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1. The grant of Plant Variety Rights (PVR) under the Plant Variety Rights Act 1987 (PVRA 87) provides plant breeders with the exclusive right to sell seed or reproductive material of their new varieties. This gives plant breeders an opportunity to make a return on their investment in breeding new varieties, and provides an incentive for such investment.

2. The rights provided for in the PVRA 87 for PVR owners are relatively restricted, and limit the ability of PVR owners to earn revenue from their protected varieties. This may reduce the incentive for local plant breeders to develop new varieties, or for foreign breeders to allow their new varieties to be exploited in New Zealand.

3. New Zealand has a significant plant breeding industry. New plant varieties developed in New Zealand can provide significant income to New Zealand both from the sale of produce, and from the licensing of those new varieties in other countries where PVRs have been obtained.

4. It is possible that the restricted rights provided for under the PVRA 87 make it more difficult for New Zealand growers to gain access to new plant varieties. As agriculture is a substantial contributor to New Zealand's economy, New Zealand growers may be disadvantaged if growers' access to new plant varieties is restricted.

5. New Zealand has a significant plant breeding industry. For some crops, such as apples, kiwifruit, ryegrass and clover, the majority of the PVRs registered in New Zealand are owned by New Zealand breeders. New plant varieties developed in New Zealand can provide significant income to New Zealand both from the sale of produce, and from the licensing of those new varieties in other countries where PVRs for those new varieties have been obtained.

6. An additional consideration, the 1991 revision of the International Convention for the Protection of New Varieties of Plants (UPOV 91) provides for more extensive rights for plant breeders than the PVRA 87, which is based on the 1978 revision of the Convention (UPOV 78). New Zealand is not a party to UPOV 91.

7. When considering the question of whether the PVRA 87 should be amended, along with the question of becoming a party to UPOV 91, the following broad context will need to be taken into account:

• the government's goals of growing an innovative New Zealand for the benefit of all, and the need to support research and development, while minimising regulatory barriers to innovation;
• the government's obligations under the Treaty of Waitangi, and the need to take into account Māori concerns regarding the exploitation of indigenous flora;
• New Zealand's international obligations under the TRIPS agreement and UPOV 78.

8. Within the broad context outlined above, If New Zealand were to provide more extensive rights for plant breeders (whether or not New Zealand becomes a party to UPOV 91), there will be costs as well as benefits:

9. In putting forward the innovation strategy the Prime Minister has stressed the need to enhance the innovation system. As the Prime Minister noted, an important element of this is improving New Zealand's intellectual property framework. The purpose of this discussion document is to inform interested parties about issues concerning the granting of plant variety rights in New Zealand. Public input is sought on whether, and if so, how the Plant Variety Rights Act 1987 should be amended to address any of these issues so that the Act contributes to the government's goal of growing an innovative New Zealand and ensures that New Zealand gains full value from its innovations.