ADAMSON UNIVERSITY

College of Engineering
Civil Engineering Department

CE 308-Intellectual Property

Case Study 9-Strategic Partnership Linked to IP in the Development &

Planting the Seeds of Innovation

Presented by: Presented to:

Alaan, Mcgivney Von Dr. Tomas U. Ganiron, Jr
Mercado, Leeann Antonette
Morales, John Aifren
Patron, Lloyd Vincent
Case Study no. 9

Strategic Partnership Linked to

Intellectual Property in the
Development & Planting the Seeds
of Innovation
 Strategic Partnership Linked to IP in the
Development of a Medium-sized Argentinean Seed
Company

RELMÓ S.A.
Background

 Argentinean seed company that belongs to the Ferrarotti family.

 Origin can be found in the Ferrarotti Countryside Organization
(OFPEC), which was established in the 1960s, and responsible for
the program that led to the registration of the first Argentinean
soybean during the 1980.
Background

 Soybean “variety” (Lowest known rank for the plant grouping within
a single botanical taxon.)
 Business strategy concentrates on the plant seed mainstay crops:
soybean, wheat and maize through production and selling.
 Central office at Rosario, Santa Fe.
 It can be found around Rosario, within 200 kilometre radius, the
most important soybean producing-exporting in the world.
 Manage properly the business through Intellectual property and
establishing partnerships with domestic and international
companies and institutes. Through these, they have successfully
develop and grow the business.
Plant Varieties
 The Argentinean Law No. 20247/73 on seed and phytogenetic
creations of March 30, 1973.
 Article 1 states that: “The purpose of this Law is to promote
efficient activities in the production and marketing of seed, to
provide agricultural producers with the guarantee of the identity
and quality of the seed they acquire and to protect property in
phytogenetic creations.
 The Argentinean Association of Protection for Plant Breed (ARPOV)
deals with the defense of rights and provides the possibility for
collection royalties for IP rights holders
 The accession of Argentina is the 1978 Act of the International Union
for the Protection of New Varieties Convention (UPOV Convention)
plays an important roles in the development of companies.
 The genetic improvement of soybean was one of RELMÓ’s major
areas of work.
 The company was challenged by the Monsanto in mid-1990s, when
they started commercializing the Round-up Ready (RR) gene in
Argentina.
 Monsanto – A multinational agricultural biotechnology corporation
 RR technology allows the use of herbicide without any adverse
effect on the crops
 RELMÓ signed a testing agreement with Monsanto to work for a
maize variety, MON 810, in which based on Bt gene.
 BT gene - Gene of a natural bacteria that produces a protein
toxic to certain types of insects.. Used to protect crops from
certain insects.
Flow of RELMÓ’s licenses and services
with domestic
and
foreign
partners
Trademarks
 RELMÓ has registered over a dozen trademarks.
 Most important ones are: RELMÓ, TECNOSOJA,
TECNOTRIGO and TECNOMAIZ.
 Trademark registrations are done primarily for the domestic market
with Argentina’s National Institute for Industrial Property (INPI).
Licensing
 The license agreements linked to IP has allowed the RELMÓ to grow.
 Agreement with the National Institute of Agriculture Technology (INTA) of
Argentina:
 This agreement has allowed RELMÓ to produce hybrids and INTA to
receive percentage of royalty.
 The INTA provides germplasm, installation and technical staff while
RELMÓ covers the operating expenditures.
 Licensing Agreement with the National Livestock Research Institute (INIA)
of Uruguay:
 This provide INIA and RELMÓ an agreement in which they have an
exclusive rights over the license for their respective varieties. Wheat
varieties from INIA and soybean varieties from RELMÓ. This made the
both companies a good commercializing opportunity.
Partnerships
 Partnership with Delley Semences et Plantes (Seeds and Plants)
S.A. (DSP) of Switzerland: RELMÓ established a commercial
relationship with DSP in Switzerland. This have included the whole
South America on licenses for varieties of wheat and the training of
RELMÓ staff in Switzerland on technical collaboration
 The agreement allowed RELMÓ to access the Argentinean market
with high quality wheat varieties.
 Mato Grosso (MT Foundation) - a private organization of research
for the development of new forms of cultivation for soy and cotton.
 Partnership with the Mato Grosso Foundation (FMT) of Brazil:
Brazil and Argentina constitute a major market for the production of
soybean in the world.
 This joint project does not involve any licenses, but an ambitious joint
development of varieties and research on disease resistance, as well as
cultivation technology.
 independent company that researches, develops, produces and markets
seeds with high yield potential of Corn, Soy, Wheat and Sunflower.
 Integration with Sursem S.A.: In April 2009, RELMÓ reached an
agreement with Sursem S.A., another Argentinean seed company.
 The distribution of seeds for RELMÓ in Argentina was under the
responsibility of Sursem.
 For its part, RELMÓ will be integrated into Sursem and will focus on
research programs and improvement of soybean and wheat to meet
Argentinean requirements. It will at the same time continue its
technology exports to neighboring countries.
Business Results
 RELMÓ has started as a small family business.
 Came a long way to establish itself as a pioneer in the genetic
improvement of soybean in Argentina.
 The partnership strategy that RELMÓ pursued not only enabled it
to retain its market position in Argentina, but also provided it with
improved plant varieties, access to foreign markets and
consequently higher revenue.
 The integration with Sursem allows RELMÓ to concentrate more in
research and development while at the same time assuring it of the
much-needed market access at home and abroad.
Key Success Factor: Licensing Contracts
Linked to Intellectual Property

 The licensing and intelligent use of Intellectual Property on the

strategic partnership was the key factor Behind RELMÓ’s success.
 While the national and international legal framework facilitated the
task of ensuring the ownership of phytogenetic creations (varieties
or lines), the partnerships helped RELMÓ move forward quickly
and very actively in retaining and extending its domestic and
foreign market positions.
Republic of Moldova (Moldova)

 Achieved independence by 1991.

 Young country with well developed intellectual property (IP) system.
 Significant agricultural productivity with three (3) IP instruments that
are beneficial to the Moldovian economy: Appelations of Origin
(AO), Geographical Indications (GI), Plant Breeder’s Rights (PBR).
Agroselect Semences Resources and
Development Center (Agroselect)

 First and one of numerous agricultural companies emerged since

Moldovian’s independence/
 Based in the capital city Chisinau, formed year 2000.
 Breeds, processes, and cultivates seeds for European market.
 Became one of the most successful breeders of new seeds variety
by combining its technical expertise with the IP system.
Goods with specific geographical origin
 Under Moldova’s previous political status, it was known as the “orchard
of the Soviet Union” -- with strong agricultural role contributed .
 Moldova is rich in botanical diversity, with over 5000 species of wild
growing plants.
 Abundance of fresh water (over 3000 rivers and streams, over 2200
natural water springs) and mineral fertilizers (phosphorite, lignite,
gypsum) makes Moldova well suited for cultivation of wide variety of
agricultural products.
 Agroselect focused on developing seeds with higher resistance to
disease and a greater crop yield while taking advantage of Moldova’s
agricultural traditions, climate and natural resources .
Research and Development
 Agroselect’s dedicated research and development (R&D) facility is in
Nicoreni, Drochia district.
 Here there focus on four categories: hybrid sunflower, hybrid corn,
rapeseed (a source of vegetable oil) and wheat.
 Sunflower is the most abundant -- breeds, cultivates, and hybrid
seeds for international and domestic market.
 Agroselect became aware of the quality seeds to be used in Europe
since Moldova has been its exporter for centuries and therefore
focused on breeding hybrid seeds that are resistant to destructive
forces and will flourish in a wide range of environmental conditions.
 Agroselect embarked on a project that analyzes 1000 different hybrid
combinations and over 30 000 crossings of self-pollinating breeds in a
year.
 Numerous hybrid sunflower seeds -- that has unique characteristics
such as genetic resistance to mildew, increased resistance to mold,
earlier ripening and high concentration of oil -- marketed by companies
Drofa, Xenia, and Vitalia came from the intensive R&D program.
 Agroselect has developed over 15 unique varieties of hybrid sunflower
seeds.
 As of 2014, they developed 6 hybrid corn seed varieties, 3 rapeseed
varieties and 2 wheat seed varieties.
 To maintain R&D success, SME conducted professional trainings and
programs such as seminars, in-house training, internship internationally,
and computerized education techniques.
Partnership
 Partnered with Caussade Semences, a large seed development
company based in the French Republic to help facilitate expansion to
Europe.
 Partnered with Chemtura Agrosolutions in USA which provides them
high quality materials such as disinfectants, dyes, polymers, and
fungicides.
 Partnered with Novi Sad Institute of Field and Vegetable Crops based in
Republic of Serbia, that assists them in cultivation.
 The SME has also partnered with the Food and Agriculture
Organization of the United Nations for technical assistance in the
development of new sunflower seed varieties.
 Partnered with Fundulea National Institute for Agricultural Research and
Development in Romania.
Plant Breeders Right
 Moldovan government quickly worked on creating a robust IP system
after recognizing its vital role in the country’s economy.
 December 25 1991 - Moldova joined the World Intellectual Property
Organization (WIPO) and Paris Convention for the Protection of
Industrial Property of 20 March 1883.
 1993, a series of legislation saw Moldova introduce IP protection for the
agricultural sector in the form of AOs, GIs, and PBRs.
 Joined International Union for the Protection of New Varieties of Plants
(UPOV) in 1998 to enhance its commitment to PBRs.
 February 2008 - registration of new plant varieties was formally adopted
to Moldovan law .
 Plant breeders (or their successor in title) make applications to the
State Agency on Intellectual Property of the Republic of Moldova
(AGEPI). Upon approval, registration of the new variety is made with
the Ministry of Agriculture and Food Industry of the Republic of
Moldova (MAIA).
 30 years of protection for trees, fruit trees and grapevines while 25
years for other species
 Breeders have exclusive rights to the protected plant variety, with
direct and indirect benefits, all of which by registering new plant
varieties with AGEPI
 AGROSELECT
Trademarks and domain names

 Agroselect has utilized the IP system by protecting their new plant

varieties and registering a trademark.
 In May 2011, an application for trademark, Agroselect Semences, was
made with AGEPI.
 The company domains are: agroselect.md and agroselect.ru
 SME has managed to have a leading position at Moldova in the
development, production and sales of new plan.
Commercialization
 Has successfully commercialize new seed varieties through utilizing
the resources of its parent company.
 Has over 2,000 hectares of land in 35 different locations in Moldova.
 The system start with SME’s Research and Development center,
once developed they proceed on monitoring to follow the standards
of MAIA and International Seed Testing Association (ISTA).
 ISTA – organization that develops internationally recognized
standard for testing seeds.
 Agroselect has a certification from the MAIA and ISTA.
 The company is allowed to commercialize the seeds after it has
passed all the test and certification requirements.
Business Results

 Agroselect has become an industry leader in the region through a

strong Intellectual Property, framework, a proven track record of
developing new seeds and a back of one of Moldova’s largest
conglomerate (AMG).
 In 2007, has increased production capacity to 1,500 metric tons
per season because of the increase demands for Agroselect’s
products.
 In 2014, the company has sold their new seed varity for over
1,400 customer globally.
Varieties of growth

 Farmers are aware for the necessity of developing new plant

varieties which is suited for local environment conditions.
 Agroselect is a good example for the importance of developing
and protecting new varieties for the farmers to grow and develop
their products.
 References:
 Strategic Partnership Linked to IP in the Development of a Medium-sized
Argentinean Seed Company
https://www.wipo.int/ipadvantage/en/articles/article_0064.html
 ARGENTINA LAW NO. 20247/73 ON SEED AND PHYTOGENETIC CREATIONS*
Of March 30, 1973