“Most countries in the world do not have a system for plant patents. Instead, new plants can be protected using utility patents (simply called ‘patents’ in some countries) and plant variety rights or plant breeder’s rights,” she said. “Utility patents protect inventions that are novel, inventive (‘non-obvious’ in the United States), and industrially applicable. In other words, the inventions must not have been disclosed in public, must not be obvious modifications of known technology, and can be used in industry. Such inventions can encompass particular genes, traits, methods, parts of a plant or genetically modified plants. Naturally occurring organisms are excluded from patent protection, so a plant breeder may consider protecting a newly discovered plant variety using plant variety rights instead.”
Impacting florists, growers and consumers
PVRs incentivize breeders to invest in developing new and improved flower varieties, knowing they will have a period of market exclusivity to benefit from their work, according to Bellchambers. She said that this leads to a greater diversity of flowers available to growers and consumers.
“Protected varieties can be more expensive than traditional varieties during the time the PBR is in force. This allows the breeder to recoup their initial investment. Without this economic incentive, varieties with desirable new traits such as longer flowering or new colours would be less likely to be produced,” she said.
“However, once the PBR has expired, the variety can be reproduced by third parties. This encourages competition between growers and therefore the price for older varieties can be lower,” Bellchambers noted. “In the context of a bouquet or a garden, the mix of new varieties and more traditional varieties will mean any price difference due to the use of protected varieties is likely to be modest.”
“An undervalued feature of the PBR system for smaller countries is that it encourages local nurseries to licence and import new varieties into the country. The importation process can be expensive and time-consuming. For example, in New Zealand, it can take several years and many thousands of dollars to import plant material due to our strict biosecurity rules. The availability of PBR protection means the nursery that handles the importation is able to recover some of its costs while consumers are able to benefit from new varieties produced by the larger breeding programmes in Europe and the United States,” she explained.
For Malcolm Lyons, a principal at Griffith Hack in Melbourne, industry sources, although aware of IPRs covering flowering plant varieties, have not reported any difference in cost or availability of those varieties because of the IPRs. “In Australia, the main cost factor for varieties not available locally is importation, and the main factor for availability is adverse weather in the growing region and demand for the variety. IPRs generally make available varieties that otherwise would not be available without innovation and IPR protection,” he added.
Challenges when enforcing plant patents
In terms of challenges when enforcing plant patents, especially once patented flowers enter global supply chains, Lyons said that one challenge is determining whether the patented flower has been derived from a licensed or authorized grower, as the flowers in licensed global supply chains may look identical to flowers supplied through unlicensed supply chains.
“Chasing the chain of suppliers and identifying any unlicensed growers can be challenging. Patentees should keep lists of licensed growers and tight control over their activities and numbers of flowers supplied, so they can better monitor for infringing flowers through unlicensed supply chains on the market. As patented flowers are often exported to many other countries, and usually in large numbers, it is often challenging to maintain such knowledge and control of unlicensed flowers in all the patented markets,” he said.
He added: “Once a plant covered by an IPR enters the global supply chain, it will only be possible to enforce rights over the plant in jurisdictions in which the IPR has been granted. Generally, an IPR owner will have considered its potential markets before offering the plant for sale, meaning that there are likely IPRs in the jurisdictions into which the plant is imported. However, plants may be exported via non-IPR jurisdictions where there is less monitoring, into IPR jurisdictions. It is important for patentees to have trusted networks in the patented jurisdictions to monitor for unlicensed flowers, especially if these have come through non-IPR markets.”
According to him, another challenge is the limited shelf life of patented flowers once they have been cut from the plant. “This makes obtaining evidence of infringing activities more difficult than traditional product patents. More education around plant patents to downstream customers such as florists and flower retailers may help in obtaining details about infringing suppliers,” he said.