The Convention on Biological Diversity has established a set of rules for bioprospecting contracts. The long exploitation of natural resources in the name of biotechnology seems to come to an end through the above guidelines. Before that, when any kind of natural resource was available, it was considered free for use and exploitation, which gave rise to biocolonialism, biopiracy and other related problems. After the CBD, a legal framework is established that takes all problems into account; restrict the idea of ​​commodification of traditional knowledge or resources that belongs to indigenous peoples. People belonging to such places had a say in the new formulation. They are the ones who can decide whether there should be a project or not; and if there will be any project, what would be the terms and conditions of the said project. Their consent constitutes the most essential element of the contract, defined by prior informed consent. Participation in the project will also be contractually established, so that commercialization does not ruin the organic system for the sake of minting money. Consolidating the rules of such contract called biological prospecting contract, the Convention on Biological Diversity has established some rules under its articles, to provide a fair and just position to the people related to such biologically diverse places. Under Article 8 of the Convention, a set of substantive and procedural rules established, ensuring the equal participation of both parties. Article 8 (j) specifically talks about the role of the national government in providing effective legislation for the protection and conservation of traditional knowledge and people living in a particular... medium of paper.... ..s, fungi, microorganisms and genetic diversity. It is the international instrument for sustainable development. In his idea, the ecosystem, species and genetic resources should be used for the benefit of man in a way that does not lead to the decline of biodiversity. Article 1 (1992) of the Convention on Biological Diversity (CBD) formalized the recognition that the preservation of environmental resources is intimately linked to the provision of economic incentives for individuals, groups and nations. It has provided support for both the fair and equitable sharing of benefits arising from genetic resources and the recognition of rights to such resources. Combined with domestic legislation exercising host country property rights, appropriate intellectual property rights (IPR) laws in both the host country and the country of application and resolution