A licensing fee is charged when each patented plant is sold. Usually, it is a few cents per plant. This money goes to the plant breeder and marketing efforts that help sell more of your patented plant by providing advertising, and ideas on how to use the plant to its best advantage (the marketing fee goes to marketing, and the licensing fee ALL goes to the breeder). The more plants sold the higher the annual check amount to the breeder will be, so it is important to not only have the best genetics but also a strong marketing and promotional program to ensure the success of a plant's introduction into the market. As an example; if 50,000 plants are sold and there is a 2-cent license on each plant, the total earned is $1,000. The licensing fee amount is negotiable. There are many variables to consider during licensing negotiations, like the plant and the size of the market it may have upon introduction. For instance, with over 700 cultivars of geraniums on the market, a new geranium will be competing for sales more than a unique plant with little competition. On the flip side, well-known garden plants like geraniums tend to sell more units because consumers are familiar with them whereas a new crop may sell less initially until people become familiar with the plant.
Foreign Countries & Plant Patents
- Most countries, like Canada, Australia, South Africa, Europe, and Japan, each have their own plant patents & laws. A United States patent does not protect you in any foreign country. Proven Winners and our international partners can help with this process.
- Many other countries, such as China and SE Asia, do not offer patent protection, where illegal propagation of many patented hybrids is currently standard operating procedure. If your plant is taken to one of these countries you have no legal recourse against illegal propagation unless you have a binding trial agreement in place before plant shipment and a partner like Proven Winners working with you.
A patent is only as good as the company representing you; for a plant patent to be protected you need an enforcer, without an enforcer you may find it very hard to protect your rights. Proven Winners is respected worldwide for policing their patents and stopping illegal propagation.
If my plant is not patentable can I still get paid for it?
Yes, but it must be written into a licensing agreement where the person selling your plant agrees to pay a ‘voluntary fee’ on each plant sold.
For more information about plant royalties, contact our experts