Many scientists in developing countries are interested in orderly deve
lopment on an equitable basis of economically useful discoveries based
upon research on indigenous natural products. Availability of funds a
nd technical expertise in the country of origin is often a limiting fa
ctor. Cooperation with individuals and organizations possessing these
is frequently a practical necessity for the work to go forward. Inexpe
rience in patent and legal matters as well as perceived differences in
comparative power are often found to be inhibitory. The discussion by
IUPAC is intended to be helpful in such cases by setting forth the el
ements which are commonly present in collaborative contracts. This mat
erial was developed by considering a dozen such contracts in present e
ffect between persons from several different countries of origin and f
irms based in Europe and USA. This paper is not a contract, but indica
tes the elements usually present and the negotiable items which need t
o be settled amicably. Some explanatory comments by IUPAC are appended
in appropriate places as well. This information is for background pur
poses only and is not intended to substitute for legal expertise. All
parties entering into such negotiations should avail themselves of exp
erienced legal advice.