Case Study 9-Strategic Partnership Linked to IP in the Development & Planting the Seeds of Innovatio

ADAMSON UNIVERSITY College of Engineering Civil Engineering Department CE 308-Intellectual Property Case Study 9-Strategic Partnership Linked to IP in the Development & Planting the Seeds of Innovation Presented by: Alaan, Mcgivney Von Mercado, Leeann Antonette Morales, John Aifren Patron, Lloyd Vincent

Presented to: Dr. Tomas U. Ganiron, Jr

Case Study no. 9 Strategic Partnership Linked to Intellectual Property in the Development & Planting the Seeds of Innovation

Strategic Partnership Linked to IP in the Development of a Medium-sized Argentinean Seed Company

RELMÓ S.A. Background  Argentinean seed company that belongs to the Ferrarotti family.  Origin can be found in the Ferrarotti Countryside Organization (OFPEC), which was established in the 1960s, and responsible for the program that led to the registration of the first Argentinean soybean during the 1980.

Background  Soybean “variety” (Lowest known rank for the plant grouping within a single botanical taxon.)  Business strategy concentrates on the plant seed mainstay crops: soybean, wheat and maize through production and selling.  Central office at Rosario, Santa Fe.  It can be found around Rosario, within 200 kilometre radius, the most important soybean producing-exporting in the world.  Manage properly the business through Intellectual property and establishing partnerships with domestic and international companies and institutes. Through these, they have successfully develop and grow the business.

Plant Varieties  The Argentinean Law No. 20247/73 on seed and phytogenetic creations of March 30, 1973.  Article 1 states that: “The purpose of this Law is to promote efficient activities in the production and marketing of seed, to provide agricultural producers with the guarantee of the identity and quality of the seed they acquire and to protect property in phytogenetic creations.

 The Argentinean Association of Protection for Plant Breed (ARPOV) deals with the defense of rights and provides the possibility for collection royalties for IP rights holders  The accession of Argentina is the 1978 Act of the International Union for the Protection of New Varieties Convention (UPOV Convention) plays an important roles in the development of companies.

 The genetic improvement of soybean was one of RELMÓ’s major areas of work.  The company was challenged by the Monsanto in mid-1990s, when they started commercializing the Round-up Ready (RR) gene in Argentina.

 Monsanto – A multinational agricultural biotechnology corporation  RR technology allows the use of herbicide without any adverse effect on the crops  RELMÓ signed a testing agreement with Monsanto to work for a maize variety, MON 810, in which based on Bt gene.  BT gene - Gene of a natural bacteria that produces a protein toxic to certain types of insects.. Used to protect crops from certain insects.

Flow of RELMÓ’s licenses and services with domestic and foreign partners

Trademarks  RELMÓ has registered over a dozen trademarks.  Most important ones are: TECNOTRIGO and TECNOMAIZ.

RELMÓ,

TECNOSOJA,

 Trademark registrations are done primarily for the domestic market with Argentina’s National Institute for Industrial Property (INPI).

Licensing  The license agreements linked to IP has allowed the RELMÓ to grow.  Agreement with the National Institute of Agriculture Technology (INTA) of Argentina:  This agreement has allowed RELMÓ to produce hybrids and INTA to receive percentage of royalty.  The INTA provides germplasm, installation and technical staff while RELMÓ covers the operating expenditures.  Licensing Agreement with the National Livestock Research Institute (INIA) of Uruguay:  This provide INIA and RELMÓ an agreement in which they have an exclusive rights over the license for their respective varieties. Wheat varieties from INIA and soybean varieties from RELMÓ. This made the both companies a good commercializing opportunity.

Partnerships  Partnership with Delley Semences et Plantes (Seeds and Plants) S.A. (DSP) of Switzerland: RELMÓ established a commercial relationship with DSP in Switzerland. This have included the whole South America on licenses for varieties of wheat and the training of RELMÓ staff in Switzerland on technical collaboration  The agreement allowed RELMÓ to access the Argentinean market with high quality wheat varieties.  Mato Grosso (MT Foundation) - a private organization of research for the development of new forms of cultivation for soy and cotton.  Partnership with the Mato Grosso Foundation (FMT) of Brazil: Brazil and Argentina constitute a major market for the production of soybean in the world.

 This joint project does not involve any licenses, but an ambitious joint development of varieties and research on disease resistance, as well as cultivation technology.  independent company that researches, develops, produces and markets seeds with high yield potential of Corn, Soy, Wheat and Sunflower.

 Integration with Sursem S.A.: In April 2009, RELMÓ reached an agreement with Sursem S.A., another Argentinean seed company.  The distribution of seeds for RELMÓ in Argentina was under the responsibility of Sursem.

 For its part, RELMÓ will be integrated into Sursem and will focus on research programs and improvement of soybean and wheat to meet Argentinean requirements. It will at the same time continue its technology exports to neighboring countries.

Business Results  RELMÓ has started as a small family business.  Came a long way to establish itself as a pioneer in the genetic improvement of soybean in Argentina.  The partnership strategy that RELMÓ pursued not only enabled it to retain its market position in Argentina, but also provided it with improved plant varieties, access to foreign markets and consequently higher revenue.  The integration with Sursem allows RELMÓ to concentrate more in research and development while at the same time assuring it of the much-needed market access at home and abroad.

Key Success Factor: Licensing Contracts Linked to Intellectual Property  The licensing and intelligent use of Intellectual Property on the strategic partnership was the key factor Behind RELMÓ’s success.  While the national and international legal framework facilitated the task of ensuring the ownership of phytogenetic creations (varieties or lines), the partnerships helped RELMÓ move forward quickly and very actively in retaining and extending its domestic and foreign market positions.

Republic of Moldova (Moldova)  Achieved independence by 1991.  Young country with well developed intellectual property (IP) system.  Significant agricultural productivity with three (3) IP instruments that are beneficial to the Moldovian economy: Appelations of Origin (AO), Geographical Indications (GI), Plant Breeder’s Rights (PBR).

Agroselect Semences Resources and Development Center (Agroselect)  First and one of numerous agricultural companies emerged since Moldovian’s independence/  Based in the capital city Chisinau, formed year 2000.

 Breeds, processes, and cultivates seeds for European market.  Became one of the most successful breeders of new seeds variety by combining its technical expertise with the IP system.

Goods with specific geographical origin  Under Moldova’s previous political status, it was known as the “orchard of the Soviet Union” -- with strong agricultural role contributed .  Moldova is rich in botanical diversity, with over 5000 species of wild growing plants.  Abundance of fresh water (over 3000 rivers and streams, over 2200 natural water springs) and mineral fertilizers (phosphorite, lignite, gypsum) makes Moldova well suited for cultivation of wide variety of agricultural products.

 Agroselect focused on developing seeds with higher resistance to disease and a greater crop yield while taking advantage of Moldova’s agricultural traditions, climate and natural resources .

Research and Development  Agroselect’s dedicated research and development (R&D) facility is in Nicoreni, Drochia district.  Here there focus on four categories: hybrid sunflower, hybrid corn, rapeseed (a source of vegetable oil) and wheat.  Sunflower is the most abundant -- breeds, cultivates, and hybrid seeds for international and domestic market.  Agroselect became aware of the quality seeds to be used in Europe since Moldova has been its exporter for centuries and therefore focused on breeding hybrid seeds that are resistant to destructive forces and will flourish in a wide range of environmental conditions.

 Agroselect embarked on a project that analyzes 1000 different hybrid combinations and over 30 000 crossings of self-pollinating breeds in a year.  Numerous hybrid sunflower seeds -- that has unique characteristics such as genetic resistance to mildew, increased resistance to mold, earlier ripening and high concentration of oil -- marketed by companies Drofa, Xenia, and Vitalia came from the intensive R&D program.

 Agroselect has developed over 15 unique varieties of hybrid sunflower seeds.  As of 2014, they developed 6 hybrid corn seed varieties, 3 rapeseed varieties and 2 wheat seed varieties.  To maintain R&D success, SME conducted professional trainings and programs such as seminars, in-house training, internship internationally, and computerized education techniques.

Partnership  Partnered with Caussade Semences, a large seed development company based in the French Republic to help facilitate expansion to Europe.  Partnered with Chemtura Agrosolutions in USA which provides them high quality materials such as disinfectants, dyes, polymers, and fungicides.

 Partnered with Novi Sad Institute of Field and Vegetable Crops based in Republic of Serbia, that assists them in cultivation.  The SME has also partnered with the Food and Agriculture Organization of the United Nations for technical assistance in the development of new sunflower seed varieties.  Partnered with Fundulea National Institute for Agricultural Research and Development in Romania.

Plant Breeders Right  Moldovan government quickly worked on creating a robust IP system after recognizing its vital role in the country’s economy.  December 25 1991 - Moldova joined the World Intellectual Property Organization (WIPO) and Paris Convention for the Protection of Industrial Property of 20 March 1883.  1993, a series of legislation saw Moldova introduce IP protection for the agricultural sector in the form of AOs, GIs, and PBRs.

 Joined International Union for the Protection of New Varieties of Plants (UPOV) in 1998 to enhance its commitment to PBRs.  February 2008 - registration of new plant varieties was formally adopted to Moldovan law .

 Plant breeders (or their successor in title) make applications to the State Agency on Intellectual Property of the Republic of Moldova (AGEPI). Upon approval, registration of the new variety is made with the Ministry of Agriculture and Food Industry of the Republic of Moldova (MAIA).  30 years of protection for trees, fruit trees and grapevines while 25 years for other species  Breeders have exclusive rights to the protected plant variety, with direct and indirect benefits, all of which by registering new plant varieties with AGEPI

AGROSELECT Trademarks and domain names  Agroselect has utilized the IP system by protecting their new plant varieties and registering a trademark.  In May 2011, an application for trademark, Agroselect Semences, was made with AGEPI.  The company domains are: agroselect.md and agroselect.ru

 SME has managed to have a leading position at Moldova in the development, production and sales of new plan.

Commercialization  Has successfully commercialize new seed varieties through utilizing the resources of its parent company.  Has over 2,000 hectares of land in 35 different locations in Moldova.  The system start with SME’s Research and Development center, once developed they proceed on monitoring to follow the standards of MAIA and International Seed Testing Association (ISTA).  ISTA – organization that develops internationally recognized standard for testing seeds.  Agroselect has a certification from the MAIA and ISTA.  The company is allowed to commercialize the seeds after it has passed all the test and certification requirements.

Business Results  Agroselect has become an industry leader in the region through a strong Intellectual Property, framework, a proven track record of developing new seeds and a back of one of Moldova’s largest conglomerate (AMG).  In 2007, has increased production capacity to 1,500 metric tons per season because of the increase demands for Agroselect’s products.  In 2014, the company has sold their new seed varity for over 1,400 customer globally.

Varieties of growth ď‚´ Farmers are aware for the necessity of developing new plant varieties which is suited for local environment conditions.

ď‚´ Agroselect is a good example for the importance of developing and protecting new varieties for the farmers to grow and develop their products.

References:  Strategic Partnership Linked to IP in the Development of a Medium-sized Argentinean Seed Company https://www.wipo.int/ipadvantage/en/articles/article_0064.html  ARGENTINA LAW NO. 20247/73 ON SEED AND PHYTOGENETIC CREATIONS* Of March 30, 1973