5% of the sales of the product that is a PGRFA belonging to the same crop as one of those listed under Annex 1 to the International Treaty, during a period of ten years, which can be extended by periods of five years.
MICHAEL HALEWOOD, SEARCHING FOR A LINE IN THE SAND: ISSUES TO CONSIDER CONCERNING FINANCIAL RETURNS FROM RECIPIENTS OF CENTRES' PGRFA UNDER DEVELOPMENT 36, http://www.
In 2006, Carlos Correa warned that "unless it is understood that the SMTA must be signed by any subsequent recipient of products that incorporate the received PGRFA, the chain of payments (except if voluntarily made) would be interrupted when the first incorporation of the material into a product takes place.
24) Thus, there are three categories of PGRFAs concerned: (1) those listed and held in public collections of IT Member States; (2) those listed and held in collections of the CGIAR; and, on a voluntary basis, (3) those held by other international institutions or by natural or legal persons who are under the jurisdiction of contracting parties.
The Multilateral System is premised on the principle that benefits accruing from the PGRFAs it covers "shall be shared fairly and equitably through the following mechanisms: the exchange of information, access to and transfer of technology, capacity-building, and the sharing of the benefits arising from commercialization.
It posits that commercializing products that are PGRFAs and incorporating genetic material accessed from the Multilateral System triggers the payment of a contribution to the benefit sharing system, except where such products are available without restriction to others for further research and breeding.
3 of the International Treaty; they would still be subject to the SMTA, if the Governing Body maintains this solution during its third session and extends the application of the SMTA to non-listed PGRFAs.
42) The new agreement has the effect of including the signatory centers in the list of International Agricultural Research Centers of the CGIAR and of granting the centers facilitated access to PGRFAs listed in Annex I.