CPVR filings fell in 2023: what it signals and what breeders can do next

In 2023, there was a notable decrease in applications for Community Plant Variety Rights (CPVR) across various crop sectors, particularly in ornamental varieties, with 201 fewer applications recorded from January to September compared to the previous year. Of this decline, 34.8% pertained to the ornamental sector. The primary causes of this reduction are not yet pinpointed, but it is believed to be a consequence of the lingering effects of the Covid-19 pandemic, exacerbated by adverse weather conditions in key production areas and the volatile global political and economic landscape. The latter contributed to escalated shipping and electricity costs for the plant industry.

Despite these challenges, the market, particularly for cut flowers, demonstrated resilience. Some businesses adapted by adjusting their strategies, focusing investments on selected varieties. Notably, ornamental crops still lead in CPVR applications.

Higher fees, and what breeders can do

However, additional repercussions on application rates are anticipated in 2024 due to fee increases implemented by the CPVO in July 2023, responding to elevated energy costs and inflation in Europe post the Covid-19 crisis. To address this, breeders can explore two main remedies:

• To reduce examination costs, breeders may initiate a national Plant Variety Right (PVR) application and subsequently seek protection extension from the CPVO. DUS reports from a non-EU examination office may also be considered in certain circumstances.
• Until December 8, 2023, small and medium enterprises (SMEs) can apply for admission to the SME Fund, securing a 50% refund on national PVR or CPVR application fees. This initiative may extend into 2024, with discussions ongoing about extending the PVR Voucher for partial reimbursement of technical examination fees.

Do not lose a right to a missed invoice

The decline in registration applications has been paralleled by an increase in CPVR cancellations, primarily attributed to late payment of annual fees due to human error. Breeders are urged to promptly pay annual fees upon receipt of debit notes to avoid unfavorable outcomes.

After Nadorcott: compliance across the chain

In addition to economic challenges, breeders face significant hurdles in combating third-party infringement activities, particularly after the "Nadorcott" decision exposed weaknesses in provisional protection and protection of harvested material under the UPOV Plant Variety Protection System. The floriculture sector, especially for cut flowers, is particularly affected during peak demand periods like Mother's Day or Valentine's Day.

To enhance intellectual property (IP) compliance across the value chain, industry operators are advised to:

• Source plants and flowers from legitimate sources.
• Use variety denominations, trademarks, and trade names.
• Rely on certifications requiring IP compliance, such as Global GAP's updated Integrated Farm Assurance (IFA) standards.

It is emphasized that using and selling plants from unauthorized sources may constitute a PBR violation, impacting the entire value chain. The implementation of these measures is crucial to maintaining the commitment of plant breeders to innovation in agriculture and horticulture.