Vilmorin & Cie - Annual report 2017-2018

ANNUAL REPORT Vilmorin & Cie 122 2017-2018 Social, environmental and societal INFORMATION 4 The role of seeds in climate change adaptation and input* reduction Vilmorin & Cie has defined a research strategy focused on improving yield, disease resistance, better adaptation to climates and territories, and improving nutritional qualities. These research areas should help farmers to adapt to climate change and reduce inputs* (especially plant protection products and water), while ensuring optimal productivity. For example, the Limagrain Europe Business Unit, in collaboration with the French Seed Association (UFS) , participated in the drafting of the “Plant Production Product Savings Certificate” (CEPP) file entitled “Reducing the number of treatments using soft wheat varieties that are fairly resistant to pests, diseases and lodging” , produced by Arvalis Institut du Végétal , in order to highlight the advantages of genetics as an alternative to plant health treatments. This CEPP file was published in the French Official Journal on December 12, 2017. Among the eligible varieties, 11 varieties registered by Limagrain Europe are currently listed. Protecting plant breeding Plant breeding requires time and ever-changing technologies. It takes an average of 7-10 years to develop a new variety. And so Vilmorin & Cie pays particular attention to the protection of the rights of the creators of new varieties, an essential source of funding for research. It is an essential vector of innovation for the continuation of genetic progress and plant improvement. In addition, access to the broadest possible genetic variability is a necessary condition for the overall advancement of varietal progress. In this context seed companies use the following systems of plant variety creation protection: Proprietary Variety Protection Certificates (PVPC) The most advanced right in this domain is the PVPC , a title of intellectual property created at the convention of the International Union for the Protection of New Varieties of Plants (UPOV). Created specifically for plant breeding*, its objective is to encourage breeders* to create new varieties while leaving access to genetic variability open. In particular it protects the ownership, production and sale of the commercial variety for 25 years. However, it integrates two fundamental elements: The breeder’s* exemption: a commercial variety protected by a PVPC can be used without financial compensation by another breeder* in order to create a new variety with characteristics that are original and distinct from the first variety used. The farmer’s exemption: in certain conditions (payment of royalties* to compensate the breeder’s* research investment, etc.) and for certain crops (wheat, barley, oats, rye, rapeseed, etc.), the PVPC authorizes the farmer to use a part of his harvest to re-sow in his own plots the following year. Patents Unlike the PVPC , which is dedicated to the protection of plant varieties, the scope of patents is much broader, covering numerous fields of activity, and often for industrial purposes. They grant its holder authorization for exclusive use of the invention for a limited number of years and in a defined geographical region. In return, all information concerning this invention is made available to the general public. Depending on different countries and their respective legislation, patents can cover different aspects of plant breeding*: breeding* processes, varieties themselves (in a very limited number of countries), elements (genes, etc.) of the plant, or even the plant itself. Consequently, all seed companies that wish to use a variety that comes under a patent are required to ask for authorization and pay rights. Today, the United States, Japan and Australia allow for the dual protection of plant varieties, by patent and PVPC . In Europe, only the PVPC is authorized to protect a plant variety. At the same time, patents are used to protect other inventions in the area of plant innovation, excluding essentially biological processes. In countries that recognize it, Vilmorin & Cie favors the Plant Variety Protection Certificate (PVPC) for the protection of its plant varieties. It also uses the Invention Patent to protect its biotechnological innovations. However, if the competitive, legal and economic context in a country requires Vilmorin & Cie to protect its commercial varieties by patent, it respects its founding principles by granting licenses in all cases to use its varieties as a source of genetic variability. Vilmorin & Cie believes that these two systems must co-exist, provided that intellectual property systems allow the widest possible access to existing genetic resources*. In this context, the principle of the breeder’s* exemption must be a fundamental part of any intellectual property system applied to plant innovation. 4.3. Conducting activities in an ethical, sustainable and effective manner