2. Intellectual Properties in Roses Some practical examples Ir. P.G. Cox and Jelena Zelincevic Attorney at Law and IP Agent Novi Sad 22 05 2014

3. Programme – My C.V. – Structure of my companies – Introduction to the rose market – Breeding of roses – Yearly breeding effort and breeding cycle – Research effort: winterhardiness – Yearly costs of breeding – How can we protect our investments? – Licence contracts

4. My C.V. 1959 Born on a small rose-farm 1977 Start MSc horticulture in Wageningen: Marketing, Business Administration, Roses 1983 Teacher/lecturer in Marketing/Business on secondary school and BSc level 1989 Director of new Department Business Administration HAS Den Bosch 1996 Director Horatia BV 2009- 50 % director of Holeja Group 50 % breeding activities Pheno Geno Roses Hobbies: travelling, cooking Married, 2 children

5. Structure Roath bv Holeja, NL 100 % Leja NS, Serbia100 % Dekoplant, Ukraine 52 % France Vegetaux, France 25 % Pheno Geno Serbia90 %

6. Introduction to the Rose market Major markets: total 80 million roses in Europe yearly Consumer Market: 2/3, but only 30 % are licensed 2006 2012 1.(4) United Kingdom12 %20 % 1.(-) Russia 0 %20 % 1.(5) Other Eastern-Europa10 % 20 % 4.(2) France22 %15 % 5.(1) Germany25 %10 % 6.(3) Netherlands18 %10 % 7.(7) Others 8 % 5 % 8..(6) Japan 5 % 0 % Total 100 % 100 % Landscaping Market: 1/3, but 70 % are licensed

7. Breeding of Roses theorypractice

8. Yearly breeding effort 40.000 crosses 200.000 seeds 50.000 seedlings 100.000 test roses

9. Figures of 1 breeding cycle 2012 Motherplants: 1500 pots = 300 genotypes 2013: 40.000 crosses 2013: 185.000 seeds 2014: 50.000 seedlings 2015: after 2 jaar selection: – 200 varieties * 10 = 20.000 budded in 1 year – Yearly total budding > 100.000 roses 2016-202019: selecting and testing budding larg numbers 2020: apply for plant breeders rights 2021: market introduction 10 - 12 new varieties

10. Breeding for Winterhardiness Winterhardiness Marker Assistent Selection: Hyper-rose project Winterhardiness test trials: – mother plants – F1 Compare hardiness on own roots in Wageningen and budded in Ukraine and Serbia

11. Yearly costs of breeding Direct costs as plantmaterial: € 30.000 Labour costs: €200.000 Costs of Investments: € 30.000 Research costs: € 100.000 - € 60.000 Legal costs: € 0 - € 40.000 Marketing Introduction€ 50.000 Overhead-costs € 40.000 Total yearly costs€ 450.000 To be earned back by future license

12. How can we protect our investments? 1.Plant Breeders Rights on a variety: – European Plant Breeders – Plant Breeders Rights in 1 or more countries 2.Trade Mark Protection on a collection: – European – In 1 or more countries 3.Patent Protection on an new invention: – European – In 1 or more countries

13. Protection of Milly Winterjewel, Bozmillwin 1.Plant Breeders Rights on a variety: – European Plant Breeders: Bozmillwin, in process – Plant Breeders Rights in Serbia: Bozmillwin, in process 2.Trade Mark Protection on a collection: – European: Winterjewel®, in research – In 1 or more countries, in research 3.Patent Protection on an new invention: – We have an agreement that Plant Breeding from WUR can do this on certain part of the outcome of the research on winterhardiness

14. Licence Contracts 1.License for testing new varieties: – Just for testing ! 2.License for marketing and propegation of our varieties: – Non-exclusive right to propegate and sell certain varieties in annex – License fee per sold or propegated numbers – Control 3.Sub-license for propegation of our varieties: – Right to propegate and sell certain varieties in annex only to 1 Licensee mentioned in contract

15. Questions?