Case Study 13-A Color for All Seasons & A New Variety of Success

ADAMSON UNIVERSITY COLLEGE OF ENGINEERING CIVIL ENGINEERING DEPARTMENT CE 308-INTELLECTUAL PROPERTY | 50140 | MW | 5:00-6:30

Case Study 13-A Color for All Seasons & A New Variety of Success Submitted by: AGGABAO | DE LEMOS |GONZALEZ | LOPINAC | MAESTRE Submitted to: Dr. Tomas U. Ganiron, Jr.

Hello!

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A COLOR FOR ALL SEASONS ▪ Goods with specific geographical origin

▪ Research & development ▪ Partnerships ▪ Plant variety protection

▪ Licensing ▪ Branding & trademarks ▪ Commercialization

▪ Business results ▪ Planting in firm ground 3

What’s with Ashiro

Map

Ashiro, Japan

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a community with 6,000 population

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Iwate Prefecture

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Lush forests

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Clear rivers

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Country’s famous onsen (hot springs)

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Ashiro Rindo (Gentian)

1.

Goods with specific geographical origin

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Mr. Hideo Kudo ▪ In the late 1960’s, Mr. Hideo Kudo went to Tokyo to work in a construction Industry ▪ “It was really hard to leave my wife alone” ▪ 1971 Mr. Kudo and few Ashiro famers form a collective, Ashiro Gentian Growers (AGG) ▪ Deep blue gentians – significant in Buddhist 6

“

It was really hard to leave my wife alone

-Mr. Hideo Kudo

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Origin of Gentian grows on all continents except Antarctica and thrive in a variety of climates (deserts and savannas to rainforests and tundra)

87 genera and over 1,600 species of gentians growing around the world AshiroRindo (Gentiana triflora), is one of over 400 species that belong to the Gentiana genus of the Gentian family

occur in the forests and plains of temperate, alpine climates in Asia grow at an elevation :600 – 1,000 meters Requires: ▪ ample rain and sunshine ▪ nearly 2,000 hours of yearly sunshine (approximately 5.5 hours per day) 9

Origin of Ashiro-Rindo Unique type of Gentiana triflora (wild alpine flower ) Environmental Conditions:

▪ ▪ ▪ ▪

mountains rising to over 2,000 meters high

the cool temperatures (an annual average of 8.7 degrees Celsius) neutral to acidic soil that has excellent drainage rich in humus (organic matter found in soil)

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2.

Research and development

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Iwate gentian â–Ş 1972

a specialist at a local horticultural laboratory and developed the first new gentian variety â–Ş 1980 Ashiro.

the most popular gentian grown among farmers in

first new variety heralded the beginning of the development of a number of successful new gentian varieties

Mr. Kudo and AGG continued to develop new varieties specifically for the Ashiro climate.

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â–Ş 1955 the demand for gentians in Japan increased and the industry was starting to take off â–Ş the farmer and his partners decided that they could grow even more beautiful gentians of higher quality â–Ş if they undertook research and development (R&D) to develop new varieties, gentians with different flower colors and tones, uniquely shaped leaves, and plants that could also bloom in off-season

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Iwate Gentian

Ashiro no Aki and Ashiro no Natsu ▪ 1990 Ashiro no Aki and Ashiro no Natsu (autumn gentian and summer gentian) were developed ▪ Mid-2000’s these varieties had a 30% share of the domestic Japanese gentian cut flower market

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Ashiro no Natsu

Ashiro no Aki

NEW GENTIANS

AGG’s technique to remain competitive, these techniques included ensuring high standards are met for all new varieties.

More color of AshiroRindo, more fun!

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3.

Partnership

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Hachimantai Floriculture R&D Center (HFC) The main task of the Center is to work with local gentian farmers and help them develop new gentian varieties that can be successfully cultivated in Ashiro.

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Hachimantai Floriculture R&D Center (HFC) • September 2005

Ashiro, Nishine and village of Matsuo forms the city of Hachimantai â–Ş A new variety with high quality seed are produced and distributed to the farmers

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Hachimantai Floriculture R&D Center (HFC) â–Ş HFC and ACG decided to take it to the new level and sold them in international market

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Mr. John Moffatt • Southland Flowers, New Zealand ▪ Scientists, Institute for Plant and Food Research Ltd. (IPF) • 2005 HFC and Mr. Moffatt joined forces

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Mr. John Moffatt

“

Rhindo owns the varieties of gentians that we have jointly bred with genetic material coming from both countries.

We bred quite a lot of varieties and they perform differently in the different climates

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The advantage of three main purposes: 1. New Zealand’s location can provide Ashiro gentians to Japanese market during Japan’s off-season for the Ashiro gentians 2. Ashiro gentian will expand and can be recognize internationally 3. Mr. Moffatt and IPF may lead to new varieties of gentian

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Plant Breeders’ Rights (PBRs) ▪ Rindo International Ltd. (RI) to all jointly developed varieties with genetic material coming from Japan and New Zealand

▪ 2012 There are 13 new gentian varities pending

▪ HFC granted PBR’s 11 new varieties by - Ministry of Agriculture -

Forestry and Fisheries (MAFF) of Japan

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International Union for the Protection of New Varieties of Plants (UPOV) Convention

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Partnership Rindo International Ltd. (RI)

City of Hachimantai Ashiro Gentian Growers (AGG)

Institute for Plant and Food Research Ltd. (IPF) Mr. John Moffatt 26

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Plant Variety Protection

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Plant Breeders’ Rights (PBRs) ▪ New Zealand and Chile Among these varieties with granted titles are licensed

▪ 2012 HFC They had new 6 varieties and continuously more varieties are developing

1. Ashiro no Natsu (Registration No.7473) 2. Ashiro no Hatsuaki (Registration No. 15090) 3. Ashiro no Aki (Registration No. 4995)

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5.

Licensing

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Licensing Agreements •

Aim: to produce new varieties in New Zealand that had different colored flowers that could complement the off-season in Ashiro

•

RI partnership became the owner of all new IP

• Mid-2000s HFC and AGG also entered into licensing agreements with growers in the Republic of Chile (Chile) •

Chilean Growers ensures that Ashiro Varieties are available year-round.

Because of the reverse in seasons between Chile and Ashiro

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6.

Branding and Trademarks

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Ashiro-Rindo Trademark

•

Madrid System Registration #963353

•

Japanese National Application #5173992

• April 2008 ACG filed a trademark application for AshiroRindo’s name and stylized the logo via the Madrid System managed by the World Intellectual Property Organization (WIPO) • June 2009 Trademark was registered in European Union • July 2009 Trademark was registered in USA

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Ashiro-Rindo’s Timeline

As the popularity of gentians from Ashiro increased, the name quickly became synonymous with high quality gentians

The new government made it a point to promote their city, its natural resources, and famous products through branding

Ashiro-Rindo is known for highclass gentians and became premium

The government’s branding strategy was strengthening and highlighting the quality and consistency of the flowers 34

7.

Commercialization

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Ashiro-Rindo’s Commercialization

Once ready, the flowers are cut

Packed in Ashiro Rindo branded containers

Shipped throughout Japan and to international markets

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Commercialization

• 1950 Ashiro Gentians were first commercialized, sold locally in flower markets and auctions in major urban areas like Ota Flower Auction, Tokyo, Japan

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• 1999

Commercialization

ACG and HCF entered into licensing agreement with Southland Flowers and started Ashiro Rindo varieties in New Zealand winter

To provide Ashiro-Rindo varieties to Japanese market during the

• Years later…

Mr. Moffatt suggested that they could more money by selling these gentians in Europe and North America • 2002

Ashiro-Rindo varieties launched a export initiative that resulted in first international sales in USA and Kingdom of Netherlands

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• 2005

Commercialization

HFC and ACG were able to lessen the days of delivery time, they introduced new freezing technologies that could maintain the plants’ maximum freshness, and demand for Ashiro Rindo increased • Late 2000s

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7,000,000

Ashiro-Rindo’s imports annually by the Netherlands alone

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Commercialization

• Gentian varieties from Southland Flowers, New Zealand are cultivated, prepared, and sold by each respective license. With the development of Southland Flowers’ new varieties, the company works with RI to directly commercialize the sale of the new plants.

• September 2011 ACG expanded their scope and exported Ashiro-Rindo to Hong Kong, China • 2012 Ashiro-Rindo growers, HFC, AC, RI, and Southland Flowers are sold in many international markets

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Map

EUROPE

NORTH AMERICA

ASIA

SOUTH AMERICA

OCEANIA

8.

Business Results

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Ashiro-Rindo varieties have resulted in increased demand in and out not only in Japan but international

Ashiro-Rindo is the most well-known, produced, and sold gentian not only in Japan but globally!

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PARTNERSHIP

JAPAN

SUCCESS!

NEW ZEALAND

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NO. 1!

One of the world’s most desired gentian varieties

US$ 13,000,000

Annually through sales of Ashiro-Rindo cut stems

100%

Total success!

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9.

Planting in firm ground

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Thanks!!

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Sources, References and Related links: http:/w / ww.stuff.co.nz/southland-times/business/3251582/Flower-power- Flower power brings Japanese to Clifden brings-Japanese-to-Clifden Gentian Research Network 安代のりんどう： 日本からの切り花輸出事業がはじめて通年で黒 Hachimantai City: Harvest - develop next generation agriculture and 字に転換 livestock industries 安代りんどうの輸出における課題克服の取組 Japan Meteorological Scoiety 岩手県 八幡平市花き振興協議会 （りんどうをオランダへ） New Zealand gentian flowers bring new color to Japan Ashiro Rindo New Zealand Institute for Plant and Food Research Bloom Japan Network Online flower delivery New Zealand Bloom Japan Network: Bloomin' Blog Twitter: Ashiro Rindo Facebook: Ashiro Rindo UPOV: Ashiro Rindo Story Final Report: Viable Economic (& Sustainable) Production of Ashiro Viable Economic (& Sustainable) Production of Ashiro Gentians for Export Gentians for Export YouTube: 安代りんどう40周年記念大会 -卸売市場協会会長の祝辞 First NZ exports of pink gentians a success FloraCulture International FloraHolland

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ADAMSON UNIVERSITY COLLEGE OF ENGINEERING CIVIL ENGINEERING DEPARTMENT

A NEW VARIETY OF SUCESS INTELLECTUAL PROPERTY 50140 | MW | 5:00-6:30 DE LEMOS| LOPINAC

A New Variety of Success 01

BACKGROUND

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RESEARCH AND DEVELOPMENT

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COMMERCIALIZATION

04

PARTNERSHIPS

A New Variety of Success 05

LICENSING

06

IP MANAGEMENT AND IP INFRIGEMENT

07

NEW PLANT VARIETIES

08

TRADEMARKS

09

BUSINESS RESULTS

10

MORE THAN A FAMILIAR TASTE

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SOURCES, REFERENCES

1. BACKGROUND

BACKGROUND

In the south-central AraucanĂ­a Region

A healthy agricultural industry has helped Chile become the third largest producer of lupine (a grain cultivated for its nutritious bean) in the world, only trailing Australia and Germany.

Chile

Erik Von Baer

White Lupine

In March 1956

The most commonly produced lupine in Chile is white lupine, which has a higher protein and oil content than many other lupine grains.

With the support of ten farmers in the region, he started Baer Seeds (Baer), a genetics company that is devoted to researching and developing new plant varieties for local farmers.

Baer received support from farmers Supply with Plant Varieties This approach proved to be very lucrative for the farmers and Baer, which became one of the leading developers of new seed varieties in Chile.

2. RESEARCH AND DEVELOPMENT

RESEARCH AND DEVELOPMENT

1956

1960’s 1967

Bringing in a Range of Unfamiliar Agricultural Crops Testing them to see how they would grow in the region’s environment which is filled with deciduous forests and open plains that are perfect for agricultural cultivation. Baer acquired a field that it used exclusively for testing purposes, and once it grew a crop successfully the company would supply the crop to local farmers for a trial run.

New Plant Varieties

It started serious research into developing new plant varieties specifically engineered to be the most productive in the Araucanía region.

Baer Intermediate It quickly became the most widely sown variety in Chile. The following year, Baer launched an intensive R&D program into a new variety of white lupine (lupines albus). The initial goal was to develop a new breed of white lupine that could be used as a forage crop (a plant only consumed by livestock in fields) in the colder regions of southern Chile.

One of the most important agricultural products Baer introduced to the region in these early days was a Swedish variety of rapeseed (Brassica Napus), a bright yellow flowering plant that is used to produce oil (such as canola oil) and biofuel, which went on to become Chile's leading oilseed crop.

When Baer made various attempts at breeding it with other crops such as soya, the company discovered that it could develop a new plant variety that can be sown in cold environments and also maintain high levels of protein and oil, making it suitable for human and animal use.

1968

Winter Nursery Program It provided farmers with this new, hardy variety of white lupine.

1970

Baer Intermediate Company’s most important plant species, which also made a considerable contribution to the development of Chile’s agricultural industry.

1980’s

Baer Continues Work into developing novel and successful plant varieties in all important agricultural crops, such as cereals, rapeseed and forage crops.

2000

R&D Goals With its own modern laboratories, seed cleaning facilities and three research farms with over 1,000 hectares of space.

Through the success of the Winter Nursery Program, Baer’s new white lupine variety proved to be immensely popular It has proven to be a successful and integral part of Baer’s overall operations, as it accelerates the development of new plant varieties, ensures quality and brings new crops and resulting products to the market quickly.

The company’s R&D successes have also earned it significant attention from multinational seed, fertilizer and chemical companies.

As a result, it has become the partner of choice for R&D and testing when such companies want to export or develop a new product for the Chilean market.

3.

COMMERCIALIZATIO N

The Cooperative After four years of R&D, Baer was finally ready to bring its products to the market.

Saprosem Cooperative The cooperative quickly grew into Chile’s largest seedproducing firm, with the majority of distribution activities handled by the state-owned National Seeds Firm (NSF).

Saprosem Ltd. Baer introduced its own production line and focused on producing seeds that were not only already successful and proven, but also newly developed seeds that did not yet have a guaranteed market.

Baer introduced rapeseed to Chile.

Clearfield Production System The world’s largest chemical company, which uses enhanced, traditional plant breeding techniques to control many problematic grass and broadleaf weeds.

4.

PARTNERSHIPS

PARTNERSHIP

Saprosem focused largely on products for farm use (e.g. animal feed).

AVELUP Ltd. AVELUP tests new seeds and plant varieties to commercialize a wide range of organic products for the domestic food industry.

Baer provides organization Through these partnerships, Baer also carries out R&D related to herbicides, fungicides, fertilizers, and plant regulators in order to obtain the technology packages and recommendations for the different cultivars in the areas in which they are sown.

Specialized Centers

The company then uses this germplasm as a base for its research and develops a new variety according to the needs of the providing organization(s).

5. LICENSING

LICENSING

Licensing agreements This scheme has proven to be very successful, and the many licensing agreements have not only been a source of income for the company, but have also allowed its new varieties to reach farmers throughout the country and play an important role in the growth of Chile’s agricultural industry.

Licensing agreements Baer grants licenses to its partners for its developments, which provides a steady influx of income that the company puts to use to continue its R&D.

Agreement with NSF This deal generated much needed income for the company to continue its R&D activities, and such licensing initiatives remain a mainstay of the company.

6. IP MANAGEMENT AND IP INFRINGEMENT

Baer’s Sales Portfolio

70

%

Because over seventy percent of Baer’s sales portfolio corresponds to its new plant varieties, use of the intellectual property (IP) system is essential to the company’s competitive strategy. To that end, the company seeks to protect all of its new plant varieties.

Baer undertakes most of the IP protection activities – from application to management – in-house, and also retains legal counsel for specialized advice when it is deemed necessary.

The company has taken an active role in an effort to curb this illicit activity and is a member of Chile’s Breeders Committee of the National Association of Seed Producers (which promotes breeder’s rights and works to stop illegal trade and other forms of IP

Baer’s logo, INAPI trademark registration No. 821337

7. NEW PLANT VARIETIES

NEW PLANT VARIETIES Mr. Baer argues that the modern food industry 2011 requires standards and uniform products, and if Chile cannot offer that, it will never increase its presence as a major international agricultural player.

201 1

200 9

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The draft law is still under consideration.

Taking into account the IP infringement that Baer has faced, the company is a proponent of the new law.

Pecosa-Baer that is tolerant to the main fungal diseases, has homogenous ripening and has a generous yield of a sweet grain with high protein content.

Baer is an avid user of this legal framework, and as of 2006 Baer has protected over seventy plant varieties of eight different species.

NEW PLANT VARIETIES

Typ Top-Baer (1999) Some specific milestones in the company’s history include using the IP system to register new varieties such as

Rumbo-Baer (1995) Some specific milestones in the company’s history include using the IP system to register new varieties such as

Victoria-Baer (1989) Some specific milestones in the company’s history include using the IP system to register new varieties such as

“

…but also to standardize products and facilitate traceability in the production chain.”

- Mr. Erick Von Baer

New Law R&D Projects

8. TRADEMARKS

TRADEMARKS In 1977, the company registered a trademark for its name and logo with the Instituto Nacional de Proprietad Industrial de Chile (INAPI). The registration was updated in 1987, 1997 and again in 2008.

Baer’s logo, INAPI trademark registration No. 821337

9. BUSINESS RESULTS

It has been able to maintain a leading market position with many different plant species, such as wheat, barley, oats lupines, quinoa, rapeseed, and forage seeds. In 2008, founder, owner and manager Erick von Baer received the Innovation Award of the Country Land Magazine for his company’s development of Pecosa-Baer, a new variety of wheat resistant to pesticides.

BUSINESS RESULTS

10. MORE THAN A FAMILIAR TASTE

MORE THAN A FAMILIAR TASTE From helping rural farmers increase their livelihood to fostering the growth of the economy, Baer has used IP as a productive tool to make a lasting and positive impact.

11. SOURCES AND REFERENCES

SOURCES AND REFERENCES • http://diario.elmercurio.cl/detalle/index.asp?id=%7B534af362-4bd2-41c9-8900825e3c92ee02%7D • http://idbdocs.iadb.org/wsdocs/getdocument.aspx?docnum=35278574 • http://ipsnews.net/news.asp?idnews=48315 • http://www.agproducts.basf.com/products/research-library/clearfield-wheat-stewardshipbulletin.pdf • http://www.australtemuco.cl/prontus4_noticias/site/artic/20100819/pags/20100819004808.ht ml • http://www.avelup.cl/ • http://www.cdesign.com.au/proceedings_abts2003/papers/115NielsenBMonday.pdf • http://www.chilepotenciaalimentaria.cl/content/view/157771/Erik-von-Baer-Es-grave-notener-un-ministerio-de-Agricultura-y-Alimentacion.html • http://www.chilepotenciaalimentaria.cl/content/view/473585/Agro-preve-fuerte-caida-en-laproduccion-de-raps-por-virusISA.htmlhttp://www.chilepotenciaalimentaria.cl/content/view/473585/Agro-preve-fuertecaida-en-la-produccion-de-raps-por-virus-ISA.html • http://www.ecoscience.ulaval.ca/catalogue/admin/imagep hp/2042f-gianoli.pdf • http://www.focal.ca/publications/focalpoint/349-november2010-rene-montalba-n-en • http://www.freshplaza.com/news_detail.asp?id=73989 • http://www.indexmundi.com/agriculture/?country=cl&com modity=rapeseed-oilseed&graph=production • http://www.nutraingredients-usa.com/Research/Lupinenriched-bread-could-boost-satiety-reduce-energy-intake • http://www.saprosem.cl/ • http://www.semillasbaer.cl/

Thank You