2. European Commission FROM THE PROPOSAL TO THE PROJECT ESSEN - 25-26 February 1999 1 Megan Richards - DG XII - European Commission CONFERENCE TO LAUNCH THE FIFTH FRAMEWORK PROGRAMME 25-26 February 1999ESSEN From the Proposal to the Project Negotiating and following up the Contract Megan RICHARDS

3. European Commission FROM THE PROPOSAL TO THE PROJECT ESSEN - 25-26 February 1999 2 Megan Richards - DG XII - European Commission l I - Procedure after evaluation l II - Negotiation l III - Contractual aspects u a) Responsibilities of participants u b) Allowable costs u c) Other contractual aspects u d) Special Clauses u e) Reporting u f) Follow - up l IV - Intellectual property rights l V - Consortium agreement l VI - Other types of action

4. European Commission FROM THE PROPOSAL TO THE PROJECT ESSEN - 25-26 February 1999 3 Megan Richards - DG XII - European Commission I - Procedure after evaluation u quick no negotiation I -Procedure

5. European Commission FROM THE PROPOSAL TO THE PROJECT ESSEN - 25-26 February 1999 4 Megan Richards - DG XII - European Commission u contract preparation form – same basis as proposal form u cost adjustments as per evaluation recommendations and contractual requirements u technical adjustments to work programme / clusters financial and legal information - on the basis of financial and legal information Commission may request security - bank guarantees, blocked accounts, reduced / no advance II - Negotiation

6. European Commission FROM THE PROPOSAL TO THE PROJECT ESSEN - 25-26 February 1999 5 Megan Richards - DG XII - European Commission a) Responsibilities of participants u Coordinator è contact with Commission/submission of reports è administration and financial aspects è new : additional responsibilities H scientific coordination - editing of reports H general supervision H inform Commission of budget transfers H report use of financial resources u No subcontracting of coordination (except CRAFT) III Contractual aspects

7. European Commission FROM THE PROPOSAL TO THE PROJECT ESSEN - 25-26 February 1999 6 Megan Richards - DG XII - European Commission a) Responsibilities of participants (cont.) u Principal Contractor è signatory è joint and several liability to Commission for carrying out the project è full rights to own results they generate and to use all project results è obligation to protect and use results full rights of access on best conditions l (Affiliates - no more rights as contractors) III Contractual aspects

8. European Commission FROM THE PROPOSAL TO THE PROJECT ESSEN - 25-26 February 1999 7 Megan Richards - DG XII - European Commission a) Responsibilities of participants ( cont..) u Assistant Contractor signatory (new) è no joint and several liability è right to own their results è obligation to protect and use their results è technical link to principal contractor(s) è access rights less favourable (subcontractors) not participants III Contractual aspects

9. European Commission FROM THE PROPOSAL TO THE PROJECT ESSEN - 25-26 February 1999 8 Megan Richards - DG XII - European Commission b) Allowable costs u Cost basis è Full cost (50% EC contribution) or è Additional cost (100% of additional costs) OR è Full direct costs with fixed overhead new cost basis (EC pays 50% of all direct costs – overheads determined as flat rate of 80% of personnel costs) III Contractual aspects

10. European Commission FROM THE PROPOSAL TO THE PROJECT ESSEN - 25-26 February 1999 9 Megan Richards - DG XII - European Commission b) Allowable costs ( cont..) u Personnel è Scientific and technical personnel only H Coordinator can claim direct personnel costs of coordination by administrative personnel (new cost category) è Additional personnel only for additional cost participants (no permanent staff) u Equipment è depreciated cost of equipment: depreciated over 60 months except for data processing equipment 25,000 (36 months) III Contractual aspects

11. European Commission FROM THE PROPOSAL TO THE PROJECT ESSEN - 25-26 February 1999 10 Megan Richards - DG XII - European Commission b) Allowable costs (cont..) u Travel è travel outside EU requires EC prior approval u Consumables u Computing u External services è 20% - major/EC approval III Contractual aspects internal computing services/consumables not already included in overheads (for full cost participants)

12. European Commission FROM THE PROPOSAL TO THE PROJECT ESSEN - 25-26 February 1999 11 Megan Richards - DG XII - European Commission b) Allowable costs (cont..) u Other specific costs è Require approval of Commission usually for prototypes, seminars, etc. u Overheads è Actual overheads for full cost participants è Limit of 20% on direct costs (excluding external services) for additional cost participants Fixed rate of 80% of personnel for FFC (new) III Contractual aspects

13. European Commission FROM THE PROPOSAL TO THE PROJECT ESSEN - 25-26 February 1999 12 Megan Richards - DG XII - European Commission III Contractual aspects l new : coordination costs now eligible per se, separate cost statement, administrative staff as direct cost – all other coordination costs identified in direct cost categories (if coordination split then only administrative/financial coordinator can claim costs of coordination) l new : IPR protection costs allowable for results generated during project and costs of protection arise during project – limited by budget availability (accompanying measure possible for other cases)

14. European Commission FROM THE PROPOSAL TO THE PROJECT ESSEN - 25-26 February 1999 13 Megan Richards - DG XII - European Commission c) Other contractual aspects start date of project - first day of month after signature or fixed date (costs can be incurred only during life of project) contract is valid upon signature by all contracting parties / terminates upon last payment by Commission or earlier according to provisions of contract advance payment – limited to 40% (new) - reduced if not needed during first year/Commission financial interests retention of 15% until final report approved (new) III Contractual aspects

15. European Commission FROM THE PROPOSAL TO THE PROJECT ESSEN - 25-26 February 1999 14 Megan Richards - DG XII - European Commission d) Special Clauses u delegation of signature to Coordinator u scientific coordination and administrative and financial coordination are separated u associated states u JRC participation u complementary contract – exploitation and access determined by parties III Contractual aspects

16. European Commission FROM THE PROPOSAL TO THE PROJECT ESSEN - 25-26 February 1999 15 Megan Richards - DG XII - European Commission e) Reporting è periodic reports (usually annual) and final report è cost statements associated with periodic reports and final report in national currency/ è report on actual disbursements è Technology Implementation Plan III Contractual aspects

17. European Commission FROM THE PROPOSAL TO THE PROJECT ESSEN - 25-26 February 1999 16 Megan Richards - DG XII - European Commission f) Follow-up after project/contract finishes u exploitation review (up to x years after end of project) u audit (up to x years after end of contract) u access rights (up to x years after end of contract) III Contractual aspects

18. European Commission FROM THE PROPOSAL TO THE PROJECT ESSEN - 25-26 February 1999 17 Megan Richards - DG XII - European Commission New definitions u Knowledge = results (foreground) u Pre-existing know how = background and sideground u Use = exploitation and further research Role determines rights and obligations u Principal contractor – full rights and obligations u Assistant contractor – limited rights and obligations IV Intellectual property rights

19. European Commission FROM THE PROPOSAL TO THE PROJECT ESSEN - 25-26 February 1999 18 Megan Richards - DG XII - European Commission u exclusive rights possible but exceptional è if economically indispensable given market and risks prior notice to other participants/where already exploited by others no exclusivity u right to refuse access possible if contractor exploiting himself è economically indispensable given market, risks and investment u if no use then dissemination u ownership to one generating except where EC pays all costs (exception some accompanying measures) u complementary contract clause - access determined by contractors IV Intellectual property rights

20. European Commission FROM THE PROPOSAL TO THE PROJECT ESSEN - 25-26 February 1999 19 Megan Richards - DG XII - European Commission V - Consortium agreement l in conformity with EC contract l identification of background for project l links between assistant contractors and principal contractors l details of IPR use and access l confidentiality agreement (non-disclosure) l proposed action where defaulting contractor(s) l recuperation of advance payment

21. European Commission FROM THE PROPOSAL TO THE PROJECT ESSEN - 25-26 February 1999 20 Megan Richards - DG XII - European Commission u demonstration project : demonstration contract 35% of costs financed/IPR regime different - exploitation u cooperative research : cooperative research contract 50% of total project costs/RTD performers are subcontractors /SMEs own results u coordination projects : coordination of research projects 100% of eligible costs (thematic networks, concerted actions, research networks) u accompanying measures : up to 100% of costs (ownership of results) VI- Other types of actions

22. European Commission FROM THE PROPOSAL TO THE PROJECT ESSEN - 25-26 February 1999 21 Megan Richards - DG XII - European Commission The Role of the IPR Helpdesk To give guidance & advise to RTD participants on: u Contractual aspects è Help in interpreting the Commission RTD Contracts è Guidance in preparing Consortium Contracts è Sharing of foreground IPR arising from the project u Advise on protecting existing background IPR u Also on protection, exploitation of joint IPR results u Suggestions on finding partners (patent searches, etc.)

23. European Commission FROM THE PROPOSAL TO THE PROJECT ESSEN - 25-26 February 1999 22 Megan Richards - DG XII - European Commission Support for 5th RTD Framework l Supports participants during proposal phase : u advice on the interpretation of RTD and consortium contracts, especially IPR issues u guidance on novelty searches - links to professionals u help on patent strategies, licensing issues, etc. l Position papers on IPR, patent and related issues l on-line tutorials and newsletter in preparation l Co-operation with Innovation Relay Centres

24. European Commission FROM THE PROPOSAL TO THE PROJECT ESSEN - 25-26 February 1999 23 Megan Richards - DG XII - European Commission Contact Points The IPR-Helpdesk can be reached at: l Internet: www.cordis.lu/ipr-helpdesk l Telephone: +352-4711-11-1 Fax: +352-4711-11-60 l E-mail: info@ipr-helpdesk.org l 64-66 avenue Victor Hugo L-1750 Luxembourg