30.12.2006 EN Official Journal of the European Union L 400/1 
 I 
Acts whose publication is obligatory 
 
COUNCIL REGULATION (Euratom) No 1908/2006 
of 19 December 2006 
laying down the rules for the participation of undertakings, 
research centres and universities in action under the 
Seventh Framework Programme of the European Atomic 
Energy Community and for the dissemination of 
research results (2007 to 2011) 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishing the Euro pean Atomic Energy Community, and in particular 
Articles 7 and 10, 
Having regard to the proposal from the Commission, Having regard to the Opinion of the European Parliament
1, 
Having regard to the Opinion of the European Economic and Social Committee2, 
Having regard to the Opini on of the Court of Auditors3, 
                                                 
1 Opinion of 30 November 2006 (not yet published in the Official Journal).  
2 Opinion of 5 July 2006 (not yet published in  the Official Journa l). Opinion delivered 
following non-compulsory consultation. 
3 OJ C 203, 25.8.2006, p. 1. Opinion delivered on its own initiative. 
L 400/2 EN Official Journal of the European Union 30.12.2006 
 Whereas: 
(1) The Seventh Framework Programme of th e European Atomic Energy Community was 
adopted by Decision No 2006/970/Euratom of the Council of 18 December 2006 
concerning the Seventh Framework Program me of the European Atomic Energy 
Community for nuclear research a nd training activities (2007 to 2011)1. It is the 
responsibility of the Commission to ensure  the implementation of the framework 
programme and its specific programmes, in cluding the related financial aspects. 
(2) The Seventh Framework Programme is implemented in accordance with 
Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation 
applicable to the general budge t of the European Communities2, hereinafter "the Financial 
Regulation", and Commission Regula tion (EC, Euratom) No 2342/2002 of 
23 December 2002 laying down detailed rules for the implementation of the Financial 
Regulation3, hereinafter "the Implementing Rules". 
(3) The Seventh Framework Programme is also implemented in accordance with the state aid 
rules, in particular the rules on state aid for research and develo pment, currently the 
Community Framework for State Ai d for Research and Development4.  
(4) Treatment of confidential data is governed by all the re levant Community legislation, 
including the Institutions' in ternal rules such as Co mmission Decision 2001/844/EC, 
ECSC, EURATOM of 29 November 2001 amen ding its internal Rules of Procedure5 
regarding provisions of security.  
                                                 
1 OJ L 400, 30.12.2006. 
2 OJ L 248, 16.9.2002, p. 1. 
3 OJ L 357, 31.12.2002, p. 1. Regulation as last amended by Regulation (EC, EURATOM) 
No 1248/2006 (OJ L 227, 19.8.2006, p. 3). 
4 OJ C 45, 17.2.1996, p. 5. 
5 OJ 317, 3.12.2001, p. 1. Decision as last am ended by Decision 2006/548/EC, Euratom 
(OJ L 215 , 5.8.2006, p. 38). 
30.12.2006 EN Official Journal of the European Union L 400/3 
 (5) The rules for the participation of undertaki ngs, research centres a nd universities should 
provide a coherent, comprehensiv e and transparent framework to ensure the most efficient 
implementation possible, taking into account th e need for easy access fo r all participants 
through simplified procedures, in accordance with the principle of proportionality.  
(6) The rules should also facilitate the expl oitation of intellectual property developed by a 
participant, taking also into  account the way in which the participant may be organised 
internationally, whilst protecting the other pa rticipants' and the Community's legitimate 
interests. 
(7) The Seventh Framework Programme should promote participation from the outermost 
regions of the Community, as well as from a wide range of undertakings, research centres 
and universities.  
(8) The definition of micro, small and medi um-sized enterprises (SMEs) provided in 
Commission Recommendation 2003/361/EC 1 should apply, for reas ons of coherence and 
transparency.  
(9) It is necessary to establish the minimum cond itions for participation, both as a general rule 
and with regard to the speci ficities of indirect actions  under the Seventh Framework 
Programme. In particular, rules should be laid down regardin g the number of participants 
and their place of establishment.  
(10) It is appropriate that any legal entity  should be free to participate once the minimum 
conditions have been satisfied. Participati on over and above the minimum should ensure 
the efficient implementation of the indirect action concerned.  
                                                 
1 OJ L 124, 20.5.2003, p. 36. 
L 400/4 EN Official Journal of the European Union 30.12.2006 
 (11) International organisations  dedicated to developing cooperation in the field of nuclear 
research and training in Eur ope and largely made up of Member States or associated 
countries should be encouraged to particip ate in the Seventh Framework Programme.  
(12) The participation of legal entities establis hed in third countries and the participation of 
international organisations should also be e nvisaged, as enshrined in Article 101 of the 
Treaty. However, it is appropriate  to require that such particip ation be justified in terms of 
the enhanced contribution thereby made to the objectives sought under the Seventh 
Framework Programme. 
(13) Pursuant to Article 198 of  the Treaty, legal entities of Member States' non-European 
territories under their jurisdiction are elig ible for the Seventh Framework Programme. 
(14) In line with the objectives mentioned above , it is necessary to establish the terms and 
conditions for providing Community funding to  participants in indirect actions.  
(15) There should be an effectiv e and smooth transition from the co st calculation regime used in 
the Sixth Framework programme. For the benefit of participants the monitoring process of 
the Seventh Framework programme should, theref ore, address the budgetary impact of this 
change in particular as regards its effect  on the administrative bur den for participants. 
(16) It is necessary for the Commission to estab lish further rules and procedures, in addition to 
those provided for in the Financial Regulation and its Implementing Rules and this 
Regulation, to govern the submission, evaluatio n and selection of proposals and award of 
grants, as well as redress procedures for part icipants. In particular  the rules governing the 
use of independent experts should be established.  
30.12.2006 EN Official Journal of the European Union L 400/5 
 (17) It is appropriate for the Commission to establish further ru les and procedures, in addition 
to those provided for in the Financial Regulat ion and its Implementing Rules, to govern the 
assessment of the legal and financial viability of  participants in indi rect actions under the 
Seventh Framework Programme. Such rules sh ould strike the right balance between 
protecting the Community's financial inte rests and simplifying and facilitating the 
participation of legal entitie s in the Framework Programme. 
(18) In this context, the Financial Regu lation and the Implementing Rules and Council 
Regulation (Euratom, EC) No 2988/95 of 18 December 1995 on the protection of the 
European Communities' financial interests1, govern inter alia the protection of the 
Community's financial interests, the fight agai nst fraud and irregularity, the procedures for 
the recovery of sums owed to the Commi ssion, exclusion from contract and grant 
procedures and related penalties, and aud its, checks, and inspections by the Commission 
and the Court of Auditors, pursuant to Article 160c of the Treaty.  
(19) It is necessary that the Community financ ial contribution reaches th e participants without 
undue delay.  
(20) The agreements concluded for each action should provide for supervision and financial 
control by the Commission, or any representative  authorised by the Commission, as well as 
audits by the Court of Auditors and on-t he-spot checks carried out by the European 
Anti-Fraud Office (OLAF), in accordance with  the procedures la id down in Council 
Regulation No 2185/96 of 11 November 1996 concerning on-the-spot checks and 
inspections carried out by the Commission in order to protect the European Communities' 
financial interests against fr aud and other irregularities2.  
                                                 
1 OJ L 312, 23.12.1995, p. 1. 
2 OJ L 292, 15.11.1996, p. 2. 
L 400/6 EN Official Journal of the European Union 30.12.2006 
 (21) The Commission should monitor both the indi rect actions carried out under the Seventh 
Framework Programme and the Seventh Framework Programme and its Specific 
Programmes. With a view to ensuring the e fficient and coherent monitoring and evaluation 
of the implementation of indirect actions, the Commission should set-up and maintain an 
appropriate information system.  
(22) The Seventh Framework Progr amme should reflect and promote the general principles laid 
down in the Charter for Researchers and Code of Conduct for the Recruitment of 
Researchers1, while respecting their voluntary character.  
(23) The rules governing the di ssemination of research results should ensure that, where 
appropriate, the participants protect the inte llectual property generated in actions, and use 
and disseminate those results.  
(24) While respecting the rights of the owners of intellectual property, those rules should be 
designed to ensure that part icipants and, where appropriate , their affiliated entities 
established in a Member State or associated country have access to information they bring 
to the project and to knowledge arising from re search work carried out in the project to the 
extent necessary to conduct the research work or to use the resulting knowledge.  
(25) The obligation established in the sixth Fr amework Programme for certain participants to 
take financial responsibility for their partners  in the same consortium will be waived. In 
this context, a "Participants guarantee fund", managed by the Commission, should be 
established to cover amounts due and not reimbursed by defaulting partners. Such an approach will promote simplification and fac ilitate the participation, whilst safeguarding 
the Community's financial interests in a manner appropriate for the Framework 
Programme. 
                                                
 
1 OJ L 75, 22.3.2005, p. 67. 
30.12.2006 EN Official Journal of the European Union L 400/7 
 (26) Community contributions to a joint undertak ing set up pursuant to Articles 45 to 51 of the 
Treaty do not fall within the scope of this Regulation.  
(27) This Regulation respects th e fundamental rights and observe s the principles recognised in 
particular by the Charter of Fundament al Rights of the European Union.  
(28) The Community may provide financial support,  as established in the Financial Regulation, 
inter alia by means of: 
(a) public procurements, in the form of a price for goods or services established by 
contract and selected on the basis of calls for tender; 
(b) grants; (c) subscriptions to an organisation in the form of a membership fee; 
(d) honoraria for independent experts iden tified in Article 16 of this Regulation. 
L 400/8 EN Official Journal of the European Union 30.12.2006 
 CHAPTER I 
INTRODUCTORY PROVISIONS 
Article 1  
Subject matter 
This Regulation lays down the rules for the part icipation of undertakings, research centres and 
universities and other legal entities  in actions undertaken by one or  more participants by means of 
funding schemes identified in part  (a) of Annex II to Decision  No 2006/970/Euratom establishing 
the Seventh Framework Programme, hereinafter "indirect actions". 
It also lays down rules, in accordance with t hose laid down in the Financial Regulation and the 
Implementing Rules, concerning the Community financial contribution to participants in indirect 
actions under the Seventh Framework Programme. 
As regards the results of research carried ou t under the Seventh Framework Programme, this 
Regulation lays down rules for the disclosure of  foreground by any appropriate means other than 
that resulting from the formalities for protecting it, and including the publication of foreground in 
any medium, hereinafter "dissemination". 
In addition, it lays down rules for th e direct or indirect utilisation of foreground in further research 
activities other than those covered by the indirect  action concerned, or for developing, creating and 
marketing a product or process, or for creati ng and providing a service,  hereinafter "use". 
30.12.2006 EN Official Journal of the European Union L 400/9 
 In respect of both foreground and background, this Regulation lays down ru les concerning licences 
and user rights thereto, hereinafter "access rights". 
Article 2 
Definitions 
For the purposes of this Regulation, the following de finitions shall apply in addition to those set out 
in the Financial Regulation and the Implementing Rules: 
1) "legal entity" means any natural person, or  any legal person created under the national law 
of its place of establishment, or under Commun ity law or international law, which has legal 
personality and which may, acting under its own name, exercise rights and be subject to 
obligations. In the case of natural persons, refe rences to establishment are deemed to refer 
to habitual residence; 
2) "affiliated entity" means any legal entity that is  under the direct or indirect control of a 
participant, or under the same direct or indirect control as  the participant, control taking 
any of the forms set out in Article 7, paragraph 2; 
3) "fair and reasonable conditions" means appropr iate conditions includ ing possible financial 
terms taking into account the specific circumstances of the request for access, for example the actual or potential value of the foregr ound or background to which access is requested 
and/or the scope, duration or other ch aracteristics of the use envisaged; 
L 400/10 EN Official Journal of the European Union 30.12.2006 
 4) "foreground" means the results, includi ng information, whether or not they can be 
protected, which are generated by the indirect action concerned. Such results include rights 
related to copyright; design right s; patent rights; plant variet y rights; or similar forms of 
protection; 
5) "background" means information which is held  by participants prior to their accession to 
the grant agreement, as well as copyrights or other intellectual prope rty rights pertaining to 
such information, the application for which ha s been filed before their accession to the 
grant agreement, and which is needed for carry ing out the indirect action or for using the 
results of the indirect action; 
6) "participant" means a legal entity contributi ng to an indirect acti on and having rights and 
obligations with regard to the Commun ity under the terms of this Regulation; 
7) "research organisation " means a legal entity  established as a non-pr ofit organisation which 
carries out research or technological deve lopment as one of its main objectives; 
8) "third country" means a State that is not a Member State; 
9) "associated country" means a third country wh ich is party to an in ternational agreement 
with the Community, under the terms or on the basis of which it makes a financial 
contribution to all or part of the Seventh Framework Programme; 
10) "international organisation" means an in tergovernmental organi sation, other than the 
European Community, which has legal personal ity under international public law, as well 
as any specialised agency set up by such an international organisation; 
30.12.2006 EN Official Journal of the European Union L 400/11 
 11) "international European inte rest organisation" means an international organisation, the 
majority of whose members are Member St ates or associated countries, and whose 
principal objective is to pr omote scientific and technol ogical cooperation in Europe; 
12) "public body" means any legal entity establis hed as such by national law, and international 
organisations; 
13) "SMEs" mean micro, small and medium-s ized enterprises within the meaning of 
Recommendation 2003/361/EC in the version of 6 May 2003; 
14) "work programme" means a plan adopted by th e Commission for the implementation of a 
specific programme as identified in Ar ticle 2 of Decision No 2006/970/Euratom; 
15) "funding schemes" mean the mechanisms for the Community funding of indirect actions as 
established in part (a) of Anne x B to Decision No 2006/970/Euratom. 
Article 3 
Confidentiality 
Subject to the conditions establis hed in the grant agreement, appoi ntment letter or contract, the 
Commission and the participants shall keep confidential any data, knowledge and documents 
communicated to them as confidential. 
L 400/12 EN Official Journal of the European Union 30.12.2006 
 CHAPTER II 
PARTICIPATION 
Article 4 
Specific rules for fusion energy research 
The rules set out in this Chapter apply without prejudice to specific rule s for activities under the 
thematic area "Fusion energy research" set out in Chapter IV. 
SECTION  1 
MINIMUM  CONDITIONS 
Article 5 
General principles 
1. Any undertaking, university or re search centre or other legal en tity, whether established in 
a Member State or associated c ountry, or in a third country, ma y participate in an indirect 
action provided that the minimu m conditions laid down in this  Chapter have been met, 
including any conditions specifi ed pursuant to Article 11. 
30.12.2006 EN Official Journal of the European Union L 400/13 
 However, in the case of an indirect action as referred to in Articles 6 or 8, under which it is 
possible for the minimum conditions to be met without the participa tion of a legal entity 
established in a Member State, the attainment  of the objectives laid down in Articles 1 
and 2 of the Treaty must thereby be enhanced. 
2. The Joint Research Centre of the Europ ean Commission, hereinafter "the JRC", may 
participate in indirect actions  on the same footing and with the same rights and obligations 
as a legal entity established in a Member State. 
Article 6 
Minimum conditions 
1. The minimum conditions for indirect actions shall be the following: 
(a) at least three legal entities  must participate, each of whic h is established in a Member 
State or associated country, and no two of which are established in the same Member 
State or associated country; 
(b) all three legal entities must be indepe ndent of each other in accordance with 
Article 7. 
2. For the purposes of point (a) of paragraph 1, wher e one of the participants  is the JRC, or an 
international European interest organisation or an entity created under Community law, it 
shall be deemed to be established in a Member  State or associated country other than any 
Member State or associated country in whic h another participant in  the same action is 
established. 
L 400/14 EN Official Journal of the European Union 30.12.2006 
 Article 7 
Independence  
1. Two legal entities shall be regarded as indepe ndent of each other where neither is under the 
direct or indirect control of the other or under the same direct  or indirect control as the 
other. 
2. For the purposes of paragraph 1, control may in  particular take either of the following 
forms: 
(a) the direct or indirect ho lding of more than 50 % of th e nominal value of the issued 
share capital in the legal entity concerned, or  of a majority of the voting rights of the 
shareholders or associates of that entity; 
(b) the direct or indirect ho lding, in fact or in law, of  decision-making powers in the 
legal entity concerned. 
3. However, the following relationships between legal entities shall not in themselves be 
deemed to constitute controlling relationships: 
(a) the same public investment corporation, institutional investor  or venture-capital 
company has a direct or indi rect holding of mo re than 50 % of the nominal value of 
the issued share capital or a majority of voting rights of the shareholders or associates; 
(b) the legal entities concerned are ow ned or supervised by the same public body. 
30.12.2006 EN Official Journal of the European Union L 400/15 
 Article 8  
Coordination and support actions, and training 
and career development of researchers 
For coordination and support actions, and actions in  favour of training and career development of 
researchers, the minimum condition shall be  the participation of one legal entity. 
The first paragraph shall not appl y in the case of actions  whose purpose is to coordinate research 
activities. 
Article 9 
Sole participants 
Where the minimum conditions for an  indirect action are satisfied by a number of legal entities, 
which together form one legal enti ty, the latter may be the sole pa rticipant in an indirect action, 
provided that it is established in a Member State or associated country. 
Article 10 
International organisati ons and legal entities 
 established in third countries 
Participation in indirect actions  shall be open to in ternational organisations and legal entities 
established in third countries after the minimum conditions laid down in this Chapter have been 
met, as well as any conditions specified in the sp ecific programmes or rele vant work programmes. 
L 400/16 EN Official Journal of the European Union 30.12.2006 
 Article 11 
Additional conditions 
In addition to the minimum conditions laid down in  this Chapter, specific programmes or work 
programmes may lay down conditions regardin g the minimum number of participants. 
They may also lay down, according to the nature and objectives of the indirect action, additional 
conditions to be met as regards type of particip ant and, where appropriate, place of establishment. 
SECTION  2 
PROCEDURES 
SUBSECTION  1 
CALLS  FOR  PROPOSALS 
Article 12 
Calls for proposals 
1. The Commission shall issue calls  for proposals for indirect act ions in accordance with the 
requirements laid down in the relevant sp ecific programmes and work programmes. 
30.12.2006 EN Official Journal of the European Union L 400/17 
  In addition to the publicity specified in the Implementing Rules, the Commission shall 
publish calls for proposals in the Internet pages of the Seventh Framework Programme, 
through specific information channels, and at  the national contact points set up by the 
Member States and the associated countries. 
2. Where appropriate, the Commission shall sp ecify in the call for proposals that the 
participants need not estab lish a consortium agreement. 
3. Calls for proposals shall have clear objectiv es so as to ensure that applicants do not 
respond needlessly. 
Article 13 
Exceptions 
The Commission shall not issue calls  for proposals for the following: 
(a) coordination and support actions to be carried out by legal entities iden tified in the specific 
programmes or in the work programmes when  the specific programme permits the work 
programmes to identify beneficiaries, in accordance with the Implementing Rules; 
(b) coordination and support actions consisting of  a purchase of goods or services subject to 
the rules on public procurement set out in the Financial Regulation; 
(c) coordination and support actions relating to  the appointment of independent experts; 
(d) other actions, where so pr ovided by the Financial Regulation or the Implementing Rules. 
L 400/18 EN Official Journal of the European Union 30.12.2006 
 SUBSECTION  2 
EVALUATION  AND  SELECTION  OF 
PROPOSALS  AND  AWARD  OF GRANTS  
Article 14 
Evaluation, selection and award 
1. The Commission shall evaluate all the pr oposals submitted in response to a call for 
proposals on the basis of the principles for ev aluation, and the selecti on and award criteria. 
The criteria will be those of excellence, impact and implementation. Within this framework 
the work programme will specify the eval uation and selection cr iteria and may add 
additional requirements, weightings and thre sholds, or set out further details on the 
application of the criteria.  
2. A proposal which contravenes f undamental ethical principles or which does not fulfil the 
conditions set out in the speci fic programme, the work programme or in the call for 
proposals shall not be selected. Such a proposal may be  excluded from the evaluation, 
selection and award pro cedures at any time. 
3. Proposals shall be ranked according to the eval uation results. Funding decisions shall be 
made on the basis of this ranking. 
30.12.2006 EN Official Journal of the European Union L 400/19 
 Article 15 
Submission, evaluation, selection and 
award procedures 
1. Where a call for proposals specifies a two-st ep evaluation procedur e, only those proposals 
that pass the first step, based on the evaluati on against a limited set of criteria, shall go 
forward for further evaluation. 
2. Where a call for proposals specifies a two- stage submission pro cedure, only those 
applicants whose proposals pass the evaluation for the first st age shall be requested to 
submit a complete proposal  in the second stage. 
All applicants shall be swif tly informed of the results of the first st age evaluation. 
3. The Commission shall adopt and publish rule s governing the procedure for the submission 
of proposals, as well as the related evaluati on, selection and award procedures and publish 
guides for applicants including guidelines for ev aluators. In particular, it shall lay down 
detailed rules for the two-stage procedure fo r submission (including as regards the scope 
and nature of the first stage proposal as well as those of the complete second stage 
proposal), and rules for the tw o-step evaluation procedure. 
The Commission shall provide information and set out redress proce dures for applicants. 
4. The Commission shall adopt and publish rules to ensure consistent verification of the 
existence and legal status of participants in  indirect actions as well as their financial 
capacity. 
L 400/20 EN Official Journal of the European Union 30.12.2006 
 The Commission shall refrain from renewing su ch verification unless the situation of the 
participant concerned has changed. 
Article 16 
Appointment of independent experts 
1. The Commission shall appoint independent expert s to assist with eval uations of proposals. 
For coordination and support actions , referred to in Article 13, independent experts shall be 
appointed only if the Commission deems it appropriate. 
2. Independent experts shall be chosen on the ba sis of skills and knowledge appropriate to the 
tasks assigned to them. In cases where independent experts will have to deal with classified information, the appropriate security clearance shall be required for nomination. 
Independent experts shall be id entified and selected on the basis of calls  for applications 
from individuals and calls addressed to releva nt organisations such as national research 
agencies, research institutions or enterprises with a view to estab lishing lists of suitable 
candidates. 
The Commission may, if deemed appropriate, se lect any individual with the appropriate 
skills from outside the lists. 
Appropriate measures shall be taken to ensu re reasonable gender ba lance when appointing 
groups of independent experts. 
30.12.2006 EN Official Journal of the European Union L 400/21 
 3. When appointing an independent expert, the Commission shall take all necessary steps to 
ensure that the expert is not faced with a c onflict of interests in re lation to the matter on 
which the expert is requir ed to provide an opinion. 
4. The Commission shall adopt a model appointme nt letter, hereinafte r "the appointment 
letter", which shall include a declaration that  the independent expert has no conflict of 
interest at the time of appointment and that he  undertakes to inform the Commission if any 
conflict of interest should ar ise in the course of providing his opinion or ca rrying out his 
duties. The Commission shall conclude an a ppointment letter between the Community and 
each independent expert. 
5. The Commission shall publish once a year in any appropria te medium the list of the 
independent experts that have assisted it fo r the Framework Programme and each specific 
programme. 
SUBSECTION  3 
IMPLEMENTATION  AND  GRANT  AGREEMENTS 
Article 17 
General 
1. The participants shall implement the indir ect action and shall take all necessary and 
reasonable measures to that end. Participants in the same indirect action shall implement 
the work jointly and severally towards the Community. 
L 400/22 EN Official Journal of the European Union 30.12.2006 
 2. The Commission shall draw up, on the basis of the model provided for in Article 18 (8) and 
taking into account the charac teristics of the funding scheme  concerned, a grant agreement 
between the Community and the participants. 
3. Participants shall make no commitments incompatible with the grant agreement. 
4. Where a participant fails to comply with its obligations regarding the technical 
implementation of the indirect action, the other participants shall comply with the grant agreement without any complementary Commu nity contribution unless the Commission 
expressly relieves them  of that obligation. 
5. If the implementation of an action becomes impossible or if the participants fail to 
implement it, the Commission shall en sure the termination of the action. 
6. Participants shall ensure that the Commission is informed of any event which might affect 
the implementation of the indirect acti on or the interests of the Community. 
7. Where provided for in the grant agreement, the participants in the indirect action may 
subcontract certain elements of the work  to be carried out to third parties . 
8. The Commission shall set out redr ess procedures for participants. 
30.12.2006 EN Official Journal of the European Union L 400/23 
 Article  18 
General provisions for incl usion in grant agreements 
1. The grant agreement shall establish the rights  and obligations of th e participants with 
regard to the Community, in accordance w ith Decision No 2006/970/Euratom, this 
Regulation, the Financial Regulation, and the Implementing Rules, and in accordance with 
the general principles of Community law. 
It shall also establish, in acco rdance with the same conditions, the rights and obligations of 
legal entities who become  participants when the indirect action is ongoing. 
2. Where appropriate, the grant agreement sh all specify which part of the Community 
financial contribution will be based on the reimbu rsement of eligible costs, and which part 
will be based on flat rates (including scale of unit costs) or lump-sums. 
3. The grant agreement shall specify which cha nges in the composition of  the consortium are 
to require the prior publication of a competitive call. 
4. The grant agreement shall require the subm ission to the Commission of periodic progress 
reports concerning the implementation of the indirect action concerned. 
5. Where appropriate, the grant agreement may pr ovide that the Commission is to be notified 
in advance of any intended transfer of  ownership of foreground to a third party. 
L 400/24 EN Official Journal of the European Union 30.12.2006 
 6. Where the grant agreement requires participan ts to carry out activities that benefit third 
parties, the participants shall advertise this widely and identify, evaluate and select third 
parties transparently, fairly and impartially. If provided for in the work-programme, the 
grant agreement shall establish criteria for the selection of such third parties. The Commission reserves the right  to object to the selecti on of the third parties. 
7. The Commission shall, in close cooperation with Member States, establish a model grant 
agreement in accordance with this Regulation. If a significant modification of the model grant agreement proves necessary, the Commi ssion shall, in close cooperation with 
Member States, revise it as appropriate. 
8. The model grant agreement shall reflect the ge neral principles laid down in the European 
Charter for Researchers and the Code of Conduc t for the Recruitment of Researchers. It 
shall address, as appropriate, synergies with education at al l levels; readiness and capacity 
to foster dialogue and debate on scientific i ssues and research resu lts with a broad public 
beyond the research community; ac tivities to increase the part icipation and role of women 
in research; and activities addressing socio-economic aspects of the research. 
9. The model grant agreement shall provide fo r supervision and financial control by the 
Commission or any representative authoris ed by it, and the Court of Auditors. 
10. The grant agreement  may lay down time limits for participants to give the various 
notifications referred to  in this Regulation. 
30.12.2006 EN Official Journal of the European Union L 400/25 
 Article 19 
Provisions concerning access rights 
 use and dissemination 
1. The grant agreement shall establish the respec tive rights and obligations of the participants 
with regard to access rights, use and disseminatio n, in so far as those rights and obligations 
have not been laid down in this Regulation. 
For those purposes, it shall re quire the submission to the Co mmission of a plan for the use 
and dissemination of foreground. 
2. The grant agreement may specify the conditions  under which the participants may object to 
a technological audit of the use and dissemi nation of the foreground being carried out by 
certain authorised represen tatives of the Commission. 
Article 20 
Provisions concerning termination 
The grant agreement shall specify the grounds for its termination, in whole or in part, in particular 
for non-compliance with this Regulation, non-performance or breach, as well as the consequences for participants of any non-compliance on the part of anot her participant. 
L 400/26 EN Official Journal of the European Union 30.12.2006 
 Article 21 
Specific provisions 
1. In the case of indirect actions to suppor t existing research infrastructures and, where 
applicable, new research infrastructures, the grant agreement may lay down specific 
provisions relating to confidentiality, public ity and access rights and commitments that 
might affect users of the infrastructure. 
2. In the case of indirect actions to support training and career devel opment of researchers, 
the grant agreement may lay down specific prov isions on confidentiality, access rights and 
commitments relating to the resear chers benefiting from the action. 
3. To safeguard the defence interests of the Me mber States within the meaning of Article 24 
of the Treaty, the grant agreement may lay dow n, where appropriate, specific provisions on 
confidentiality, classification of information, access rights, transfer of ownership of 
foreground and the use thereof. 
Article 22 
Signature and accession 
The grant agreement shall enter into force upon signature by the coordinator and the Commission.  
It shall apply to each participant that has formally acceded thereto. 
30.12.2006 EN Official Journal of the European Union L 400/27 
 SUBSECTION  4 
CONSORTIA 
Article 23 
Consortium agreements 
1. Save where otherwise provided in the call for proposal s, all participants in an indirect 
action shall conclude an agreement, he reinafter "the consortium agreement" , to govern 
inter alia the following: 
(a) the internal organisation of the consortium; (b) the distribution of the Community financial contribution; (c) rules additional to those in Chapter III Dissemination and use, and access rights as 
well as to related provisions in the grant agreement; 
(d) the settlement of internal disputes including the cases of  abuses of power; 
(e) liability, indemnification and confidentiality arrangements between the participants. 
2. The Commission shall establish and publish gu idelines on the main issues that may be 
addressed by participants in their consortium agreements. 
L 400/28 EN Official Journal of the European Union 30.12.2006 
 Article 24 
Coordinator 
1. The legal entities wishing to participate in an indirect action shall appoint one of their 
number to act as coordinator to carry out the following tasks in accordance with this 
Regulation, the Financial Regulation, the Im plementing Rules, and the grant agreement: 
(a) to monitor the point compliance by partic ipants in the indirect action with their 
obligations; 
(b) to verify whether the legal entities id entified in the grant agreement complete the 
necessary formalities for accession to the grant agreement; 
(c) to receive the Community financial contri bution and to distribute it in accordance 
with the consortium and grant agreement; 
(d) to keep the records and financial acc ounts relevant for the Community financial 
contribution and to inform the Commissi on of its distribution in accordance with 
Articles 23(1) b) and 35; 
(e) to be intermediary for efficient and co rrect communication betw een the participants 
and to report regularly to the participants and to the Commission on the progress of 
the project. 
2. The coordinator shall be identified in the grant agreement. 
The appointment of a new coordinator sh all require the wri tten approval of the 
Commission. 
30.12.2006 EN Official Journal of the European Union L 400/29 
 Article 25 
Changes in the consortium 
1. The participants in an indirect action may ag ree to add a new participant or to remove an 
existing participant in accordance with the respective provisions established in the consortium agreement. 
2. Any legal entity which joins an ongoing acti on shall accede to the grant agreement. 
3. In specific cases, where provided for in the grant agreement, the consortium shall publish a 
competitive call and advertise it widely usi ng specific information support, particularly 
Internet sites on the seventh framework progr amme, the specialist press and brochures, and 
the national contact points set up by the Memb er States and associated countries for 
information and support. 
The consortium shall evaluate offers in the li ght of the criteria which governed the initial 
action and with the assistance of independent experts appointed by the consortium, in 
accordance with the principles laid down in Articles 14, and Article 16, respectively. 
4. The consortium shall notify any proposed ch ange of its composition to the Commission, 
which may object within 45 days of the notification. 
Changes in the composition of the consortium associated with propos als for other changes 
to the grant agreement which are not directly related to the change in composition shall be 
subject to written approval by the Commission. 
L 400/30 EN Official Journal of the European Union 30.12.2006 
 SUBSECTION  5 
MONITORING  AND  EVALUATION  OF 
PROGRAMMES  AND  INDIRECT  ACTIONS 
AND  COMMUNICATION  OF INFORMATION  
Article 26 
Monitoring and evaluation 
1. The Commission shall monitor the implementati on of indirect actions on the basis of the 
periodic progress reports submitted pursuant to Article 18(4).  
In particular, the Commission shall monitor th e implementation of the plan for the use and 
dissemination of foreground, submitted pursuant to the second subparagraph of 
Article 19(1). 
For those purposes, the Commission may be a ssisted by independent experts appointed in 
accordance with Article 16 . 
2. The Commission shall set up and maintain an information system allowing for this 
monitoring to take place in an efficient and coherent manner across the Framework 
Programme. 
Subject to Article 3, the Comm ission shall publish on any appropriate medium information 
on the funded projects. 
30.12.2006 EN Official Journal of the European Union L 400/31 
 3. The monitoring and evaluation referred to in Article 6 of  the Decision No 
2006/970/Euratom shall include aspects relating to  the application of this Regulation and 
shall address the budgetary imp act of the changes in the cost calculation regime as 
compared to the sixth Framework Programme an d its effects on the administrative burden 
for participants.  
4. The Commission shall appoint, in  accordance with Article 16, i ndependent experts to assist 
with evaluations required under the Sevent h Framework Programme and its specific 
programme, and, as deemed necessary, for the evaluation of previous Framework 
Programmes.  
5. In addition, the Commission may set up groups  of independent e xperts appointed in 
accordance with Article 16, to advise on the design and implementation of Community 
research policy. 
Article 27 
Information to be made available 
1. Having due regard to Article 3, the Commissi on shall, upon request, make available to any 
Member State or associated country any usef ul information in its possession on foreground 
arising from work carried out in the contex t of an indirect action, provided that the 
following conditions are met: 
(a) the information concerned is relevant to public policy; (b) the participants have no t provided sound and sufficient  reasons for withholding the 
information concerned. 
L 400/32 EN Official Journal of the European Union 30.12.2006 
 2. Under no circumstances shall the provision of information pursuant to paragraph 1 be 
deemed to transfer to the recipient any right s or obligations of the Commission or of the 
participants. 
However, the recipient shall treat any such information as confidential unless it becomes 
public or is made available publicly by the pa rticipants, or unless it was communicated to 
the Commission without restrictions on its confidentiality. 
SECTION  3 
COMMUNITY  FINANCIAL  CONTRIBUTION 
SUBSECTION  1 
ELIGIBILITY  FOR  FUNDING  AND  FORMS  OF GRANTS 
Article 28 
Eligibility for funding 
1. The following legal entities participating in an indirect action may receive a Community 
financial contribution: 
(a) any legal entity established in a Member State or an associated  country, or created 
under Community law; 
(b) any international Europe an interest organisation. 
30.12.2006 EN Official Journal of the European Union L 400/33 
 2. In the case of a participating internati onal organisation, other than an international 
European interest organisation, or a legal entity established in a third country other than an 
associated country, a Community financial c ontribution may be gran ted provided that at 
least one of the following conditions is satisfied: 
(a) provision is made to that effect in the specific programmes or in the relevant work 
programme; 
(b) it is essential for carrying out the indirect action; (c) such funding is provided for in a bilatera l scientific and tech nological agreement or 
any other arrangement between the Commun ity and the country in which the legal 
entity is established. 
Article 29 
Forms of grants 
The Community financial contribution for grants identified in part a) of Annex B to the 
Decision No 2006/970/Euratom shall be based on the re imbursement, in whole or in part, of eligible 
costs. 
However, the Community financial contribution may take the form of  flat rate financing, including 
scale of unit costs, or lump su m financing, or it may combine the reimbursement of eligible costs 
with flat rates and lump sums. The Community fi nancial contribution may also take the form of 
scholarships or prizes. 
L 400/34 EN Official Journal of the European Union 30.12.2006 
 The work programmes and calls for proposals shall sp ecify the forms of grants to be used in the 
actions concerned. 
Article 30 
Reimbursement of eligible costs 
1. Indirect actions financed by grants sh all be co-financed by the participants.  
The Community financial contribut ion to reimburse eligible costs shall not give rise to a 
profit. 
2. Receipts shall be taken into consideration fo r the payment of the grant at the end of the 
implementation of the action. 
3. In order to be considered eligible, costs incurred for the implementation of an indirect 
action shall meet the following conditions: 
(a) they must be actual; 
(b) they must have been incurred during the duration of the action, with the exception of 
final reports when provided for in the grant agreement; 
(c) they must have been determined in accordance with the usual accounting and 
management principles and practices of th e participant and used for the sole purpose 
of achieving the objectives of the indirect action and its expected results, in a manner 
consistent with the principles of economy, efficiency and effectiveness; 
30.12.2006 EN Official Journal of the European Union L 400/35 
 (d) they must be recorded in the accounts of the participant a nd, in the case of any 
contribution from third parties, they must be recorded in the accounts of the third 
parties; 
(e) they must be exclusive of non-eligible cost s, in particular iden tifiable indirect taxes 
including value added tax, dutie s, interest owed, provisions for possible future losses 
or charges, exchange losses, cost relate d to return on capital, costs declared or 
incurred, or reimbursed in respect of a nother Community project, debt and debt 
service charges, excessive or reckless e xpenditure, and any other cost that does not 
meet the conditions referred to in points (a) to (d). 
For the purposes of point (a), average personnel costs may be used if they are consistent 
with the management principles and accounti ng practices of the pa rticipant and do not 
differ significantly from actual costs. 
4. While the Community financial contribution shal l be calculated by refe rence to the cost of 
the indirect action as a whole, its reimburse ment shall be based on the reported costs of 
each participant. 
Article 31 
Direct eligible costs and indirect eligible costs 
1. Eligible costs shall be compos ed of costs attributable directly to the action, hereinafter 
"direct eligible costs" and, where applicable, of  costs which are not attributable directly to 
the action, but which have been incurred in direct  relationship with the direct eligible costs 
attributed to the action, hereinaf ter "indirect eligible costs". 
L 400/36 EN Official Journal of the European Union 30.12.2006 
 2. The reimbursement of participants' costs shall be based on their eligible  direct and indirect 
costs. 
In compliance with Article 30(3), point (c), a participant may use a simplified method of 
calculation of its indirect eligible cost at the level of its legal entity  if it is in accordance 
with its usual accounting and management prin ciples and practices. Principles to be 
followed in this respect shall be set out in the model grant agreement. 
3. The grant agreement may provide that the reimbursement of indir ect eligible costs is to be 
limited to a maximum percentage of the direct eligible costs, excludi ng the direct eligible 
costs for subcontracting, in particular in th e case of coordination and support actions, and, 
where appropriate, actions for training and career development of researchers. 
4. By derogation from paragraph 2, for the covera ge of indirect eligible costs a participant 
may opt for a flat-rate of its tota l direct eligible costs, excludi ng its direct eligible costs for 
subcontracting or reimbursement of third parties' costs. 
The Commission shall establish appropriate fl at rates based on a close approximation of 
the real indirect costs concerned, in acco rdance with the Financial Regulation and its 
Implementing Rules. 
5. Non-profit public bod ies, secondary and higher educa tion establishments, research 
organisations and SMEs which are unable to iden tify with certainty thei r real indirect costs 
for the action concerned, when  participating in funding schemes which include research 
and technological development and demonstrati on activities, as referr ed to in Article 32, 
may opt for a flat-rate equal to  60 % of the total direct eligible costs for grants awarded 
under calls for proposals closing before 1 January 2010. 
30.12.2006 EN Official Journal of the European Union L 400/37 
 With a view to facilitating a transition to full application of the general principle referred to 
in paragraph 2, the Commission shall establish, for grants awarded under calls closing after 
31 December 2009, an appropriate le vel of flat rate which should be an approximation of 
the real indirect costs concerned but not lower than 40 %. This will be based on an evaluation of participation by non-profit publ ic bodies, secondary and higher education 
establishments, research or ganisations and SMEs which are unable to identify with 
certainty their real indirect costs for the action concerned. 
6. All flat rates shall be set out in the model grant agreement. 
Article 32 
Upper funding limits 
1. For research and technological develo pment activities, the Community financial 
contribution may reach a maximum of 50 % of the total eligible costs.  
However, in the case of non-profit public  bodies, secondary and higher education 
establishments, research orga nisations and SMEs, it may reac h a maximum of 75 % of the 
total eligible costs. 
2. For demonstration activities, the Community financial contribution may reach a maximum 
of 50 % of the total eligible costs. 
3. For activities supported by coordination and s upport actions, and acti ons for the training 
and career development of researchers, the Community financial contribution may reach a 
maximum of 100 % of the total eligible costs. 
L 400/38 EN Official Journal of the European Union 30.12.2006 
 4. For management activities, including certifi cates on the financial statements, and other 
activities not covered by para graphs 1, 2 and 3, the Community  financial contribution may 
reach a maximum of 100 % of the total eligible costs. 
The other activities referred to in  the first subparagraph include, inter alia , training in 
actions that do not fall under the funding sche me for training and career development of 
researchers, coordination, networking, and dissemination. 
5. For the purposes of paragraphs 1 to 4, eligib le costs and receipts shall be taken into 
consideration in order to  determine the Community financial contribution. 
6. Paragraphs 1 to 5 shall apply, as appropriate, in  the case of indirect actions where flat rate 
financing or lump sum fi nancing is used for the whole indirect action. 
Article 33 
Reporting and audit of eligible costs 
1. Periodic reports shall be submitted to the Commission regarding eligible costs, financial 
interest yielded by pre-financi ng, and receipts in re lation with the indirect action concerned 
and, where appropriate, a certificate on the financial statements, in accordance with the Financial Regulation and the Implementing Rules. 
The existence of co-financing in relation with the concerne d action shall be reported and, 
where appropriate, certifie d at the end of the action. 
30.12.2006 EN Official Journal of the European Union L 400/39 
 2. Notwithstanding the Financial Regulation and the Implementing rules, a certificate on the 
financial statements shall be compulsory onl y whenever the cumulative amount of interim 
payments and balance payments made to a part icipant is equal to EUR 375 000 or more for 
an indirect action.  
However, for indirect actions of duration of 2 years or less, not mo re than one certificate 
on the financial statements shall be requested from the participan t, at the end of the project. 
Certificates on the financial statements shall not be required for indi rect actions entirely 
reimbursed by means of lump sums or flat rates. 
3. In the case of public bodies, research orga nisations, and higher a nd secondary education 
establishments, a certificate on the financial statements as  required under paragraph 1 may 
be established by a competent public officer. 
Article 34 
Networks of Excellence 
1. The work programme shall provide for the form s of grants to be used for Networks of 
Excellence. 
2. Where the Community financial contribution to  Networks of Excellen ce takes the form of 
a lump sum, it shall be calculated according to  the number of researchers to be integrated 
in the Network of Excellence and the duration of the action. The unit value for lump sums 
paid shall be EUR 23 500 per year and per researcher. 
L 400/40 EN Official Journal of the European Union 30.12.2006 
 That amount shall be adjusted by the Co mmission in accordance with the Financial 
Regulation and the Implementing Rules. 
3. The work programme shall establish the ma ximum number of participants and, where 
appropriate, the maximum number of researcher s that may be used as the basis for the 
calculation of the maximum lump sum. Howeve r, participants over and above the maxima 
for the establishment of the financial c ontribution may participate as appropriate. 
4 The payment shall be effected by means of periodic releases. 
Those periodic releases shall be made accord ing to the assessment of the progressive 
implementation of the Joint Programme of Activities through the measurement of 
integration of research resources and capacities based on performance indicators, 
negotiated with the consortium and sp ecified in the grant agreement. 
SUBSECTION  2 
PAYMENT,  DISTRIBUTION,  RECOVERY 
AND  GUARANTEES 
Article 35 
Payment and distribution 
1. The Community financial contribution shall be paid to the participants via the coordinator 
without undue delay. 
30.12.2006 EN Official Journal of the European Union L 400/41 
 2. The coordinator shall keep records making it possible to determine at any time what 
portion of the Community funds has been  distributed to each participant. 
The coordinator shall communicate that in formation to the Commission upon request. 
Article 36 
Recovery 
The Commission may adopt a recovery decision in  accordance with the Financial Regulation.  
Article 37 
Risk avoidance mechanism 
1. The financial responsibility of each participan t shall be limited to its  own debt, subject to 
paragraphs 2 to 5. 
2. In order to manage the risk associated w ith non-recovery of sums due to the Community, 
the Commission shall establish and operate a "Par ticipant guarantee fund"  (hereinafter "the 
Fund") in accordance with the Annex. 
Financial interests generate d by the Fund shall be added to the Fund and shall serve 
exclusively for the purposes se t out in point 3 of the Anne x, without prejudice to point 4 
thereto. 
L 400/42 EN Official Journal of the European Union 30.12.2006 
 3. The contribution to the Fund by a participant to an indirect action taking the form of a 
grant shall not exceed 5 % of the Community fi nancial contribution due to the participant. 
At the end of the action the amount contribu ted to the Fund shall be returned to the 
participant, via the coordina tor, subject to paragraph 4. 
4. If the interests generated by the Fund are insu fficient to cover sums due to the Community, 
the Commission may deduct from the amount to be returned to a participant a maximum of one per cent of the Community financial contribution to it. 
5. The deduction referred to in paragraph 4 shall not apply to public bodies, legal entities 
whose participation in the indir ect action is guaranteed by a Me mber State or an associated 
country, and higher and secondary  education establishments; 
6. The Commission shall only verify ex-ante  the financial capacity of  coordinators, and of 
participants other than those referred to in paragraph 5 applying for a Community financial 
contribution in an indirect action in exce ss of EUR 500 000, unless there are exceptional 
circumstances when, on the basis of informa tion already available,  there are justified 
grounds to doubt the financial cap acity of these participants. 
7. The Fund shall be considered as a suffici ent guarantee under the Financial Regulation. 
No additional guarantee or security may be requested from participants or imposed on them. 
30.12.2006 EN Official Journal of the European Union L 400/43 
 CHAPTER  III 
DISSEMINATION AND USE, AND ACCESS RIGHTS 
SECTION  1 
FOREGROUND 
Article 38 
Specific rules for fusion energy research 
The rules set out in this Chapter apply without prej udice to the specific rule s for activities under the 
thematic area "Fusion energy research" se t out in Chapter IV of this regulation. 
SUBSECTION  1 
OWNERSHIP 
Article 39 
Ownership of foreground 
1. Foreground arising from work carried out under indirect actions other than those referred 
to in paragraph 3 shall be the property of th e participant carrying out  the work generating 
that foreground. 
L 400/44 EN Official Journal of the European Union 30.12.2006 
 2. If employees or other personnel working for a participant are entitle d to claim rights to 
foreground, the participant shall ensure that it  is possible to exerci se those rights in a 
manner compatible with its obliga tions under the grant agreement. 
3. Foreground shall be the property of th e Community in the following cases: 
(a) coordination and support actions consisti ng in a purchase of goods or services 
subject to the rules on public procuremen t set out in the Financial Regulation; 
(b) coordination and support actions relating to independent experts. 
Article 40 
Joint ownership of foreground 
1. Where several participants have jointly car ried out work generating foreground and where 
their respective share of the wo rk cannot be ascertained, they shall have joint ownership of 
such foreground.  
They shall establish an agreement regarding the allocation and terms of exercising that 
joint ownership in accordance with the terms of the grant agreement. 
30.12.2006 EN Official Journal of the European Union L 400/45 
 2. Where no joint ownership agreement has yet been concluded, each of the joint owners 
shall be entitled to grant non-exclusive licen ses to third parties, without any right to 
sub-licence, subject to the following conditions: 
(a) prior notice must be give n to the other joint owners; 
(b) fair and reasonable compensation must be provided to the other joint owners. 
3. Upon request, the Commission shall give guidan ce on possible aspects to  be included in 
the joint ownership agreement. 
Article 41 
Transfer of foreground 
1. The owner of the foreground ma y transfer it to any legal ent ity, subject to paragraphs 2 
to 5 and Article 42. 
2. Where a participant transf ers ownership of foreground, it shall pass on its obligations 
regarding that foreground to th e assignee, including the obligation to pa ss them on to any 
subsequent assignee, in accordan ce with the grant agreement. 
L 400/46 EN Official Journal of the European Union 30.12.2006 
 3. Subject to its obligations c oncerning confidentiality, where the participant is required to 
pass on access rights, it shall give prior notice to the other participants in the same action, 
together with sufficient information concer ning the new owner of the foreground to permit 
them to exercise their access ri ghts under the grant agreement. 
However, the other participants may, by written  agreement, waive their right to individual 
prior notice in the case of tr ansfers of ownership from one participant to a specifically 
identified third party. 
4. Following notification in accordance with the first subparagraph of paragraph 3, any other 
participant may object to any transfer of ownership on the ground that it would adversely 
affect their access rights. 
Where any of the other participants demonstr ate that their rights would be adversely 
affected, the intended transfer shall not ta ke place until agreement has been reached 
between the participants concerned. 
5. Where appropriate, the grant agreement may pr ovide, that the Commissi on is to be notified 
in advance of any intended transfer of owne rship or any intended grant of a licence to a 
third party which is established in a third c ountry not associated to the Seventh Framework 
Programme. 
30.12.2006 EN Official Journal of the European Union L 400/47 
 Article 42 
Preservation of European competitiveness 
 the defence interest of Member  States and ethical principles 
The Commission may object to th e transfer of ownership of fo reground, or to the granting of a 
licence regarding foreground, to third parties established in a third country not associated to the 
Seventh Framework Programme, if it considers that this is not in accordance with the interests of 
developing the competitiveness of the European economy, the defence interests of the Member 
States within the meaning of Article 24 of the Tr eaty or is inconsistent with ethical principles. 
In such cases, the transfer of ownership or grant of licence shall not take place unless the 
Commission is satisfied that appropri ate safeguards will be put in place. 
SUBSECTION  2 
PROTECTION,  PUBLICATION, 
DISSEMINATION  AND  USE 
Article 43 
Protection of foreground 
1. Where foreground is capable of industrial or commercial application, its owner shall 
provide for its adequate and effective prot ection, having due rega rd to its legitimate 
interests and the legitimate interests, particul arly the commercial interests, of the other 
participants in the i ndirect action concerned. 
L 400/48 EN Official Journal of the European Union 30.12.2006 
 Where a participant who is not the owner of  the foreground invokes its legitimate interest, 
it must, in any given instance, show that it would suffer disproportionately great harm. 
Where the foreground is capable of industria l or commercial application and its owner 
does not protect it, and does not transfer it to  another participant, an affiliated entity 
established in a Member State or associated c ountry or any other third party established in 
a Member State or associated country along w ith the associated obligations in accordance 
with Article 41, no disseminati on activities may take place before the Commission has 
been informed. 
In such cases, the Commission may, with the co nsent of the participant concerned, assume 
ownership of that foreground and adopt measures  for its adequate and effective protection. 
The participant concerned may refuse consent on ly if it can demonstrate that its legitimate 
interests would suffer disproportionately great harm. 
Article 44 
Statement relating to Community financial support 
All publications, patent applications filed by or  on behalf of a part icipant, or any other 
dissemination relating to foreground, shall include a statement, which may include visual means, 
that the foreground concerned was generated with  the assistance of financial support from the 
Community. 
The terms of that statement shall be established in the grant agreement. 
30.12.2006 EN Official Journal of the European Union L 400/49 
 Article  45 
Use and dissemination 
1. The participants shall use th e foreground which they own, or ensure that it is used. 
2. Each participant shall ensure that the fore ground of which it has ownership is disseminated 
as swiftly as possible. If it fails to do so the Commission may disseminate that foreground 
pursuant to Article 12 of the Treaty. 
The grant agreement may set out time limits in this respect. 
3. Dissemination activities shall be compatible with the protection of  intellectual property 
rights, confidentiality obliga tions, and the legitimate inte rests of the owner of the 
foreground and the defence interests of the Member States within the meaning of 
Article 24 of the Treaty. 
4. Prior notice of any dissemina tion activity shall be given to the other participants 
concerned. 
Following notification, any of those particip ants may object if it considers that its 
legitimate interests in re lation to its foreground or background could suffer 
disproportionately great harm. In such cases, the dissemination activity  may not take place 
unless appropriate steps are taken to safeguard these legitimate interests. 
L 400/50 EN Official Journal of the European Union 30.12.2006 
 SECTION  2 
ACCESS  RIGHTS  TO BACKGROUND  AND  FOREGROUND 
Article 46 
Background covered 
Participants may define the background needed for the purposes of the indirect action in a written 
agreement and, where appropriate, may exclude specific background. 
Article 47 
Principles 
1. All requests for access rights shall be made in writing. 
2. Unless otherwise agreed by the owner of the foreground or background, access rights shall 
confer no entitlement to grant sub-licences. 
3. Exclusive licences for foreground or backgr ound may be granted, subject to written 
confirmation by all the other pa rticipants that they waive their access rights thereto. 
4. Without prejudice to paragraph 3, any agreem ent providing access rights to foreground or 
background to participants or third parties shall be such as  to ensure that potential access 
rights for other participants are maintained. 
30.12.2006 EN Official Journal of the European Union L 400/51 
 5. Without prejudice to Articles 48 and 49 and the grant agreement, partic ipants in the same 
action shall inform each other as soon as possible of any limitation to the granting of 
access rights to background, or of any other rest riction which might subs tantially affect the 
granting of access rights. 
6. The termination of its participation in an  indirect action shall in no way affect the 
obligation of that participant to grant access righ ts to the remaining part icipants in the same 
action under the terms and conditions established by the grant agreement. 
Article 48 
Access rights for implementation of indirect actions 
1. Access rights to foreground shall be granted to  the other participants in the same indirect 
action, if it is needed to enable those partic ipants to carry out th eir own work under that 
indirect action. 
Such access rights shall be gran ted on a royalty-free basis. 
2. Access rights to background sha ll be granted to the other partic ipants in the same indirect 
action, if it is needed to enable those partic ipants to carry out th eir own work under that 
indirect action provided that the participant concerned is entitled to grant them. 
Such access rights shall be granted on a royalt y-free basis, unless otherwise agreed by all 
participants before their acces sion to the grant agreement. 
L 400/52 EN Official Journal of the European Union 30.12.2006 
 Article 49 
Access rights for use 
1. Participants in the same indirect action sh all enjoy access rights to foreground, if it is 
needed to use their own foreground. 
Subject to agreement, such access rights shall be granted either under fair and reasonable 
conditions or be royalty-free. 
2. Participants in the same indirect action sh all enjoy access rights to background, if it is 
needed to use their own foreground provided that  the participant concerned is entitled to 
grant them. 
Subject to agreement, such access rights shall be granted either under fair and reasonable 
conditions or be royalty-free. 
3. An affiliated entity established in a Member State or associated country shall also have 
access rights, referred to in paragraphs 1 and 2, to foreground or background under same 
conditions as the participant to which it is a ffiliated, unless otherwise provided for in the 
grant agreement or consortium agreement. 
30.12.2006 EN Official Journal of the European Union L 400/53 
 4. A request for access rights under paragraphs 1, 2 and 3 may be made up to one year after 
either of the following events: 
(a) the end of the indirect action; (b) termination of participation by th e owner of the background or foreground 
concerned. 
However, the participants concerne d may agree on a different time-limit. 
CHAPTER IV 
SPECIFIC RULES FOR PARTICIPATION IN 
ACTIVITIES UNDER THE THEMATIC AREA 
"FUSION ENERGY RESEARCH" 
Article 50 
Scope 
The rules set out in this Chapter apply to activi ties under the thematic area  "Fusion energy research" 
as set out in the specific programme. In the event of any conflict between the rules set out in this 
Chapter and those set out in Chap ters II and III, the rules set out in this Chapter shall apply. 
L 400/54 EN Official Journal of the European Union 30.12.2006 
 Article 51 
Implementation of Fusion Energy Research 
Activities under the thematic area "Fusion energy research" may be implemented on the basis of 
procedures and rules for dissemination and use set out in the following frameworks: 
(a) The Contracts of Association, concluded be tween the Community and Member States or 
associated third countries or legal entities within Member States or associated third 
countries; 
(b) The European Fusion Development Agreement (EFDA), concluded between the 
Community and organisations in, or acting for,  Member States and associated countries; 
(c) The European Joint Undertaking for ITER, base d on the provisions of Title II, Chapter 5 of 
the Treaty; 
(d) International agreements re lating to cooperation with third countries, or any legal entity 
which may be established by such an agreement, in particular the ITER Agreement; 
(e) Any other multilateral agreement concl uded between the Community and associated 
organisations, in particular the Agreement on Staff Mobility; 
(f) Cost sharing actions to promote and contribut e to fusion energy resear ch with bodies in the 
Member States or the countries associated  with the Seventh Framework Programme in 
which there is no Cont ract of Association. 
30.12.2006 EN Official Journal of the European Union L 400/55 
 Article 52 
Community financial contribution 
1. The Contracts of Association referred to in Ar ticle 51(a) and cost sh aring actions referred 
to in Article 51(f) shall establish the rules relating to the Community financial contribution 
to the activities they cover. 
The annual base rate for the Community fina ncial contribution sha ll not exceed 20 % over 
the duration of the Seventh Framework Programme. 
2. After consultation of the c onsultative committee for the fusi on programme referred to in 
Article 7(2) of the Specific Programme  implementing the seventh Framework 
Programme (2007-11) of the European Atomic  Energy Community (Euratom) for nuclear 
research and training activities1, the Commission may finance: 
(a) within the framework of th e Contracts of Association at  a rate not exceeding 40 %: 
expenditure of specific coopera tive projects between the Associates which have been 
recommended for priority support by the consultative committee and approved by the 
Commission; priority support will concen trate on actions of relevance to the 
ITER/DEMO, except in the case of projec ts which have already been awarded 
priority status during earlier framework programmes; 
                                                 
1 OJ L 
L 400/56 EN Official Journal of the European Union 30.12.2006 
 (b) actions carried out under the European Fusion Development Agreement including 
procurements or within the framework of  the Joint Undertaking referred to in 
Article 51(c),  
(c) actions carried out under the Agreement on Staff Mobility. 
3. In the case of projects and actions rece iving a financial contribution according to 
paragraph (2)(a) or (b), all the legal entities referred to in Article 51(a) and (b) shall have the right to take part in the experime nts carried out on the equipment concerned. 
4. The Community financial contri bution to actions carried out within the framework of an 
international cooperation agreement referred to  in Article 51(d) shall be set out in 
accordance with the terms of such agreement or by any legal entity established by the 
agreement. The Community may manage its part icipation and its fina ncial contribution to 
such an agreement through any appropriate legal entity. 
30.12.2006 EN Official Journal of the European Union L 400/57 
 CHAPTER V 
FINAL PROVISIONS 
Article 53 
This Regulation shall enter into force on the third day following its publication in the Official 
Journal of the European Union.  
This regulation shall be binding in its entirety and directly applicable in all Member States. 
Done at Brussels, 
 For the Council 
 The President 
L 400/58 EN Official Journal of the European Union 30.12.2006 
 ANNEX  
 
Participant guarantee fund 
 
1. The Fund will be managed by the Community represented by the Commission acting as 
executive agent on behalf of the participants , under conditions to be established by the 
model grant agreement. 
The Commission will entrust the financial mana gement of the Fund either to the European 
Investment Bank or, in accordance with Arti cle 13(b), to an appropriate financial 
institution (hereinafter the "depository bank"). The depository bank shall manage the Fund 
pursuant to a brief by the Commission. 
2. The Commission may offset, from the initial prefinancing it will pay to the consortium, the 
participants' contribution to the Fund, and pay it on their behalf to the Fund. 
3. Where amounts are due to the Community by a participant, the Commission may, without 
prejudice to penalties which may be imposed on the defaulting participant in accordance with the Financial Regulation either:  
(a) order the depositary bank to directly transfer the am ount due from the Fund to the 
coordinator of the indirect ac tion if it is still on-going and the remaining participants 
agree to implement it to the identical regarding its object ives, in accordance with 
Article 17(4). Amounts transferred from th e Fund will be regarded as Community 
financial contribution; or 
30.12.2006 EN Official Journal of the European Union L 400/59 
 (b) recover effectively the said amount fro m the Fund should the indirect action be 
terminated or already completed.  
The Commission will emit to the benefit of  the Fund a recovery order against that 
participant. The Commission may adopt to that  end a recovery decision in accordance with 
the Financial Regulation. 
4. The amounts recovered from the Fund duri ng the Seventh Framework Programme will 
constitute revenue assigned to it within th e meaning of Article 18(2) of the Financial 
Regulation. 
Once the implementation of all grants unde r the Seventh Framework Programme is 
complete, any sums outstanding from the Fund will be recovered by the Commission and 
entered into the budget of the Community, subj ect to decisions on the Eighth Framework 
Programme.