and the Ministry of Agriculture developed a detailed decree for PVP and shared drafts with the UPOV Secretariat in Geneva until it was judged to meet that organization's exacting standards. Once the People's Assembly passes the intellectual property law, perhaps as early as June 2000, the ministry will issue the decree and formally join the UPOV treaty. Throughout this process, DAI has generated support for PVP through workshops, training sessions, and ongoing dialogue with the Egyptian Seed Association, a private-sector organization that has advocated for the legislation. DAI's next task will be to assist the ministry in developing an office capable of recording the property rights of both Egyptian and foreign plant breeders. In the Philippines, DAI is involved in a similar process, through a project called Accelerating Growth, Investment and Liberalization with Equity. DAI is working with the Department of Agriculture, redrafting PVP legislation to make it compliant with UPOV standards. DAI also is advocating for the PVP law in Congress, where it is pending. The key to DAI's strategy in the Philippines is to separate PVP from controversial issues of GMOs and the rights of indigenous communities. These issues are governed by separate legislation that requires environmental clearances before GMOs can be tested or marketed and that protects the rights of indigenous groups. DAI took key officials and congresspersons to Argentina and the United States to learn about PVP programs and legislation. The Filipino Congress is expected to pass the PVP law within the next few months. Anticipating the passage of the law, DAI staff have been preparing the ground for its implementation by helping the Department of Agriculture develop rules and regulations, and establish the PVP board, which is responsible for registration and enforcement of breeders' rights. In Morocco, DAI has extensive experience with PVP. Until recently, Moroccan farmers lacked access to many of the best new varieties because international companies were reluctant to introduce them without legal protection of intellectual property rights. DAI's Agribusiness Promotion Project in Morocco helped convince the Minister of Agriculture and private agricultural associations that a PVP law was needed. DAI raised awareness of PVP issues and stimulated a debate that led to Parliament passing a PVP law in December 1996. Subsequently, DAI, Michigan State University, and the U.S. Department of Agriculture helped Morocco implement its PVP program, including a computerized national plant registry. Thanks to the PVP law, Moroccan agribusinesses gained access to new, proprietary plant varieties such as raspberries, low-chill peaches, nectarines, and apricots. In Sri Lanka, DAI's Agro-Enterprise Project also has supported PVP legislation and implementation. The project was instrumental in identifying and introducing improved seeds and vegetative planting materials to Sri Lanka, including bananas, corn, flowers, and ginger, as well as recognizing breeders' rights by encouraging the payment of royalties. A GROWING MARKET FOR PVP SUPPORT Increased awareness about the importance of intellectual property rights, including PVP, and the obligations imposed by the TRIPS Agreement mean that many more countries will seek support to create PVP systems. These systems not only must be adapted to the administrative capacities of the host countries, but they also must meet the international standards needed to attract the best varieties owned by international companies. DAI plans to take advantage of its growing corporate capabilities in this field so more and better crop varieties will be available to farmers in the developing world.