86 



Page 15 f lines 8-11 



The proposed amendment would leave the statute, 7 U.S.C. § 2543 reading as 



follows: 



Except to the extent that such action may constitute an 

 infringement under subsections (3) and (4) of section 1 1 1, it shall not 

 infringe any right hereunder for a person to save seed produced by him 

 from seed obtained, or descended from seed obtained, by authority of 

 the owner of the variety for seeding purposes and use such saved seed in 

 the production of a crop on his farm, or for sale as provided in this 

 section. A bona fide sale .... 



Why does this portion: 



Except to the extent that such action may constitute an 

 infringement under subsections (3) and (4) of section 

 111, 



remain? Because of this wording there was NO exemption from infringement of 



section 111, subsections (3) and (4) [7 U.S.C. §§ 2541(3) and 2541(4)]. 



Therefore, the most seed a farmer could sexually multiply (save) without infringing § 



2541 (3) was the amount needed to plant his farm. Any additional would have been 



sexually multiplied as a step in marketing (for growing purposes) and therefore an 



infringement of § 2541 (3). The portion of the statute proposed to be deleted stated: 



Provided, That without regard to the provisions of section 

 111(3) it shall not infringe ... to sell such saved seed. 



What permitted the farmer to sell his "saved seed" was this portion, which is to be 

 deleted. After the amount the farmer could save had been determined by the 

 definition of § 2541 (3), then that portion was waived to permit the farmer to sell his 

 "saved seed". 



Since no sale of saved seed is permitted under the amendments of S. 1 406 

 (without authorization of the owner), the quantitatively defining phrase at the 

 beginning of § 2543 is no longer needed. If the owner authorizes a person to sell 

 saved seed, the terms including quantity will be specified in the license agreement 

 permitting the sale. It is recommended that § 2543 be amended to read: 



(a) It shall not infringe any right hereunder for a person to save seed produced 

 by him from seed obtained, or descended from seed obtained, by authority of the 



