ROLE OF VN’S GOVERNMENT IN

IP COMMERCIALIZATION

NGUYEN THANH MINH, PVPO, MARD/VIETNAM

HCM CITY, 24.August - 2017

OUTLINE OF THE PRESENTATION

PVP AND IT’S BENEFITS

ESTABLISHING PVP SYSTEM

IMPACT OF PVP IN VIETNAM

POLICIES AND STRATEGY FOR

FURTHER DEVELOPMENT

PVP AND IT’S BENEFITS

Background

Agricultural country.

High density of population

Improve living quality of the people – The current main purpose of VN’s Government

Seed Sector play an important role for the purpose – big contribution of new plant varieties

PVP AND IT’S BENEFITS

IP Circle on Breeding and exploitation of a variety

Creation

Protection Exploitation of PBR

Breeding new Var.

Collecting royalty

PBR

PVP AND IT’S BENEFITS

Adding Value of protected varieties

Owner of PBR

Case of Licensed by Owner (Public Varieties)

Owner of PBR

Case of commercialized by Ownerself (Seed Companies)

License

Licensee

Royalty (Adding Value)

Sell with exclusive right

Users

A part of higher price

(Adding Value) ═ Royalty

Benefits of PVP PVP encourage of breeding and introduce new plant

varieties with good features – Benefit for farmer and

consumer – benefit for society

Increasing number of Breeders from different sectors (Individual/Public/Private)

Encouraging of investment to agriculture from Private Sector.

Contribution to the conservation and biodiversity of plant genetic resource

PVP AND IT’S BENEFITS

ESTABLISHING PVP SYSTEM

Legislation on PVP

2001 2004 2005

Decree No 13 on PVP

Seed Ordinance (Chapter 4 on PVP)

IP Law No 50 (2006); Law on revisement of some

Article of IP No 50 (2009) (Based on 1991 Acts, UPOV)

Decree 105 Decree 88

Circular 16

PVP SYSTEM

Organization System

MARD

DCP

NCPT PVPO

APPLICANT

PVP SYSTEM

1995-2000

2000-2006

2007-NOW

Study the real conception of PVP

Establishing National PVP system and Preparations

to join UPOV

Implementing PVP System under UPOV Convention

The boundaries shown on this map do not imply the expression of any opinion whatsoever on the part of UPOV concerning the legal status of any country or territory

Members of UPOV (74) Initiating States (15) and Organization (1) States (23) and Organization (1) in contact with the UPOV Office

12

Member of UPOV (24th Dec, 2006)

63rd

IMPACT OF PVP IN VIETNAM

What is in Vietnam impacted by PVP?

Increasing number of applications and No of Breeders from different sectors (Individual/Public/Private)

Encouraging of investment to agriculture from Private sector. Government reduce of finance for breeding new Var.

Contribution to changing the Mode of Agriculture Production

Specialization on the chain from breeding to introduce to the production

by a good Seed Distribution System

Contribution on Big Policies of Government: Land Consolidation; Food

Value Chain; Safe Crop Production; Re-organize of Crops Pattern

Contribution to the conservation and biodiversity of plant genetic resource

Increasing Agriculture’s GDP significantly

IMPACT OF PVP

Applications by years 2004 – 8.2017

0

20

40

60

80

100

120

140

160

180

200

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 8.2017

4 2 5 13

21

34

50

28

75

60

83

107

162 157

3 5 4

15 11

19 17 24

29 32 26

41

23

34

7 7 9

28 32

53

67

52

104

92

109

148

185 191

Việt Nam

Nước ngoài

Tổng

IMPACT OF PVP

Who are applicant?

0

50

100

150

200

250

300

350

400

30 33 31

392

272

36

No of Application (2004-8.2017)

IMPACT OF PVP

Positive impact to SMEs Before PVP: almost of them

are trade company (not interest in RD)

When PVP system is established: Beginning: they are licensed to

exploit PBR from owner (transferred)

They develop breeding facility

Now, many of them have own breeding facility

Some become big with very good breeding facility.

IMPACT OF PVP

Vietnam’s applications: Private/Public sectors (2007- 8.2017)

Public sector (Government Budget):

Research Institutes Universities Research Centers (Central Government and provincial level)

Private sector: Individual VN’s Seed Company

Recent years: MARD did not invest to Public Sector for breeding by traditional methods 0

20

40

60

80

100

120

1 2 3 4 5 6 7 8 9 10 11 12 13 14

4 2 2 6

12 7

32

10

34 28 29

24

60 56

0 0 3

7 10

26

17 15

41

32

53

80

102 106

Nhà nước Tư nhân

IMPACT OF PVP

Application is increasing

Number of application increased – Many good new varieties and new species released for farmer

Good new var. from oversea and new species - farmer have good income

IMPACT OF PVP

Increasing the income of farmer A cuttings of new rose

varieties may reach 10 – 15 times more expensive than old Var.

New variety is introduced in VN

Farmer have chance to increase their income by exportation

IMPACT OF PVP

Farmer produce under license from Owners

Waiting to the aircraft

for exportation

IMPACT OF PVP

Specializing in introduction of a new variety

For the Varieties from Research Institutes:

Transferred the right to seed companies

Establishing IP Division to exploit of the right in some Research

Institutes

The specialization in development new variety make more effective in exploiting new varieties

Fair Competition in trade: Who invest to the R/D more, they have more benefits for re-investment to R/D

Good Seed Distribution system is established – benefits for farmer

IMPACT OF PVP

The Seed distribution system of new Var.

BEFORE PVP AFTER PVP

Breeders

Farmer

Is not professional, Difficult on Seed Quality control

Breeders Company

License

Royalty

Farmer

Good service for the farmer; Better seed quality due to professional

Good professional distribution system

No Professional distribution system

IMPACT OF PVP

Contribute to big policies on agriculture

LAND CONSOLIDATION RE-ORGANIZED PATTERN CROP

FOOD VALUE CHAIN SAFE CROP PRODUCTION

IMPACT OF PVP

0

20

40

60

80

100

120

140

1 2 3 4 5 6 7 8 9 10 11 12 13 14

2 2 2 5

11 16 18

24 31

37 41

50

59

124

No of species until the year

No of species until the year

IMPACT OF PVP

Vietnamese yield developments over time: major arable crops (index, 2005=100%)

Plant breeding in Viet Nam: Yield vs. overall productivity developments

Source: Own calculations and figure based on FAO (2016), GSO (2016) and IRRI (2016).

Per annum since 2005: - rice: + 1.6 %, - corn: + 1.8 %, - sw. potatoes: + 3.6 %.

To compare, global yield increases are in the range of: - rice: + 1.3 %, - corn: + 1.1 %, - sw. potatoes: – 0.3 %.

Can Viet Nam already be considered an out-performer?

80

100

120

140

160

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Rice Corn Sweet Potatoes

The income effects referring to major arable crops are just part of the overall impact.

Plant breeding benefits: Supply changes also have monetary implications

Whereas approximately USD 3.5 billion have been added to GDP when looking at rice, corn and sweet potatoes, ...

… an additional GDP of at least USD 0.2-0.3 billion has been added by having invested ten years into plant breeding for flowers.

Indeed, Viet Nam has become one of the fastest growing flower markets.

POLICIES AND STRATEGY FOR

FURTHER DEVELOPMENT

Policies on promoting of IP

The programs on support of IP for the organizations (private and public) by 3 stages 2005 – 2010 (Decision No 68/2005/QĐ-TTg on 4th

April 2005); 2011 – 2015 (Decision No 2204/QĐ-TTg on 6th

December 2010; 2016 – 2020 (Decision No 1062/QD-TTg on 14th

June 2016)

Purpose of the program 2016 – 2020 (1062/QD-TTg)

Improving aware for the relevant persons Training (≥1000 persons from Research Institutes/Private

companies/Universities) To support on exploitation and practical application for ≥ 50

IPR (Including PBR) To support on protection, management and development

for IPR of ≥ 70 local products To assist ≥ 100 companies/Techno-Science Organizations

in developing and implementation of management model and development of their IPR

Assisting to file IPR in VN and Oversea for the National Products those approved by Prime Minister

Strategy to develop VN’s IP until 2030 (drafting)

General purpose: “A Modern National IP System become a tool to speed up the National Economy”

Specific purposes: Quantity and Quality of IPR from Vietnamese is

increased Capacity of IP Authorities Office is improved Decrease of the infringement; The measures of punishment through justice is mainly Administrative procedures is simple The No of corporation using IPR products for the

development is increased

Thank you for your attention

Detail Information: PVP Office

Room No 105, A6 Build.

No 2 Ngocha Badinh, HANOI

Tel: (844)38435182;

Fax: (844)37342844 Website: http://pvpo.mard.gov.vn