The Protection of Plant Varieties in Malaysia Dr. Ida Madieha bt. Abdul Ghani Azmi Assoc. Prof. Private Law Department, International Islamic University Malaysia. Intro The new government has restructured the previous Ministry of Agriculture into the Ministry of Agriculture and Agro-based Industries. It looks clear from the restructuring that Malaysia is set to embrace agriculture as an industry to generate income for our national gross domestic production (GDP). This move is in tandem with the government’s aspiration to build up the country’s biotechnological capacity to improve the yield of agriculture and agro-based industries. The setting up of the Bio-valley is a manifest demonstration of the government’s seriousness in this. With regards to the creation of new plant varieties, since 1930’s, an informal breeding system was already in place. Since then the Ministry of Agriculture started to register new varieties of fruits for certification purposes. However, the informal system does not bring about a formal protection for the creators of variety. As Malaysia is a signatory to the TRIPS Agreement, she has been under a pressure to put in place a protection regime for plant varieties. The proposed introduction of plant breeder’s right through the promulgation of the New Protection of Plant Variety Bill 2003 (the Bill), would constitute a step in the right direction. In September 2003, a bill for the protection of plant varieties has been presented before the Parliament for the first hearing. Because of time constraint, the full debate of the bill was deferred to March session 2004. In March, the government dissolved the Parliament to call for fresh election and the debate on the bill had to be further postponed. It was only a couple of weeks ago that the first Parliamentary session of the new government was convened and the Bill is among the first few that will be discussed in this session. The Bill is expected to be read for the first time sometime at the end of June and is expected to be endorsed by July this year. The drafting of the bill has been done through consultation process with various relevant ministries and other government agencies, research institutions and non-governmental organisations including the Third World Network. Although the framework of the Bill is substantially based on the UPOV Convention, interestingly that the Bill contains unique stand on various issues such as traditional variety, farmers’, indigenous people and local community’s right. This is reflected in the preamble of the Bill which, states the objectives of the Bill to be: (i) to provide for the protection of the rights of breeders of new plant varieties, (ii) to provide for the recognition and protection of contribution made by farmers, local communities and indigenous people towards the creation of new plant varieties 1 (iii) (iv) to encourage investment in and development of the breeding of new plant varieties in both public and private sectors to provide for related matters. It has to be noted at the outset that Malaysia has yet to be a member of the UPOV Convention. Even if the political decision to accede to the Convention is reached in the future, the process will not be a complicated one. After all, the current Bill can be said to be 90 percent UPOV compliant. This paper will address the proposed Protection of New Plant Varieties Bill 2003 and discusses the framework of protection in comparison to the UPOV Convention. The function of the Plant Variety Office. One of the most important functions of the Plant Variety Office is to have a national register of plant varieties. The same idea has been experimented in India with the setting up of a National Register of Plant Varieties. This would enable the recording of existing varieties, which is essential not only for recording purposes but also for the conservation of the national biological diversity. As mentioned earlier, the process of registration of variety has been ongoing since 1936, though not for the purpose of protection. Since then more than 100 varieties of ‘durian’ has been registered, 200 of mangoes, 35 of jackfruits, 40 of ‘cempedak’ and other varieties of fruit plants. This informal breeding system is part and parcel of the larger current interest in recording the biological resources in the country as well as documenting traditional varieties. Plant Varieties Board The Bill institutionalizes an oversight body known as the Plant Varieties Board that has been vested with broad supervisory functions. The Board consists of all the major players of the relevant governmental institutions1. The Board is responsible for the upkeep and maintenance of the Register of New Plant Varieties.2 From the provisions of the Bill, the Board is the one responsible for the approval of the application for registration. 1 The membership of the Board consist of: the Director General of the Department of Agriculture, Peninsular Malaysia, the Director General of the Malaysian Agricultural Research and Development Institute; the Director General of the Malaysian Rubber Board; the Director General of the Malaysian Palm Oil Board; the Director General of the Malaysian Cocoa Board; the Director General of the Forest Research Institute of Malaysia; the Director of Agriculture, Sabah; the Director of Agriculture, Sarawak; A representative from the Ministry of Agriculture; a representative from the Ministry of Primary Industries; a representative from the Ministry of Domestic Trade and Consumer Affairs; and a representative from the Ministry of Science, Technology and Environment. 2 S 29 of the Bill. 2 However, it would appear that testing of samples would not be done in-house solely but would be outsourced to relevant research centers.3 This is to avoid the problem of having to build up sufficient in-house expertise and manpower to deal with examination. The Board will determine who is the person ‘skilled in the art’ by analysing the denomination of the variety. The identification of the relevant research centres would be done by the Board at an ad hoc basis4. Process of Application Section 12 of the Bill specifies the information and supporting documents that needs to be disclosed by the applicant for purposes of application. The relevant particulars and documentations are: (a) (b) (c) (d) (e) (f) (g) (h) the name, address, nationality and other particulars of the the method by which the plant variety is developed; be supported by documents and information relating to the characteristics of the plant variety from other plant varieties; specify a plant variety denomination5 in accordance with section 16; contain information relating to the source of the genetic material or the immediate parental lines of the plant variety; be accompanied with the prior written consent of the authority representing the local community or the indigenous people in cases where the plant variety is developed from traditional varieties; be supported by documents relating to the compliance if any law regulating access to genetic or biological resources; and be supported by documents relating to the compliance of any law regulating activities involving genetically modified organisms in cases where the development of the plant varieties involves genetic modification. The categories of people who can apply for registration are spelt out in section 13. This section reads: Section 13(1) An application for the registration of a new plant variety and grant of a breeder’s right under section 12 shall only be made by(a) a breeder; (b) the employer of the breeder; (c) the successor in title of the breeder; (d) a farmer or group of farmers, local community or indigenous people who have carried out the functions of a breeder; 3 Such as MARDI, LGM, Guthrie, Golden Hope, MINT and the Ministry of Agriculture itself. The term ‘center’ has been defined as ‘any place approved by the Board for the deposit of any sample of seeds or propagating material’. 4 Essentially, there are three types of examination: documentation examination, onsite examination and growing test (only when appropriate). 5 “Denomination” means the name or identification for a plant variety expressed in letters or a combination of letters and figures written in any language. 3 (e) any government or statutory body which has carried out the functions of a breeder. From these categories, it looks clear that farmers, local community and indigenous people are also allowed to apply for registration of varieties. The term ‘breeder’ in the Act goes beyond those who develop a new variety for commercial purposes, but can also extend to those who took it up for cultural purposes6. It also does not matter if a person were to discover a variety, cultivate and preserve it. Here, the term ‘discover and develop’ is further defined to mean ‘activities which lead to the desired phenotypic expression and affect the crop genotype and which may or may not entail deliberate or artificial creation of genetic variability.7’ Threshold of registrability The new Bill adopted the UPOV system and mandates the threshold of registrability to be: (i) New, (ii) Distinct, (iii) Uniform, and (iv) Stable.8 A plant variety is new if on the filing date of the application for registration and grant of a breeder’s right, the propagating or harvested material of the plant variety has not been sold or otherwise disposed of on a commercial basis or with the consent of the breeder(i) within Malaysia, earlier than one year before the filing date of the application for registration of a new plant variety and grant of a breeder’s right; and (ii) in other countries(a) earlier than six years before the filing date of the application for registration of a new plant variety and grant of a breeder’s right in respect of trees and vines; and (b) earlier than four years before the filing date of the application for registration of a new plant variety and grant of a breeder’s right in respect of other plant varieties9. Novelty is then assessed by establishing from the point of whether it is already marketed within the relevant time. Once the plant variety is offered for sale or marketing, it becomes common knowledge. The further requirement of consent limits the commercial novelty requirement. Novelty is only destroyed if the commercial marketing takes place with the consent of the breeder. In s 3, the term “breeder” means a person who has bred or has discovered and developed any plant variety. 7 S 3 of the Bill. 8 S 14(1) of the Bill. 9 S 14(3)(a) of the Bill. 6 4 From the earlier novelty requirement, commercial dealings of a variety within the grace period is allowed and would not destroy novelty. However, such dealings may cause the variety to be treated as one “whose existence is a matter of common knowledge at the time when protection is applied for” and thereby disqualify it from protection for failure to meet the distinctness criterion in Article 6(1)(a). This conclusion can be drawn from section 14(3)(b) of the Bill that reads: (b) A plant variety is distinct if on the filing date of the application for registration of a new plant variety and grant of a breeder’s right it is clearly distinguishable from any other plant variety. The existence of which is a matter of common knowledge With regards to uniformity and stability; both the threshold of UPOV Convention are adhered to. Thus, a plant variety is uniform if, ‘subject to the variation that may be expected from the particular features of its propagation, it is sufficiently uniform in its relevant characteristics’. Whilst, a plant variety is stable if ‘its relevant characteristics remain unchanged after repeated propagation or, in the case of a particular cycle of propagation, at the end of each particular cycle’. With the adoption of the NDUS requirement along the UPOV lines means that the practice of examination of plant variety in Malaysia would be at par with international practice. The most important determination would be whether the samples given could be characterized as a ‘variety’ or not. On this, the Bill defines a variety to mean: “ A plant grouping within a single botanical taxonomy of the lowest known rank(a) which can be defined by the expression of the characteristics resulting from a given genotype or a combination of genotypes; (b) which can be distinguished from any other plant grouping by the expression of at least one of such characteristics; and (c) which can be considered as a unit with regard to its suitability for being propagated unchanged, and includes propagating material and harvested material of the plant variety.10” Whilst the term ‘plant’ has been defined to mean any living organism in the plant kingdom but excludes any micro-organism’11. With the express exclusion of microorganism, the Bill manifestly restrict its application to plants only12. Currently, there is no separate system of protection for animal variety in Malaysia. 10 S 3 of the Bill. S 3 of the Bill. 12 Cf the definition of “plant” in The Plant Quarantine Act 1976 (Act 167) where “plants” have been defined to mean “any species of plant or any part thereof whether living or dead and includes the stem, branch, tuber, bulb, corn, stock, budwood, cutting, layer, slip, sucker, root, leaf, flower, fruit, seed or any other product whatsoever of a plant whether severed or attached but does not include any plant product that that has undergone a process of heat and drying treatment”. 11 5 Genetically modified variety Traditionally, plant varieties are excluded from patentability and the express exclusion on this can be found in section 13(2)(b) of the Patents Act 1983. The provision reads: Section 13(2) …the following shall not be patentable: (b) plant or animal varieties or essentially biological processes for the production of plants or animals, other than man-made living micro-organisms, microbiological processes and products of such micro-organism processes. The Malaysian stand is consistent with the TRIPs Agreement as enshrined in article 3(b). The above exclusion relates only to plant variety but inventions involving plants would be patentable. What remains unclear is whether genetically modified plants can be both patentable as well as registrable under the plant variety system. It would appear that the Malaysian stand on this would be consistent to that of international practice. A genetically modified variety would not be patentable but a plant invention that consists of genetically modified cell line would be. Whatever ways, a plant invention can only be registered under the breeder’s system if it constitutes a variety. Section 12(1) (e),(f) and (g) would be relevant here. Applicant must disclose information pertaining to the genetic origin of the variety13 and must show proof of prior written consent14 and compliance to any law regulating access to genetic or biological materials15. Non registrable subject matter. The UPOV Convention does not provide for any exclusion to registrability. The Malaysian Bill contains two grounds for the exclusion of registrability as enlisted in section 15: (a) (b) which may affect public order or morality; or where there is reasonable ground to believe that the cultivation, reproduction or any other use of that plant variety may produce a negative impact on the environment. Both grounds have a strong origin from the TRIPs Agreement in relation to the exclusion from patentability. Both grounds have been vehemently fought for by the nongovernmental institutions, thus the insertion in the Bill. 13 (e) contain information relating to the source of the genetic material or the immediate parental lines of the plant variety; 14 (f) be accompanied with the prior written consent of the authority representing the local community or the indigenous people in cases where the plant variety is developed from traditional varieties 15 s 12(g) of the Bill. 6 Examination process The examination process in Malaysia is unique in comparison to other countries. Each application undergoes two stages of examination; preliminary and substantive. At the preliminary stage, the examining authority would have to determine whether the variety does not fall within the prohibition of registration and to ensure the correct denomination of the plant variety has been claimed for16. Having the correct denomination is essential to the application. As section 16(1) stipulates, (1) the denomination of a plant variety the registration of which by the Board is applied for(a) shall be the generic designation of the plant variety; (b) must enable the plant variety to be identified; (c) shall not exclusively consist of numerals; and (d) shall be different from other plant variety denominations which identify an existing plant variety of the same plant species or a closely related species. At the substantive level, the examining authority would have to determine whether the application complies with the threshold of registrability17. All successful applications would be published in the Gazette to enable others to oppose the application18. The notice of opposition must be filed by any interested party, within three months from the date of publication of an application for registration19. Several grounds of opposition have been identified in section 23. They include: (a) that the person opposing the application is entitled to the breeder’s right as against the applicant; (b) that the application for the registration of the new plant variety and grant of a breeder’s right does not comply with the requirements of this Act; (c) that the application for the registration of the new plant variety and grant of a breeder’s right is contrary to the public order or morality; (d) that the application for the registration of the new plant variety and grant of a breeder’s right may produce a negative impact on the environment. From the above discussion, several questions need to be addressed. Why is the examination process like patents and trade marks? Why is there two level of examination like patents? What is the purpose of having an opposition proceeding? It is really unclear 16 S 19 of the Bill. S 20 of the Bill. 18 S 22 of the Bill. 19 S 23(1) of the Bill. 17 7 why the process of examination must be as complicated as patents and trade marks when the nature and scope of exclusive rights conferred to the breeder of plant varieties are different. These requirements are unheard of in UPOV. In India, with the exception for oppositions20, the examination process involves only one stage-process. A validly registered plant variety can still be invalidated upon application by any interested party21. The grounds of invalidation are more stringent than opposition. These grounds are: (a) the holder has furnished to the Board false or misleading information or statement in respect of the application for registration of the new plant variety and grant of a breeder’s right; (a) the holder has not complied with the requirements of the Act; or (b) the breeder’s right does not belong to the person to whom the breeder’s right was granted.22 Scope of the breeder’s right The kind of exclusive rights granted to the breeder is consistent to that of UPOV Convention. As expressed in section 30(1) of the Bill: A holder of a breeder’s right shall, in respect of the registered plant variety for which the right is granted, have the right to carry out all or any of the following acts on a commercial basis: (a) (b) (c) (d) (e) (f) (g) producing or reproducing; conditioning for the purpose of propagation; offering for sale; marketing, inclusive of selling; exporting; importing; stocking the material for the purpose mentioned in paragraphs (a) to (f). As made clear in the above provision, only acts of commercial exploitation would be caught. Activities that borders on research, private use and farmer’s right would be excepted. This part would covered in more detail later. To clarify the scope of the right further, subsection 2 states: (2) The breeder’s right shall also extend to(a) any propagating material of the registered plant variety, harvested material of the registered plant variety and the entire or any part of a plant variety where the propagating material of that plant variety is obtained through unauthorized means from the registered plant variety; 20 s 21 of the 2001 Bill. s 39(1) of the Bill. 22 S 39(2) of the Bill. 21 8 (b) plant varieties which are essentially derived from the registered plant variety, if the registered plant variety is not essentially derived from another plant variety; or (c) plant varieties which are not clearly distinguishable from the registered plant variety; or (d) the production of other plant varieties which require the repeated use of the registered plant variety. The above provision extends the exclusive rights of the breeders to that of plants that are essentially derived from the registered plant variety. In section 3, the term “essentially derived plant variety” has been defined to mean a plant variety which(a) is predominantly derived from the initial plant variety, or from a plant variety that is itself predominantly derived from the initial plant variety, while retaining the expression of the essential characteristics that result from the genotype or combination of genotypes of the initial plant variety; (b) is clearly distinguishable from the initial plant variety; and (c) except for the differences which result from the act of derivation, conforms to the initial plant variety in the expression of the essential characteristics that result from the genotypes or combination of genotypes of the initial plant variety. In other jurisdictions, essentially derived varieties are entitled for protection in their own sake. In India, for example, section 23 of the 2001 Act allows the registration of essentially derived variety. What about products made directly from the harvested material of the protected variety? The 1991 UPOV Convention mandates that the any use of the said harvested material must be done with the consent of the breeder23. This provision which has been highly criticized by others is not present in the Malaysian New Protection of New Plant Bill 2003. What amounts to an infringement? The exclusive rights of the breeder would be offended is any of the exclusive rights granted to him is performed by others without his authorization.24 Research exceptions To enable research on plants to continue, the Bill draws several limitations of breeder’s right. Section 31(1) provides: The breeder’s right shall not extend to(a) any act done privately on a non-commercial basis; (b) any act done for an experimental purpose; (c) any act done for the purpose of breeding other plant varieties and any act referred to in paragraphs 30(1)(a) to (g) in respect of such other plant 23 24 Article 14(3) of the revised UPOV Convention. S 47 of the Bill. 9 varieties, except where such other plant varieties have been essentially derived from the registered plant variety. One of the concerns of breeders is whether they will be encumbered from researching on the registered varieties with the intention of developing new ones. From subsection (c) above, it can be inferred that this can be done. The same position can be found in the Indian Act that enables the use of a variety by any person as an initial source of variety for the purposed of creating other varieties.25 Duration of breeder’s right Consistent with the UPOV Convention, the duration of protection is: (i) twenty years for a registered plant variety that is new, distinct, uniform and stable; or (ii) fifteen years for a registered plant variety that is new, distinct and identifiable26. (iii) in respect of trees and vines, the duration is twenty-five years27. It is not mentioned in the Bill whether the calculation commences from the date of application or from the date of grant. This term is generally not extendable, except for extenuating circumstances; i.e. national needs and interests28. Compulsory licence The Revised UPO Convention disallow any exceptions to the breeder’s exclusive right except for public interest29. In such instances, the Contracting Party concerned is mandated to take all necessary measures to ensure that the breeder receives equitable remuneration30. The Malaysian legislature takes a different stand. A compulsory licence can be sought after the expiration of 3 years from the grant of a breeder’s right. The grounds in which compulsory licence can be sought are laid down in section 36 which provides: (i) if section 34 has not been complied with and the needs of the farming community for the propagating material had not been met; or (ii) an excessive proportion of the registered plant variety offered for sale is being imported. Section 34 basically underlines the duty of the holder of propagating material. He must ensure that not only that these materials are available in reasonable quantities within three 25 S 30 of the Act. Provided that the authorisation of the breeder of a registered variety is required where the repeated use of such variety as a parental line is necessary for commercial production of such other newly developed variety. 26 S 32(1) of the Bill. 27 S 32(2) of the Bill. 28 S 33 of the Bill. 29 Article 17(1) 30 Article 17(2) 10 years from the date of the application of registration of the new plant variety but they must also be sold at a reasonable price. The scope, conditions and termination of compulsory licence are similar to that of patents. The Board has the power to determine the scope of the compulsory licence and impose any necessary restrictions to ensure that it will not be abused 31. One major limitation to compulsory licence is that it does not extend to the act of importation. The breach of any of the terms would entail the termination of the compulsory licence32. Traditional variety or variety developed by local community. The Act allows local community or indigenous people to apply for the registration of their traditional variety.33 The term “local community” has been defined under section 3 of the Act to mean ‘a group of individuals who have settled together and continuously inherit production processes and culture or a group of individuals settled together in a village or area and under an eco-cultural system’. Whilst the term “indigenous people” has been defined to refer to person who fall within the definition of the “aborigine” or “native” as defined respectively in Clause (2) of Article 16034 and Clause (6) of Article 161A of the Federal Constitution.35 As the Bill has practically adopted the Constitutional definition of ‘indigenous people’ which only covers the natives of Sabah and Sarawak, there is a genuine concern that the natives of the Peninsular Malaysia has been shortchanged. On the other hand, as the Bill also confers special privileges to local community, perhaps the natives of the Peninsular Malaysia could fall within this category. 31 Upon the granting of a compulsory licence to any person, agency or company, the Board shall determine(a) the scope of the compulsory licence and the right to carry out any of the acts referred to in section 30 except that such right shall not extend to the act of importation; (b) the duration of the compulsory licence; and (c) the terms and conditions of the compulsory licence. 32 S 38(1) of the Bill. 33 s 13(1)(d) of the Bill. 34 “Aborigine” means an aborigine of the Malay Peninsula. 35 In this Article “native” means(a) in relation to Sarawak, a person who is a citizen and either belongs to one of the races specified in Clause (7) as indigenous to the State or is of mixed blood deriving exclusively from those races; and (b) in relation to Sabah, a person who is a citizen, is the child or grandchild of a person of a race indigenous to Sabah, and was born (whether on or after Malaysia Day or not) either in Sabah or to a father domiciled in Sabah at the time of birth. Another relevant provision is A161(7) which provides: The races to be treated for the purposes of the definition of “native” in Clause (6) as indigenous to Sarawak are the Bukitans, Bisayahs, Dusuns, Sea Dayaks, Land Dayaks, Kadayans, Bisayahs, Dusuns, Sea Dayaks, Land Dayaks, Kadayans, Kalabits, Kayans, Kenyahs (including Sabups and Sipengs), Kajangs (including Sabups and Sipengs), Kajangs (including Sekapans, Kejamans, Lahanas, Punans, Tanjongs and Kanowits), Lugats, Lisums, Malays, Melanos, Muruts, Penans, Sians, Tagals, Tabuns and Ukits. 11 Section 13(3) further provides that in the case of local community and indigenous people, the authority representing the local community or indigenous people can be the agent for the purpose of registration. There is no requirement for a verification of the local community’s claim through an organisation, unlike in India.36 The threshold of registration for traditional varieties is somewhat lower than the usual UPOV like system. The usual criteria are new, distinct, uniform and stable. However, with traditional varieties, the plant variety may be registered if it is new, distinct and identifiable. A plant variety is identifiable if: (i) (ii) it can be distinguished from any other plant grouping by the expression of one characteristic and that characteristic is identifiable within individual plants or within and across a group of plants; and such characteristics can be identified by any person skilled in the art37. Both the requirement of uniform and stable is waived in relation to traditional variety. Traditional variety enjoy a much shorter period of protection, i.e. 15 years. Informed consent Informed consent is compulsory for varieties developed from traditional ones. Section 12(1) contains a list of particulars that need to be submitted for the purpose of application for registration. Information pertaining to the genetic origin of the variety appears in item (e)38 whilst prior written consent appears in (f)39. Section 12 (g) further mandates evidence of compliance of any law regulating access to genetic or biological resources. If the plant were to involve genetically modified organisms, there must be evidence of documents relating to the compliance of any law that regulates genetic modification. It has to be noted that currently, there are no regulations that cover genetic modification. All concerns pertaining to the contained use, import and export of genetic modification of living materials would fall within the ambit of the proposed Biosafety Bill. The Bill, also, does not address benefit sharing. This is because benefit sharing will be dealt with in by the proposed Access to Genetic Material Bill. Both the proposed Biosafety Bill and Access to Genetic Matreial Bill are in drafting process and not accessible to the public. 36 See s 41 of the Indian Act. S 14(e) of the Malaysian Bill. 38 (e) contain information relating to the source of the genetic material or the immediate parental lines of the plant variety; 39 (f) be accompanied with the prior written consent of the authority representing the local community or the indigenous people in cases where the plant variety is developed from traditional varieties 37 12 Farmer’s variety and special privileges The Act allows a farmer to apply for the registration of their traditional variety. 40 This is when the variety conforms to the requirements of newness, distinct and identifiable like that of local community and indigenous people. A “farmer” means any person who(a) cultivates crops by cultivating the land himself; (b) cultivates crops by directly supervising the cultivation of land through any other person; or (c) conserves and preserves, severally or jointly, with any person any traditional variety of crops or adds value to the traditional variety through the selection and identification of their useful properties41. The waiver of ‘stability’ and ‘uniformity’ as a threshold of registrability for traditional variety reiterates the policy objective of the Bill itself; i.e. to confer express recognition and protection of contribution made by farmers in towards the national agricultural industry. Though, the Indian ‘the Protection of Plant Varieties and Farmers’ Rights Act, 2001 has been identified as a model in the drafting of the Bill, the later do not have any special threshold for traditional varieties.42 The Indian Act also allows farmers to register traditional varieties, which can be done either by themselves or through an organisation of farmers. The Indian government has even gone one step further by exempting fees and conferring rewards to farmers through the Gene Fund. To ensure that the farmers are not economically suppressed by the conferral of exclusive rights over plants and propagating materials43, the Bill creates 3 special exceptions for them: (i) (ii) (iii) any act of propagation by small farmers using the harvested material of the registered plant variety planted on their own holdings; any exchange of reasonable amounts of propagating materials among small farmers; and the sale of farm-saved seeds in situation where a small farmer cannot make use of the farm-saved seeds on his own holding due to natural disaster or emergency or any other factor beyond the control of the small farmer, if the amount sold is not more than what is required in his own holding44. It has to be noted that such privileges can only be claimed by ‘small farmers’. A “small farmer” means a ‘farmer whose farming operations do not exceed the size of holding as 40 s 13(1)(d) s 3 of the Bill. 42 s 39 of the Indian Act, 2001. 43 “Propagating material” has been defined in s 3 of the Bill to mean ‘any material or plant, or any part of the plant, used for multiplication or reproduction’. 44 s 31(d)-(f) of the Malaysian Bill. 41 13 prescribed by the Minister’. As no such regulation has been drawn up yet, it is not sure at the moment what a small farmer would entail. With these exceptions, the long held reservations against the perceived inequities that farmers may suffer as a result of exclusive rights over plants and propogating materials would diminish considerably. The special privileges granted to the farmers accords with the UPOV Convention. Article 15(2) allows contracting parties ‘to restrict the breeder’s right in relation to any variety in order to permit farmers to use for propagating purposes, on their own holdings, the product of the harvest which they have obtained by planting, on their own holdings on their own holdings of protected variety’. The Malaysian provision, however, goes beyond the context of Article 15(2). Not only it allows the propagation of harvested materials by the farmers, it also legitimizes the farmers to exchange them among small farmers. In cases of emergency, the farmers are even allowed to sell the farm-saved seeds to others. Conclusion The proposed introduction of a plant variety protection system in Malaysia is a commendable step. It would make the Malaysian legislation one step further in its compliance with the TRIPS Agreement. Furthermore, as plant variety is excluded from patentability, the introduction of the sui generis plant variety system would complement well with the whole IP eco-system in Malaysia. Almost all subject matters of intellectual property rights can find its protection in Malaysia once the proposed New Plant Varieties Protection Bill is endorsed by the Parliament sometime this year. 14