1. - Training Seminar for Palestine Information Point in Cyprus
Legal Aspects in FP 7
Nicole Schröder, LL.M.
INCO-NET MIRA
- Training Seminar for Palestine Information Point in Cyprus

2. Content Documents in FP 7 Participation Grant Negotiation
Grant Agreement
Consortium Agreement

3. Grant Agreement – Terminology
“Grant” – Financial contribution from EU-budget
“Grant Agreement” = Contract between Beneficiaries and Commission
“Beneficiary” = Contractor, project participant
“Funding Schemes” = Funding Instrument
“Certificate on Financial Statement” = Audit Certificate, Certificate on correctness of incurred costs

4. Hierarchy of norms Documents for the implementation of FP 7 projects
Rules for submission and evaluation of proposals (C/2007/1390) – ; ERC (C/2007/2286) –
Model grant agreements – 04.07
Rules on verification of existence, legal status, financial and operational capacity (C/2007/2466) –
Entscheidung zu ICPC lump sums (C/2007/2287) –
Entscheidung zur Errichtung des Garantiefonds (C/2007/3571-2)
Offen: Entscheidung zur Implementierung des Garantiefonds
(Stand )

5. Official Documents –http://cordis.europa.eu/fp7/find-doc_en.html

6. Grant Agreement (binding texts)

7. Guidelines (non binding)

8. Participation Any legal entity (legal personality) natural person
At least three legal entities from three different member states or asscociated states to FP7, independent of each other - Exception: European Research Council (ERC), support actions (CSA-SA), Marie Curie grants
Addtional requirements may be specified in the respective work programmes
Rules for Participation, OJ L 391/1-17,

9. Participation
At least 3 independent legal entities from 3 different countries
Guide for Applicants

10. Participation Associated countries to FP7:
EEA countries: Iceland, Liechtenstein, Norway
Candidate countries: Croatia, Macedonia, Serbia, Turkey
Israel
Switzerland
Any other countries are called Third Countries
Third Countries may participate provided that the minimum conditions for participation are met

11. Participation (Third Countries)
Country groups:
ICPC: International Cooperation Partner Countries
Mediterranean partner countries (MPC)
Western Balkan Countries (WBC)
Eastern Europe and Central Asian countries (EECA)
Africa, the Caribbean and the Pacific countries (ACP)
Asia
Latin America
Industrialised Countries: USA, Kanada, Japan, Australia, South Korea, New Zealand

13. ICPC - International Cooperation Partner Countries

14. URF- Unique Registration Facility

15. URF- Unique Registration Facility

16. URF- Unique Registration Facility

17. Validation http://cordis.europa.eu/fp7/urf-valid_en.html
European Commission Research Directorate-General T5 Framework programme logistics - URF Validation Team SDME 11/083 B-1049 Brussels Belgium
Mail:

18. LEAR - Legal entity appointed representative
Each legal entity must appoint one person (the so-called LEAR – Legal Entity Appointed Representative) for being the correspondent towards the Commission on all issues related to the legal status of the entity
The LEAR provides the Commission with up-to-date legal and financial data (including supporting documents, where necessary) and commits to maintain the information up-to-date, enabling future use for grants and other transactions between the entity and the Commission research (and other) programmes.
The LEAR communicates his/her role internally in his/her organisation and provides the PIC to other employees dealing with proposals and grant agreements
If your organisation has not yet appointed a LEAR, then follow these steps:
Find out who can be a legal signatory within your organisation
Find out who could fulfil the role of the LEAR within your organisation
Download the LEAR Appointment form [PDF] [DOC] and the LEAR role and tasks [PDF] [DOC] document.
Both documents have to be duly signed. The LEAR Appointment document needs to be completely filled in. Finally the documents must be sent by regular mail to:

19. ftp://ftp.cordis.europa.eu/pub/fp7/docs/piclist_en.pdf

20. Grant Agreement Negotiations

21.      Third Parties Grant Agreement
Relation: Commission and consortium
Coordinator
Partner
Partner
Partner
Partner
Partner
    
Third Parties

22. Negotiation and award of grant
Before Contract Negotiation:
Verification of legal existence and legal status of participant
Verification of financial capacity of participants
Verification of operational capacities
Entry into Unique Registration Facility (URF)
Single URF code for each participant in the Framework Programm
Adoption of a COM decision on rules on verification of the legal status and financial capacity of participants
Transparency and consistency
Verification of legal existence identical to FP6
But with use of URF
Verification of legal status of participant
Will now need periodic checking of all SMEs (not just those in CRAFT projects) to confirm eligibility for 75% funding level
Verification of operational capacities:
Increased coherence/homogeneity of analysis due to recommendations provided by external evaluators
Verification of financial capacities
Storage of data due to URF
But increase in number of checks due to removal of financial collective responsibility

23. Negotiation and award of grant
Commission will use negotiation of grant agreement to define the project as clearly as possible
Leave enough flexibility for the implementation of the project
For transfer of budget between partners and activities
For necessary adjustments in project implementation
For unforeseen research need

24. Negotiation Mandate Indicates:
clarifications and changes to be made to the project (Based on the ESR)
maximum EC Contribution
duration for the project
deadline for receipt of first draft of DoW and GPFs
deadline by which time negotiations should be completed
contact details of the responsible Project & Legal Officer at the Commission
Negotiation Meetings (if needed)
Negotiation Mandate

25. Two Negotiation Stages
1 – Technical Negotiations
2 – Legal and Financial Negotiations
The two are essentially linked
Two Negotiation Stages

26. 1 - Technical Negotiations
To agree on the final content of the DoW including:
Addressing the comments made in the ESR
Verifying that the project objectives are SMART (S-Specific, M-Measurable, A-Attainable, R-Realistic, T-Timely)
The list of deliverables (timing, content and dissemination level)
The project milestones and their assessment criteria
An indicative time schedule for the reporting and the project reviews.
1 - Technical Negotiations

27. Compulsory Deliverables
Listed in a table of standard format detailing:
WP reference number
Beneficiary responsible for WP
Estimated no. of Person/Months
Date for submission
Compulsory Deliverables
Periodic and final reports
A dissemination and use plan
Report on horizontal issues (gender and science & society related issues)
Deliverables

28. 2. Legal & Financial Negotiations
Budget for full duration
Budget breakdown per period
Subcontracting and other third parties
Pre-financing
The capacity of the Coordinator to fulfil this role
The start date of the project
Any special clauses required
2. Legal & Financial Negotiations

29. The GPFs- The Grant Agreement Preparation Forms
Electronic submission for 1st negotiation round
Must be completed by all applicants (even those who are not requesting a financial contribution)
The use of the GPF editor is mandatory
Basic information from the Proposal Submission Forms will be uploaded to pre-fill part of the GPFs
Final version in paper with original signatures

30. Completion of Negotiations
Once agreement is reached on all technical, financial and legal issues a draft GA is sent to coordinator
GA signature
Coordinator signs two originals of the GA
The coordinator must distribute a copy of the GA
All beneficiaries must sign Form A to accede to the GA

31.      Third Parties Grant Agreement
Relation: Commission and consortium
Coordinator
Partner
Partner
Partner
Partner
Partner
    
Third Parties

32. Grant Agreement
to clearly define the technical/scientific content of the project
to establish rights and obligations of participants (including submission of reports, termination etc.)
to define start date, duration and budget of the project
identify whether and what part of the EC financial contribution is based on reimbursement of eligible costs, lump sums, flat rates
specific provisions for certain types of actions (IPR particularly)
grant agreement comes into force upon signature by the coordinator and the Commission and applies to each participant that has acceded to it

33. Grant Agreement Signature by coordinator & Commission
Accession of beneficiaries via “Form A”
Later accession of beneficiaries via “Form B”
Entry into force upon signature by coordinator & Commission

34. Grant Agreement Structure:
Core part: GA parameters,
Annex I: Description of Work (DoW),
Annex II: General Conditions,
Annex III: Specific provisions for funding schemes
Annex IV, V & VI: Form A,B & C
Annex VII: Form D terms of reference for the certificate of costs and Form E certificate on the methodology (NEW)
The conclusion of a Consortium Agreement is mandatory (except if excluded by Call)

35. Grant Agreement - Structure
Grant Agreement Core Text
Annex I Technical Content, Description of Work (DoW)
Annex II General Conditions
Annex III Specific provisions (ERAnet-Plus, Research Infrastructures, SME actions, Civil Society Organisations
Annex IV (Form A) Accession of beneficiaries to the grant agreement
Annex V (Form B) Request for accession of a new benefiary
Annex VI (Form C) Financial statement (specific to Funding Scheme)
Annex VII (Form D) Certificate of Financial Statements
(Form E) Certificate on the methodology
List of special clauses, actual Version

36. Grant Agreement – Core Contract

37. Grant Agreement – Annex II General Conditions

38. Grant Agreement Financial provisions Other provisions
Total EU-contribution
Payment modalities
Upper funding limits
Indirect costs
Certificates
Third parties
No financial collective responsibility
Other provisions
Reporting

39.      Third Parties Consortium Agreement
Relation: between the partners in the consortium
Coordinator
Partner
Partner
Partner
Partner
Partner
    
Third Parties

40. Consortium Agreement
Consortium Agreement (CA) governs the structure of the consortium and the relationship of the project participants
Consortium Agreement may not contradict any parts of the grant agreement with the commission or the rules for participation
Has to be signed by all project partners – (before the project start)
Is obligatory in the 7th Framework Programme (with few exceptions)
Several model grant agreements exist (e.g. DESCA)

41. Consortium Agreement – Content
Management, decision making structures, conflict resolution
Responsibilities / roles of the partners
Time schedule for project implementation
Budget allocation
Access to know how
Liabilities
Confidentiality
Applicable law and arbitration

42. ftp://ftp.cordis.europa.eu/pub/fp7/docs/checklist_en.pdf

43. Konsortialvertrag (KV) Beispiel: DESCA-Konsortialvertragsmodell
General Structure
GENERAL ISSUES
GOVERNANCE
Liability
Decision making
Responsibilities
Consortium Bodies
Budgeting
Payments
Dissemination
Access Rights
FINANCE
IPR

45. Intellectual Property Rights – Who is the owner of the results
IPR Definitions
IPR Provisions
Access Rights

46. Intellectual Property Rights
Important Definitions:
Background:
Knowledge held by participants prior to their accession to the EC grant agreement
Background can be excluded from access in grant agreement
Foreground:
Knowledge generated within a project by one or several participants

47. Intellectual Property Provisions
Ownership: each participant owns the foreground it generates
Joint ownership: default joint ownership regime in absence of specific agreement:
“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 foreground:
Prior 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)

48. Intellectual Property Provisions
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

49. Intellectual Property Provisions
Access rights
Participants generally have access to the background and foreground of the project partners if necessary for project implementation or use of the results
Participants define the background they need and may exclude it from access to other partners - not necessarily prior to signature of EC grant agreement (positive or negative list)
Possibility to grant exclusive licenses for knowledge generated in the project (foreground) if other participants agree
Special provisions for certain types of actions e.g. frontier research, SME measures, security research

50. Access rights (FP7) Access rights to background
Access rights to foreground resulting from the project
For carrying out the project
Yes, if a participant needs them for carrying out its own work under the project
Royalty-free unless otherwise agreed before acceding to the grant agreement
Royalty-free
For use (exploitation + further research)
Yes, if a participant needs them for using its own foreground
Either fair and reasonable conditions or royalty free- to be agreed

53. Thank you very
much for your
attention !