The issue of plant patents stirs debate in the nursery industry. Proponents see patents as a means of introducing improved selections into the trade; opponents see them as expensive and self-serving. In this interview, Dale Deppe discusses Spring Meadow Nursery's novel means of distributing patented plants.

Q. Why would you patent a plant?
A. People who breed, select or discover new plants want their discoveries protected just like those people who make product innovations in other industries. Nurseries invest a lot of time and resources in developing a new plant. There's a fair number of nurseries investing large sums of money into facilities and staff to develop new plants. Most large-scale breeding efforts have been in roses and floral crops. Traditionally, most woody plants are developed by smaller nurserymen or hobbyists. No matter how it's done, it takes time and effort to develop a superior plant. If it were easy, we'd all be doing it. In either case, these people want to be compensated for their efforts. That's fine because it gives them incentive to do this work. And people are doing it. [I have] traveled around Europe, and it seems like many nurseries have a breeding thing on the side; they're trying to find something unique and better.

Q. So you do see breeding or selection in your travels?
A. Yes, we are seeing a fair amount of selection and breeding. The breeding being done is simple. Sometimes there's a clear plan with controlled crosses, but more often they're just planting out two good plants together and collecting the seed. Others sow open-pollinated seed. The seed is sown out and they begin the slow process of evaluation and selection and hope that they may find something better. Other people look for sports and mutants with value. That's how it's being done. There's a lot of opportunity in shrub breeding compared to the floral industry or perennial market, because there's a lot of room for improvement.

Q. Just in Europe?
A. It's more common in Europe, but I think it's a worldwide trend. New plant protection systems in Europe and elsewhere are creating incentive. The demand for new plants is creating incentive. Growers are looking for better plants with potential for better profit margins compared to older commodity plants. Garden centers want to differentiate themselves from the mass merchants. This has forced nurserymen to take a closer look at their plants. Now there's added incentive for breeding and selecting. It's now worth the effort.

Q. So with a patent, are you looking for a plant that can be marketed for 20 years -- the duration of a patent?
A. You'd be lucky if you can market a patented plant for 20 years. First, it can easily take five to 10 years to turn one plant into enough numbers to supply the market. Second, look through the plant patent book and see how many plants you recognize. Not many. Many patented plants never make it to market at all. Most inventors don't have the resources, distribution system or the marketing money to properly introduce the plant. Third, the product cycle for new plants is getting shorter and shorter. Look at the annual and perennial market; it's getting faster and faster. I expect we'll see the same trend in shrubs. When you come out with a good plant, someone is trying to improve upon it. The quality of plants is getting better and better, so the life of a patent can be very short. There are no guarantees, so you never know how many years you can get out of a patent.

Q. Are plant patents good for the industry?
A. They can be, if done properly. New and better plants are the future of the industry. The patent system creates incentive for the development of new and better plants and that's good for the industry. Growers win because we get better plants, that can be easier to sell, with improved disease resistance or better habits. They can make better margins with them compared to the older commodity items. The same is true for retailers; they're getting something new and better. They pull in more customers and make better margins. The consumers also get a better plant for their gardens and landscapes.

On the other hand, patented plants may not help the overall nursery industry. If the variety is kept exclusive, and the industry does not have access to these plants, then only a few people benefit. If production is limited to support prices, retailers and consumers lose out, too. I'm also concerned that there are people out there patenting plants that are not any better than others. Still, most new patented plants are improved plants and that's good for the industry if they are handled properly. If they're available to the industry.

Q. There is considerable opposition to patented plants.
A. Sure, there's opposition. We used to dislike patent plants, too. However, upon closer examination we came to realize it wasn't the patents we disliked; it was how they were being handled. We especially dislike when they remain exclusive. Growers and propagators don't like being told they can't grow or can't propagate a plant. It goes against our nature. Traditionally, breeders have given their plants to one nursery and the plant remains exclusive. Spring Meadow and our customers were being shut out. The other thing we dislike is, if we're lucky enough to get a license to grow, we don't get much value from the royalty. We don't get any marketing support. We pay for marketing, we do the educating, we help to make a plant successful, and someone else gets wealthy. We think the patent holder should provide some of this. The patent holders should be helping the people who grow their plant.

Even so, we found that being opposed to patents didn't change anything. We decided the only way to make a positive change was to change the system ourselves, and do it right. That's what we've been trying to do. In the long run, I believe it's going to change the way the industry looks at patents.

Q. So why is Spring Meadow actively pursuing patented plants, and how many patents do you have?
A. Spring Meadow is not just out there trying to find patented plants; we're trying to find good plants, new or old, patented or not. Every year we add a lot of new plants and most aren't protected. The majority of patented plants we do list are not owned by Spring Meadow. We are just a licensee. As far as the number of patented plants we hold, I believe we have four or five plants that are either patented or somewhere in the process. People bring us new plants and they want them patented; they want compensation.

Our life would be simpler without patented plants, but we can't ignore these plants. If we ignore them, the plant may end up being exclusive. The best plants won't be available to small and medium-sized growers; 95 percent of the industry is shut out and we'll be stuck with the leftovers. So yes, we are trying to make contact with breeders, and Spring Meadow has an introduction system that can help them with their new plant. We have a national customer base that's excited about new plants and we have the system in place to do it right. When we lay it out for them, it makes sense.

Q. How large is your patented plant operation, and how does your system compare to other nurseries?
A. It's a small percentage of what we do. The vast majority of our new plants are not patented. With the few patented plants we do have, we've set out to do things very differently. Our goal is to create win-win-win situations. We want the breeder, the growers, the garden centers, the industry and the gardening public to win. We feel that everyone along the way should benefit from the new plant. To do this you need a good plant, wide distribution, adequate availability and good marketing. We start by making our patent licenses available to all quality growers. We actually license our competitors -- it sounds crazy, but we think availability is the key to the success of the plant. If you don't have availability, retailers can't get it, consumers can't get it and you've wasted your marketing money. We're not going to play games and give it to just a few close friends and limit availability. Open licensing allows everyone to participate; it allows for national distribution and it gives our breeders the best possible return.

The other thing -- though it may seem obvious -- is that we sell liners of these patented plants. That's unusual. Many new plants go exclusively to one nursery and you can't get a license and you can't buy a liner. If you want to grow the plant you have to buy a 1-gallon and bump it to a 3. In the Spring Meadow scenario you can get a license to propagate. If you don't want a license, you have access to liners. Everyone has access.

The other major difference at Spring Meadow is that we negotiate with the breeder to direct a third of the royalty money toward marketing. That's extremely important and no one else is doing it. Our pipeline is full of good new plants, but we are trying to build numbers before we introduce them. Sometimes we have only one plant to start with, and it can take a while. When we do introduce them, this marketing money will be critical to their success. This money helps everyone who grows the plant. It adds value.

Q. What kind of response have you had to this type of introduction system?
A. We've had a number of recent successes using this system and it's been exciting. One example is Wine and Roses weigela. We've sold over 100,000 plants in the first year of introduction, and there are 15 licensed growers. Our customers love the plant; it's a fast grower and with lots of color. The purple foliage is so dark it's going to make 'Java Red' obsolete. And the best thing is, everyone can grow it. Our customers and licensed growers appreciate the marketing that's being done. We've been able to produce posters, fliers, and we've given out hundreds of free plants to garden writers. We've developed color tags. There's such a need for education in the marketplace and it seems as though it takes some marketing money to make a plant successful in the early years. Everyone is asking for this kind of stuff, but who's going to pay for it? This built-in marketing money solves the problem and it helps everyone involved. We even run ads in your magazines and others promoting our new plants, so you see, if done properly even your magazine benefits with this kind of system.

New plants are an exciting part of the business. No matter how I feel, or whether or not I like it, the best new plants are being patented. Ignoring them and getting upset doesn't help my customers. So we've decided to do this in a way that is beneficial to our customers and the industry. I believe that if patented plants are done properly, everyone can win.

© 1998 Branch-Smith Publishing