(3) Traditional knowledge that is held by indigenous and local communities may provide important lead information for the scientific discovery of potentially valuable genetic or biochemical properties of genetic resources, including knowledge, innovations and practices of indigenous and local communities embodying traditional lifestyles relevant for the conservation and sustainable use of biological diversity.

21. Recognises the potential role of the intellectual property and patent system in promoting innovation, transfer and dissemination of technology to the mutual advantage of stakeholders, providers, holders and users of genetic resources, their derivatives, and of associated traditional knowledge in a manner conducive to welfare and development, while emphasising the necessity of preventing the adverse effects of the IPR and patent system on indigenous peoples’ and local communities’ application of traditional knowledge, their laws, practices and knowledge system and their ability to use, develop, create and protect their knowledge in re ...[+++]lation to genetic resources; points out that, under certain circumstances, contracts between the parties may be identified by indigenous peoples or local communities as a more feasible solution to share benefits and to protect their interests while preserving the environment and preventing social and economic harm, e.g. by means of safeguard clauses;

5. Recognises the potential role of the intellectual property and patent system in promoting innovation, transfer and dissemination of technology to the mutual advantage of stakeholders, providers, holders and users of genetic resources, their derivatives, and of associated traditional knowledge in a manner conducive to welfare and development, while emphasising the necessity of preventing the adverse effects of the IPR and patent system on indigenous peoples’ and local communities’ application of traditional knowledge, their laws, practices and knowledge system and their ability to use, develop, create and protect their knowledge in rel ...[+++]ation to genetic resources; reiterates that, against the background of its recent resolution on the patenting of essentially biological processes, especially in the area of breeding, excessively broad patent protection can hamper innovation and progress and become detrimental to small and medium breeders by blocking access to animal and plant genetic resources; points out that, under certain circumstances, contracts between the parties may be identified by indigenous peoples or local communities as a more feasible solution to share benefits and to protect their interests while preserving the environment and preventing social and economic harm, e.g. by means of safeguard clauses;

NOTING the interrelationship between genetic resources and traditional knowledge, their inseparable nature for indigenous and local communities, the importance of the traditional knowledge for the conservation of biological diversity and the sustainable use of its components, and for the sustainable livelihoods of these communities,

1. Each Party shall take appropriate, effective and proportionate legislative, administrative or policy measures, as appropriate, to provide that traditional knowledge associated with genetic resources utilized within their jurisdiction has been accessed in accordance with prior informed consent or approval and involvement of indigenous and local communities and that mutually agreed terms have been established, as required by domestic access and benefit-sharing legislation or regulatory requirements of the other Party where such indigenous and local communities are located.

In accordance with domestic law, each Party shall take measures, as appropriate, with the aim of ensuring that traditional knowledge associated with genetic resources that is held by indigenous and local communities is accessed with the prior and informed consent or approval and involvement of these indigenous and local communities, and that mutually agreed terms have been established.