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Decree No. 88/2010/ND-CP: Royalties to be paid on patented plant varieties

From October 1, plant variety patent holders are obliged to pay under agreements between them and plant variety breeders (authors) or 35 per cent (against current 30 per cent) of royalty amounts, if no agreement is reached, to be collected under contracts on licensing of rights to plant varieties after paying a tax under law, or under internal regulations if these new varieties are selected or created or developed with state budget funds.

As stipulated in Decree No. 88/2010/ND-CP of August 16, guiding a number of articles of the Intellectual Property Law, royalties will be paid throughout the protection duration provided for plant varieties (25 years for wood plants and vines and 20 years for other plants).

Co-authors of a plant variety will receive a total royalty amount and reach an agreement on dividing this amount later.

If patent holders do not license protected varieties to other parties but utilize them for their production or trading, they are obliged to pay to authors 10 per cent of earned profits.

Four methods will be accepted for technically testing new plant varieties, including technical tests performed by entities designated by the Agriculture and Rural Development Ministry; technical tests performed by protection applicants themselves; use of existing technical test results provided by applicants at their request; technical tests performed under contracts by entities from UPOV member countries or purchased results of tests performed by these entities.-

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