The International Treaty (IT) on Plant Genetic Resources for Food and Agriculture June Blalock

1. The International Treaty (IT) on Plant Genetic Resources for Food and Agriculture June Blalock USDA, ARS, Office of Technology Transfer

2. What is the IT? • The IT is a legally-binding international treaty under the UN Food and Agriculture Organization (FAO). • The IT was negotiated based upon the non-binding FAO International Undertaking on Plant Genetic Resources. • The IT is in harmony with the Convention on Biological Diversity (CBD).

3. What are the objectives of the IT? • The conservation and sustainable use of plant genetic resources for food and agriculture (PGRFA) • Fair and equitable sharing of benefits arising from the use of PGRFA • Promotion of conservation, exploration, collection, characterization, evaluation, and documentation of PGRFA

4. What is covered by the IT? • 64 food and feed crops listed in Annex I of the IT • PGRFA held in ex situ collections by national governments and in the public domain • PGRFA in the CGIAR IARCs collections • PGRFA donated or made available to the MLS by public or private entities

5. What is NOT covered by the IT? • Any crops not listed in Annex I (e.g., soybeans, tomatoes, groundnuts) • PGRFA found in situ • Chemical, pharmaceutical or other non-food or non-feed uses of Annex I crops • Public collections not under national government control • Private collections However……..

6. What is the SMTA? • The SMTA is a contract between the provider of MLS PGRFA and the recipient of those materials. • The SMTA is a standard agreement with pre-negotiated terms. • An SMTA must accompany each transfer of MLS materials.

7. Key Operational Provisions of the SMTA • The SMTA can be executed using written signatures or “shrinkwrap” or “clickwrap” options. • Each executed SMTA must be reported to the Governing Body (GB). • All non-confidential information resulting from R&D using the PGRFA provided must be made available to the MLS.

8. Key Operational Provisions of the SMTA • Subsequent transfers of MLS materials must be accompanied by the SMTA. • Transfers of products under development must include the monetary benefit sharing provisions of the SMTA and must be reported to the GB.

9. Monetary Benefit Sharing Provisions of the SMTA • Monetary benefit sharing obligations do not begin until a product is commercialized. • Monetary benefits are paid into a trust to be used for conservation and sustainable use of PGRFA by farmers in developing countries. • FAO acts as a third party beneficiary on behalf of the GB. • The amount paid will be 1.1% of gross product sales minus a standard deduction of 30 %.

10. What products are subject to monetary benefit sharing requirements? • Any products that: • incorporate MLS material; AND • are NOT available without restriction for research and breeding • Payment provisions are found in Annex 2 of the SMTA.

11. U. S. Public Sector Recipients of MLS Materials • Public sector genebanks - U. S. National Plant Germplasm System (NPGS) • Public sector and nonprofit research institutions

12. What do the IT and SMTA mean for the NPGS and its users? • If the U.S. remains a non-Party, • The SMTA will apply only to NPGS PGRFA accessions, identified in GRIN, acquired under the SMTA from Treaty Parties, from CGIAR Centers, or from others who received MLS materials under the SMTA. • Other NPGS accessions will be distributed as they are today.

13. What do the IT and SMTA mean for the NPGS and its users? • If the U.S. becomes a Party, • All PGRFA “under the management and control” of the USG (as a Treaty Party) and “in the public domain” will become part of the MLS. This includes all PGRFA in the NPGS, except materials that are not in the public domain (e.g., PVPC deposits). • NPGS PGRFA accessions acquired under the SMTA will be identified in GRIN and will be distributed under the SMTA. • All USG germplasm and NPGS PGRFA accessions will be distributed to other Treaty Parties, or to “legal or natural persons” under their jurisdiction, under the terms of the SMTA.

14. Licensing Products Under Development by Public Sector Institutions • Examples of products under development: • Breeding materials with identified traits of value • Advanced selections or parental lines • Cloned genes or transformed research materials • SMTA Article 2, “Commercialization shall not include any form of transfer of PGRFA under Development.” • Licensor not directly responsible for monetary benefit sharing • SMTA could be included in the license as an appendix • Licensee may be required to share monetary benefits; royalty-stacking provisions should be considered

15. Licensing of Products by Public Sector Institutions • Examples of products “ready for commercialization”: • Finished varieties or hybrids • Transgenic plants (if the institution has the resources necessary to obtain regulatory approvals) • Recipient must share monetary benefits based upon product sales by licensees. • Licensor is directly responsible for monetary benefit sharing • SMTA could be included in the license as an appendix • License could require licensee to make reports and payments to the Governing Body • Royalty-stacking provisions should be considered

16. Impact of the IT on Public Sector Research, Breeding and Licensing Programs • Some research and breeding materials will only be available under the terms of the SMTA. • Research and breeding materials that incorporate MLS materials must be exchanged under the terms of the SMTA but will not require monetary benefit sharing by the public sector institution. • Licensing of products and products under development is possible, but the business terms must take into account the licensee’s monetary benefit sharing obligations. • Public sector institutions should consider sharing monetary benefits derived from their licensing programs on a voluntary basis.

17. Additional Information http://www.planttreaty.org/ June.Blalock@ars.usda.gov