an industry perspective on access & benefit sharing tom jacob, senior advisor - global affairs,...

An Industry Perspective on Access & Benefit Sharing

Tom Jacob,

Senior Advisor - Global Affairs, DuPont

Chair, ICC Task Force on ABS

[email protected]

WTO

26 May 2004

The CBD Context CBD is dealing with legitimate issues

– But range of potential issues is vast Those issues go well beyond environmental concerns

– But, as MEA, many countries delegate to environment ministries

Role of indigenous/local communities is huge– But very ill-defined

Broad support among nations– But non-environment matters deliberated by

environment-focused delegates creates potential for “venue shopping”

ABS From Our Perspective… There is reason to hope for sustainable development

benefits– Direct linkage of resources to in-country stakeholders,

with expectation of benefits– Recognition of the linkages of development to

ecological and social/cultural impacts Nowhere are the agendas more complex

– New obligations for countries --> new obligations for industry

– We’re all trying to figure this out We need time and country-level

experience to find the right balance– Few countries with experience with ABS or

PIC regulations

A New CBD ABS Negotiation

Should be encouraging new regimes and experience, using Bonn Guidelines, but…

We now have new, broad negotiating mandate– Everything is on the table– Lock-in decisions with limited experience?

Danger to parallel processes– FAO International Treaty– WIPO Committee– WTO TRIPS Council

Conceptual Model of CBD ABSIn-situ Resource

BioprospectingConsultation w. Sovereign State

Consultation w. Indigenous/Local Communities

Mutually Agreed Terms/PIC

Ex-situ R&D

Development of Commercial Product

Patenting of Commercial Product

Sharing or Proceeds per MAT

Pursuant to National Regime

Complication: No National Regime

In-situ Resource




Ex-situ R&D





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Complication: Pre-CBD Extraction

In-situ Resource




Ex-situ R&D





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?

Complication: Pre-CBD w. “Country of Origin”

In-situ Resource




Ex-situ R&D





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Complications: Non-Patent GRUse – Patent-Linked System

In-situ Resource




Ex-situ R&D





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?

Complications: Burden of Transaction Costs

In-situ Resource




Ex-situ R&D




Pursuant to National RegimeExpected

Value of GR

Complications: Lower Expected Value

In-situ Resource




Ex-situ R&D




Pursuant to National RegimeExpected

Value of GR

Differing Perceptions of Value? Reference case for many is “blockbuster” drug discovery

from natural GR– Dependence of pharma on natural GR

Increased reliance upon new technologies for “drug design”– Less dependence upon natural GRs– Many major pharma firms reducing or

eliminating natural product research Remaining industries less likely to have

“blockbuster” yields– Plant breeding, agrochemicals, flavours & fragrances,

industrial enzymes, herbals, etc.

Challenges Shaping ABS Evolution

Country ABS regimes– Bonn Guidelines + learn from our experience

FAO Standardized MTA– A useful model?

Disclosure of PIC/Origin proposals– Limited coverage and legal complications

Certificate of Origin/Source/Legal Provinance proposals– Workable or will it collapse of own

weight?

Traditional Knowledge and Indigenous & Local Communities obligations– TK very complex IPR challenge

– Countries must sort this out consultative relations

Codes of Conduct among Commercial, Public and Non-Profit Institutions– Important, but too few as yet

Challenges Shaping ABS Evolution

Bye, Now...

Negotiating Boundary Conditions

Trading system– Evolved over hundreds of years

“Environmental” system– Evolved in past several decades– Not yet institutionalized– Quite undisciplined

Convention on Biological Diversity (CBD)

An environmental treaty…– Biological diversity, ecosystem integrity

But also an economic/social treaty– rights to genetic resources and traditional knowledge– rights of indigenous and local communities– equity concerns, and sharing of benefits

There is reason to hope for sustainable development benefits– Direct linkage of resources to in-country stakeholders, with

expectation of benefits– Recognition of the linkages of development to

ecological and social/cultural impacts

Bonn Guidelines -- A Major Step A broad “inventory” of potential measures and

ideas– Workable if used selectively

Needed: Countries to gain experience implementing regimes– Few countries with experience with ABS

or PIC regulations

– Need experience to learn implications of potential elements of ABS regimes

Should be encouraging new regimes and experience, using Bonn Guidelines

Complication: Exemption for Academic Research

In-situ Resource




Ex-situ R&D





In-situ Resource




Ex-situ R&D





Complication: Exemption for Academic ResearchProducts

an industry perspective on access & benefit sharing tom jacob, senior advisor - global affairs,...

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