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CS Professional · Intellectual Property Rights - Law and Practice · Biological Diversity

Bharat Herbals Ltd. receives a benefit-sharing amount paid to the NBA for accessing a biological resource. A trustee claims the NBA can spend it on any general government purpose. Which statement is correct under the Act as it now stands?

Benefit-sharing amounts received by the NBA are credited to the National Biodiversity Fund. The Fund can be used only for listed purposes such as channeling benefits to claimers, conservation, and socio-economic development of the source area in consultation with the Biodiversity Management Committee, not for general purposes.

  1. AThe amount is credited to the National Biodiversity Fund, which is to be utilised for purposes including channeling benefits to benefit claimers and socio-economic development of areas from where the resource was accessed, in consultation with the Biodiversity Management CommitteeCorrect
  2. BIt is credited to the Consolidated Fund and used for any purpose the NBA chooses
  3. CIt must be returned to the company after one year
  4. DIt is used only for the NBA's own staff salaries

Explanation

Section 27(1)(b) credits all sums including charges and benefit sharing amount received by the NBA to the Fund. Section 27(2) limits use to benefit claimers, conservation and sustainable use, socio-economic development of the source area in consultation with the Biodiversity Management Committee, and activities meeting Act purposes. General government use is not permitted.

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