An Industry Perspective on Access

1
An Industry Perspective on Access Benefit
Sharing

• Tom Jacob,
• Senior Advisor - Global Affairs, DuPont
• Chair, ICC Task Force on ABS
• tom.jacob_at_usa.dupont.com
• WTO
• 26 May 2004

2
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

3
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 --gt new
  obligations for industry
• Were 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

4
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

5
Conceptual Model of CBD ABS
In-situ Resource
Pursuant to National Regime
Bioprospecting
Consultation w. Sovereign State
Mutually Agreed Terms/PIC
Consultation w. Indigenous/Local Communities
Ex-situ RD
Development of Commercial Product
Patenting of Commercial Product
Sharing or Proceeds per MAT
6
Complication No National Regime
In-situ Resource
Pursuant to National Regime
Bioprospecting
Consultation w. Sovereign State
?
Mutually Agreed Terms/PIC
Consultation w. Indigenous/Local Communities
Ex-situ RD
Development of Commercial Product
Patenting of Commercial Product
?
Sharing or Proceeds per MAT
7
Complication Pre-CBD Extraction
In-situ Resource
Pursuant to National Regime
Bioprospecting
Consultation w. Sovereign State
?
Mutually Agreed Terms/PIC
Consultation w. Indigenous/Local Communities
Ex-situ RD
Development of Commercial Product
Patenting of Commercial Product
?
Sharing or Proceeds per MAT
8
Complication Pre-CBD w. Country of Origin
In-situ Resource
Pursuant to National Regime
Bioprospecting
Consultation w. Sovereign State
?
Mutually Agreed Terms/PIC
Consultation w. Indigenous/Local Communities
Ex-situ RD
Development of Commercial Product
Patenting of Commercial Product
Sharing or Proceeds per MAT
9
Complications Non-Patent GRUse Patent-Linked
System
In-situ Resource
Pursuant to National Regime
Bioprospecting
Consultation w. Sovereign State
?
Mutually Agreed Terms/PIC
Consultation w. Indigenous/Local Communities
Ex-situ RD
Development of Commercial Product
Patenting of Commercial Product
?
Sharing or Proceeds per MAT
10
Complications Burden of Transaction Costs
In-situ Resource
Expected Value of GR
Pursuant to National Regime
Bioprospecting
Consultation w. Sovereign State
Mutually Agreed Terms/PIC
Consultation w. Indigenous/Local Communities
Ex-situ RD
Development of Commercial Product
Patenting of Commercial Product
Sharing or Proceeds per MAT
11
Complications Lower Expected Value
In-situ Resource
Expected Value of GR
Pursuant to National Regime
Bioprospecting
Consultation w. Sovereign State
Mutually Agreed Terms/PIC
Consultation w. Indigenous/Local Communities
Ex-situ RD
Development of Commercial Product
Patenting of Commercial Product
Sharing or Proceeds per MAT
12
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.

13
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?

14
Challenges Shaping ABS Evolution

• 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

15
Bye, Now...
16
Negotiating Boundary Conditions

• Trading system
• Evolved over hundreds of years
• Environmental system
• Evolved in past several decades
• Not yet institutionalized
• Quite undisciplined

17
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

18
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

19
Complication Exemption for Academic Research
In-situ Resource
Pursuant to National Regime
Bioprospecting
Consultation w. Sovereign State
Mutually Agreed Terms/PIC
Consultation w. Indigenous/Local Communities
Ex-situ RD
Development of Commercial Product
Patenting of Commercial Product
Sharing or Proceeds per MAT
20
Complication Exemption for Academic
Research?Products
In-situ Resource
Pursuant to National Regime
Bioprospecting
Consultation w. Sovereign State
Mutually Agreed Terms/PIC
Consultation w. Indigenous/Local Communities
Ex-situ RD
Development of Commercial Product
Patenting of Commercial Product
Sharing or Proceeds per MAT