How can PMA's expertise benefit me?

Have you bred your own new plant or come across one that is unknown? If so, you may be feeling overwhelmed by agents, growers, retailers and buying and marketing groups showing interest in your new product. In today's competitive horticulture industry an experienced agent can manage your discovery and maximise the financial rewards for you.

This is intended as a guide to PMA's services and to answer some frequently asked questions relating to issues surrounding intellectual property rights, plant protection, royalties, distribution chains and techniques, plant trials and evaluations for breeders, growers and enthusiasts.

PMA was established almost 20 years ago with its primary commitment being to provide informed advice and guidance for breeders and finders of new plants across the globe. We travel extensively both home and abroad communicating to growers and breeders, setting up and assessing trials of new varieties whilst strengthening the network built around this select group of professionals. We feel this 'hands on' and 'face to face' approach is critical to maintaining quality and reliable services as well as providing insights to the developments within the many varied market places open to us.

We frequently display and promote our plant varieties at trade shows such as Hortivations, annual conferences and expos within the horticulture industry. PMA deals with the most respected propagation nurseries across the country employing their services to assist with trials, bulking up of mother stock, tissue culture and distribution. PMA has established distribution channels that allow for the efficient and speedy production of material at the earliest possible stages of product development.

Varieties managed by PMA today include top selling perennials, ornamental trees and shrubs and unique Australian natives.

Why do I need PMA to market my plant?

Production nurseries and growers rely on sourcing new varieties to stimulate the market as well as providing the competitive edge necessary in today's environment. Many, however, do not have the time, resources or even the knowledge to seek out and develop varieties independently. This is where PMA provides an invaluable service linking the needs of the breeder or owner of a new variety to the most appropriate grower satisfying their respective needs.

Over the past 20 years Plants Management Australia (PMA) has established a comprehensive network of growers and marketers. This enables us to place your plant directly with the most suitable growers and channel it into the most appropriate markets. We have well established links in the larger markets of the USA, Canada, Japan, UK, South Africa and New Zealand. The advantage of working with agents in each country is that they know their local markets and the plant can be monitored closely with trials being visited and feedback provided on a regular basis.

PMA provides breeders with biannual written reports which detail the current progress of each plant and intentions for future directions. We value honest communication and are more than happy to address any queries or concerns breeders may have on a daily basis.

An overview of our services:

• Product Appraisal
• Protecting your property
• Marketing and promotions
• Royalty collection
• Cost of services

Product Appraisal

What makes a new variety successful?

Plants are sold in many ways and are often aimed at a variety of markets. It is important that any new variety should offer advantages over any other existing varieties available. This may include factors such as new colour breaks, improved habit, longer season of interest, better disease resistance or easier propagation.

It is also important to consider:

How long the flowering period is in different climatic zones?

Does the variety suit production? Some great plants have major production issues which prevent them becoming commercial.

How does the variety transport?

What should I do next?

If you have a new variety that you think may have potential, you should complete a PMA New Variety Information Sheet (NVIS). You will need Adobe Acrobat Reader to open the PDF file. You can download a free reader here.

This will allow us to begin to gather information and feedback from our selected sources around the world. PMA provides a no-obligation, confidential assessment of your plant's potential. There is no charge for this initial assessment.

Before investing time in new plant trials, growers and agents will require as much information as possible. This provides them with an indication of the plants market potential both domestically and internationally. It will help greatly if you can answer as many questions as possible, particularly regarding flower size, colour, season, habit, size and form. Without the information requested in the form it is very difficult to make that initial assessment.

It is also very important to supply images of your plant. It is true that a picture speaks a thousand words. Good clear photographs make it far easier and more accurate. International agents often make their first decision based on an image. It is very useful to maintain a variety of shots of your plant from production stage right through to maturity. It is helpful for us to have photographs of the plant in production, at maturity, in the ground and in pots or other mediums as appropriate.

Good record keeping of your plants development is invaluable for any future promotion and protection requirements. It is a useful tool for growers in assisting your plant in becoming a commercial success.

Plant trials and evaluations

Subject to an initial successful evaluation of your plant, PMA will arrange trials. We will select the most appropriate growers within Australia as well as agents internationally that have an interest in, enthusiasm for and experience with similar varieties.

Domestically we transport trial material around the country to test and evaluate under a range of different climatic conditions, including humidity and temperature variations, and cold and frost tolerance. We also assess factors such as propagation success, consistency of characteristics and transport issues. This information, along with the fundamental plant facts already provided, is used to make a commercial decision as to whether or not to proceed with the variety.

Following successful trials, our growers will then continue to the next stage of producing a small trial batch to gauge interest from different markets. The results of this market research are then used to make a final decision on commercial production quantities for the following seasons. This trial process can take anywhere between 18 months and 4 years depending on the variety and the time required to bulk up the mother stock.

In some cases, there will be no initial trial evaluation needed. For example, when a new colour of a well known variety is developed. In this instance we may proceed directly to production trials. We also find production trials are useful for building up sufficient mother stock to allow subsequent large scale commercial propagation.

The trials are important, not only to PMA and the growers, but also to you - the owner of the plant. Proceeding with the protection of a new variety can be costly (see PBR costs). Therefore it is important to be as confident as possible that the plant will generate sufficient royalty revenue in the market place for these costs to be covered.

Please note, you should not give over your entire stock to establish trials - it is important that you have more than one specimen of the plant. In some situations this is not particularly easy, and PMA can assist with how best to proceed in this case. For example, we may bring in the specialist propagation skills of a tissue culture facility. PMA will always be interested in new varieties, even if you do just have the one specimen.

Trial Agreements

PMA uses a standard Plant Evaluation Trial Agreement when a new variety is in production trials. This ensures the company, or person, conducting the trials agrees that the variety is the intellectual property of the breeder, and yours alone. It also prevents them from using your variety in a breeding program, promoting or distributing your plant or starting the plant protection 'clock' ticking by making a sale without the express consent of PMA. Essentially, it ensures that the trial process remains under the control of PMA, acting on your behalf under your instructions.

Similar agreements are very common in the horticulture industry and most growers are familiar with the obligations that the agreements place on them making it easier for the process to happen smoothly.

PMA works with trusted partners in whom we have a high level of confidence and who respect and support the process and Plant Breeder's Rights.

Photography

Good photography is critical to all new varieties. The more images available, the better chance of giving agents and growers a sound understanding of how the plant grows and presents itself. Images can be helped to promote the major characteristics of a plant. For example if a plant has red flowers and fantastic autumn foliage then good images will help sell the plant to a potential grower or agent, and in turn, the consumer.

Clear, focussed images are a key to success. If you're not sure how to take these or would like assistance please contact PMA as we would be happy to guide you.

Protecting your property

The most important issue to consider with your new plant is the possibility of obtaining Plant Breeders Rights (PBR) or other intellectual property protection for your new variety.

Important

Unless you act to safeguard your own rights in the variety, you may lose any opportunity to derive income and royalties from it in the future. PMA will assist you in safeguarding and securing your rights as the breeders and developer of the new plant, and to obtain royalty income from it. PMA will not take any stake in your rights - the plant will always remain your own property, under the management of PMA. PMA will be known as the agent and you are the owner. We act in consultation with you, on your behalf.

We will gladly give you any help and advice that you may need with regard to establishing a protecting the rights to your plant. PMA completes the paperwork and lodges PBR applications of behalf of the breeder. This can be a very time consuming and daunting process.

First Date of Sale

It is important to be aware that all intellectual property systems set time limits that can elapse between the first date of sale of the plant and the date by which the application for Plant Breeder's Rights must be submitted.

The first date of sale is very important not only for Australia but for all other countries. Most countries operate under a PBR system and have one of two ways of looking at the first date of sale.

One year rule

As soon as a plant is sold within a country it must be protected within one year from this date

Or

Four year rule

Once a first date of sale has occurred in any given country all subsequent countries wanting to apply for PBR protection must apply within four years from the first date of sale. One exclusion to this rule is the USA - which only allows one year from the first date of sale, regardless of which country the first date of sale occurred in.

For this reason we strongly recommend withholding the first date of sale until the USA has had sufficient time to trial material under their conditions to assess the varieties potential in their country. This avoids losing a potentially large market.

Taking this into account, if you wish to apply for protection rights and derive income from your new plant it is very important that it is not sold or distributed until a plan for marketing , trialling and protection has been mapped out with PMA.

Therefore, the golden rule to follow with your new variety is:

Do not give away, sell or otherwise distribute your new plant to anyone

When the time is appropriate for test material to be distributed, PMA will ask the breeder to sign an agreement to ensure both parties understand their responsibilities. Once this is in place, trial material will be sent out to various sites and to agents for assessment. This is also done under strict agreements ensuring your rights are protected and material remains under PMA's control.

The Breeder Agreement

Subject to a positive initial evaluation, PMA will offer a Breeder Agreement to the breeder. This lays out the terms under which the relationship between the breeder and PMA will be conducted, including the responsibilities of each party. It also includes details of PMA's charges. PMA gains revenue by charging commission on royalties earned by the varieties that form the PMA portfolio (click to go to 'Our Plants').

Domestically, the royalty is based on a figure per unit sold. We calculate the royalties in 6 monthly periods, January- June and the July-December each year. For example if plant X attracts a royalty of 0.10, this is then multiplied by the amount of plants sold in a royalty period.

All fees and charges for a particular variety are treated as 'royalties in advance' meaning that PMA pays for all costs up front and these costs are then deducted off any incoming royalties for that variety. The balance is then forwarded to the breeder. We find this is the best way to handle such costs as it minimises the finiancial burden on the breeder who may have several varieties in the system at any one time.

In international markets PMA's commission is generally based on 25% of total royalties received, with 75% being returned to the breeder. The royalty rate in each country is determined by the territory agent. Based on the knowledge of their local industry they are in the best position to make an accurate assessment of the best returns possible. If you would like to discuss PMA's charges further or would like a copy of the Breeders Agreement please do not hesitate to contact us.

Marketing and promotions

PMA operates on a network approach when licensing plant growers. This allows us to match the plants to the most suitable growers and licensees throughout Australia and agents internationally.

This has advantages for all parties. The growers and licensees are offered plants which best compliment their existing product range and with which they are most likely to succeed. PMA invests a lot of time travelling and visiting growers throughout Australia and agents internationally to inspect their facilities to fully understand their individual strengths and capabilities.

PMA may work with specific growers to develop market penetration strategies, with product launch and promotion techniques devised together. Once the product has become established within the marketplace PMA may then work towards developing a broader licensing strategy whilst taking care not to saturate the market and reduce the new plant to a commodity item.

PMA may licence one or multiple growers in each state to ensure we gain maximum market exposure. Each grower will have different sales channels and cross over will not occur. PMA selects growers to cover avenues to retail garden centres, chain stores and landscape markets. This ensures the plant has different paths to reach the end consumer.

Breeders can rest easy knowing their variety is part of a strong portfolio of carefully selected plants. This portfolio includes some of the best new varieties in the world today. Growers are keen to trial PMA varieties as they know that plants in our portfolio are solid and new introductions will have considerable merit.

PMA uses a different marketing strategies, and evaluates each plant on its own merits. A strategy that is useful for one plant may be unsuitable for another. We have developed close relationships with the horticultural media in all forms. We are in constant contact with journalists, national magazines, newspapers, landscapers, radio and TV to ensure coverage both within the industry and to the buying public.

PMA works directly with plant label companies. Our artwork and design is all done in house by experience professionals. We carefully consider promotional literature, point-of-sale signage, display items and all facets of advertising to produce the best possible outcome for your variety.

Royalty Collection

The most important issue of plant licensing is that the breeder needs to be confident that they are getting the best returns from their plant. This requires effective policing and collection of royalties, along with a global protection and licensing strategy.

Royalty collection in Australia is handles in several ways. Some agents place the royalty on plants sold from propagation houses but PMA places the royalty on the plant label. We chose this system for several reasons, the primary one being that all PBR protected varieties need to be sold with a label displaying the PBR logo. It is a breach of the law for plants to be sold without this.

We also selected this method for the ease of royalty collection and monitoring of varieties. The label companies collect these royalties on behalf of PMA and forward the total sales and breakdown every six months. This enables us to give two royalty returns a year for domestic sales.

International royalty collection is slightly different. This system is monitored by our local agents based on units sold on a six to twelve month period. Our agents have access to grower's records to monitor their sales.

Our international agent partners are always checking for production by unlicensed growers. It is not always advantageous to take a heavy handed approach on such growers as there is not always malicious intent. In some cases, it may be appropriate to negotiate a back payment of royalties and to agree to a licence for future production and sales. Therefore, satisifying both parties.

International agents police unlicensed production by monitoring sales and promotional activities of growers within their territories. They collect catalogues, monitor websites, visit trade shows and discuss events with colleagues. This ensures licensed growers are making truthful and accurate sales declarations and therefore paying the correct royalty to each breeder.

Our agents visit growers, tour their nurseries and inspect their records. Breaches by licensees are viewed seriously and may result in the termination of the licence. This continues for the lifetime of each variety. In addition, PMA continuously reviews the licensing strategy for each plant and if a licensee is underperforming, we will take corrective action.

Cost of Services

Once the decision has been made to protect a new plant, PMA will act on your behalf to file the paperwork necessary to apply for PBR.

PBR applications require a considerable amount of time and accuracy, thus familiarity with the system certainly is an advantage. PMA has considerable experience with lodging applications and we also have a qualified QP (Qualified Person - as required by IP Australia) on staff to file applications. For international applications we tend to utilise the service of our partner agents to ensure the greatest chance of success. PMA also assists in managing the provision of plant material for official comparator trials and acts as a conduit for information between the PBR authorities and the breeder.

PMA will act on your behalf; however the PBR application always remains in the name of the breeder. The breeder retains total ownership and control of the variety. Some companies will purchase ownership rights from a breeder for a fixed fee; however we feel this does not offer the best possible outcome for the breeder.

Applying for PBR protection does cost money. Again, PMA usually absorbs these costs initially by means of royalties in advance, and deducts the costs from royalties once the plant is earning for the breeder.

Shipping Costs

As with any new venture, there will be costs involved. PMA looks at all costs associated with any variety as royalties in advance. This means that PMA will cover the costs up front and once the plant is earning royalties, we then deduct costs. Once costs have been covered, we then forward the outstanding amounts to the breeder.

When we are due to ship material to other agents and growers we will request material from you which will be supplied to PMA at no cost. This is the only outlay a new breeder will incur. The quarantine fees, shipping costs, handling charges and all protections costs are paid for either by PMA or the agents involved with the shipping.

We believe this is the responsibility of the agent and these costs should be borne by us as your representative. Because we carry these costs, sometimes for years, this is where our evaluation and research becomes into effect.

If you would like to discuss PMA's charges further please do not hesitate to contact us.