Transcript Agreement on Access to, and Benefit

Agreement on Access to, and
Benefit-sharing from,
Teff genetic resources
Gemedo Dalle (PhD)
Institute of Biodiversity Conservation
1. Parties
 Institute of Biodiversity Conservation,
Ethiopia (Provider)
 Authority to grant and regulate access to
GR and effecting the sharing of benefit
The Ethiopian Institute of Agricultural
Research (EIAR),
 National Teff Research Institution
And
 The Health and Performance Food
International bv. (HPFI) (recipient)
 Company
2. The Genetic resource
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Teff (Eragrostis tef) is a crop
species of Ethiopian origin and
has various attributes of
interest to the food industries.
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MULTIPURPOSE PLANT
Traditional uses:
Flour: Injera (pan-cake), Teffbread, “Chechebsa” (Pieces of
cracker with butter & spices),
“Genfo” (Pudding) etc.
Grain : “Tela, Katikala” (Local
drinks)
Straw: feed for cattle, to
reinforce mud and plaster the
walls of tukuls and local storage
facilities “gotera “
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3. Agreement of access
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The Provider agreed to grant the company
access to Teff to develop new applications of
Teff.
The Company agreed to share benefits arising
out of the use to the Provider.
4. Scope of access
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The Provider agreed to grant the
Company accesses to 12 varieties of
Teff specified in the agreement.
The purpose of access is for developing
non-traditional Teff-based food and
beverage specified in the agreement.
The company cannot use the Teff for
any other purposes (e.g. chemical,
pharmaceutical, etc.) without further
negotiation.
Scope of access …..
 The Provider will not grant these varieties to
other parties for the same product with that
of the Company.
 The Company is not permitted to access the
TK of Ethiopian communities, it shall not
claim any rights over, nor make commercial
benefit out of, such TK
 does not include access to traditional knowledge
on conservation, cultivation and use of Teff, unless
explicit written agreement is made
5. Effect of the Agreement
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The agreement shall not affect the sovereign rights
of Ethiopia over Teff genetic resources.
The agreement shall not affect any traditional
products of Teff in Ethiopia or abroad.
6. Transfer to third Parties
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The company cannot transfer Teff seed samples or
their genetic components to third parties without
consent from the Provider.
7. Intellectual Property Ownership
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The company cannot claim IPR over genetic resource
of Teff or its component.
the company and EIAR shall co-own plant breeders’
rights over new Teff varieties.
Research results be owned jointly by both parties.
8. Benefit-sharing
The company agreed to:
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Pay annual royalty on the net profit from the sale of
Teff based products.
Pay annual royalty on the net profit from sales of
Teff seed of new varieties developed.
to pay to the Provider annual license fee
Share research results and technologies.
to contribute to and Solicit funding to augment Teff
development.
Establish Teff business in Ethiopia: Teff farming,
cleaning & milling, bakeries, etc.
Acknowledge Ethiopia as source of Teff.
Benefit sharing on Teff
 To pay 1% of the average gross net income of
the years 2007-2009.
 Annually royalty of 30% of the net profit from
sale of teff seeds
 5% royalty on the net profit from teff products,
which shall not be less than 20,000 Euro per
year, to the Financial Resource Support for Teff
development (improving the living conditions of
local farming communities and developing Teff
business in Ethiopia)
 Share research
results, knowledge
or
technologies, except undisclosed information
Benefit sharing (contd)
 Involving Ethiopian scientists in teff research
 Soliciting funding that will augment Teff fund
 Contribution to national economy (establish
profitable Teff businesses in Ethiopia, such
as, Teff farming, cleaning and milling,
bakeries, etc. through joint ventures with
Ethiopian counterparts)
 Acknowledging Ethiopia as the source of Teff.
9. Duration
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10.
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10 years
The parties may renegotiate the agreement
at the end of that period.
Penalty
A Party that breaches the agreement shall
pay a penalty to the aggrieved party.
11. Termination
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If the company goes bankrupt.
If one of the parties fails to fulfill or violates
its obligation.
12.
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Dispute settlement
Seek solution to disputes by negotiation.
Disputes not resolved by negotiation will be
determined by an arbitration body to be
established by the parties.
The decision of the arbitral tribunal will be final
and binding.
• Monitoring and Follow-up
 The company submits annual research and financial
reports.
 The Provider may examine at any moment, through
an independent accountant, the bookkeeping and
administrative details of the company.
• Applicable Laws
 CBD and its relevant decisions, guidelines and laws
that emanate from it. including
 International Treaty of Plant Genetic Resources for Food and
Agriculture.
 Union for Protection of New Plant Varieties.
Expected contribution to poverty
alleviation
 Establishment of profitable Teff businesses
in Ethiopia, such as, Teff farming, cleaning
and milling enterprises, bakeries, etc.
 better income for teff producing communities
 employment opportunities
Current development after the
agreement
1. Annual Payments
•
Article 8 of the agreement deals with
monetary benefits that largely depends on
the progress of the Company and could not
be controlled and claimed by the Institute
due to the existing information gaps.
Current development after the
agreement
2. Financial Resource Support for Teff
(FiRST)
 Article 8.4 of the agreement states that the
Company shall contribute annually 5% of its
profit, which shall not be less than 20,000
Euro to FiRST, that was to be administered
jointly.
 Article 8.5 of the agreement further states that
the details of administration of FiRST shall be
specified by a subsidiary agreement of the
parties (IBC and HPFI bv.)
Current development after the
agreement
 the Company has taken unilateral
measure to establish FiRST in the
Netherlands and enter into a project with
some European authorities using the
fund from FiRST
 The measure taken is not in line with the
sprit of Article 8.5 of the agreement
Current development after the
agreement
3. Reporting
 According to Article 16 of the agreement the
Company is required to give the provider annual
research and financial reports.
 However, IBC did not receive any formal
comprehensive report in this regard except some email communications.
 The only formal report was on the progress of year
2006 and was sent by email attachment on
December 2007 which was written in Dutch
language
 no agreement to give the reports in English.
Current development after the
agreement
4. Intellectual property right
 Pursuant to Article 5.2 of the agreement we are
not clear whether the Company has developed
new varieties that shall be registered as coownership with the EIAR.
Current development after the
agreement
5. Patent Right
 it is known that the Company has claimed
patent Right in relation to Teff genetic
resource conservation and utilization
 this is not on the basis of the agreement in
view of sub-Articles 4.5 and 4.6 which state
that “the Company is not permitted to access
the traditional knowledge of Ethiopian
communities and shall not claim any rights
over, nor make commercial benefit out of it”.
Critical problems
1. Limited capacity
2. Lack of coordination and information
exchange among the relevant
stakeholders
3. Absence of effective International
Regime on ABS