The ACCC has issued a draft determination and has granted interim authorisation for Seedvise to continue to collectively bargain with grain buyers.
The development of new plant varieties is encouraged by legislation that protects plant breeder’s rights by allowing them to collect a licencing fee known as an End Point Royalty. Seedvise will collectively negotiate, on behalf of participating royalty managers, with grain buyers over the terms and conditions on which End Point Royalties are collected from grain buyers.
The ACCC considers that the arrangements are likely to deliver public benefits as a more effective and efficient means of collecting royalties. The conduct enables collection from grain buyers rather than grain buyers. There are around 13 000 grain growers, but only several hundred grain buyers.
The conduct was first authorised in 2014. Interim authorisation has been granted to enable Seedvise to give effect to the arrangements while the ACCC finalises its assessment of Seedvise’s application for re-authorisation.
The ACCC invites submissions on the draft determination by 5 July before it makes a final determination.
The ACCC’s draft determination and further information about how to make a submission is available on the public registers at: Seedvise Pty Ltd.