27 



date of enactment of H.R. 2927. This change in the farmers' exemp- 

 tion is necessary in order for the United States to comply with the 

 1991 convention. 



Without encouragement for investment in the development of 

 new varieties, the whole farming community will gradually be put 

 at a competitive disadvantage. Fewer plant varieties with improved 

 characteristics will be developed, leaving farmers to plant out- 

 moded varieties which give lower yields and which succumb to new 

 strains of pests and diseases, thus giving farmers in other coun- 

 tries a clear competitive advantage. 



Another major change to be made by H.R. 2927 is the establish- 

 ment of a category of essentially derived varieties. This change, 

 which would be applicable only to varieties protected under H.R. 

 2927 and would not apply retroactively, would enable the owner of 

 an initial variety to exclude the selling or marketing of varieties 

 that differ only slightly from the initial variety. This concept is the 

 most striking innovation in the 1991 revision of the UPOV conven- 

 tion. It is anticipated that this change will end the practice of alter- 

 ing just slightly the successful varieties of others and escaping in- 

 fringement charges under present law. 



Other changes necessary to bring the PVPA into conformance 

 with the 1991 convention are more limited in scope. 



For example, the use of date of determination would be replaced 

 by the use of date of filing for protection as the basis for determin- 

 ing eligibility for protection. 



Eligibility for protection would also be extended to first genera- 

 tion hybrid varieties. 



Also, to conform to the 1991 act of the UPOV convention, provi- 

 sion is made for protected varieties to be sold by a variety name 

 only. Breeders would no longer be able to market seed of a pro- 

 tected variety labeled as variety not stated. 



In the infringement area, the list of actions that constitute in- 

 fringement would be expanded by H.R. 2927, namely by adding 

 conditioning of protected variety for purposes of propagation. This 

 would not, however, apply to the conditioning of saved seed by 

 farmers for planting on their own holdings. Stocking a variety for 

 purposes which would constitute infringement would also be pro- 

 hibited. 



Infringement would also be extended to include acts involving 

 harvested material if such material is obtained through unauthor- 

 ized use of propagating material. 



Under H.R. 2927 the period of protection would be increased 

 from 18 to 20 years for most crops and to 25 years for trees and 

 vines. 



Finally, Mr. Chairman, the provisions of H.R. 2927 would not 

 take effect until 6 months after enactment and would apply only 

 to varieties protected after that 6 months. 



In closing, Mr. Chairman, we believe that H.R. 2927, if enacted 

 into law, would enable the United States to ratify the 1991 act of 

 the UPOV convention and thereby continue its leadership role as 

 a proponent of effective protection of intellectual property. At the 

 same time, these changes in the PVPA will greatly encourage the 

 development of new varieties of plants, to the benefit of our farm- 

 ers, the seed industry, and the American consumer. 



