Licence Agreements and Royalties


Maximise the Value of Your Intellectual Property Rights

Plant Breeders' Rights or a U.S. Plant Patent give you exclusive rights to your plant variety. In practice, however, you may not wish to produce, propagate, or market the variety entirely on your own.

A licence agreement allows you to authorise other parties to use your variety under agreed terms and conditions. This enables you to expand your market, create new commercial opportunities, and generate royalty income, while retaining control over your intellectual property rights.

A well-drafted licence agreement not only protects your rights, but also helps prevent disputes and misunderstandings in the future.

What Is Covered in a Licence Agreement?

No two situations are the same. That is why a well-drafted licence agreement is almost always tailored to the specific circumstances.

Commonly covered provisions include:

Who is authorised to use the variety?

  • One specific party or multiple licensees
  • Exclusive or non-exclusive licences
  • National or international rights

Which activities are permitted?

  • Propagation
  • Production
  • Sales
  • Export
  • Marketing activities

Royalty agreements

  • Royalty per plant
  • Royalty per cutting
  • Royalty percentage of the turnover
  • Minimum purchase commitments
  • Annual minimum royalty payments

Reporting and Audit

  • Sales reporting
  • Audit rights
  • Verification of royalty payments
  • Verification of production volumes

Term and Termination

  • Duration of the agreement
  • Termination provisions
  • Consequences of breach of contract
  • Post-termination protection

Why a Well-Drafted Agreement Matters

Many disputes arise not because parties have bad intentions, but because agreements have not been clearly documented.

Uncertainty regarding royalties, territories, exclusivity, or reporting obligations can later lead to costly disputes.

A well-drafted agreement provides clarity for both parties and forms the foundation for a long-term partnership.

International Licensing

When a variety is commercialised in multiple countries, licensing structures often become more complex.

Examples include:

  • Different distributors in each country
  • International royalty flows
  • Sublicenties
  • Local regulations
  • Collaboration with international agents

Cultivera® supports both national and international licensing structures and helps establish a framework that aligns with your commercial objectives.

How Cultivera® Can Support You

Cultivera® supports plant breeders and growers with:

✓ Drafting licence agreements

✓ Reviewing existing contracts

✓ Negotiations with licensees

✓ Royalty structures and compensation models

✓ International licensing programmes

✓ Management of licensing portfolios

✓ Advice on disputes or contractual matters

Not only legal protection, but also commercial value

Intellectual property rights are more than just a registration or certificate. They form the foundation for the commercial exploitation of your innovations.

Cultivera® helps you not only obtain these rights, but also make optimal use of them.

You Grow. We Protect. It’s that simple.