Equitable benefit-sharing model of plant genetic resources in South Africa

Terblanche, P. / Syngenta , 2003

This presentation portrays the case of the benefit-sharing model established in South Africa between the San indigenous peoples and the biotechnology firm CSIR for the commercial use of hoodia, a cactus plant useful for obesity control. The case study argues that during the whole process of product development CSIR followed a bioprospecting policy aimed at the creation of economic and social benefit for the nation and the region based on its biodiversity and indigenous knowledge. This took the form of the signing of a bioprospecting agreement with South African traditional healers and of a benefit-sharing agreement with the San people which stipulates that: CSIR will pay the San 8% of all milestone payments it receives from its licensee, UK-based Phytopharm plc CSIR will pay the San 6% of all royalties that the it receives once the drug is commercially available CSIR will make study bursaries and scholarships available to the San community CSIR and the San people agree to collaborate in future bioprospecting for the benefit of both parties Challenges and lessons drawn from the case study include: it is difficult to draw a contract when revenue/benefits to parties are uncertain and linked to the outcome of clinical trials it is hard to balance trade secret/knowledge protection with transparency it is extremely difficult to operate in a policy vacuum it can take a very long time from the development of the project idea to commercial success at what stage of the product development cycle must the benefit-sharing agreement be signed with the owners of traditional knowledge? active participation of all stakeholders must be ensured throughout the process traditional Knowledge has an intrinsic value, but it requires significant value addition through technology/marketing to realize that value

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