Dactylorhiza InkspotsSubject to a positive initial evaluation, PFE will offer an Engagement Agreement to the breeder. This is a rather lengthy and boring document! However, it lays out the terms under which the relationship between the breeder and Plants For Europe Limited will be conducted, including the responsibilities of each party.

It also includes details of PFE’s charges for its services. PFE gains revenue by charging commission on royalties earned by the varieties that form the PFE portfolio. The standard rate of commission is 33% of gross royalties. No other charges are made to the breeder without the express consent and agreement of the breeder in each case (such additional charges could, in some cases, include agreed fees for the administration of PVR applications, or costs of transporting plant material. However, these are generally taken out of the royalties in the first year or so). Therefore, in most circumstances, the breeder will not have to pay anything to PFE until the plant begins to generate revenue for the breeder, because the cost of application for PVR will usually not occur before the first sales.

The main points of the Engagement Agreement are as follows, although this list should not be considered as a substitute for reading the entire agreement before signing it!

  • You (as the breeder or owner of the plant variety or varieties) appoint PFE as exclusive agent in Europe for the commercial development of your plants listed in the Agreement (the Listed Cultivars).
  • By further agreement, you can appoint PFE as agent for other parts of the world.
  • You always retain exclusive ownership of the proprietary rights in your plants.
  • PFE will try its best to secure a profitable income for you by collecting Royalties on licensed sales.
  • PFE will manage distribution, trials, licensing and policing and will report regularly to you.
  • PFE will undertake marketing of the Listed Cultivars, joining with you and Licensees when necessary to achieve this.
  • You will provide all the information about the Listed Cultivars that PFE might need, as well as keep a reference stock of each one.
  • PFE will issue licenses to growers using terms that are pre-approved by you.
  • PFE will collect Royalties from Licensees and pay them to you twice each year after deducting Commission of 33% of gross Royalties.
  • PFE will manage applications, on your behalf and in your name, for European Union Plant Variety Rights or other proprietary rights in your variety unless agreed otherwise.
  • PFE may engage a Local Territory Agent, but only with your approval.
  • The parties will work together if there are any suspected cases of infringement of your proprietary rights.
  • The parties will keep each other’s confidential information exactly that!
  • The Engagement Agreement will be interpreted under the laws of England and Wales and under the exclusive jurisdiction of English courts.

The Agreement also includes sections related to the term of the Agreement and procedures for termination and we recommend that you pay careful attention to these.

If you would like to discuss such an agreement further or would like a specimen copy of the Engagement Agreement, please do not hesitate to contact us.

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