BACKGROUND 

Research conducted on microorganisms found in hot springs and other thermal features at Yellowstone National Park is yielding economic and scientific benefits that can strengthen biological resource conservation and management efforts at the park. The absence of "benefits-sharing" provisions in existing research permits has resulted in circumstances where Yellowstone is not positioned to maximize the potential benefits resulting from research on biological resources found in the park. 

Park management believes that approximately ten thermophilic microorganisms found at Yellowstone already have generated valuable research results for potentially useful biotechnological, pharmaceutical, and industrial applications. The best known example is the development of the so-called "Taq polymerase" that resulted from Nobel Prize-winning research conducted by the Cetus Corporation with the microorganism known as Thermus aquaticus that was first isolated at Yellowstone. The annual economic value of applications of Taq polymerase is estimated to be well in excess of $100 million and growing. 

It is estimated that less than two percent of the microscopic life forms residing in the thermal features at Yellowstone have been identified to date. Compounded by the fact that Yellowstone's 10,000 hot springs, geysers, fumaroles, and boiling mud pots comprise the greatest concentration and variety of thermal features still existing on Earth (greater than all other terrestrial thermal areas on the planet combined), the likelihood that many other valuable discoveries will result from research on Yellowstone's thermophilic microorganisms is very high. 

In order to maximize the benefits to park conservation that could result from research on biological resources, Yellowstone is exploring ways to develop equitable and efficient benefits-sharing arrangements with the research community. A pilot Cooperative Research and Development Agreement (CRADA) has been negotiated between Yellowstone and the Diversa Corporation (a prominent biotech firm that is currently engaged in research on thermophilic microorganisms found at Yellowstone). The negotiations between Yellowstoneand Diversa were facilitated by the World Foundation for Environment and Development (WFED), which is working closely with the park on its new `bioprospecting' activities. 
The CRADA incorporates the terms and conditions of the existing permits that authorize scientific research activities at the park, but also includes additional new compensation sections that provide for the payment of royalties and other contributions to the park for the conservation and management of Yellowstone's geothermal and biological resources. 

PARTIES 

Yellowstone National Park / U.S. National Park Service ("YNP") 

Diversa Corporation ("Diversa") (a Delaware corporation with headquarters located in San Diego, California) 

AUTHORITY 

Research Specimen Collection: The permit to collect research specimens is issued pursuant to the Superintendent's express authority to issue "permits" under 36 CFR Sections 1.6 ("Permits") and 2.5 ("Research specimens"). 

Cooperative Research and Benefits-Sharing: The Cooperative Research and Development Agreement (CRADA) incorporates profit-sharing arrangements, increased scientific reporting, training and technology transfer activities to support research and resource conservation at YNP (Federal Technology Transfer Act, 15 USC Section 3710a et seq.). 

PURPOSE 

YNP intends to maximize the scientific, educational, and economic benefits that can result from research activities at the park for the greater conservation of the park's natural resources. 

Diversa desires to conduct research on thermophilic microorganisms found at YNP to evaluate potentially new useful bioactive materials for chemical synthesis, diagnostics, industrial or pharmaceutical uses. 

The research specimen permit continues to authorize research on biological specimens found at the park. However, the CRADA closes the existing loop-hole that authorizes research activities on biological materials lawfully collected in national parks without providing for any benefits-sharing mechanism for the parks to recapture future revenues or other benefits to be derived from the valuable results or useful applications of such research. The CRADA does not expand the scope of authorized research specimen sampling activities at the park, but now provides for the sharing of benefits (including payment of royalties and other contributions, training and technology transfer to YNP).
 

BENEFITS 

ENVIRONMENTAL: Promotes the CONSERVATION of biodiversity by (1) increasing public appreciation of Yellowstone's thermal features and the thermophilic microbes that are found there and (2) enhancing Yellowstone's management and understanding of thermophiles 

SCIENTIFIC: Promotes EXPANDED SCIENTIFIC RESEARCH on unexplored biodiversity by permitting access for non-damaging scientific research activities, and requires increased reporting of scientific information to Yellowstone for resource conservation and management purposes 

ECONOMIC: Promotes EQUITABLE BENEFITS-SHARING ARRANGEMENTS designed to support the conservation and sustainable use of biological resources 

EDUCATIONAL: Promotes opportunities for NEW EDUCATIONAL PROGRAMS about the value of biodiversity protected by national parks for society 

INSTITUTIONAL: Promotes improved public understanding about the ROLE OF NATIONAL PARKS AS CUSTODIANS OF IMPORTANT BIOLOGICAL RESOURCES that enhance quality of life 

BENEFITS-SHARING 

The CRADA provides a package of payment mechanisms (combination of up-front contribution (creditable minimum annual royalty ($100,000 over five years)), annual earned royalty based on a percentage of revenues generated from YNP-related research results, and in-kind contributions of laboratory equipment and scientific training). Royalty rates are based on a sliding-scale (depending on end-use of research results). Audit and other industry-standard recordkeeping and verification procedures are included in the CRADA. 

The CRADA also requires Diversa to provide scientific reports to YNP concerning research activities conducted at the park. 

The contribution and research report clauses comprise the "benefits-sharing" provisions of the CRADA: In exchange for access to and authorized use of research specimens found at YNP, Diversa agrees to share benefits with YNP in the form of monetary compensation, scientific information, equipment and professional know-how. 

EXCLUSIVITY 

No exclusive rights are granted by the CRADA. However, Diversa is required to retain control over all research specimens collected at YNP pursuant to the permit and is prohibited from distributing any research specimens to any third-parties without the prior written consent of YNP. Research on all research specimens previously collected by Diversa also covered by the terms of the CRADA. 

INTELLECTUAL PROPERTY RIGHTS
 

The CRADA creates no new intellectual property rights. Nonetheless, intellectual property developed during the course of CRADA-related research may be protected through operation of federal intellectual property laws (patent, copyright, trade secret, etc.). 

ASSIGNMENT 

The CRADA is not assignable or transferable without written approval from YNP (exception for Diversa successor in interest). 

TERM AND TERMINATION 

Five-year initial term (renewable). Prior termination possible with 30 days written notice. Benefits-sharing, recordkeeping and reporting obligations survive in perpetuity. 
 
 
 

For additional information, please contact: 

John D. Varley 
Director 
Yellowstone Center for Resources 
Yellowstone National Park, Wyoming 82190 
Tel (307) 344-2203 Fax (307) 344-2211