Rules for Participation and contractual issues for Integrated

Rules for Participation and contractual issues for Integrated Projects in the Sixth Framework Programme Megan RICHARDS European Commission Megan Richards 11/11/2002 Heysel 6 FP launch conference 11, 12, 13 November 2002

Outline l Rules for Participation l Contractual Provisions l Financial Provisions l Intellectual Property Rights Megan Richards 11/11/2002 Heysel 6 FP launch conference 11, 12, 13 November 2002

Presentation Outline FRules for Participation l Contractual l Financial Provisions l Intellectual Megan Richards 11/11/2002 Provisions Property Rights Heysel 6 FP launch conference 11, 12, 13 November 2002

Participants ü Legal entities in Member States, Associated States, JRC and international European interest organisation on same footing ü All instruments need at least three independent legal entities from three different MS or AS (at least two MS or Associated Candidate States) except for SSA, HR mobility (not research training networks) ü European Economic Interest Groups (EEIG) or other legal entities may be the sole participant if their composition is in accordance with these requirements ü Legal entities from third countries and international organisations may participate under certain circumstances without EC funding (some special cases with EC funding) Megan Richards 11/11/2002 Heysel 6 FP launch conference 11, 12, 13 November 2002

Entities established in third countries and International organisations SPECIFIC PROGRAMME I - INTEGRATING PART l. Participation open for all l. Funding FOR INCO COUNTRIES : like Member States with a budgetary limit FOR OTHERS : if essential to carry out the project or if foreseen by the Work Programme and the call Megan Richards 11/11/2002 Heysel 6 FP launch conference 11, 12, 13 November 2002

ü Work Programme and Calls for Proposals determine : ü Minimum number of participants and place of establishment beyond Rules limits ü Additional evaluation criteria ü Whether consortium agreement is not required (unlikely for IP) ü Possibility of two-stage evaluation ü Irregularities in implementation are grounds for exclusion from evaluation and selection ü Fundamental ethical principles must be ensured, if not entity can be excluded from evaluation or selection procedure Megan Richards 11/11/2002 Heysel 6 FP launch conference 11, 12, 13 November 2002

Presentation Outline l Rules for Participation FContractual Provisions l Financial Provisions l Intellectual Megan Richards 11/11/2002 Property Rights Heysel 6 FP launch conference 11, 12, 13 November 2002

General Contractual Principles Simplification : ü Reduction of the number of contracts ü Collective approach ü Greater flexibility ü Greater autonomy for participants Megan Richards 11/11/2002 Heysel 6 FP launch conference 11, 12, 13 November 2002

Contract Structure ü Core contract standard text (completed with project data) ü Annex I the “project” (technical tasks - work to be carried out) ü Annex II general conditions (standard, applicable to every instrument) ü Annex III instrument specific provisions (variable per instrument) Megan Richards 11/11/2002 Heysel 6 FP launch conference 11, 12, 13 November 2002

Guidelines l. Supplemented by guidelines when necessary : Financial (including auditing, cost methodologies) : Negotiation (including technical annex) : Consortium agreement (including IPR) : Project management (including reporting) Megan Richards 11/11/2002 Heysel 6 FP launch conference 11, 12, 13 November 2002

Signature and Entry into Force ü Contractual link of all contractors with the Commission (equal status) New - Contract enters into force upon signature of coordinator and Commission ü Coordinator must ensure other contractors sign within delays ü Distribution of advance to other contractors possible after minimum requirements met ü Project begins on date established in the contract Megan Richards 11/11/2002 Heysel 6 FP launch conference 11, 12, 13 November 2002

Collective Responsibility of Participants ü Technical Responsibility (applicable to all instruments) ü Financial Responsibility - New Used as a last resort Limited in proportion to the participant’s share to the project, up to the total amount they are entitled to receive Exceptions: § International Organisations, public bodies or entities guaranteed by MS/AS: solely responsible for their own debts §for specific actions for SME’s and fellowships and, when duly justified, specific support actions Megan Richards 11/11/2002 Heysel 6 FP launch conference 11, 12, 13 November 2002

Consortium Agreement ü Regulates internal organisation and management of consortium (Commission is not a party) ü New - Compulsory unless exempted by the call for proposals ü Non binding guidelines provided by the Commission ü After or (preferably) before signing the contract some decisions must be made by the participants before signature of contract (e. g. exclusion of pre-existing know -how) Megan Richards 11/11/2002 Heysel 6 FP launch conference 11, 12, 13 November 2002

Presentation Outline l Rules for participation l Contractual Provisions FFinancial Provisions l Intellectual Megan Richards 11/11/2002 Property Rights Heysel 6 FP launch conference 11, 12, 13 November 2002

Costs ü New - Cost categories not required ü Costs must be : ü actual, economic and necessary for the project ü incurred during the duration of the project ü recorded in the accounts (or third parties) ü follow contractors own accounting rules ü and must exclude indirect taxes, duties, interests, costs reimbursed in respect of another Community project, and not give rise to profit ü Audit certificates by external auditor for each partner, each year for IP/No. E ü for public bodies - competent public auditor Megan Richards 11/11/2002 Heysel 6 FP launch conference 11, 12, 13 November 2002

Cost Models üFC: actual direct and indirect costs üNew - FCF (variant of FC): actual direct costs + flat rate for indirect costs üACF: actual additional direct costs + flat rate for indirect costs Megan Richards 11/11/2002 Heysel 6 FP launch conference 11, 12, 13 November 2002

Financing Schemes Grant for Grant to the Grant as integration budget a lump sum Networks of Excellence Integrated Projects Targeted research projects Specific Research activities for SMEs Integrated initiatives for Infrastructure Actions to promote human resources and mobility Coordination actions Specific support actions Megan Richards 11/11/2002 Heysel 6 FP launch conference 11, 12, 13 November 2002

Payments ü Periodic advances ü yearly for IP and No. E (specified in the contract for other ü up to 85% 4 EC ü ü ü instruments) (80% for instruments without collective liability) contribution depends on : contractor’s cost model (FC, FCF, ACF) type of activity (research, demonstration, management, training, etc) submission of audit certificate 4 Distribution depends on Consortium’s decisions Megan Richards 11/11/2002 Heysel 6 FP launch conference 11, 12, 13 November 2002

INTEGRATED PROJECTS Reimbursement Rates 1) Contractors working on the additional cost model may also charge the cost of permanent personnel to their contractors, to the extend that they can be identified and have not been covered by other public sources of funding Megan Richards 11/11/2002 Heysel 6 FP launch conference 11, 12, 13 November 2002

Audits and Controls ü Reports l Periodic activity reports (including plan for dissemination and use) l Periodic financial reports l Supplementary reports if foreseen (in Annex I or III) ü Audits ü Scientific, technological, and financial audits New - annual monitoring by Commission with external experts (particularly for IP and No. E) ü Ethical or other reviews ü Contractors right to refuse particular expert ü Megan Richards 11/11/2002 Heysel 6 FP launch conference 11, 12, 13 November 2002

Sanctions ü Financial irregularity - exclusion from evaluation/selection: ü Recovery decisions (article 256 EC Treaty) ü Other sanctions in contract (overclaims) Megan Richards 11/11/2002 Heysel 6 FP launch conference 11, 12, 13 November 2002

Other Provisions in General Conditions 3 Force Majeure 3 Prolongation and suspension of the Project 3 Amendments 3 Termination Megan Richards 11/11/2002 Heysel 6 FP launch conference 11, 12, 13 November 2002

Presentation Outline l Rules for Participation l Contractual l Financial Provisions FIntellectual Property Rights Megan Richards 11/11/2002 Heysel 6 FP launch conference 11, 12, 13 November 2002

Rules for Dissemination and Use ü Ownership ü Knowledge created under indirect actions = contractors ü Joint ownership where joint generation ü Any transfer of ownership must comply with contractual obligations (access rights, etc) ü Protection ü Knowledge capable of industrial or commercial application to be protected ü Commission may protect (where not envisaged by contractors) ü Owner of knowledge may publish as long as no impact on protection ü Prior notice of publication to Commission and other contractors Megan Richards 11/11/2002 Heysel 6 FP launch conference 11, 12, 13 November 2002

Rules for Dissemination and Use ü Use and Dissemination ü Contractors shall use their knowledge ü Dissemination required if not adversely affecting protection or use, Commission may disseminate if contractors do not Megan Richards 11/11/2002 Heysel 6 FP launch conference 11, 12, 13 November 2002

Rules for Dissemination and Use üAccess Rights ü Basic Principles ü Granted on request and may be conditioned by specific agreements regarding confidentiality and purpose ü Commission may object to grant of access to third party, particularly if not established in MS or AS ü NEW - Pre-existing know-how may be specifically excluded Megan Richards 11/11/2002 Heysel 6 FP launch conference 11, 12, 13 November 2002

Rules for Dissemination and Use üAccess Rights ü Access for Execution of Action ü Access granted to knowledge and pre-existing know-how when needed to carry out their own work on the project (royalty-free unless other terms agreed prior to contract signature) Megan Richards 11/11/2002 Heysel 6 FP launch conference 11, 12, 13 November 2002

Rules for Dissemination and Use üAccess Rights ü Access for Use üAccess granted to knowledge and pre-existing know-how when needed to use their own knowledge (royalty-free unless other terms agreed prior to contract signature) üAccess may be requested for 2 years after end of project or after termination of contractor’s participation Megan Richards 11/11/2002 Heysel 6 FP launch conference 11, 12, 13 November 2002

System of Access Rights Access rights to pre-existing know-how For carrying out the project Access rights to knowledge If a participant needs them for carrying out its own work under the project Royalty-free unless otherwise agreed before signing the contract If a participant needs them for using its own knowledge For use (exploitation + further research) Megan Richards 11/11/2002 Non-discriminatory conditions to be agreed Possibility to exclude specific preexisting know-how before EC contract’s signature (or before entry of a new participant) Royalty-free unless otherwise agreed before contract’s signature Heysel 6 FP launch conference 11, 12, 13 November 2002

For further information General FP 6 Site : lhttp: //europa. eu. int/comm/research/fp 6/index_en. html Instruments : lhttp: //europa. eu. int/comm/research/fp 6/networks-ip. html Contracts : lhttp: //europa. eu. int/comm/research/fp 6/working - groups/model-contract/index_en. html Visit the information stands on participation rules, contracts and IPR Megan Richards 11/11/2002 Heysel 6 FP launch conference 11, 12, 13 November 2002