Question
Critically examine the provisions relating to benefit sharing under the Biological Diversity Act.
Answer :
Word Count : 1053
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Skip in 10
The Biological Diversity Act, 2002 was enacted to fulfill India’s obligations under the Convention on Biological Diversity and seeks to ensure conservation of biological resources, sustainable use, and fair and equitable sharing of benefits arising out of the use of such resources and associated traditional knowledge. The concept of benefit sharing is central to the Act and reflects the principle that local communities and traditional knowledge holders should be compensated when their resources or knowledge are commercially utilized. The provisions relating to benefit sharing are primarily embodied in Sections 21 and related rules, and are administered through the National Biodiversity Authority (NBA), State Biodiversity Boards (SBBs), and Biodiversity Management Committees (BMCs). Section 21 of the Act empowers the National Biodiversity Authority to ensure equitable benefit sharing when it grants approvals for access to biological resources or associated knowledge for commercial utilization, bio-survey, or bio-utilization. The provision allows the NBA to impose terms and conditions that secure benefit sharing between the applicant and the benefit claimers, who are usually local communities conserving the biological resources or holding traditional knowledge. These benefits may include monetary compensation, technology transfer, joint ownership of intellectual property rights, setting up of venture capital funds, or any other non-monetary incentives deemed appropriate. The Act thus adopts a flexible and case-by-case approach rather than prescribing a rigid formula. The Biological Diversity Rules, 2004 further elaborate on benefit sharing mechanisms. They provide that the NBA may determine benefit sharing based on factors such as the extent of use of biological resources, sustainability concerns, and the impact on local communities. The rules also recognize both short-term and long-term benefits, including upfront payments, royalties, and milestone-based payments. Importantly, the Act requires that benefit sharing arrangements be mutually agreed upon, thereby incorporating the principle of prior informed
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