After more than 20 years of negotiations, UN member countries agreed on the management of genetic resources and traditional knowledge, the UN agency for intellectual property said.
The UN's World Intellectual Property Organization (WIPO) said the treaty stipulates that countries are to receive a share in the profits if their ancient plant knowledge or resources are used by foreign firms for various products, including pharmaceuticals and cosmetics.
Companies are now required to disclose the origin of their materials and ideas during patent applications.
This allows countries of origin to check whether all authorizations have been obtained and ensure participation agreements are in place.
"Today we made history in many ways," said WIPO Director General Daren Tang said.
"This is not just the first new WIPO Treaty in over a decade but also the first one that deals with genetic resources and traditional knowledge held by Indigenous Peoples as well as local communities," he added.
The treaty is due to be signed later Friday and will come into force as international law when 15 of the 193 WIPO member countries have ratified it.
