Certified seed of protected varieties is produced by seed companies (licensees) solely on the basis of a written licence agreement between the seed company and the breeder being a holder of an exclusive right to the particular variety.

A holder of agricultural land may, on possessed farm land, use for sowing the purchased certified seed (read: Glossary) without the necessity to make any additional remuneration to the breeder, that in turn is required for using the FSS. (read: agricultural exemption)

After the end of the sowing season, the licensee settles accounts with the breeder, under the concluded agreement, by paying for him the license fee. Eligible licensees are required to affix labels on the bags, informing whether a particular variety is protected by an exclusive right and whether this variety can be used as FSS.
The lack of such a label does not relieve the farmer of respecting the breeder’s exclusive right to plant varieties and paying the FSS fee!

Licenses - the scheme