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

The NBA orders Arogya Labs Ltd to pay a sum as benefit sharing for resources and knowledge obtained directly from an identified group of tribal healers, under an agreement with them. Under section 21(3) and its proviso, what may the NBA do with the amount?

The NBA may direct that the amount be paid directly to the tribal healers or their organisation, in accordance with the agreement and as it deems fit. Depositing in the National Biodiversity Fund is the general option, not a mandatory rule.

  1. AIt must always deposit the amount in the National Biodiversity Fund, with no exception
  2. BIt may direct that the amount be paid directly to the benefit claimer or organisation in accordance with the agreement and in such manner as it deems fitCorrect
  3. CIt must pay the amount to the State Government for onward distribution
  4. DIt must return the amount to the company as the agreement is private

Explanation

Section 21(3) allows the NBA to direct money to be deposited in the National Biodiversity Fund. The proviso says that where the resource or knowledge came from an individual, group or organisation, the NBA may direct payment directly to that benefit claimer in accordance with the agreement. So deposit in the Fund is not mandatory in every case.

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