Report No. 171
19. Prior Permission Regarding Commercial Application.-
(1) Any person intending to apply for any form of intellectual property right in or outside India for any invention based on any research or information on a biological resource occurring in India shall be required to obtain prior permission for such application from the National Authority in the prescribed form.
(2) While granting permission, the National Authority may impose benefit sharing fee or royalty or such other conditions as may be found advisable with respect to the disposal of the financial benefits arising out of the commercial utilisation of such right.
(3) If any person fails to comply with the requirement of sub-section (1), he shall be punished with imprisonment of either description which may extend to five years and with fine.