Principle:

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Framework Programme 7 EventFP7 Rules of
Participation 23rd February 2006University
of Birmingham
ukro_at_bbsrc.ac.uk http//www.ukro.ac.uk
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Outline of the Day

• 10.00 Coffee and Registration
• 10.30 Introduction
• 10.45 Policy Making/Decision Making Process
  and Timetable
• 11.15 Structure of the Specific Programmes
  and New Features
• 13.00 Lunch
• 14.00 Rules of Participation and Simplification
• 15.15 Next steps/ what you can do to prepare
• 16.00 Close

FP7 Event - Outline
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FP7 Rules of Participation

• Introduction
• What do we know so far?
• Participation, submission and evaluation
• Project implementation
• Financial Contribution
• Intellectual property provisions
• Filling the gaps?

FP7 Presentation Outline
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FP7 Rules of Participation

• Published 23/12/2005
• A Commission Proposal to be decided through
  co-decision (alongside FP7 Proposal), discussed
  at present through
• Council Working Groups -gt Council of Ministers
• ITRE -gt Parliament in Plenary Session
• Intended to lay down the ground rules but also to
  provide flexibility
• Specific Programmes
• Work Programmes
• An indication of how simplification will work in
  practice

FP7 Participation
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Some initial issues?

• Clarity of definitions many Commission
  definitions were removed!
• Prepared and being negotiated still with
  uncertainty over budget -gt implications
• Rates of reimbursement (e.g. flat rate for
  indirect costs)
• Pressure to get agreement on FP7 gt what
  room/time for debate with Council and Parliament?
• Budget to set up external agencies

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FP7 Participation Rules so far?
Eligibility
Evaluation Criteria
FP7 Participation
Min. Participation
IPR Provisions
FP7 Participation
Submission Procedures
Financing Basis
Evaluation Procedures
Grant Agreements
Negotiation Procedures?
Implementation
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FP7 Rules of Participation ProposalParticipatio
n, Submission and Evaluation
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Participation

• Three independent participants from three
  different Member States (MS) or Associated
  countries (Ac)
• Natural persons may participate
• JRC may participate and is deemed to be from a
  different MS or associated country (same
  principles for international European interest
  organisations and entities established under
  Community law)
• Additional conditions can be established by the
  work programme or specific programme (i.e. re
  number of participants, place of establishment,
  type of participant)
• Sole participants composed of members that meet
  the criteria above can participate

FP7 Participation
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Minimum participation

• Frontier research actions (ERC) at least one
  legal entity established in a Member State or
  Associated country
• Coordination and support actions and actions in
  favour of training and career development of
  researchers minimum of one legal entity (no
  limit on place of establishment)
• International co-operation projects minimum is
  four participants of which 2 in MS or Ac and 2 in
  INCO countries minimum parity conditions
• Participation of international organisations and
  participants from third countries if in addition
  to minima

FP7 Participation
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Proposal Submission

• Electronic submission
• No foreseen institutional approval required (as
  FP6)
• One webpage reference for relevant guidance
  documents?
• Use of two-stage/ two-step/ one stage submission?
• Should same evaluators be used at both stages?
• Would that guarantee consistency of evaluation of
  essential two different proposals at 1st and 2nd
  stages?

FP7 Proposal Submission
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Evaluation

• The work programme will specify the criteria on
  which proposals for indirect actions under the
  funding schemes shall be evaluated and projects
  selected.
• The criteria will be those of excellence, impact
  and implementation
• Within this framework additional requirements,
  weightings and thresholds may be further
  specified or complemented in the work programme.
• Irregularity and violation of fundamental ethical
  principles are grounds for exclusion from
  evaluation and selection
• Transparent, fair and impartial evaluation
  procedures with help of independent experts

FP7 Proposal Evaluation
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Further issues

• Legal and financial checks to be standardised
• Not included in the Rules of Participation
• Pre-registration of data
• Horizontal issues

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FP7 Rules of Participation Project
Implementation
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Project Implementation

• Participants implement the work jointly and
  severally towards the Community and carry out
  work of a defaulting partner unless the
  Commission relieves them of that obligation (not
  FP6 financial collective responsibility)
• Commission to assess risk of default (globally)
  and may establish a mechanism to cover financial
  loss (i.e. to replace financial collective
  responsibility)
• If implementation of the project is impossible or
  participants fail to implement it, the Commission
  shall ensure its termination
• Consortium agreements obligatory unless exempted
  by call for proposals
• Changes in consortium membership possible

FP7 Project Implementation
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Guarantee Fund System

• Does not affect public bodies, and not used in
  Marie Curie and possibly SME Actions
• Commission awaiting results of risk assessment to
  establish rate and whether system is appropriate!
• Expected to be a low figure lt1
• Used as insurance, could be used to reimburse
  losses in same or other projects
• Funds which remain at the end of FP7 will be used
  in FP8

FP7 Guarantee Fund System
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Model Grant Agreement

• Establishes rights and obligations of
  participants (including submission of reports,
  termination etc.)
• Identifies whether and what part of the EC
  financial contribution is based on reimbursement
  of eligible costs, lump sums or flat rates
• Identifies which changes in composition of the
  consortium require prior publication of a
  competitive call, and
• Reflects the principles laid down in the European
  Charter for Researchers and the Code of Conduct
  for the Recruitment of Researchers
• Includes Specific provisions for certain types of
  actions (IPR particularly)
• Comes into force upon signature by the
  coordinator and the Commission and applies to
  each participant that has acceded to it

FP7 Grant Agreement
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FP7 Rules of Participation Financial
Contribution
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Financial Contribution

• Eligibility for Funding
• Legal entities from Member States and Associated
  countries or created under Community law (and
  JRC)
• International European interest organisations
• Legal entities established in international
  cooperation partner (INCO) countries
• and
• International organisations, third countries
  other than INCO, if provided for in specific
  programme or work programme or if essential for
  carrying out action or provision for funding is
  provided for in a bilateral agreement between
  Community and the third country

FP7 Financial Contribution
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Reimbursement of Eligible Costs

• First Principles
• The Framework Programme is based on co-financing
• No 100 contributions for anyone! (except ERC)
• Not development aid for universities, SMEs or
  developing countries
• Removing cost models-gt
• Participants identify all direct costs (like
  FC/FCF models in FP6)
• For the coverage of indirect eligible costs, a
  participant may opt for a flat-rate of its total
  direct eligible costs, excluding its direct
  eligible costs for subcontracting.
• Flat rate hopefully higher than 20, but may vary
  per funding scheme
• No Additional Cost (AC) model

FP7 Financial Contribution
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Why remove the AC model?

• AC is an approximation of 50 funding
• Community budget is used for co-funding
• Some participants abuse the AC model, moving
  items artificially, not making 50 contribution
• AC an exception to normal rule
• Partners need to show real costs, current AC
  users will be able to claim 75 compared to 50
• AC reimbursement at 100 still leaves
  unidentified 50 uncovered -gt lack of financial
  clarity and sustainability a hidden issue

FP7 Financial Contribution
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Where does fEC fit in?

• TRAC system not directly compatible
  non-eligible costs need to removed
• UK/institutional adjustment to create EU funding
  model through TRAC?
• What help can TRAC give to identify other 25?
• Per project vs. Department calculations?
• Time sheets
• Some sustainability issues remain

FP7 Financial Contribution
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Reimbursement of Eligible Costs

• Based on co-financing, no-profit
• Usual method to be reimbursement of eligible
  costs
• May also use flat-rate and lump sum financing
• Scale of unit costs
• E.g. Marie Curie, ERC (?)
• Problematic simplification vs financial clarity
• Lump sum used
• To release periodic payments in NoE upon results
• Perhaps in Co-ordination Actions

FP7 Financial Contribution
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Absolute Maximum Funding Rates

• Research and technological activities 50 of
  eligible costs except for
• Public bodies 75
• Secondary and higher education establishments
  75
• Research organisations (non-profit) 75
• SMEs 75
• Demonstration activities 50 of eligible costs
• Other activities 100 of eligible costs
• Frontier research actions 100
• Co-ordination and support actions 100
• Training and career development of researchers
  actions 100

FP7 Financial Contribution
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Eligible costs

• Cost reporting models eliminated
• Participants charge direct and indirect costs
  (option of flat rate for those who do not or
  cannot charge real indirect costs)
• Costs must be
• actual
• incurred during the project
• determined according to the usual accounting and
  management principles/practices
• used only to achieve project objectives
• consistent with principles of economy, efficiency
  and effectiveness
• recorded in accounts and paid (or the accounts of
  third parties)
• exclusive of non-eligible costs.
• Average personnel costs may be used if consistent
  with above and do not differ significantly from
  actual

FP7 Financial Contribution
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FP7 Reporting

• Audit certificates continued but rationalised
• Competent Public Officer
• Reporting frequency and request of audit
  certificates to be based on
• Assessment of risk of project?
• Project length
• Negotiations between Commission and co-ordinator?
• At least one audit per project likely
• Reporting expected by research, demonstration,
  training, other categories as per FP6
• Lump sum financing
• No financial reporting?
• But how is contribution no profit shown?
• Flat rates
• No financial reporting?

FP7 Financial Contribution
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FP7 Rules of Participation Intellectual
Property Provisions
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IPR Provisions

• Continuity with FP6 plus clarifications
• Pre-existing know-how (FP6) -gt background
  which is
• held by participants prior to their accession to
  the EC grant agreement (no sideground)
• which is needed for carrying out the project or
  for using its results
• no need to exclude from access
• Knowledge (FP6) -gt foreground

FP7 IPR Provisions
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IPR Provisions

• Ownership each participant owns the foreground
  it generates
• Joint ownership (in absence of specific agreement
  default joint ownership regime applies)
• any owner can grant non-exclusive licenses to
  third parties, subject to prior notification and
  fair and reasonable compensation to the other
  owner(s) with no right to sub-licence.
• Transfer of ownership of foregroundPrior
  notification only to the other participants who
  may waive their rights to be notified regarding
  specific third parties
• (requirement to notify Commission may be in grant
  agreement, Commission may object to transfers or
  exclusive licenses to third countries if contrary
  to ethical or competitiveness principles)

FP7 IPR Provisions
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Protection, use, dissemination, publication

• Foreground capable of industrial or commercial
  application shall be protected
• Owner of foreground may transfer to another
  participant if it does not wish to protect or to
  the Commission
• Foreground to be used and disseminated
• Notice of dissemination (including publication)
  to be given to other participants (not
  Commission)
• Publications and patent applications must
  indicate the Community financial assistance

FP7 IPR Provisions
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FP7 Access Rights

• Participants define the background they need and
  may exclude but not necessarily prior to
  signature of EC grant agreement
• Requests for access rights within one year or
  other period to be agreed by participants
• Possible to grant exclusive licenses if other
  participants waive their rights
• Commission no longer informed of granting of
  access rights to legal entities in third
  countries
• Special provisions for certain types of actions
  e.g. frontier research, research for the benefit
  of specific groups, security research

FP7 IPR Provisions
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Access Rights FP7
FP7 IPR Provisions
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FP7 Rules of Participation Filling in the
gaps?
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Further Commission Documents (tbc)

• Documents to be prepared internally
• Evaluation Guidelines
• Commission to adopt and publish rules on the
  procedures for proposal submission, evaluation,
  selection and award
• Including two-stage submission and two-step
  evaluation
• Legal and Financial Viability
• Commission to adopt and publish(?) rules to
  ensure consistent verification of the legal
  status and financial capacity of participants
• Negotiation guidelines?

FP7 Further Documents
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Where is the Simplification?

• Simplified Guidelines e.g. for application
• Continued elements of FP6-gtFP7
• Smoother application process and streamlined
  approval
• Fewer Evaluation Criteria No relevance
• Internal clearing house?
• More Commission contact points identified?
• Use of external agencies?

FP7 Simplification
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Further Issues

• How to tie in with FP7 linked programmes CIP,
  Education and Training, Structural Funds, EIB
  loans, COST funding
• How much simplification is possible/appropriate
  with more actions, flexibility, reimbursement
  optionsin the context of State Aid Rules?
• When will Financial Guidelines (?)/ Reporting
  Guidelines be available?
• What does all this mean for preparations at your
  institution?
• ELO Level
• Researchers
• Related administration
• Strategic direction

FP7 Evaluation