Article 6 – Rights and Obligations of the Recipient

12 December, 2017
CLOSED: This discussion has concluded.

It is proposed that the following paragraphs be included in Article 6 of the Standard Material Transfer Agreement (SMTA) as penalties to address prohibited uses and intellectual property or other rights that limit the facilitated access to Material provided under the SMTA.

6.1bis

If the Recipient uses the Material for any of these prohibited uses, a lower court in the country of origin of the Material may, on presentation of prima facie evidence of such illegal use, award damages against the Recipient to the value of USD25 million or ten times the Recipient’s annual turnover, whichever is higher. The Recipient agrees that it shall not oppose enforcement of such damage by a competent court in the jurisdiction, where its main business identity is registered.

6.2bis

If the Recipient claims any such IP or other rights in contravention of this clause, a lower court in the country of origin of the Material may on presentation of prima facie evidence of such claims award damages against the Recipient to the value of USD25 million or ten times the Recipient’s annual turnover, whichever is higher, and declare the IP or other right forfeited to the country of origin.


What are you views on the above penalties?

If you find the penalty unsuitable, what may be a more appropriate penalty?

Note:

  1. Material means any material of plant origin, including reproductive and vegetative propagating material, containing functional units of heredity.
  2. Prohibited/illegal uses include chemical, pharmaceutical and/or other non-food/feed industrial uses.

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