Biotechnological and other value adding options provide an opportunity for valorising the biodiversity and associated knowledge systems. In the absence of this value addition, the erosion of biodiversity as well as traditional knowledge and contemporary creativity is inevitable. An argument is made for reforming the current IPR system so as to provide incentives for local communities and other innovators. The reforms are suggested in the field of definition of prior art, reduction of transaction cost, disclosure of source of knowledge and material, developing international registry, modifying plant varieties registration process. Finally, suggestions are made for improving the overall institutional framework at national and international level.