Enhancing the Effectiveness of the PVP System in the Next 10 Years

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Enhancing the Effectiveness of the PVP System in the Next 10 Years Junya ENDO Director Intellectual Property Division, Ministry of Agriculture, Forestry and Fisheries (MAFF), Japan 1

Outline 1. Review of the PVP System in Japan 2. Impacts of Operating the PVP System in Japan 3. Future Strategy for Enhancing the Effectiveness of the UPOV system in the next 10 years 2

1. Review of the PVP System in Japan 3

History of PVP System in Japan The UPOV Convention 1961 Adopted (Entry into force in 1968) JAPAN 1972 Amendment 1978 Amendment (Entry into force in 1981) 1991 Amendment (Entry into force in 1998) 1978 Plant Variety Protection and Seed Act 1982 Accession to the UPOV Convention (Act of 1978 ) 1998 Full-Amendment on Plant Variety Protection and Seed Act ( The Act ) Accession to the UPOV Act of 1991 2003 Amendment on The Act -Expansion of coverage of penal provisions to harvested material 2005 Amendment on The Act -Expansion of the effect of PBR to products made directly from harvested material 2007 Amendment on The Act -Improved procedure for civil remedy and strengthening of penal provisions etc. 4

Outline of the PVP System in Japan License Fee - Variety Registration and the Granting and Protection of Plant Breeder's Right under the Plant Variety Protection and Seed Act - Breeder (new variety) Plant Breeder's Right The holder of a breeder's right has an exclusive right to, in the course of business, produce, transfer, export, import and store, etc. propagating material," harvested material and processed products" of registered varieties. User Authorization Application Granting of Breeder s Right Measures against infringement Unauthorized user Duration of PBR: 30 years for perennial plants 25 years for other plants On site Inspection Intellectual Property Division, PVP Office, MAFF Examination and registration Claim for Civil Remedy Injunction, compensate for damages, restoration of credit, etc. Criminal penalties (Customs Law) NCSS Imprisonment with work or fines Control of export and import of varieties infringing the breeder's right at the customs 5

1978 Applications and Grant of PBRs 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 number 1600 1400 1200 Application Foreign Granted Party to the Act of 1991 1000 800 600 400 Party to the Act of 1978 200 0 year 6

Protected Varieties by Types of Crops 17% 5% 5% 7% 5% 61% Food crops Vegetable Fruit crops Flower Ornamnetaltree others (FY 1978-2010, Total Number: 20,779) 7

Foreign-bred Protected Varieties by Country 6% 2% 15% 6% 6% 35% Netherlands Germany USA Israel France Denmark Asia Othres 13% 17% (FY 1978-2009, Total Number: 7,806) 8

Protected Varieties by Breeder s Status 6% 1% 10% 4% 27% 52% Individual Food company Local government Seeds and seedlings company Agricultural cooperative National research institution (FY 1978-2010, Total Number: 20,779) 9

Protected Varieties by Breeders Status Crop Type Individual Seed company Local government (~March 31,2009) National government Food company Agricultural cooperative (subtotal) Others (823) 49 244 187 186 181 12 Fruit crops (1,054) 467 143 237 128 31 48 Vegetable (1,253) 194 419 327 89 188 36 Food Crops (977) 74 32 527 245 82 17 Ornamental Plants (14,011) 3,988 8,679 55179574140 0% 20% 40% 60% 80% 100% 10

Organizational Arrangement for PVP in Japan MAFF (Ministry of Agriculture, Forestry and Fisheries) Intellectual Property Division Administration of IP & PVP Promotion of Seed Industry Supervision of NCSS, etc. PVP Office Establish Test Guidelines Examine DUS, Novelty, Denomination Examiners (23) National Center for Seeds and Seedlings (NCSS): Incorporated Administrative Agency HQ and 10 stations, 1 sub-station DUS Test (60 staff) Production of Foundation Seeds Seed Inspection, etc. 11

Location of NCSS Stations Headquarter Unzen st. Ornamental plants, vegetable Yatsugatake st. Ornamental plants Nishi-Nihon st. Ornamental plants, crop Headquarter DUS test division Test design, instruction 12

Website of PVP Office in Japan http://www.hinsyu.maff.go.jp/en/en_top.html 13

2. Impacts of Operating the PVP System in Japan 14

New Varieties as a Building-block for Development of Agriculture Comparative disadvantages surrounding Japanese agriculture - Small holdings in narrow and steep mountainous area - Aging farming communities - High costs for farming inputs, facilities and labor Global tendency toward free trade is adding an additional pressure on Japanese agriculture Basic strategy for development of agriculture Supplying agricultural products meeting consumers demands by; - use of unique varieties - application of advanced agricultural practices PVP system facilitates breeders incentive for developing innovative varieties 15

Impact of New Varieties - historical increase in rice yield - Yield ( t/ha) 5 4 3 2 1 Improvement of rice variety Koshihikari Nourin 1 gou Sasanishiki pesticide cultivator fertilizer Hitomebore Nihonbare combine harvester rice planter Koshihikari BL Hinohikari Akitakomachi 1890 1900 10 20 30 40 50 60 70 80 90 2000 year 16

Top 10 Varieties of Rice 1 Koshihikari 2 Hitomebore 3 Hinohikari 4 Akitakomachi 5 Kinuhikari 6 Nanatsuboshi 7 Haenuki 8 Kirara397 9 Tsugaruroman 10 Masshigura registered (=protected) variety as of Jun, 2011 ex-registered variety (rights already expired) the brand KOSHIHIKARI includes both registered and non-registered varieties; old variety Koshihikari is not registered, while new varieties of Koshihikari BLs are registered (all the BLs are bred with a parent with resistance to different races of rice blast disease, back-crossed with Koshihikari) 17

Ashiro Rindo (Gentiana L.) (Successful Case of Breeding-oriented Development of Farming Community) (1) Ashiro, the small mountainous area in northern Japan, has engaged actively in breeding of Gentian to compete with other area. License for production of these varieties is given only to farmers of Ashiro in order to maintain high quality and to protect the Ashiro brand. Ashiro mountainous area of about 6,000 Lovely Ashiro Ashiro no natsu Ashiro is also successfully exporting cut flowers to EU market throughout the year with Ashiro brand. by granting license for production to growers in New Zealand and Chile where seasons are reverse. Needless to say, PBR on the series of Ashiro gentians in each country is essential to protect their varieties. Now, Ashiro is trying to expand, with Chilean production of cut flowers, their market to the US. 18

Ashiro Rindo (Gentiana L.) (Successful Case of Breeding-oriented Development of Farming Community) (2) Cut flowers produced in NZ and Chile are exported to EU and US markets to achieve year-round supply of Ashiro brands EU Supply through the year LovelyAshiro Japan USA Export of cut flower Supply of seed and seedling Chile New Zealand 19

(Million Yen) (million dollars) 1400 (16) 1200 (14) 1000 (11.6) Variety Bred by Iwate Prefecture Domestic Sales of Ashiro Rindo Mashiry Ashiro no Aki Lovely Ashiro Crystal Ashiro 800 (9.3) Giovanni Ihatovo Ashiro Hitomi Ashiro Hatsu aki Ashiro2007 no 1 Ashiro2007 no 2 600 (7) 400 (4.6) Iwate Otome Ashiro no Natsu Meruhen Ashiro Shine Blue Ashiro 200 (2.3) Original Varieties 0 1973 1978 1983 1988 1993 1998 2003 2008 year Ashiro no Natsu and Ashiro no Aki currently have a share of 30% in Japanese Rindo cut flower market (2005) 20

Zespri Gold (Successful Case of Introduction of Foreign-bred Variety) (1) Zespri Gold New variety of kiwi fruit, bred by a NZ company. PBR holder is a NZ private company Authorization of production and sale of Zespri Gold given to Japanese farmers 21

Zespri Gold (Successful Case of Introduction of Foreign-bred Variety) (2) Production of Zespri Gold in Ehime Prefecture Zespri Gold in Ehime Prefecture Production:258 tons Sales:more than 1.4 M USD Share in the prefecture: 3.1% (Weight) Unit price:5 dollar/kg 2005 2008 Production:1,300 tons Sales : more than 6.8M USD Share in the prefecture: 14% (weight), 20%( sales) Unit price: 5 dollar /kg Kiwi Fruit in Total in Ehime Prefecture Production: 8,300 tons Sales: 28 M USD Unit price: 3.4 dollars /kg Production: 9,600 tons Sales:34 M USD Unit price : 3.5 dollars /kg 22

Development of New Varieties of Fruit Crops Main varieties of fruits had not been changed for many years. In recent years, development of new fruit varieties have been increasing gradually and shift in cultivated varieties has been taking place. - Apple (increased) shinanosweet, shinanogold, akibae (decreased) Fuji, tsugaru, Ourin - Mandarin Orange ishiji, hinoakari Ootsu-4gou MiyakawaWase, OkitsuWase, Aoshimaunshyu - Pear akiduki kousui, housui 20seiki underlined varieties : protected varieties 23

3. Future Strategy for Enhancing the PVP system 24

Future Strategy 1. Acceleration of Examination Shorten the period of examination 2.6 years (at present) => 2.3 years (in 2014) 2. Enhancement of measures to infringement Improvement the system of G-men Development and enhancement of the analysis of DNA variety identification 3. Active promotion of the EAPVP Forum 4. Promotion of Cooperation in Examination 25

Thank you for your attention! 27