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Subparagraph (iii) would be amended to require virtually all "the essential 

 characteristics that result from the genotype or combination of genotypes of the 

 initial variety." 



In addition, we would suggest adding to subparagraph (iii) the following 

 language: 



Any otherwise protectable variety which does not express at least 

 90 percent of the essential characteristics of the initial variety (or from a 

 variety that is predominately derived from the initial variety), not including 

 the differences which result from the act of derivation, satisfies the 

 requirements for minimum genetic distance such that it is not an 

 essentially derived variety. 



Essential characteristics are defined as heritable, readily identifiable 

 traits that contribute to economic value. Such traits may be 

 qualitative or quantitative. Trivial or purely cosmetic traits which 

 have no economic value are not considered essential characteristics. 



These amendments provide the refinement of the UPOV definition of 

 "essentially derived" needed to remove its inherent ambiguity. Our proposed 

 amendments provide for more clarity of the rights of the owner of the initial 

 variety and define succinctly the latitude that a second generation breeder has in 

 making refinements in a protected variety and his ability to receive potential 

 economic benefits for such efforts. Nevertheless, these amendments provide a 

 substantial strengthening of the protection afforded to the initial breeder. 



As currently drafted, H.R. 2927 could create difficulties for farmers desiring 

 to have seed conditioned by a custom conditioner. In order to constitute a 

 violation of the act, we believe a linkage needs to be established between 

 conditioning of seed and direct knowledge of the intended use of the seed for 

 propagation in violation of the act. We would suggest that Section 8, Infringement 

 of Plant Variety Protection, (7) be amended as follows: 



"(7) condition the variety with knowledge that the variety is being 

 conditioned for commercial seed sale or propagation for commercial 

 seed sale." 



Farm Bureau policy states that farmers should be able to save seed and sell 

 "incidental" amounts of that saved seed. Neither the UPOV or H.R. 2927 allow 

 that range of options. We would suggest that these important options can be 

 maintained for farmers without creating problems for breeders of protected 

 varieties. A balance of interests can be achieved by establishing a reasonable 

 definition of incidental sales and an appropriate procedure to monitor those sales. 



