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

European Commission FROM THE PROPOSAL TO THE PROJECT ESSEN February 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

European Commission FROM THE PROPOSAL TO THE PROJECT ESSEN February Megan Richards - DG XII - European Commission I - Procedure after evaluation u quick no negotiation I -Procedure

European Commission FROM THE PROPOSAL TO THE PROJECT ESSEN February 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

European Commission FROM THE PROPOSAL TO THE PROJECT ESSEN February 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

European Commission FROM THE PROPOSAL TO THE PROJECT ESSEN February 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

European Commission FROM THE PROPOSAL TO THE PROJECT ESSEN February 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

European Commission FROM THE PROPOSAL TO THE PROJECT ESSEN February 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

European Commission FROM THE PROPOSAL TO THE PROJECT ESSEN February 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

European Commission FROM THE PROPOSAL TO THE PROJECT ESSEN February 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)

European Commission FROM THE PROPOSAL TO THE PROJECT ESSEN February 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

European Commission FROM THE PROPOSAL TO THE PROJECT ESSEN February 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)

European Commission FROM THE PROPOSAL TO THE PROJECT ESSEN February 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

European Commission FROM THE PROPOSAL TO THE PROJECT ESSEN February 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

European Commission FROM THE PROPOSAL TO THE PROJECT ESSEN February 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

European Commission FROM THE PROPOSAL TO THE PROJECT ESSEN February 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

European Commission FROM THE PROPOSAL TO THE PROJECT ESSEN February 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

European Commission FROM THE PROPOSAL TO THE PROJECT ESSEN February 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

European Commission FROM THE PROPOSAL TO THE PROJECT ESSEN February 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

European Commission FROM THE PROPOSAL TO THE PROJECT ESSEN February 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

European Commission FROM THE PROPOSAL TO THE PROJECT ESSEN February 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.)

European Commission FROM THE PROPOSAL TO THE PROJECT ESSEN February 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

European Commission FROM THE PROPOSAL TO THE PROJECT ESSEN February Megan Richards - DG XII - European Commission Contact Points The IPR-Helpdesk can be reached at: l Internet: l Telephone: Fax: l l avenue Victor Hugo L-1750 Luxembourg