Semen Royalty Scheme

February 2022

1.     Background

Any full member of the British Blue Cattle Society, who owns a registered British Blue bull, which is also in possession of a UK BCMS, Aphis NI, or similar, Cattle passport, is entitled to charge a stud fee, for any semen from the said bull, which is used in AI for pedigree breeding.  By common practice, semen intended for pedigree breeding is sold at a higher price that that which is intended each.  A breeder will then benefit by being able to purchase semen at a lower price, set for commercial use.  Should it be decided to register the subsequent calf as a pedigree, then a ‘Semen Royalty Certificate’ would have to be purchased from the owner of the bull’s semen rights, (e.g. £30.00).  This would then need to be presented to the Society, along with the calf registration form, before the calf can be entered onto the herd book.  To avoid pricing confusion and any associated ill feeling, a bull cannot be entered onto the scheme retrospectively.

2.     Function

2.1.        All semen taken from an AI bull, entered in the scheme, i.e. a “Semen Royalty Bull” is recommended to be marketed at a price, consistent with that associated with commercial crossbreeding.  Such price to be determined by the owner of the bull, in conjunction with his AI centre/organisation/contractor.

2.2.        The Society reserves the right to question the pricing structure if it is not deemed to be within the spirit of the scheme. (see 8.4)

2.3.        Thereafter, any member who purchases this semen may use it for pedigree breeding, without further authority.

2.4.        However, prior to the Society registering any pedigree calf, got by AI (see 8), from a “Semen Royalty Bull” the breeder registering the said calf, shall be required to produce a “Semen Royalty Certificate.”  On payment of the appropriate ‘Semen Royalty Fee’ may be obtained directly from the owner of the bull’s pedigree semen rights.

 

3.     Eligibility of Bulls/Semen

3.1.        Only bulls, which have been approved for AI, by DEFRA, The Welsh Assembly and DARD, may be entered into the scheme. Semen can only be marketed from a bull if it is in possession of a UK BCMS, Aphis NI, or similar UK Cattle passport.

3.2.        In order that the scheme may function properly, no marketing of semen from potential scheme bulls shall take place, in the UK or elsewhere, prior to the animal being offered for the scheme.  No bulls shall be entered onto the scheme retrospectively.

3.3.        For semen to be eligible to be sold under this scheme, irrespective of who owns the semen rights, the Bull must be resident in the UK or resident in the UK at the time of death.

3.4.        As from 1st January 2012, all semen sires will be required to be tested for genetic defects.  The onus is on the seller of the semen to submit the results to the Society Office.  Animals will not be eligible for the Semen Royalty Scheme until genetic defect results are received by the office.

 

4.     Entry Requirements

An entry fee of £50.00 is levied for each bull entered on the scheme, to cover administrative printing and advertising costs.  At the same time the owner of the bull is required to sign a declaration of willingness to abide by the rules of the scheme and, to specify the ‘Semen Royalty Fee’ to be charged.

 

5.     Semen Royalty Fees

5.1.        Semen Royalty Fees may only be claimed by the bona fide owner of the bulls’ AI semen rights.  In relation to this scheme, the term “Bona Fide owner” refers to:-

5.1.1.   An individual who is a full member of the British Blue Cattle Society, or,

5.1.2.   A syndicate of which at least one component number is a full member of the British Blue Cattle Society.

5.2.        It is not possible, under the scheme, for “Semen Royalty Fees” to be claimed by, or paid to, more than one “Bona Fide owner.”  At the same time, for example, should a “Semen Royalty Bull” be transferred to the ownership of another, the AI pedigree semen rights must, either be retained, in total, by the vendor, or, transferred in total to the purchaser, at an agreed date.  Such a date to coincide with the birth of progeny.  The transfer shall also include the right to claim royalties, on all births registered after the agreed date of transfer of rights, resulting from semen sold, prior to the aforesaid transfer of the bull.

5.3.        Where the ownership of a Royalty Bull is transferred to another but the vendor retains the semen rights, it shall be the vendor’s responsibility to provide the purchaser of the bull, with a copy of the rules and conditions of the scheme.

5.4.        Upon initial entry to the scheme, the bulls “Semen Royalty Fee” may be fixed at a level chosen by the owner of the semen rights, but thereafter may only be amended once, annually, on the 1st January.  A period of 18 months ‘notice of intent’ must be lodged with the Society office, to enable the membership to be properly notified. A 25% handling fee for Royalties set above £50.00 will be charged

5.5.        “Semen Royalty Fees” shall be published by the Society, in the Society’s own publication.  Additional details of the scheme will be made known to all new members, upon joining the Society.

5.6.        When a breeder comes to register a calf sired by a ‘Semen Royalty Bull’, he/she will automatically be invoiced by the Society, not only for the Calf Registration Fee but also for the appropriate Semen Royalty Fee.  The Society account of the owner of the Semen Rights, then being automatically credited with the Royalty Fee, less the Society’s Administration fee of £5.00. The Executive Council of Management of the Society may review such an administration fee, from time to time.

 

6.     Registration of a Semen Royalty Calf

6.1.        Any member wishing to register a pedigree calf, got by AI, from a “Semen Royalty Bull,” shall only be permitted to do so if:-

 A properly completed birth registration is processed with the Society

6.2.        Should a female, in calf to a “Semen Royalty Bull” be sold, it is also the responsibility of the vendor to inform the purchaser of that fact. 

 

7.     Natural Service

7.1.          The owner of the bull, who originally entered the animal onto the scheme, shall be permitted to register a calves, without paying a “Semen Royalty Fee”, got by natural service, onto his/her herd prefix, in the herd book.  This right shall exist for the life of the bull.

7.2.          Should a Semen Royalty Bull be sold, up to one other breeder, at the discretion of the owner of the Semen Rights and the Society, shall be permitted to register  calves, got by natural service, without paying a “Semen Royalty Fee”, onto his/her herd prefix, in the herd book.

7.3.          Any member of the Society, other than the owner who originally entered the bull onto the scheme, wishing to register a calf, got by natural service, by a “Semen Royalty Bull” shall be required to pay a “Semen Royalty Fee”.

 

8.     General

8.1.            The British Blue Cattle Society reserves the right to amend these rules, from time to time, as is deemed necessary.

8.2.            The British Blue Cattle Society, will not, as routine, approve bulls entering the scheme.  It does, however, reserve the right, in exceptional circumstances, to exclude an animal from the scheme, without the need to justify its decision.

8.3.            The British Blue Cattle Society reserves the right, in exceptional circumstances, to remove an animal immediately from the scheme, without the need to justify its decision.  “Semen Royalty Certificates” will not be required to register a calf, from the date of withdrawal.

8.4.            In case of dispute, in order to protect the integrity of the scheme, the decision of the Council of Management of the British Blue Cattle Society shall be final.

8.5.            All fees are subject to VAT, at the current rate.