What happens when resources get valuable and scarce? Howis Intellectual Property dealing with market failures related tosub-patentable innovation or purely traditional knowledge withinteresting applications? The protection of traditional knowledgeand genetic resources (TKGR) has been one of the major modernchallenges in international IP law. The entry into force of theConvention on Biological Diversity and its implementation innational legislation has created more questions than the ones itanswered.This dissertation evaluates proposed remedies to the TKGR marketfailure and implementation initiatives by using Coase’s Theoremand Rawls’ theory of justice. Apart from presenting and elaboratingon alternative forms of entitlement, the dissertation supportsa thorough procedure in the introduction of a new entitlementfor TKGR, that could also be used in other situations wherecomplicated market failures are in seek of a remedy inside or at theperiphery of the IP system.