Rules for Participation and contractual issues for Integrated Projects in the Sixth Framework Progra

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Rules for Participation and contractual issues
for Integrated Projects in the Sixth Framework
Programme

• Megan RICHARDS
• European Commission

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Outline

• Rules for Participation
• Contractual Provisions
• Financial Provisions
• Intellectual Property Rights

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Presentation Outline

• Rules for Participation
• Contractual Provisions
• Financial Provisions
• Intellectual Property Rights

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Participants

• Legal entities in Member States, Associated
  States, JRC and international European interest
  organisation on same footing
• 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)
• European Economic Interest Groups (EEIG) or other
  legal entities may be the sole participant if
  their composition is in accordance with these
  requirements
• Legal entities from third countries and
  international organisations may participate under
  certain circumstances without EC funding (some
  special cases with EC funding)

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Entities established in third countries and
International organisations

• SPECIFIC PROGRAMME I - INTEGRATING PART
• Participation open for all
• 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

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• Work Programme and Calls for Proposals determine
  
• Minimum number of participants and place of
  establishment beyond Rules limits
• Additional evaluation criteria
• Whether consortium agreement is not required
  (unlikely for IP)
• Possibility of two-stage evaluation
• Irregularities in implementation are grounds for
  exclusion from evaluation and selection
• Fundamental ethical principles must be ensured,
  if not entity can be excluded from evaluation or
  selection procedure

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Presentation Outline

• Rules for Participation
• Contractual Provisions
• Financial Provisions
• Intellectual Property Rights

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General Contractual Principles

• Simplification
• Reduction of the number of contracts
• Collective approach
• Greater flexibility
• Greater autonomy for participants

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Contract Structure

• Core contractstandard text (completed with
  project data)
• Annex Ithe project (technical tasks - work to
  be carried out)
• Annex IIgeneral conditions (standard, applicable
  to every instrument)
• Annex IIIinstrument specific provisions
  (variable per instrument)

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Guidelines

• Supplemented by guidelines when necessary
• Financial (including auditing, cost
  methodologies)
• Negotiation (including technical annex)
• Consortium agreement (including IPR)
• Project management (including reporting)

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Signature and Entry into Force

• Contractual link of all contractors with the
  Commission (equal status)
• New - Contract enters into force upon
  signature of coordinator and Commission
• Coordinator must ensure other contractors sign
  within delays
• Distribution of advance to other contractors
  possible after minimum requirements met
• Project begins on date established in the
  contract

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Collective Responsibility of Participants

• Technical Responsibility (applicable to all
  instruments)
• Financial Responsibility - New
• Used as a last resort
• Limited in proportion to the participants 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 SMEs and fellowships
  and, when duly justified, specific support
  actions

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Consortium Agreement

• Regulates internal organisation and management of
  consortium (Commission is not a party)
• New - Compulsory unless exempted by the call for
  proposals
• Non binding guidelines provided by the Commission
  
• 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)

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Presentation Outline

• Rules for participation
• Contractual Provisions
• Financial Provisions
• Intellectual Property Rights

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Costs

• New - Cost categories not required
• Costs must be
• actual, economic and necessary for the project
• incurred during the duration of the project
• recorded in the accounts (or third parties)
• follow contractors own accounting rules
• and must exclude indirect taxes, duties,
  interests, costs reimbursed in respect of another
  Community project, and not give rise to profit
• Audit certificates by external auditor for each
  partner, each year for IP/NoE
• for public bodies - competent public auditor

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Cost Models

• FC actual direct and indirect costs
• New - FCF (variant of FC) actual direct costs
  flat rate for indirect costs
• ACF actual additional direct costs flat rate
  for indirect costs

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Financing Schemes
Grant for integration
Grant to the budget
Grant as 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
?
?
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Payments

• Periodic advances
• yearly for IP and NoE (specified in the contract
  for other instruments)
• up to 85 (80 for instruments without
  collective liability)
• EC contribution depends on
• contractors cost model (FC, FCF, ACF)
• type of activity (research, demonstration,
  management, training, etc)
• submission of audit certificate
• Distribution depends on Consortiums decisions

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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
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Audits and Controls

• Controls
• Reports
• Periodic activity reports (including plan for
  dissemination and use)
• Periodic financial reports
• Supplementary reports if foreseen (in Annex I or
  III)
• Audits
• Scientific, technological, and financial audits
• New - annual monitoring by Commission with
  external experts (particularly for IP and NoE)
• Ethical or other reviews
• Contractors right to refuse particular expert

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Sanctions

• Financial irregularity - exclusion from
  evaluation/selection
• Recovery decisions (article 256 EC Treaty)
• Other sanctions in contract (overclaims)

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Other Provisions in General Conditions

• Force Majeure
• Prolongation and suspension
• of the Project
• Amendments
• Termination

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Presentation Outline

• Rules for Participation
• Contractual Provisions
• Financial Provisions
• Intellectual Property Rights

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Rules for Dissemination and Use

• Ownership
• Knowledge created under indirect actions
  contractors
• Joint ownership where joint generation
• Any transfer of ownership must comply with
  contractual obligations (access rights, etc)
• Protection
• Knowledge capable of industrial or commercial
  application to be protected
• Commission may protect (where not envisaged by
  contractors)
• Owner of knowledge may publish as long as no
  impact on protection
• Prior notice of publication to Commission and
  other contractors

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Rules for Dissemination and Use

• Use and Dissemination
• Contractors shall use their knowledge
• Dissemination required if not adversely affecting
  protection or use, Commission may disseminate if
  contractors do not

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Rules for Dissemination and Use

• Access Rights
• Basic Principles
• Granted on request and may be conditioned by
  specific agreements regarding confidentiality and
  purpose
• Commission may object to grant of access to third
  party, particularly if not established in MS or
  AS
• NEW - Pre-existing know-how may be specifically
  excluded

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Rules for Dissemination and Use

• Access Rights
• Access for Execution of Action
• 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)

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Rules for Dissemination and Use

• Access Rights
• Access for Use
• Access 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)
• Access may be requested for 2 years after end of
  project or after termination of contractors
  participation

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System of Access Rights
Access rights to pre-existing know-how
Access rights to knowledge
If a participant needs them for carrying out its
own work under the project
For carrying out the project
Royalty-free unless otherwise agreed before
signing the contract
Royalty-free
If a participant needs them for using its own
knowledge
For use (exploitation further research)
Royalty-free unless otherwise agreed before
contracts signature
Non-discriminatory conditions to be agreed
Possibility to exclude specific pre-existing
know-how before EC contracts signature (or
before entry of a new participant)
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For further information

• General FP6 Site
• http//europa.eu.int/comm/research/fp6/index_en.ht
  ml
• Instruments
• http//europa.eu.int/comm/research/fp6/networks-ip
  .html
• Contracts
• http//europa.eu.int/comm/research/fp6/working
  -groups/model-contract/index_en.html
• Visit the information stands on participation
  rules, contracts and IPR