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The BDA came into force in the year 2002 and its main objectives are as follows:
The National Biodiversity Authority (NBA) while granting approval for Intellectual Property Rights (IPR) application or transfer of biological resources or knowledge can determine equitable benefit sharing by giving effect to any of the following measures, namely:
The NBA formulates the guidelines for benefit sharing which is then notified in the Official Gazette. The formula for benefit sharing is, however, subjective in nature and thus depends on case-to-case. The quantum of benefit is agreed mutually between the persons applying for approval from the NBA and the local bodies along with the benefit claimers. Further, 5 percent of the benefits is earmarked by the Authority towards administrative and service charges.
The applicant has an option to pay for benefit sharing ranging from 0.1 to 0.5 percent at the graded percentages of the annual gross ex-factory sale of the product which is worked out based on the annual gross ex-factory sale minus government taxes as given below:
Annual Gross Ex-Factory Sale of Product
Benefit Sharing Component
Up to Rupees 1,00,00,000
Rupees 1,00,00,001 up to 3,00,00,000
Above Rupees 3,00,00,000
One related case based on FEBS is of Divya Pharmacy vs Union of India wherein the High Court of Uttarakhand dismissed Divya Pharmacy’s (Petitioner) challenge to the FEBS determined by Uttarakhand State Biodiversity Board (Respondent) based on Sections 21(2)(f) and 21(4) of the BDA, since the biological resources were being utilized for commercial purposes, and thus petitioner was bound to share 0.1 – 0.5 percent of its annual sale since 2014 irrespective of being an Indian entity. A wider purposive interpretation of the Nagoya Protocol was adopted by the High Court in stating that both foreign and Indian entities should abide by FEBS and share their benefits with local and indigenous communities.
As per Section 3 of the BDA, 2002, certain persons are not permitted to undertake biodiversity related activities or to obtain any biological resource occurring in India or knowledge associated thereto for research or for commercial utilisation or for bio-survey and bio-utilisation without prior approval of NBA, which are as follows:
Conclusively, on reading the above provision, it id clear that prior approval of NBA is mandatory for persons or entities who have a "foreign element" attached to it.
The following activities and use of biological resources are exempted from the BDA and persons doing the same are not required to take prior permission from NBA:
The value-added products are those products which are extracted as portion or extract (like alcoholic extract or aqueous extract) from the plants or animals in a physical inseparable and unrecognizable form. The reason for exempting the value-added products from the definition of biological resources is to remove the fear of the Indian industry, so that export of value-added products can be carried out smoothly without getting hampered.
Access and Benefit Sharing (ABS) ensures that the benefits obtained from the use of biological resources are shared in a fair and equitable manner with the indigenous individuals or local communities who are well-versed with the traditional knowledge and use of the biological resources.
Yes, India became a signatory to the Nagoya Protocol of Convention on Biological Diversity (CBD) in 2014 which explicitly dealt with ABS. The ABS Guidelines were also enacted by the Indian legislature which lays down several regulations including payments. An Applicant has to make payment in return for commercial use of a genetic resource out of which 95 percent of the payment must reach the indigenous and local communities, among others. The NBA also has the authority to determine the equitable benefit sharing arising from the use of biological resources.
Yes, the inventions having biological material can be patented in India. The Applicant should sufficiently disclose the source and geographical origin of the biological material. Further, the Applicant also needs to submit an approval obtained from NBA in case the biological material is obtained from India.
Section 6(1) of the BDA, 2002 provides that prior approval of NBA is necessary before applying for any kind of IPR, related to biological material, in India or outside India on relevant Form of the Biological Diversity Rules, 2004. However, in case of specific IPR i.e. patent application filing, permission from NBA may be obtained after filing or acceptance of patent application but before grant of patent by the Patent Office. Further, the NBA is required dispose of such application for permission made to it within a period of ninety days from the date of receipt thereof.
The Indian researchers neither require prior approval from any authority nor they need to give any prior intimation to SBB for obtaining biological resource for conducting research in India.
In case the results obtained through the research is used for commercial purposes, prior intimation to the SBB is required under Section 7 of the BDA.
It is significant to note that all offences made under the BDA are cognizable and non-bailable. The followings are the penalties against the contravention of below said Sections of BDA:
Contravention of Sections 3 or 4 or 6 of the BDA. These Sections related to persons undertaking biodiversity related activities without approval of the NBA, the results of research not to be transferred without approval of NBA and application for IPR not to be made without approval of NBA.
Imprisonment up to 5 years or fine up to Rs. 10 lakhs or both. When damage exceeds 10 lakhs, the fine may be commensurate with the damage caused.
Contravention of Section 7 of the BDA, relateed to prior intimation to State Biodiversity Board for obtaining biological resources.
Imprisonment up to 3 years or fine up to Rs. 5 lakhs or both.
Contravention of directions/ orders of Central Government, State Government, NBA and SBBs.
If no penalty is prescribed in any other provision of the Act, then Rs. 1 lakh for 1st default, Rs. 2 lakhs for 2nd default and an additional 2 lakhs per day for continuous default.
For offences committed by companies in contravention of the BDA.
Every person who was in charge or had the responsibility of the company at the time of the commission of the offence will be proceeded against and punished accordingly.
The following proceedings can be initiated under the Patents Act, 1970:
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