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Agreement on Access to, and Benefit-sharing from, Teff genetic resources Gemedo Dalle (PhD) Institute of Biodiversity Conservation.

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Presentation on theme: "Agreement on Access to, and Benefit-sharing from, Teff genetic resources Gemedo Dalle (PhD) Institute of Biodiversity Conservation."— Presentation transcript:

1 Agreement on Access to, and Benefit-sharing from, Teff genetic resources Gemedo Dalle (PhD) Institute of Biodiversity Conservation

2 1.Parties Institute of Biodiversity Conservation, Ethiopia (Provider) Institute of Biodiversity Conservation, Ethiopia (Provider) Authority to grant and regulate access to GR and effecting the sharing of benefit Authority to grant and regulate access to GR and effecting the sharing of benefit The Ethiopian Institute of Agricultural Research (EIAR), The Ethiopian Institute of Agricultural Research (EIAR), National Teff Research Institution National Teff Research InstitutionAnd The Health and Performance Food International bv. (HPFI) (recipient) The Health and Performance Food International bv. (HPFI) (recipient) Company Company

3 2.The Genetic resource Teff (Eragrostis tef) is a crop species of Ethiopian origin and has various attributes of interest to the food industries. Teff (Eragrostis tef) is a crop species of Ethiopian origin and has various attributes of interest to the food industries. MULTIPURPOSE PLANT MULTIPURPOSE PLANT Traditional uses: Traditional uses: Flour: I njera (pan-cake), Teff- bread, Chechebsa (Pieces of cracker with butter & spices), Genfo (Pudding) etc. Flour: I njera (pan-cake), Teff- bread, Chechebsa (Pieces of cracker with butter & spices), Genfo (Pudding) etc. Grain : Tela, Katikala (Local drinks) Grain : Tela, Katikala (Local drinks) Straw: feed for cattle, to reinforce mud and plaster the walls of tukuls and local storage facilities gotera Straw: feed for cattle, to reinforce mud and plaster the walls of tukuls and local storage facilities gotera

4 3. Agreement of access The Provider agreed to grant the company access to Teff to develop new applications of Teff. 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. The Company agreed to share benefits arising out of the use to the Provider.

5 4. Scope of access The Provider agreed to grant the Company accesses to 12 varieties of Teff specified in the agreement. 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 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. The company cannot use the Teff for any other purposes (e.g. chemical, pharmaceutical, etc.) without further negotiation.

6 Scope of access ….. The Provider will not grant these varieties to other parties for the same product with that of the Company. 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 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 does not include access to traditional knowledge on conservation, cultivation and use of Teff, unless explicit written agreement is made

7 5. Effect of the Agreement The agreement shall not affect the sovereign rights of Ethiopia over Teff genetic resources. 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. The agreement shall not affect any traditional products of Teff in Ethiopia or abroad. 6.Transfer to third Parties The company cannot transfer Teff seed samples or their genetic components to third parties without consent from the Provider. The company cannot transfer Teff seed samples or their genetic components to third parties without consent from the Provider.

8 7. Intellectual Property Ownership The company cannot claim IPR over genetic resource of Teff or its component. 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. the company and EIAR shall co-own plant breeders rights over new Teff varieties. Research results be owned jointly by both parties. Research results be owned jointly by both parties.

9 8. Benefit-sharing The company agreed to: The company agreed to: Pay annual royalty on the net profit from the sale of Teff based products. 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. Pay annual royalty on the net profit from sales of Teff seed of new varieties developed. to pay to the Provider annual license fee to pay to the Provider annual license fee Share research results and technologies. Share research results and technologies. to contribute to and Solicit funding to augment Teff development. to contribute to and Solicit funding to augment Teff development. Establish Teff business in Ethiopia: Teff farming, cleaning & milling, bakeries, etc. Establish Teff business in Ethiopia: Teff farming, cleaning & milling, bakeries, etc. Acknowledge Ethiopia as source of Teff. Acknowledge Ethiopia as source of Teff.

10 Benefit sharing on Teff To pay 1% of the average gross net income of the years To pay 1% of the average gross net income of the years Annually royalty of 30% of the net profit from sale of teff seeds 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) 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 Share research results, knowledge or technologies, except undisclosed information

11 Benefit sharing (contd) Involving Ethiopian scientists in teff research Involving Ethiopian scientists in teff research Soliciting funding that will augment Teff fund 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) 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. Acknowledging Ethiopia as the source of Teff.

12 9. Duration 10 years 10 years The parties may renegotiate the agreement at the end of that period. The parties may renegotiate the agreement at the end of that period. 10. Penalty A Party that breaches the agreement shall pay a penalty to the aggrieved party. A Party that breaches the agreement shall pay a penalty to the aggrieved party. 11. Termination If the company goes bankrupt. If the company goes bankrupt. If one of the parties fails to fulfill or violates its obligation. If one of the parties fails to fulfill or violates its obligation.

13 12.Dispute settlement Seek solution to disputes by negotiation. Seek solution to disputes by negotiation. Disputes not resolved by negotiation will be determined by an arbitration body to be established by the parties. 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. The decision of the arbitral tribunal will be final and binding.

14 Monitoring and Follow-upMonitoring and Follow-up The company submits annual research and financial reports. 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. The Provider may examine at any moment, through an independent accountant, the bookkeeping and administrative details of the company. Applicable LawsApplicable Laws CBD and its relevant decisions, guidelines and laws that emanate from it. including CBD and its relevant decisions, guidelines and laws that emanate from it. including International Treaty of Plant Genetic Resources for Food and Agriculture. International Treaty of Plant Genetic Resources for Food and Agriculture. Union for Protection of New Plant Varieties. Union for Protection of New Plant Varieties.

15 Expected contribution to poverty alleviation Establishment of profitable Teff businesses in Ethiopia, such as, Teff farming, cleaning and milling enterprises, bakeries, etc. Establishment of profitable Teff businesses in Ethiopia, such as, Teff farming, cleaning and milling enterprises, bakeries, etc. better income for teff producing communities better income for teff producing communities employment opportunities employment opportunities

16 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.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.

17 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 8.4 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.) 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.)

18 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 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 The measure taken is not in line with the sprit of Article 8.5 of the agreement

19 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. 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 e- mail communications. However, IBC did not receive any formal comprehensive report in this regard except some e- mail communications. The only formal report was on the progress of year 2006 and was sent by attachment on December 2007 which was written in Dutch language The only formal report was on the progress of year 2006 and was sent by attachment on December 2007 which was written in Dutch language no agreement to give the reports in English. no agreement to give the reports in English.

20 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 co- ownership with the EIAR. Pursuant to Article 5.2 of the agreement we are not clear whether the Company has developed new varieties that shall be registered as co- ownership with the EIAR.

21 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 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. 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.

22 Critical problems 1.Limited capacity 2.Lack of coordination and information exchange among the relevant stakeholders 3.Absence of effective International Regime on ABS

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