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which the registered traditional knowledge concerned belongs, may authorize
the scientific, commercial or industrial exploitation of one or more of the
elements of this knowledge by a third party, provided that such exploitation does
not distort the cultural identity of the local community in question or offend it
and that the local community receives a fair share of any type of benefits arising
from such scientific, commercial or industrial exploitation, in view of the
circumstances at hand.
The scope and term of such authorization shall be limited for the specific
purposes of public interest which warrant the authorization. Exploitation by the
third party must cease once it is no longer justified by the public interest.
Section 5. Licensing contracts
Article 271: Local communities’ collective rights in registered traditional knowledge shall
include the right to sign exclusive or non-exclusive licensing contracts, subject
to the provisions of Article 274.
Article 272: Licenses to exploit traditional knowledge are supposed to be granted on a feepaying basis. They may give rise to different forms of payment, at the discretion
of the local communities, including the payment of lump sums or fees or the
sharing in the benefits arising from the commercial or industrial exploitation of
products whose manufacturing is directly or indirectly derived from the use of
the traditional knowledge for which the license has been granted, as well as
other forms of benefits, such as scholarships or medical and pharmaceutical
assistance.
Article 273: Local communities’ collective rights in registered traditional knowledge shall
include the right to give registered traditional knowledge as a guarantee, subject
to the provisions of Article 274.
Article 274: Traditional knowledge which, owing to exploitation by a third party, has ceased
to be a cultural identifier for the local community, such as crafts and signs with
intrinsic sacred or religious value, may not form the subject matter of a licensing
contract, even with the community’s prior consent.
The signature of a licensing agreement or any other form of prior consent
concerning the use of such traditional knowledge shall constitute misuse of the
registered traditional knowledge. In such cases, the provisions of Article 268
shall apply.
Article 275: The State has a duty to help the local communities to negotiate and monitor
licensing agreements involving traditional knowledge. All licensing agreements
must be registered with the Industrial Property Director, failing which they shall
be considered null and void.
Chapter III. Crafts
Section 1. Registration of crafts