Commercial Research, Biodiversity and Benefit Sharing: Exploring Best Practices for Biotrade and ABS – Windhoek, Namibia, 18 th to 20 th June 2007 The cosmetics food and beverages industry perspective

Scope Southern Africa EU markets Not genetic resources Biological resources Associated TK Many complex issues – will raise 5 issues

Objective Biodiversity sustainably utilised Primary producers benefit substantially from the trade in their products, supports their multiple livelihood strategies Value-adding technology transferred, industrial development for Nations Shared IP and other equity if possible

Generating new commercial benefits What are we up against? Supply chains need developing Sustainability considerations Basic and applied research needs Product R&D Need to establish functional commercial relationships Regulatory approval (EU Novel Foods, THMPD, REACH, etc) Comprehensive understanding of markets Consumer education Competition

Some current competitors Common denominators? Grape seed extract Lycopene Soy isoflavones Olive extracts Green coffee extract Omega 3 and 6 oils Oryzanol

Common denominators? Waste or by-products from industry Cheap and well-established supply chains Numerous IP opportunities (process patents, new use patents, trade names) No ABS issues Useful properties and safety heavily researched by public and academic and private research institutions Huge funding from public sector

Current practices Generally accepted bad practice? University student researches biological activity of African plant, and publishes Company becomes interested, and approaches commercial farmer in Africa if he can supply sample Farmer asks worker to harvest some on farm, supplies company sample Company carries out R&D, confirms interest Company protects product with IP on process and/or new application Contacts farmer for quote on pilot and commercial scale supplies Commence trading relationship with farmer who procures stock from surrounding communal areas Industry develops based only on exchange of raw material at agreed price

Current best practice Producers, TK holders collaborate with national stakeholders to priorities opportunities Gather all available data and literature Review IP arena Review all commercial developments Take expert legal AND commercial advice Commission selected R&D Target appropriate companies Exchange above with samples with Material Transfer Agreement

Current best practice If desirable move from MTA to further agreement – could be letter of intent, heads of agreement, then more detailed Clarify objectives, agree principles Agree cost, obligations and what would happen if commercially successful, or unsuccessful Include transfer of technology (when technically and commercial feasible) and shared IPR Southern African Natural Products Intellectual Property Trust

Bad and good practice Ad hoc, reactive, too late to gain benefits, un- coordinated, relevant parties not understanding value chain, no partnership Pro-active, coordinated, stakeholder participation, demand driven, value-chain understood, partnership approach

Can we get the desired collaboration? Technology transfer agreed Shared IP (patents, trade marks) Shared costs Milestones, performance targets Perform at all times within the content and spirit of the CBD (Currently operational under law of contract)

The ABS playing field business might be interested in Simple procedures Legally robust, clear definitions Clear understanding of who the relevant stakeholders are Clear understanding of what requires ABS, and what is simply trade All parties to understand commercialisation difficulties, complexities, costs, risks

Issues to consider Scientific research should not be stifled, but it must consider implications of publication, need for guidelines To be a beneficiary in ABS value needs to be brought to the negotiations such as functionality, competitiveness Need to clarify the relationship between process and new use patents, the biological resource and derivatives, and the associated TK

Issues to consider Some commercial opportunities are very difficult to quantify, and we cannot burden small opportunities with excessive ABS expectations – how do we manage expectations How do we qualify and quantify TK when it is something relatively basic such as used as a food?

Thank You