11 



still needs Senate ratification. World events and a recognition of 

 the value of protecting intellectual property rights is reflected in 

 the 1991 UPOV Convention, including the concept of essential deri- 

 vation. 



The 1991 UPOV Convention gives breeders increased protection 

 for their products and gives the necessary incentive to stimulate 

 improvements. It will provide U.S. farmers with new varieties 

 needed to maintain a well-recognized world competitiveness in agri- 

 cultural markets. 



The scope of the breeders rights outlines the rights and privi- 

 leges for the breeder and the end user, the farmer. The research 

 exemption is maintained in the 1991 Convention, and it is impor- 

 tant to agriculture as it provides continued opportunity for free ex- 

 change of germplasm on a worldwide basis. 



The 1991 UPOV Convention introduces the concept of essential 

 derivation. ASTA has adopted guidelines which have been worked 

 out and accepted in the international community. ASTA continues 

 to work together with broad representation from the private and 

 public breeding community to provide additional guidelines. 



The concept of essential derivation, however, is one best dis- 

 cussed by the plant breeding community who depends on appropri- 

 ate protection. In fact, I would almost call this an internal issue. 



During the negotiations for the 1991 UPOV Convention, the U.S. 

 delegation strongly defended the practice of the farmer to save seed 

 for planting on his own holdings. ASTA supports that practice for a 

 farmer to save seed for planting on his own holdings. ASTA and its 

 members also fully agree with the 1991 UPOV Convention that 

 sales of saved seed must be dependent only on permission by the 

 breeder of the protected variety. 



Farmers are assured that new varieties will continue to be avail- 

 able to them due to S. 1406, and seedsmen benefit from the assur- 

 ance that protection is complete and unconditional. 



The U.S. commitment to protecting intellectual property rights 

 for plants demonstrates to the world community that we are seri- 

 ous. The United States has already taken a very strong position in 

 favor of intellectual property rights protection during the ongoing 

 GATT negotiations. 



Mr. Chairman, we have reservations with regard to Section 12. 

 The more uniform transition, as prepared by ASTA and submitted 

 with our written testimony, 1 would aid the educational process and 

 minimize unintentional infringement of the law. For farmers who 

 plant the seed, the conditional provision causes confusion and con- 

 tradiction. 



The new act does not allow the sale of farm-saved seed unless 

 permission is granted by the owner of the protected variety. The 

 seed industry has difficulties with the reason behind the extent of 

 the legislation that advocates a two-tier system of protection. As an 

 association, we question the ability, the wisdom, and the conse- 

 quences of effectively advocating two laws, specifically with regard 

 to the new concept of essential derivation. 



1 See "Additional Item," page 17. 



