b'The ACLP held its first arbitrator training session in Brussels on Oct. 28, bringing together all 10 arbitrators and several ACLP members. BUILDING TRUST FOR FAIR ACCESS TO PATENTED TRAITS ACLPS ARBITRATION APPLIES THE SAME CLEAR RULES AND EXPERT JUDGMENT TO SET FAIR TRAIT ROYALTIES FOR SMALL AND LARGE COMPANIES ALIKE.BY: HLNE GUILLOT, MANAGING DIRECTOR OF THE ACLPR esolving disputes through alternative mechanisms such asexpertisefrom legal and licensing to business and breedingarbitration has a long and successful history in the industrialrepresenting both small and large companies, as well as public and sector. Parties have preferred to submit disagreements toprivate organizations. All arbitrators are required to sign a Code men of artexperts in their fieldrather than to judges withof Ethics and to disclose any potential conflicts of interest before limited sector-specific knowledge. participating in a case. Parties also have the right to challenge an The seed industry offers a prime example. The arbitrationarbitrator on the grounds of a conflict of interest. In each arbitration, system of the International Seed Federation (ISF), establishedboth parties appoint one arbitrator, and those two jointly select the nearly a century ago, has consistently proven its value in resolvingthird.trade disputes efficiently and fairly. The enduring spirit of the systemExperience shows that the model works. In the 10 years since is built on mutual respect between parties and a shared commitmentits creation, the ILP has not seen a single arbitration casedemon-to sustaining lasting business relationships. strating the strong incentive it creates for parties to settle amicably.The recently created Agricultural Crops Licensing PlatformTo ensure confidence in the ACLP system, trainings are pro-(ACLP) has also developed an arbitration system to support fairvided to arbitrators. The ACLP held its first arbitrator training and practical access to patented traits included in commercial vari- session in Brussels on Oct. 28, bringing together all 10 arbitra-eties. The ACLP system comes into play when negotiations over thetors and several ACLP members. The training gave arbitrators a royalty fee for a patented trait reach an impasse after six monthsdeeper understanding of their important role, explained Claudia of discussion. Hallebach, Chair of the ACLP. It also helped members appreci-Members of the ACLP who wish to access a patented trait canate how an arbitration would proceed and what kinds of evidence use a Standard Licensing Agreement in which all legal terms arecompanies must provide for arbitrators to assess the market value pre-approved by membersexcept for the royalty fee. If the par- of a trait.ties cannot agree on that fee within six months, either may requestDetermining the market value of a patented trait can be a com-arbitration to determine the appropriate rate. plex exercise. Arbitrators rely on their own expertise but also on Like the International Licensing Platform (ILP) for vegeta- the detailed analyses presented by both parties to justify their pro-bles, the ACLP has adopted a baseball arbitration model. In thisposed royalty fees. The system ensures fairness among all members, format, a panel of three arbitrators must choose one of the tworegardless of company size, since each operates with deep knowl-royalty proposals presented by the parties; they cannot propose aedge of the markets they serve. Because the arbitration ruling is compromise figure. This approach encourages both sides to reach anbinding, members are guaranteed clarity and certainty: within a agreement before arbitration becomes necessary, and submit realisticdefined timeframesix months of negotiation plus roughly two and well-supported royalty proposals, knowing that an unreasonablemonths for arbitrationany party can secure a license for a pat-offer risks losing outright. ented trait at a royalty rate aligned with market conditions.Ten arbitrators have been appointed by the ACLP Board. These professionals are recognized across the seed sector and bring diverseEditors Note: Hlne Guillot is Managing Director of the ACLP30ISEED WORLD EUROPEISEEDWORLD.COM/EUROPE | NOVEMBER 2025'