WIPO Initiative of Transforming Traditional Resources and Sharing Rights: an Evolutionary Game Analysis and a Chinese Context

WIPO-GRTKF specifies, for the first time, how traditional resources embodied by traditional knowledge, genetic resources, and folklore can be defined, and what the relationship between original rights, and rights arising from the transformation and utilisation of traditional resources can be understood. Committed to promoting innovation, shared benefits and balanced interests, WIPO tries to achieve a balance between preventing users from violating holders’ original rights through the acquisition of patent, trademark and copyright, and incentivizing all stakeholders to transform traditional resources to improve the greater good. The document triggers a new round of disputes among interest groups over how to share rights arising from the transformation and utilisation of traditional resources. Using an evolutionary game model to simulate how holders and users transform traditional resources, and share rights, we find that when the two sides choose to cooperate to apply for transformation and give consent to use, their benefits are maximised and strategies stabilised. We suggest that in the transforming process, holders’ rights and users’ interests be given equal emphasis, and an autonomous and open mode combining statutory licensing, and justified utilisation of original rights be employed. We advocate for a hybrid legislative arrangement that integrates the incentive of IPRs as private rights, and the safeguard of public rights. In the dual subject system, both users and holders enjoy multiple rights in the process of protecting and transforming traditional resources. The Chinese approach to transforming traditional resources and sharing their rights will contribute to sustainable development of traditional resource industry across the globe.