The Netherlands
March 5, 2021

Question: what has to happen if a holder of Breeders´ Rights in the Dutch Variety Register (NRR) has been declared bankrupt in the meantime?

Are the Breeders´ Rights still valid for the bankrupt company?

Answer:

• The standard regulation is that in case of a bankruptcy, the Breeders´ Rights that are owned by the company are included in the estate. Subsequently, these can be capitalized (= can be sold) by the liquidator in order to pay the debts of the bankrupt applicant/holder of the Breeders´ Rights. The liquidator should inform the Board about this in some way. If he does not, the Board cannot change anything.
   
• If someone buys the bankrupt company, then he automatically becomes the new owner of the Breeders´ Rights (= the legal successor).
   
• If someone else buys only the Breeders´ Rights, then he becomes the new owner of these Breeders´ Rights. The new owner can inform the Board in order to include this change in the Dutch Variety Register NRR. But….he can also does not to do this (for example if he forgets, or does not know it, or does not like it, etcetera).
   
• If the new owner of the Breeders Rights does not inform the Board, this does NOT imply that he is not the owner. It only implies that for third parties it is less clear who is the new owner. However, that is the responsibility of the owner, and not the responsibility of the Board.
   
• A final general remark: an applicant does not receive Breeders´ Rights through a registration in the NRR, but through a so-called ´verleningsbesluit´. This is a formal decision of the Board, which grants the Breeders´ Rights. This decision is submitted to the applicant. A registration in the NRR only results in a so-called ´derdenwerking´ (= information for third parties): in this way, other breeders / maintainers / multipliers can see that a Breeders´ Right is present and who is the owner. This is useful for e.g. the payment of royalties.

In short: as long as the Board does not receive information about changes in the owner of the Breeders´ Rights, it is impossible for the Board to react. The Board can only react if the liquidator supplies information to the Board and/or if  the new owner of the Breeders´ Rights actively indicates that he is the new owner / entitled party. Subsequently, this information will be included in the NRR.

Website: https://www.raadvoorplantenrassen.nl/nl/home

Published: March 9, 2021