5. PART V: SHARING OF BENEFITS ACCRUING FROM AGR One of the objectives of the CBD is “the fair and equitable sharing of benefits arising out of the utilisation of genetic resources”. This is expounded further by Articles 15(4) and (7) which provide for access on mutually agreed terms and sharing in a fair and equitable way, the results of research and development and benefits arising from the utilisation of genetic resources. Regulation 20 of the Regulations provides for the sharing of benefits accruing from the collection, modification and use of genetic resources with the principle of fairness and equity on mutually agreed terms. The key here is that the sharing must be fair and terms for sharing must be agreed by all parties. All the benefits arising out of the collection, modification and use of genetic resources referred to in these Guidelines shall be shared by the parties. The criteria for sharing of such benefits shall be mutually agreed upon by the parties who shall be guided by the principle of fairness and equity. To give guidance on benefit sharing requires answering a few key questions: 1. What Benefits Should be Shared? 2. Who Shares these Benefits? 3. How are the Benefits Shared? 5.1 Benefits to be Shared Persons acquiring access to genetic resources are required to share fairly and equitably with the country of origin and other stakeholders, the benefits arising from the use of the genetic resources and their derivatives including non-monetary, and, in the case of commercialisation, also monetary benefits. Persons are required to share benefits arising from the use of genetic resources acquired prior to the entry into force of the CBD, as far as possible, in the same manner as for those acquired thereafter. All options must be considered when negotiating the type of benefits to be received from allowing access to genetic resources on one’s land. Many of the benefits may not accrue directly from the access to genetic resources. Benefits to be shared depend on specific circumstances, and upon mutual agreement. And what is equitable also varies depending on circumstances. The said benefits will vary on a case by case basis and cannot be exhaustively listed in these guidelines. A general categorisation is therefore given here. Table 1: Examples of Direct and Indirect benefits Direct Benefits Indirect Benefits • "Up-front" payments e.g. payment before access to the resources • Contributions to local economy and at the village level, e.g. livelihoods improvement such as infrastructure and food security • Milestone payments • Fees e.g. access, licence and other fees for any • Community empowerment through improved negotiation capacities services rendered • Strengthening capacities of local populations in • Royalties the sustainable use of natural/genetic resources • Research funding • Exchange of staff and training; • License fees in case of commercialisation • Capacity building e.g. through support to • Equity and profit-sharing opportunities research activities, collaboration in education / • Higher sale price of products – more pay to the training related to genetic resources management owner should the sale price go beyond a certain • Sharing of research results and transfer of value technology • Technology transfer • Support to small scale industries • Licenses to manufacture / market resultant • Supporting programs aimed at encouraging products sustainable harvesting • Development of supply industries or raw • Establishing professional networks materials / extracts • Payment of salaries / paid use of local guides, Guidelines for Access to Genetic Resources and Benefit Sharing  21