A PBR regime ordinarily allows breeders to use a protected variety ( called here initial variety) in breeding programmes without any obligation to the party holding the PBR title of this initial variety, this is called breeder’s exemption. The UPOV Act (1978) allowed breeder exemption for all varieties evolved form a protected variety. But UPOV Act (1991) has limited the scope of breeder’s exemption, essential derived varieties developed from a protected variety are now subject to the PBR protection granted to the initial variety. In other words, the breeder of the initial variety has a claim in the PBR title of the essentiality – derived variety. An essentially – derived variety is a variety predominantly – derived from the genotype or combination of genotype of the initial variety. For example – a variety produced by mutation in or transfer through back cross of a single gene will be regarded as an essentially derived variety. However, a decision on whether a variety is essentiality derived or not is not likely to be a straight forward one. But parental inbreds lines of a hybrid variety are also protected materials and as such are not available for use as breeding materials.