Agreement on Access to, Agreement on Access to, and Benefit-sharing from, and Benefit-sharing from,

TeffTeff genetic resources genetic resources

Gemedo Dalle (PhD)Gemedo Dalle (PhD)

Institute of Biodiversity Institute of Biodiversity ConservationConservation

1.1. Parties Parties Institute of Biodiversity Institute of Biodiversity

Conservation, Ethiopia (Conservation, Ethiopia (ProviderProvider)) Authority to grant and regulate Authority to grant and regulate

access to GR and effecting the access to GR and effecting the sharing of benefitsharing of benefit

The Ethiopian Institute of Agricultural The Ethiopian Institute of Agricultural Research (EIAR), Research (EIAR),

National Teff Research InstitutionNational Teff Research InstitutionAndAnd

The Health and Performance Food The Health and Performance Food International bv. (HPFI) (International bv. (HPFI) (recipientrecipient))

CompanyCompany

2.2. The Genetic resourceThe Genetic resource Teff (Teff (Eragrostis tefEragrostis tef) is a crop ) is a crop

species of Ethiopian origin species of Ethiopian origin and has various attributes of and has various attributes of interest to the food interest to the food industries. industries.

MULTIPURPOSE PLANTMULTIPURPOSE PLANT Traditional uses:Traditional uses: Flour: IFlour: Injera (pan-cake), Teff-njera (pan-cake), Teff-

bread, “Chechebsa” (Pieces bread, “Chechebsa” (Pieces of cracker with butter & of cracker with butter & spices), “Genfo” (Pudding) spices), “Genfo” (Pudding) etc.etc.

Grain : “Tela, Katikala” (Local Grain : “Tela, Katikala” (Local drinks) drinks)

Straw: Straw: feed for cattle, to feed for cattle, to reinforce mud and plaster the reinforce mud and plaster the walls of tukuls and local storage walls of tukuls and local storage facilities “facilities “goteragotera “ “

3. Agreement of access3. Agreement of access The Provider agreed to grant the The Provider agreed to grant the

company access to Teff to develop new company access to Teff to develop new applications of Teff.applications of Teff.

The Company agreed to share benefits The Company agreed to share benefits arising out of the use to the Provider.arising out of the use to the Provider.

4. Scope of access4. Scope of access

TheThe Provider Provider agreed to grant the agreed to grant the Company accesses to Company accesses to 12 varieties12 varieties of Teff specified in the agreement.of Teff specified in the agreement.

The purpose of access is for The purpose of access is for developing non-traditional Teff-developing non-traditional Teff-based food and beverage specified based food and beverage specified in the agreement.in the agreement.

TheThe company company cannot use the Teff cannot use the Teff for any other purposes (e.g. for any other purposes (e.g. chemical, pharmaceutical, etc.) chemical, pharmaceutical, etc.) without further negotiation.without further negotiation.

Scope of access …..Scope of access ….. TheThe Provider Provider will not grant these will not grant these

varieties to other parties for the same varieties to other parties for the same product with that of the Company.product with that of the Company.

The The CompanyCompany is not permitted to access is not permitted to access the TK of Ethiopian communities,the TK of Ethiopian communities, it shall it shall not claim any rights over, nor make not claim any rights over, nor make commercial benefit out of, such TKcommercial benefit out of, such TK does not include access to traditional knowledge on does not include access to traditional knowledge on

conservation, cultivation and use of Teff, conservation, cultivation and use of Teff, unless unless explicit written agreement is madeexplicit written agreement is made

5. Effect of the Agreement5. Effect of the Agreement

The agreement shall not affect the sovereign The agreement shall not affect the sovereign rights of Ethiopia over Teff genetic resources.rights of Ethiopia over Teff genetic resources.

The agreement shall not affect any traditional The agreement shall not affect any traditional products of Teff in Ethiopia or abroad.products of Teff in Ethiopia or abroad.

6.6. Transfer to third PartiesTransfer to third Parties

The The companycompany cannot transfer Teff seed cannot transfer Teff seed samples or their genetic components to third samples or their genetic components to third parties without consent from the parties without consent from the ProviderProvider..

7. 7. Intellectual Property OwnershipIntellectual Property Ownership

The The companycompany cannot claim IPR over genetic cannot claim IPR over genetic resource of Teff or its component.resource of Teff or its component.

the the companycompany and and EIAREIAR shall co-own plant shall co-own plant breeders’ rights over new Teff varieties.breeders’ rights over new Teff varieties.

Research results be owned jointly by both Research results be owned jointly by both parties.parties.

8. 8. Benefit-sharingBenefit-sharing The company agreed to:The company agreed to:

Pay annual royalty on the net profit from the Pay annual royalty on the net profit from the sale of sale of Teff based productsTeff based products..

Pay annual royalty on the net profit from sales Pay annual royalty on the net profit from sales of Teff seed of new varieties developed.of Teff seed of new varieties developed.

to pay to the to pay to the ProviderProvider annual license fee annual license fee Share research results and technologies.Share research results and technologies. to contribute to and to contribute to and Solicit funding to augment Solicit funding to augment

Teff development.Teff development. Establish Teff business in Ethiopia: Teff Establish Teff business in Ethiopia: Teff

farming, cleaning & milling, bakeries, etc.farming, cleaning & milling, bakeries, etc. Acknowledge Ethiopia as source of Teff.Acknowledge Ethiopia as source of Teff.

Benefit sharing on TeffBenefit sharing on Teff To pay 1% of the average gross net income of To pay 1% of the average gross net income of

the years 2007-2009.the years 2007-2009. Annually royalty of 30% of the net profit from Annually royalty of 30% of the net profit from

sale of teff seedssale of teff seeds 5% royalty on the net profit from teff products, 5% royalty on the net profit from teff products,

which shall not be less than 20,000 Euro per which shall not be less than 20,000 Euro per year, to the Financial Resource Support for Teff year, to the Financial Resource Support for Teff developmentdevelopment ( (improving the living conditions of improving the living conditions of local farming communities and developing Teff local farming communities and developing Teff business in Ethiopia)business in Ethiopia)

Share research results, knowledge or Share research results, knowledge or technologies, except undisclosed informationtechnologies, except undisclosed information

Benefit sharing (contd)Benefit sharing (contd) Involving Ethiopian scientists in teff researchInvolving Ethiopian scientists in teff research Soliciting funding that will augment Teff fund Soliciting funding that will augment Teff fund Contribution to national economy (establish Contribution to national economy (establish

profitable Teff businesses in Ethiopia, such profitable Teff businesses in Ethiopia, such as, Teff farming, cleaning and milling, as, Teff farming, cleaning and milling, bakeries, etc. through joint ventures with bakeries, etc. through joint ventures with Ethiopian counterparts) Ethiopian counterparts)

Acknowledging Ethiopia as the source of Teff.Acknowledging Ethiopia as the source of Teff.

9.9. DurationDuration 10 years10 years The parties may renegotiate the The parties may renegotiate the

agreement at the end of that period.agreement at the end of that period.

10.10. Penalty Penalty A Party that breaches the agreement A Party that breaches the agreement

shall pay a penalty to the aggrieved shall pay a penalty to the aggrieved party.party.

11. Termination11. Termination If the company goes bankrupt.If the company goes bankrupt. If one of the parties fails to fulfill or If one of the parties fails to fulfill or

violates its obligation.violates its obligation.

12.12. Dispute settlementDispute settlement Seek solution to disputes by negotiation.Seek solution to disputes by negotiation. Disputes not resolved by negotiation will be Disputes not resolved by negotiation will be

determined by an arbitration body to be determined by an arbitration body to be established by the parties.established by the parties.

The decision of the arbitral tribunal will be The decision of the arbitral tribunal will be final and binding.final and binding.

• Monitoring and Follow-upMonitoring and Follow-up The The companycompany submits annual research and submits annual research and

financial reports.financial reports. The The Provider Provider may examine at any moment, may examine at any moment,

through an independent accountant, the through an independent accountant, the bookkeeping and administrative details of the bookkeeping and administrative details of the company.company.

• Applicable LawsApplicable Laws CBD and its relevant decisions, guidelines and CBD and its relevant decisions, guidelines and

laws that emanate from it. includinglaws that emanate from it. including International Treaty of Plant Genetic Resources for International Treaty of Plant Genetic Resources for

Food and Agriculture.Food and Agriculture. Union for Protection of New Plant Varieties.Union for Protection of New Plant Varieties.

Expected contribution to poverty Expected contribution to poverty alleviationalleviation Establishment of profitable Teff businesses Establishment of profitable Teff businesses

in Ethiopia, such as, Teff farming, cleaning in Ethiopia, such as, Teff farming, cleaning and milling enterprises, bakeries, etc. and milling enterprises, bakeries, etc.   better income for teff producing communitiesbetter income for teff producing communities   employment opportunities employment opportunities

Current development after the Current development after the agreementagreement

1.1. Annual PaymentsAnnual Payments• Article 8 of the agreement deals with Article 8 of the agreement deals with

monetary benefits that largely depends on monetary benefits that largely depends on the progress of the Company and could not the progress of the Company and could not be controlled and claimed by the Institute be controlled and claimed by the Institute due to the existing information gaps. due to the existing information gaps.

Current development after the Current development after the agreementagreement2. Financial Resource Support for Teff 2. Financial Resource Support for Teff

(FiRST)(FiRST) Article 8.4 of the agreement states that the Article 8.4 of the agreement states that the

Company shall contribute annually 5% of its Company shall contribute annually 5% of its profit, which shall not be less than 20,000 profit, which shall not be less than 20,000 Euro to FiRST, that was to be administered Euro to FiRST, that was to be administered jointly. jointly.

Article 8.5 of the agreement further states that Article 8.5 of the agreement further states that the details of administration of FiRST shall be the details of administration of FiRST shall be specified by a subsidiary agreement of the specified by a subsidiary agreement of the parties (IBC and HPFI bv.) parties (IBC and HPFI bv.)

Current development after the Current development after the agreementagreement

the Company has taken unilateral the Company has taken unilateral measure to establish FiRST in the measure to establish FiRST in the Netherlands and enter into a project with Netherlands and enter into a project with some European authorities using the some European authorities using the fund from FiRST fund from FiRST

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

Current development after the Current development after the agreementagreement

3. Reporting3. Reporting According to Article 16 of the agreement the Company According to Article 16 of the agreement the Company

is required to give the provider annual research and is required to give the provider annual research and financial reports. financial reports.

However, IBC did not receive any formal However, IBC did not receive any formal comprehensive report in this regard except some e-comprehensive report in this regard except some e-mail communications. mail communications.

The only formal report was on the progress of year The only formal report was on the progress of year 2006 and was sent by email attachment on December 2006 and was sent by email attachment on December 2007 which was written in Dutch language2007 which was written in Dutch language no agreement to give the reports in English. no agreement to give the reports in English.

Current development after the Current development after the agreementagreement

4. Intellectual property right4. Intellectual property right Pursuant to Article 5.2 of the agreement we are Pursuant to Article 5.2 of the agreement we are

not clear whether the Company has developed not clear whether the Company has developed new varieties that shall be registered as co-new varieties that shall be registered as co-ownership with the EIAR. ownership with the EIAR.

Current development after the Current development after the agreementagreement

5. Patent Right5. Patent Right it is known that the Company has claimed it is known that the Company has claimed

patent Right in relation to Teff genetic patent Right in relation to Teff genetic resource conservation and utilizationresource conservation and utilization

this is not on the basis of the agreement in this is not on the basis of the agreement in view of sub-Articles 4.5 and 4.6 which state view of sub-Articles 4.5 and 4.6 which state that “the Company is not permitted to access that “the Company is not permitted to access the traditional knowledge of Ethiopian the traditional knowledge of Ethiopian communities and shall not claim any rights communities and shall not claim any rights over, nor make commercial benefit out of it”. over, nor make commercial benefit out of it”.

Critical problemsCritical problems

1.1. Limited capacityLimited capacity

2.2. Lack of Lack of coordinationcoordination and and informationinformation exchange among the relevant exchange among the relevant stakeholdersstakeholders

3.3. Absence of effective International Absence of effective International Regime on ABSRegime on ABS