End Point Royalties
Frequently Asked Questions
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End Point Royalties (EPR) - General Information
What are End Point Royalties?
End Point Royalties are a type of levy on the total grain produced from the seed and replaces the seed royalty.
Traditionally royalties on most crops were collected at the point of seed sale as part of the seed cost. Breeders are now electing to apply End Point Royalties on newly released varieties as a more equitable mechanism for generating a revenue stream back to the breeder.
End Point Royalties are not restricted to PBR varieties and maybe used through a common law contract to generate a revenue stream on any variety.
What are the benefits of End Point Royalties?
Traditional seed royalties increase the initial purchase price of the sowing seed, however End Point Royalties are calculated on the resultant grain produced from the purchased seed. Royalties based on production rather than seed purchase are considered the most equitable means of ensuring continued investment in plant breeding.
The Australian grain industry needs new varieties to remain competitive in world markets and the development of improved varieties through breeding is vital to future success. End Point Royalties is a user pays system that enables the grower to produce the variety and contribute proportionately based on its success rather than increasing seed costs.
How do End Point Royalties affect growers?
Growers are responsible for the payment of the End Point Royalty.
Growers are also responsible for retaining records regarding the tonnage of EPR grain either sold or retained. Any grower retained seed and successive production from this seed is subject to the terms and conditions of the license agreement and payment of royalties.
How do Growers pay End Point Royalties?
If grain of the variety is delivered to selected grain buyers payment of the EPR will be automatically deducted from the grower payment.
If delivery is made to a grain buyer that does not automatically deduct the royalty then the grower is invoiced directly for the EPR. Grain that is consumed on farm for stockfeed is also EPR applicable. Grain that is retained for future planting however is exempt.
Grower declarations, grain delivery information and contract auditing are all used to ensure appropriate EPR's are being collected.
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About PlantTech's e.EPR
What is e.EPR?
e.EPR is an online solution for End Point Royalty management of PlantTech EPR varieties. It eliminates the need to fill in and sign a seed license agreement each time you purchase a PlantTech EPR variety. E.EPR means you register only once. Paperwork is further reduced as your delivery & storage schedules and other correspondence can be delivered via email.
How do I register for e.EPR?
e.EPR registration is simple, just go to the PlantTech website www.planttech.com.au Click on the End Point Royalties section and select 'New Grower Registration', and fill in your details including a secure password. It is essential that you read and agree to the Terms and Conditions to continue with the application. To do so click on 'I agree'. Once the registration data is complete please click to 'Process Application' to submit your details. Your registration is immediate and you will receive an email to the address nominated which will contain your Grower Code and secure password for your records. Alternatively, if you do not have an email address this information will be mailed to your nominated postal address.
What if I forget my e.EPR Grower Code and Password?
Don't worry, if you have forgotten your e.EPR grower code you can log onto www.planttech.com.au and click on the highlighted 'Forgotten Your Password?' Enter the email address you registered for your e.EPR registration data, click on 'Process Application' and we will immediately email your e.EPR grower code and password. Your PlantTech distributor can also look up your e.EPR grower code for you.
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Frequently Asked Questions
Why are some varieties EPR applicable and others not?
EPR's are introduced on a variety by variety basis. The EPR system has been in place for about 7 years and hence a lot of older varieties are not applicable. Most new varieties are included as breeders and variety owners find the EPR system a more efficient and effective way of collecting and equitable return.
What costs are included in the EPR rate?
The EPR rate is comprised of royalty component payable to the owners of the seed variety and a commercialisation component. This is a flat rate that is charged by the dollar amount per tonne and is exclusive of GST.
Why does the EPR rate vary from variety to variety?
The EPR rate has been set taking into account:
- Market trends and likely future grain prices for each of the species (wheat, barley, lupins etc)
- The potential benefits that growers are likely to derive from the variety - For example improved yields, price premiums etc.
- The cost imposed by the commercial seed companies in collecting the EPR.
How long will an end point royalty be payable on a variety?
The EPR will be payable for the life of the variety in the market place(up to a maximum of 20 years), where a variety is protected under the Plant Breeders Rights Act (1994).
This means an EPR will be collected on grain produced from the sowing of either purchased seed or farmer retained seed of the nominated variety.
Does the EPR system allow for Farmer to Farmer seed sales?
No. The mechanism for collecting EPR's does not allow the sale of seed by growers. In addition it is illegal for any variety protected under PBR to be sold 'over the fence' by growers.
Do I need to complete a Delivery & Storage Schedule if I have had a Crop Failure?
Yes. PlantTech has a responsibility to report back to the breeding organizations all production details, even if there are crop failures and there is no royalty to be paid.
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Plant Breeders Rights (PBR)
What is Plant Breeders Rights?
Plant Breeders Rights (PBR) is a form of intellectual property, similar to patents and copyright. PBR legally empowers the holder of the right to prevent the unauthorized sale or use of a protected variety which include: production, reproduction, conditioning, sale, import, exports and stocking of the material as specified in the Plant Breeders Rights Act 1994.
Why do we need PBR?
PBR in Australia allows for cost recovery and returns on investment from breeding. This gives incentive to invest in plant breeding programs, which in turn adds value to rural industry by producing superior varieties. PBR also ensures the flow of genetic material from overseas. This allows improved varieties to be released into the Australian market, while the breeder's rights remain fully protected.
How does PBR affect the grower?
Purchase of a PBR protected seed variety means that growers face restrictions on the use of the variety. The major restriction is that seed or grain, either purchased or produced from subsequent harvests, cannot be sold, traded, bartered or gifted as seed for sowing.
The conditioning and use of farm saved seed, strictly for the farmers own use, does not infringe PBR. If a person engaged in farming activities legitimately obtains seed and subsequently harvests further seed from the plants grown for their own ongoing use only, the PBR are not infringed.
It is important to note that an agreement signed at the time the variety is purchased may pose additional restriction on the use of the material.
How do I know if I am buying a PBR registered variety?
A full list of PBR protected varieties is available for downloading from the PBR office website at www.affa.gov.au . Individual variety queries can be directed to the PBR office on ph (02) 6272 4228. All PBR varieties have the following symbol attached to their names.
What are the penalties for infringing PBR?
The PBR owner may initiate legal action seeking damages or an account of profits for infringements of PBR. The PBR act provides for additional penalties for infringement of up to $55,000 for individuals and $275,000 for companies.
