4.4 Different Systems for the Transaction of Genetic Resources
95
incorporated individual parents originate, because of the high grade of
interdependence of the countries in regard to the origin of the utilized PGRFA in a
country. According to their arguments, the transaction costs would be too high for
such an agreement. As mentioned above, through an intelligent agreement system
the transaction costs may be reduced to a reasonable level. Furthermore, by
adjusting the benefit agreements of PGRFA utilization to the breeders' protection
rights, a practical solution may be feasible: if the Breeder's Privilege is kept in
place, the benefits of utilizing germplasm of landraces should be restricted to new
incorporated germplasm solely. Only those gene owners who supplied new
PGRFA to the breeding success should be credited for their PGRFA and not those
owners who have supplied PGRFA in the former breeding process while already
incorporating their PGRFA before the release of an older variety. If the Breeder's
Privilege is abolished and patents are introduced for all varieties, meaning that
breeders cannot utilize an older variety for further research and development
without crediting the owner of the incorporated old variety, the benefit system for
genetically coded information derived from landraces has to be adjusted, i.e., all
gene owners of germplasm derived from landraces through the whole breeding
process have to be credited as well.
Additionally, an institutional framework is needed for a pure bilateral exchange
system as well. The relevant information could not be distributed evenly without a
clearing-house mechanism or some other system of information distribution.
Hence, the transaction costs of the system would increase because of
disproportionate search costs.
4.4.3
Market System of PGRFA Exchange
A market system for PGRFA will be a highly developed organization. This system
must include the private interest in exchange of PGRFA and the social interest in
the long-term conservation of PGRFA. There will not only be a need for an
appropriate institutional framework, but the system will also require a practical
system of enforcement and control.
The main institutional aspect for a private market system is the creation of a
virtual market for genetically coded information on the internet as a freely
accessible database containing the World's entire available PGRFA (e.g., the
World Information System and Early Warning System on PGRFA). Prospective
users could call up the standardized genetically coded information they require
and clarify the property rights of the resources. Prices for genetically coded
information would develop stepwise depending on the technical advances made by
users and the development of markets for end products, amongst other factors.
In addition to the information system a further system is needed to enable the
transaction of genetically coded information from the supply to the demand side as
well as to enforce any kind of compensation. This system could be a clearing
house mechanism for the promotion of technical and scientific cooperation,
serving the sustainable development of biological resources as mentioned in
Article 18 of CBD or a "facilitator" to organize the transfer of genetically coded
95
incorporated individual parents originate, because of the high grade of
interdependence of the countries in regard to the origin of the utilized PGRFA in a
country. According to their arguments, the transaction costs would be too high for
such an agreement. As mentioned above, through an intelligent agreement system
the transaction costs may be reduced to a reasonable level. Furthermore, by
adjusting the benefit agreements of PGRFA utilization to the breeders' protection
rights, a practical solution may be feasible: if the Breeder's Privilege is kept in
place, the benefits of utilizing germplasm of landraces should be restricted to new
incorporated germplasm solely. Only those gene owners who supplied new
PGRFA to the breeding success should be credited for their PGRFA and not those
owners who have supplied PGRFA in the former breeding process while already
incorporating their PGRFA before the release of an older variety. If the Breeder's
Privilege is abolished and patents are introduced for all varieties, meaning that
breeders cannot utilize an older variety for further research and development
without crediting the owner of the incorporated old variety, the benefit system for
genetically coded information derived from landraces has to be adjusted, i.e., all
gene owners of germplasm derived from landraces through the whole breeding
process have to be credited as well.
Additionally, an institutional framework is needed for a pure bilateral exchange
system as well. The relevant information could not be distributed evenly without a
clearing-house mechanism or some other system of information distribution.
Hence, the transaction costs of the system would increase because of
disproportionate search costs.
4.4.3
Market System of PGRFA Exchange
A market system for PGRFA will be a highly developed organization. This system
must include the private interest in exchange of PGRFA and the social interest in
the long-term conservation of PGRFA. There will not only be a need for an
appropriate institutional framework, but the system will also require a practical
system of enforcement and control.
The main institutional aspect for a private market system is the creation of a
virtual market for genetically coded information on the internet as a freely
accessible database containing the World's entire available PGRFA (e.g., the
World Information System and Early Warning System on PGRFA). Prospective
users could call up the standardized genetically coded information they require
and clarify the property rights of the resources. Prices for genetically coded
information would develop stepwise depending on the technical advances made by
users and the development of markets for end products, amongst other factors.
In addition to the information system a further system is needed to enable the
transaction of genetically coded information from the supply to the demand side as
well as to enforce any kind of compensation. This system could be a clearing
house mechanism for the promotion of technical and scientific cooperation,
serving the sustainable development of biological resources as mentioned in
Article 18 of CBD or a "facilitator" to organize the transfer of genetically coded