Developing pro-poor markets for environmental services in the ...

have sole commercial bioprospecting rights in a specific area, the minimum bioprospecting fee shall be
$5,000 or $5.00 per hectare.
Section 9
Rehabilitation/Performance Bond – the applicant shall post a rehabilitation/per-formance bond in an
amount equivalent to 25% of the negotiated bioprospecting fee.
Benefits from bioprospecting that are to be shared with local stakeholders are as follows:
Section 16
Fees and Royalties – subject to the rules on prior informed consent from the concerned local community,
and where applicable, from the concerned Protected Area Management Board and Indigenous Peoples,
any CRA holder shall pay to the foregoing the following milestone payments:
Annual User’s Fee – upon signing of the research agreement, the CRA hold shall pay the amount of $100
for every hectare under its use for sourcing genetic materials each year during the term of the CRA.
However, if the area covered shall be for the exclusive bioprospecting use barring other commercial
researchers of whatever purpose, the CRA-holder shall pay the amount of $1,000 annually for every
hectare under its exclusive access.
Patent Application Payment – upon filing of and for each application for patent for any product derived
from or by reason of any biological or genetic resources from any area under the research agreement, the
CRA holder shall pay the amount of Fifteen Thousand US Dollars ($15,000). This shall include
applications filed in the Philippines or in any other country and regardless of whether such shall fall
within the exclusive bioprospecting period or beyond.
Provided that any Filipino individual or local organisation shall pay the amount of only $1,500, while
local SMEs and local non-profit organisations shall pay an amount of only $150 for each application for
patent.
Patent Processing Payment – during the pendency of each patent application, the CRA holder shall pay
the amount of $100,000 every year until patent is approved, with the remaining balance from $485,000 to
be settled upon patent approval. Payments of $100,000 will commence a year after the patent application
is filed. If payments for this milestone exceed $485,000, the difference will not be refunded to the CRA
holder. If, at any point in time thereafter, the CRA holder decides to discontinue the patent application,
then the payment of $100,000 every year shall cease. Any amount paid prior to the discontinuation of the
patent application shall be non-refundable.
Provided during the pendency of each patent application, any Filipino individual or local organisation
applicant shall pay only the non-refundable amount of $10,000 every year until the approval of the patent,
with the remaining balance from $48,500 to be settled upon patent approval.
Provided further that for local SMEs and local non-profit organisations, during the pendency of each
patent application, they shall only pay the non-refundable amount of $1,000 every year until the approval
of the patent, with the remaining balance from $4,850 to be settled upon patent approval.
Royalties – the amount of 1% of Gross Sales earned from the product by the CRA holder, parent
company, or subsidiary, throughout the duration of the patent, in the event of any commercial use shall be
paid. All earlier payments referred to in the preceding section shall be credited against the computed
royalties determined in this Section to each appropriate stakeholder group.
Section 18
Forms of Payment – payments may be made in cash or in kind. The CRA holder may enter into special
written agreements with the concerned stakeholder for the payment of the latter’s share in non-monetary
forms. However, for this purpose, the amount to be credited against royalties and fees due from the CRA
holder shall be limited to the proportionate share of the actual recipient-payee. The in-kind payments may
be given earlier but not later than the period specified for each milestone payment in the preceding
Article.
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