Ivo Sedláček General Manager SELGEN, a.s. SEMINAR ON THE BENEFITS OF PLANT VARIETY PROTECTION SOFIA, September 20, 2018 Ivo Sedláček General Manager SELGEN, a.s.

Contents of presentation 1. Introduction of SELGEN, a.s. 2. National PVP system in the Czech Republic 3. Royalty collection managament National FSS systém FSS remuneration 6. Statistics

Introduction of SELGEN a.s Since 1903, Selgen, a.s. (PLC) has employed leading agricultural specialists and is engaged in the breeding of new varieties of field crops. For over 110 years, Selgen, a.s. has bred and registered hundreds of varieties throughout our breeding stations. These varieties have made a significant contribution to plant production. As Selgen, a.s. grew, we narrowed our focus to what we do best, field crops. As we eliminated some field and garden species, we significantly increased our specialization and deepened our knowledge of field crops. Selgen, a.s. currently operates five breeding stations and one testing centre. While each of our breeding stations is specialized to breed specific crops, individual departments cooperate in field testing throughout the Czech Republic. Selgen, a.s. also tests throughout the world and selects perspective lines based on their suitability for different climatic conditions.

National PVP system in the Czech Republic Legal basis of the national PVP system – Act. No. 408/2000 Coll., on the Protection of Plant Variety Rights This national Act define besides other things: the conditions and requirements for conferring the rights to the varieties exclusive right on the holders of the breeders right to the protected variety to exploit the seeds of such variety other persons may use the protected variety on the basis of a written contract only Licence fee has to be integral to this written contract farmers exemption – gives the farmers the right to use FSS without the consent of the owner of the variety in question. The Law presribe the conditions for using this exemption.

Royalty collection managament Seed company conclude the license contract with the breeder Contract is in force one year License fee is paid of sold certified seed /per ton/ Value of license fee depend on the variety and the generation License fee of the basic seed is higher than certified seed Sublicense owner has to notify to the breeder: - acreage of the variety applied for seed certification process - total amount of harvest - amount of sold certified seed Sublicense owner pay licenses directly to the breeder

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National FSS system Variety Owners Cooperative /DVO/, www.druvod.cz Authorization for protected plant varieties Questionnaire systeme Call for information strictly in accordance with the law Obligation to send requested information Participation of State authorities Free to choose possibilities, how report on FSS The right on verify of provided information by the farmers and processors Administrative Delicts

FSS remuneration FSS remuneration pay the farmers to the owner of plant breeders rights cross DVO Value of FSS remuneration is 50% of the usual price of the certified propagating material The amount of remuneration is determined per one hectare of area under crops Price list is created on the basis of the written authorization granted yearly by the DVO members DVO invoices the remuneration to the farmer DVO informs his members about amounts of remuneration collected in the relevant period and monthly transmit all collected money to the relevant breeders right holder FSS remuneration has to be payed within 6 month of the effective date of this obligation The obligation to pay the remuneration does not apply to small farmers /farmer who grows plants on arable land less than 22 hectares/

Statistics Information on the use of seeds (sowing period 2016) Crop Total area sown area sown by FSS % of the total area sown by certified seed total remuneration collected for use of FSS of protected varietes ( EUR ) estimate of license fees collected on certified seed ( EUR ) ha % Winter wheat 785 499 209 436 26,60 62,80 1 199 124 5 916 783 Winter barley 97 178 21 862 22,40 73,10 113 545 556 596 Spring wheat 30 600 4 707 15,30 68,60 24 550 398 695 Spring barley 221 719 40 980 18,40 77,40 221 774 2 147 468 Oats 37 566 11 937 31,70 58,90 55 706 298 901

Thank you for your attention Ivo Sedláček sedlacek@selgen.cz