The Competition Commission has referred a Netherlands-based seed potato breeder and its exclusive South African distributor to the Competition Tribunal for prosecution, for alleged abuse of dominance in relation to the exclusive supply of the Mondial seed potato varietal in the country.
Wesgrow Potatoes, a local potato seed grower, has an exclusive agreement with HZPC Holland to sell the Mondial seed potato varietal to commercial farmers. According to the commission, when a new variety of potato is created, a breeder is afforded exclusive rights over the variety for 20 years. This is a type of intellectual property right that enables the breeder to recoup research and development costs through the exclusive rights.
HZPC was granted a plant breeder’s right over the Mondial seed potato varietal in October 1993. The exclusive rights therefore expired in October 2013, the commission said on Monday. It said the Mondial seed potato varietal should therefore be available in the open market, free of intellectual property right restrictions. The Competition Commissioner launched the investigation into Wesgrow and HZPC in 2015.
source: businesslive.co.za
