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DIGITAL SEQUENCE INFORMATION:ICC VIEWS AND PERSPECTIVES ON INTERNATIONALDISCUSSIONS AND DEVELOPMENTSJBA ABS Symposium on Digital Sequence Information

28 February 2018| TokyoWE ARE THE WORLD BUSINESS ORGANIZATION.

WHAT IS ICC?
The world’s largest business organisation - network of over 6 million
members in over 100 countries: companies, business associations, firms,chambers of commerce.

Promotes international trade, responsible business conduct and a global
approach to regulation

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ICC AND ACCESS AND BENEFIT SHARING•

Actively contributing to ABS discussions in CBD as observerorganization since 2008

•Act as focal point for businesses•Represent cross-sectoral and global businesses views to government
delegations

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PROPOSALS IN THE CBD BY SOME COUNTRIES (1)CBD Art. 2

Recognition that « genetic resources « include DSI
Geneticresources
DSIor
Widening the scope of CBD to include DSI↓Nagoya Protocol obligations

DSI subject to ABS
obligations

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PROPOSALS IN THE CBD BY SOME COUNTRIES (2)Creation of a multilateral benefit sharing mechanism for DSI and other situations →benefit sharing with individual countries + additional level of international benefit sharing

Benefits

Multilateral benefit sharing mechanism
DSI and GRs where PIC/MAT cannot be obtained

User
Benefits

Providercountry

Providercountry

Providercountry

Providercountry

Providercountry

Providercountry

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ICC POSITION ON DSI
DSI currently not within scope of NP and CBD––CBD (Art. 2) definition cannot be interpreted to include DSI•Genetic resource = genetic material [of actual or potential value]•Genetic material = any material of plant, animal, microbial or other origin containing functional
units of heredity
If GR= material physically containing genes → DSI cannot constitute genetic resources

Scope should not be expanded to include DSI-Would constitute renegotiation of Protocol.

Public domain info must remain freely accessible-Otherwise would constitute retroactive application of Nagoya provisions3

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CBD OBJECTIVESCBD objectives• Conservation and sustainable use of biodiversity• Promoting / encouraging research that contributes to conservation andsustainable use of biological diversity (Article 12)• Exchanging information, including scientific research (Article 17)• Technical and scientific cooperation (Article 18)• Promoting and advancing the benefits of biotechnology (Article 19).
DSI increasingly used to advance the conservation and sustainable use of biodiversity(e.g.taxonomy, conservation management, invasive species, wildlife trafficking)

New rules relating to access and use of DSI will seriously impede R&D including forconservation and sustainable use

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NAGOYA PROTOCOL OBJECTIVES
Nagoya Protocol objectives (Art.1)••

Fair and equitable sharing of the benefits arising from the utilization ofgenetic resources•Thereby contributing to the conservation of biological diversity and thesustainable use of its components.

Open exchange of scientific information should be recognised as benefit sharing

Significant non- monetary benefits delivered to developing countries could be diminished inprocess of extracting monetary benefits from DSI•Intention of Nagoya to provide legal certainty for users and provider countries

Including DSI will create legal uncertainty around use / ABS obligations on DSI420/03/2018

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IMPACT ON CBD AND NAGOYA PROTOCOL OBJECTIVES

Including DSI will hinder – not help achieve CBD and NP objectives

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IMPACT ON R&D
Sharing of public domain information - essential for science and open innovation
Legal uncertainty & practical difficulties → undermine R&D process and collaboration→ chilling effect on research, education and scientific innovation
Practical difficulties• How to establish from which species genetic sequence originates - genetic sequencecan be common to several species• Impossible to determine relative value of individual input sequences - real value
created by experimentation and computation• Complexity of ABS obligations multiplied in DSI context - large no of sequences usedin development of one product5

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IMPLICATIONS FOR BUSINESS IF DSI INCLUDED•Compliance with national ABS obligations in all Nagoya countries for use of DSI in
R&D – check origin, obtain authorisation, negotiate agreements.
- Some national legislation e.g. Brazil already includes DSI•User compliance measures will include monitoring and tracking of use and transfer of DSI.

•Obligations could apply to genetic information on GRs accessed pre-NP and CBD.

•DSI in external databases but also DSI already in possession of companies potentiallysubject to ABS•

May create new additional layer of international benefit sharing (Article 10).

More legal uncertainty and administrative burden → negative impact on innovation with GRs

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ICC PROPOSAL FOR WAY FORWARD
Countries should use Mutually Agreed Terms to cover DSI if they wish

Give priority to implementation•Improve national rules and infrastructure to promote sustainable use and legal
certainty for access.

•Changing rules now will undermine significant efforts being made by users andproviders to implement based on principles and standards in Protocol

Evaluate impact of NP on access, benefit creation and benefit sharing, conservationand sustainable use•

Chilling effect on sourcing and use of GRs for innovation?

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IMPLICATIONS FOR CBD AND OTHER PROCESSES•Impact on other non-ABS provisions of the CBD as inclusion of DSI will extend toCBD as a whole•If DSI included in scope of CBD/Nagoya, will affect other discussions in FAO-IT (Foodand Agriculture Organisation International Treaty), WHO PIP (Pandemic Influenza
Preparedness) Framework, UNCLOS negotiations on Marine BBNJ (Biodiversity Beyond
National Jurisdictions)•Some countries (eg African Union) want to broaden concept of digital sequence →« natural information »WE ARE THE WORLD BUSINESS ORGANIZATION.

WHAT WILL HAPPEN NEXTCountries have different views:• Some supportive of putting ABS obligations on DSI• Some against putting ABS obligations on DSI• Some want to maintain national sovereignty for controlling use and benefits
from DSI• Some pushing for a multilateral system

Report from Technical Expert Group (12-16 February)
SBBSTA meeting 2-7 July 2018, Montreal
Next formal decision making meeting: COP-14 – November 2018, Egypt7

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ARIGATO!
Daphne Yong-d’Hervédye@iccwbo.org

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