Royalties, Levies and Licenses

Once intellectual property rights (Plant Breeders’ Rights and Trademarks) have been obtained and a variety is available for commercial production, growers typically pay the variety owner a fee to secure the right to grow trees.   The grower may pay royalties to the owner as fruit is produced and sold.  Royalty rates may differ between varieties and are generally subject to review from time to time.  Often with new varieties growers will pay a levy on the sale of fruit, which is used for marketing and other activities.  Nurseries may be licensed to produce trees of protected varieties.   Some protected varieties may be licensed on an exclusive basis for which license fees are paid.