12. 11. 74 Official  Journal  of the European  Communities No C 139/1 
I 
(Information) 
COMMISSION 
COMMUNICATION 
concerning  applications  for and  the grant  of financial  aids  for technical  and  economic 
research  (coal,  iron  ore,  steel)  pursuant  to the provisions  of Article  55 of the Treaty 
establishing  the European  Coal  and Steel  Community 
1. In  accordance  with  the provisions  of Article  55 
of the Treaty  of 18 April  1951  establishing  the Eu-
ropean  Coal  and  Steel  Community,  as amended  by 
the Treaty  of 8 April  1965  establishing  a single  Coun-
cil and  a single  Commission  of the European  Com-
munities,  the  Commission  is required  ito promote 
technical  and  economic  research  relating  to the pro-
duction  -and1  increased  use of coal  and  isteel  and  to 
occupational  safety  in the coal  and isteel  industries. 
On 24 April  1963,  the Hiigh  Authority  adopted  a new 
text setting  out the principles  of its research  policy 
(OJ No  70,  9 May  1963).  Those  principles  were 
particularly  concerned  with  tlhe  objectives  pursued 
by the  High  Authority  in promoting  technical  re-search  and  with  the means  of ensuring  suitable  co-
operation  .among  the various  research  bodies. 
On 16 October  1974,  the Commission  of the Euro-
pean  Communities,  finding  that  the text  of the com-
munication  published  in OJ No 70 of 9 May  1963 
should  be brought  up-to-date,  adopted  a slightly 
amended  new  text. 
The purpose  of this  communication  is to circulate  the 
new text  among  all interested  iparties  within  the 
Community  ; this  text  defines  the procedure  for the 
lodging  and  consideration  of applications  for finan-
cial aid, the terms  of and arrangements  for these  aids 
and the  obligations  which  the  beneficiaries  of aid 
must  undertake  to comply  with  in order  to ensure 
that the research  findings  are disseminated. 
I. GENERAL 
2. The  Commission  of the European  Communities 
may promote  research  by granting  financial  aids, 
after  consulting  the Consultative  Committee  and with 
the agreement  of the Council;  the funds  for these 
aids are  to be drawn  from  the revenue  from  the 
levies  provided  for in Article  49 of the EEC  Treaty. 
The aid may  be granted  to undertakings,  research 
institutes  or even  natural  persons  who  wish  to carry 
out research  within  the meaning  of Article  55 of the ECSC  Treaty.  The  applicant  need  not necessarily  be 
directly  connected'  with  coal-mining  or the iron  and 
steel industry.  However,  the  research  project  for 
which  financial  aid is requested  must  be of interest 
to a large  number  of undertakings  in the Community 
or — in the case  of research  on occupational  safety 
— a relatively  large  number  of workers  in these 
undertakings. 
II. PROCEDURE  APPLICABLE  TO  THE  LODGING  AND  CONSIDERATION  OF 
APPLICATIONS 
3. Requests  for  the  grant  of financial  aids  for  Commission  of the European  Communities,  200  rue 
research  are to be addressed  to the President  of the de  'la Loi,  1040  Brussels.  They  must  be explained 
No C 139/2 Official  Journal  of the European  Communities 12. 11. 74 
in fuil-l  and include  all details  relevant  for the examin-
ation  of the application.  The  following  information 
in particular  must  be given  : 
— The  title  of the research  project 
— The  purpose  of the research  project 
The information  supplied  must  include  the fol-
lowing  : 
(a) de-nailed  (plan  of work  and methods  to be used 
to obtain  the expected  results  ; 
(b) those  aspects  of the research  -which  are new 
and original  as compared  with  techniques 
which  are  already  known  or which  are 
already  the subject  of research  ; 
(c) to what  extent  the research  project  follows 
up previous  research  ; 
i(d) what  patent  licences  -already  applied1  for or 
taken  out would  be necessary,  if the research 
is successful,  to apply  it for industrial  pur-
poses  ; 
(e) technical  conditions  governing  the research; 
the -place  where  the research  is to be carried 
out; if it is to be carried  out in cooperation 
with other  firms  or ibodies,  the respective 
responsibilities  of the participants. 
— Technical  and economic  value  of the research  for 
the Community 
(a) to which  categories  of undertakings  (or wor-
kers)  are the findings  of the research  likely 
to be of interest; 
(b) importance  ifor these  undertakings  (or wor-
kers)  of the research  findings. 
— Duration  of the research  project 
— Legal  status  of the applicant 
The legal  status  of the applicant  is to be stated, 
and to the application  for aid must  be appended 
a copy  of the official  statutes  of the applicant 
together  with  a copy  of the documents  attesting 
delegation  of authority  to the  persons  legally 
entitled  to represent  it. If the (applicant  will  not 
be carrying  out the research  itself,  the legal  re-
lationship  between  the  research  body  and  the 
applicant  -must  be stated. 
— Estimated  total  expenditure  for the research 
The estimate  of expenditure  for  the  research 
project  must  be drawn  up in the relevant  na-
tional  currency  and  must  be ibroken  down  into 
the following  categories  of expenditure  : 
(a) Equipment  and apparatus 
— itemized  list of the equipment  and/or  fa-
cilities  required  for  the  research  pro-gramme  which  will  need  to be purchased 
specifically  for the project; 
— itemized1  list of the  existing  equipment 
and/or  facilities  required  for the research, 
with a statement  of tiheir  value  at the date 
when  the work  is to be started  ; 
— statement  as to the extent  these  facilities 
can foe used  later,  either  for industrial 
purposes  or for subsequent  research,  in 
the event  of the success  or the failure  of 
the research. 
(b) Staiff 
Cost (gross  wages  plus  social  charges)  of 
staff required  for the research  programme; 
number  of staff,  qualifications  required,  and : 
— whether  full time  or part-time  staff; 
— whether  or not  recruited  specifically  for 
the research  work. 
(c) Direct  operating  expenditure 
Operating  expenditure,  itemized  'by nature 
and amount,  relating  specifically  to the re-
search  work  directly  chargeable  under  the 
applicants  accounting  procedures  to that 
research. 
(d) Indirect  expenditure  in respeot  of the research 
Lump  sum  representing  a percentage  of staff 
costs,  to take  account  of incidental  expendi-
ture attributable  to the research  and  which 
by its nature  cannot  be directly  charged  to 
the research  project,  such  as use of common 
services,  workshops,  laboratories,  accounting 
services,  secretarial  services,  documentation, 
administrative  costs,  travel  and  miscellaneous 
expenditure. 
— Sum  applied  for as aid 
— Funding 
Where  it is intended  that  the research  should  not 
be financed  solely  by the applicant  and  by the 
Commission  of the European  Communities  but 
also with  contributions  from  other  sources,  de-
tails must  be given  as to such  other  contributions 
as are already  confirmed,  showing  in what  fortn 
and on what  terms  they  are provided. 
4. After  receiving  the application,  the Commission 
of the European  Communities  will  consult  experts 
bound  to secrecy,  in order  to be fully  informed  as 
to whether  the research  iprojeot  merits  support. 
5. If,  after  considering  the opinions  of the experts, 
die Commission  of the European  Communities  con-
siders  that  the  application  merits  support,  k will 
12. 11. 74 Official  Journal  of the  European  Communities No C 139/3 
initiate  the procedure  for consultation  of the  Con-
sultative  Committee  and  the procedure  for obtaining 
the approval  of the Council  of Ministers  (*). 
6. Having  consulted  the  Consultative  Committee 
and obtained  the  approval!  of the Council  of Mini-sters  (*), the Commission  of the  European  Commu-
nities  will  take  a decision  on the  application  for 
financial  aid.  If its decision  is favourable  it will  con-
clude  with  the beneficiairy  agreement  specifying  the 
amount  of the  aid  together  with  the  terms  and 
other  details  relating  to the award. 
III. TERMS  AND  CONDITIONS  OF AID 
A. Terms 
7. The  scientific,  technical  and  financial  responsi-
bility  for the research  falls  solely  on the beneficiary 
of the aid;  financial  support  (by the Commission  of 
itlhe European  Communities  and  the opinions  delive-
red by the experts  which  it instructs  to monitor  the 
progress  of the research  in no way  involve  the res-
ponsibility  of the Commission.  The  beneficiary  may 
take out insurance  against  the specific  risks  incurred  ; 
the cost  of this  insurance  is included  in the research 
expenditure  and  is therefore  borne  by tfhe  Commis-
sion of the  European  Communities  in proportion 
with  its contribution  to the total  expenditure  on the 
project. 
8. The  beneficiary  must  apply  the aid granted  by 
the Comlmission  of the European  'Communities  solely 
to the research  programme  agreed  upon  between  it-
self and  die Commission,  as defined  in the research 
agreement.  (However,  the  beneficiary  may  transfer 
funds  from  one section,  to another  of the estimate,  if 
such  transfers  turn  out  to be necessary  during  the 
course  of the  research,  provided  that  they  do not 
change  the nature  of the project.  Any  major  transfers 
must  ibe notified  to the Commission  of the European 
Communities,  either  directly  or through  the commit-
tee of experts  instructed  by it to (monitor  the pro-
gress  of tlhe research  work. 
9. The  beneficiary  of the  aid  must  make  every 
effort  to complete  the research  without  delay,  in or-
der to make  the  findings  obtained  available  to the 
Commission  as soon  as (possible. 
10. The  beneficiary  must  allow  the  experts  ap-
pointed  by the Commission  of the  European  Com-
(*) These  procedures  do not  apply  to research  falling 
within  a general  programme  which  has itself  received 
the approval  of the Council  after  consultation  of the 
Consultative  Committee. munities  every  facility  to supervise  the  progress  of 
the research  and  to make  known  their  opinions 
thereon.  For  their  part,  and  in the  interest  of the 
research,  these  experts  will  plaice  their  technical 
experience  at the disposal  of the beneficiary. 
11. In  the course  of the  research,  the beneficiary 
of the aid must  send  to the Commission  t£f the Eu-
ropean  Communities  financial  and  scientific  reports 
in the forims  and  at the  intervals  prescribed  in the 
research  agreement.  The  Commission  of the  Euro-
pean  Communities  reserves  the right  to verify,  both 
from  supporting  documents  and  on the  spot,  the 
reasons  for expenditure  incurred;  all documents  at-
testing  the expenditure  charged  under  the  research 
project  must  be preserved  by the  beneficiary  for a 
period  of five  years  after  completion  of the research 
work. 
12. As  regards  the  dissemination  of the  research 
findings,  the .beneficiary  must  comply  with  the  re-
quirements  set out in Title  IV of this  communication 
and in the Annex  hereto. 
13. The  agreement  will  noAtially  stipulate  that 
the laiw  governing  legal  relations  between  the bene-
fiaciaxy  and  the Commission  of the European  Com-
munities  is to be of the  country  in which  the  re-
search  is carried  out  However,  where  joint  research 
is covered  by a single  agreement,  the law  applicable 
will be that  of the  country  where  the Commission 
has its seat. 
B. Financing  arrangements 
14. Financial  aid  granted  by the  Commission  of 
the European  Communities  will  take  the form  of a 
contribution  to the  total  net  expenditure  incurred 
by the beneficiary  specifically  in respect  of the  re-
search  work  in question.  Such  expenditure  com-
prises  the operational  costs  or expenditure  on plant 
(equipment,  facilities  etc.). 
No C 139/4 Official  Journal  of the European  Communities 12. 11. 74 
Where,  alongside  the research  facilities  proper,  use 
_is also  to be made  for purposes  of the research  of 
of existing  or new  facilities  which  are intended  for 
use in any  event,  tihe costs  of such  facilities  and ex-
penditure  in respect  of their  assembly,  start-up  pe-
riod and  normal  operation  are not regarded  as re-
search  costs.  Allowance  may  be made,  however,  in 
the research  expenditure  for sudh  depreciation  of 
these  installations  as is attributable  to the research 
work  financed  by the Commission  of the European 
Communities. 
The proportionate  contribution  of the Commission 
to the financing  of research  will  vary  from  one pro-
ject to another,  and will  depend  in particular  on the 
value  of the xesearch  to tihe Community,  on its im-
portance  in the context  of the general  objectives  and 
on whether  the research  is initiated  by the applicant 
body  or by the Commission. 
15. The  terms  and  procedures  for financial  assis-
tance  by the Comrtlission  \may  vary  widely  from 
one instance  to another,  as the Commission  always 
seeks  to suit  them  to tihe particular  features  of each 
project  financed. 
The following  general  principles  apply  : 
(ia) The  amount  of the financial  aid stipulated  in 
the agreement  between  the Commission  of the 
European  Communities  and  the Ibeneficiary  re-
presents  the maximum  amount  of the contribu-
tion granted  iby the Commission  to cover  its 
share  of the  research  expenditure  actually  in-
curred  by the  beneficiary  in carrying  out  the 
research. 
By 'research  expenditure'  the Commission  of the 
European  Communities  means  the  net  expen-
diture  actually  disbursed  Iby  the  ibeneficiary 
•being  expenditure  falling  entirely  within  the ca-
tegories  of expenditure  defined  in the  agree-
ment.  The  net expenditure  is the total  expen-
diture,  less  any  sums  which  may  be recovered 
(such  as discounts,  price  reductions,  recovery  of materials  or of finished  products,  sales  of equip-
ment  or facilities),  to the financing  of which  the 
Commission  of the European  Communities  has 
contributed. 
(lb) The  payments  made  by the Commission  to the 
beneficiary  over  the period  of the research  work 
are to be treated  until  the accounts  for the re-
search  'have  have  been  closed  as payments  on 
account.  Such  payments  nonetheless  represent, 
subject  to the maximum  fixed  iby the research 
agreement,  the Commission's  contribution  to the 
research  expenditure  incurred  by the beneficiary 
of the aid. In practice,  in addition  to paying  over 
its share  in respect  of expenditure  already  dis-
bursed,  the Commission  is prepared  where  the 
ibeneficiary  so requests  to pay  six months  of its 
share  of estimated  expenditure  in advance. 
(c) Save  in exceptional  cases  as specified  in the re-
search  agreement,  the Commission  of the Euro-
pean  Communities  does  not  pay  out  in toto 
more  than  90%  of the total  aid payable  until 
the accounts  for the research  haive  been  closed. 
(d) The  agreement  Lays  down  the  terms  which, 
when  the accounts  for the research  are closed, 
apply  to the subsequent  use of equipment  pur-
chased  specifically  for the research  project. 
For applied  research  projects,  the beneficiary  of 
the aid often  makes  the necessary  facilities  avail-
able for the research,  either  because  it already 
owns  them  or because  it acquires  them  for sub-
sequent  industrial  use  or other  subsequent  re-
search.  The  Commission  grant  may  then  cover 
a share  in the depreciation  of these  facilities 
during  the period  when  they  are used  for the 
research,  to the  extent  that  such  depreciation 
is attributable  to the  research.  If the facilities 
lose their  entire  value  as a result  of the research 
work,  the Commission  may  agree  to bear  part 
of the costs  of acquiring  these  facilities  in pro-
portion  to its contribution  to the  research  ex-
penditure  and within  the fixed  maximum. 
IV. DISSEMINATION  OF  THE  RESEARCH  FINDINGS  TO  ALL  INTERESTED  BODIES 
IN THE  COMMUNITY 
16. Under  the last subparagraph  of Article  55 (2) 
of the ECSC  Treaty,  the Commission  of the Euro-
pean  Communities  is required  to ensure  tlhat  the 
results  of the research  which  it finances  are made available  to all concerned  in the Community.  The 
latter  (hereinafter)  referred  to as 'persons  concerned' 
include  all undertakings  engaged  in production  in 
the coal  or the  steel  industry  in the  Community 
12. 11. 74 Official  Journal  of the European  Communities No C 139/5 
(see Article  80 of the  ECSC  Treaty).  In order  to 
comply  with  the principle  set out  in the last  sub-
paragraph  of Article  55 (2) of the ECSC  Treaty,  the 
Commission  is compelled  to impose  certain  obliga-
tions  in the aid agreement  concluded  with  benefi-
ciaries. 
These  obligations,  which  are set out  in the Annex 
to this  communication  are explained  in the follow-
ing paragraphs. 
17. It  may  happen  that  under  the general  law  or 
by special  agreement  the persons  employed  by an 
undertaking  for research  work  can claim  rights  over 
the findings  of technical  research.  The  beneficiary  of 
aid must  therefore  ensure  that  it is entitled  to dis-
pose  freely  of the research  findings  tin the countries 
of the Community  (Article  1). 
18. Steps  must  /be taken  to prevent  persons  or 
undertakings  not contributing  to the research  work 
from  claiming  possession  of the  findings  of that 
research,  filing  a claim  for industrial  property  rights 
(patents  or utility  marks)  afid  thus  making  it more 
difficult  for persons  concerned  to gain  access  to 
these  findings.  For this  purpose,  the research  findings 
must  be : 
— protected  by industrial  property  rights  in all 
countries  of the Community  i (Articles  2 and  3) ; 
or 
— published  (Article  2) ; or 
— covered  by a cdmbination  of these  these  two 
procedures  (Article  4) (*). 
19. Steps  must  be talken  to make  the research 
findings  available  to ail persons  concerned.  To this 
end the main  results  of the research  must  in any case 
fbe circulated  generally  to all  those  potentially 
concerned1  (Article  5). As regards  making  the fin-
dings  known  to persons  actually  concerned  there 
are various  further  possibilities: 
— die beneficiary  of the aid is required  to grant  a 
non-exclusive  licence  to any  persons  concerned 
who so requests  (Article  7 (1)) ; 
— if there  are no industrial  property  rights,  the be-
neficiary  of the aid must  make  the necessary  fin-
dings  available  to any  person  concerned  who  so 
requests  (Article  7 (2)) ; 
(*) It will  no longer  be necessary  to combine  these  two 
procedures  as soon  as a uniform  patent  valid  in all 
countries  of the  Community  can  be taken  out  from 
a European  patent  office. — if the beneficiary  itself  manufactures  machines  or 
appliances,  both  those  concerned  and  third  par-
ties interested  in the research  results  will  be en-
titled  to acquire  them-  for their  own  use (Article 
9); 
— if other  undertakings  manufacture  machines  or 
appliances  under  licence  issued  iby the  benefi-
ciary,  iboth  those  concerned  and  third  parties  in-
terested  in the results  will  be entitled  to acquire 
them  for their  own  industrial  use  (Article  l'O). 
20. Steps  must  be taken  to ensure  that  nothing  is 
.done  to affect  right  of those  concerned  to obtain 
licences  in accordance  with  the principles  set out in 
point  19.  For  this  reason  the  Commission  of the 
European  Communities  will  in any  event  be entitled 
to a royalty-free  non-exclusive  licence  authorizing  it 
to grant  sub-licences  as provided  in Article  11. 
21. Where  the  beneficiary,  in accordance  with 
the principles  set out in point  19, grants  licences  in 
respect  of industrial  property  rights  or makes  fin-
dings  available,  it is entitled  to do so either  in con-
sideration  of royalty  payments  or free  of charge.  In 
either  case  any  discrimination  as between  persons 
concerned  within  the Community  is prohibited  (Ar-
ticle 8). 
Under  the terms  of Article  12 /the Commission  of 
the European  Communities  will  fbe entitled  to a 
share  of any  royalty  or other  payment  received  by 
the beneficiary  in respect  of the grant  of a licence, 
the communication  of research  findings  or the supply 
of a machine  or appliance. 
22. Subject  to the provisions  set out in Articles  8 
and 12 regarding  royalties  the beneficiary  will  be en-
titled  to dispose  freely  of the invention  in countries 
which  do not belong  to the Community  (Article  13). 
Since  the production  resulting  frdm  patents  for pro-
cesses  also  includes  articles  directly  produced  by 
means  of these  processes,  the acquisition  of such  pa-
tents  in a non-memiber  country  might  make  it im-
possible  to export  coal  and  steel  products  from  the 
Community  to that  country.  The  beneficiary  of the 
aid is required  to grant  the requisite  licences  (Ar-
ticle 13 (2)) in order  to prevent  this occurring. 
23. The  Court  of Justice  of the European  Com-
munities  has  jurisdiction  in respect  of all disputes 
arising  from  the  contractual  relationship  between 
the Commission  of the European  Communities  and 
the beneficiary  of the aid (Article  14). 
No C 139/6 Official  Journal  of the  European  Communities 12. 11.  74 
ANNEX 
OBLIGATIONS  OF  THE  BENEFICIARY  AS REGARDS  PROTECTION  AND  DISSEMI-
NATION  OF  RESEARCH  RESULTS 
Article  1 
Position  towards  staff  and  other  collaborators 
1. The  beneficiary  shall  so  arrange  its  legal  position 
towards  its  collaborators  (both  members  of its  staff  and 
others)  as to be able  to publish  forthwith  in the  Community 
countries  inventions  made,  experience  and  knowledge 
acquired  by  them  (hereinfafter  called  'research  results')  in 
connection  with  the  research  financed  by the  ECSC,  and  to 
dispose  thereof  freely. 
2. The  ECSC  may  release  the  beneficiary  from  the  obliga-
tions  arising  under  paragraph  1 where  it is not  possible  in 
law or in fact  for  the  beneficiary  to arrange  as aforesaid. 
Article  2 
Filing  of claim  to industrial  property  rights  ; publica-
tion destructive  of novelty 
1. If  the  research  results  are  capable  of being  protected  as 
industrial  property,  the  beneficiary  shall  forthwith,  unless 
there  are  special  reasons  which  justify  delay  : 
(a) apply  for  a patent  in  accordance  with  Article  3 
hereunder;  or 
(b) publish  them  in such  manner  that  they  become  an inte-
gral part  of the  state  of technology  in all the  countries  of 
the Community  (publication  destructive  of novelty). 
2. Where  application  or publication  is delayed  without 
just cause,  the  ECSC  itself  shall  be entitled  to effect  publica-
tion destructive  of the  novelty  of the  research  results^  Before 
doing  so  it shall  hear  the  beneficiary  and  independent 
experts. 
Article  3 
Filing  of claim  in all Community  countries 
1. If  the  beneficiary  wishes  to obtain  industrial  property 
rights  to protect  the  research  results,  it must  so far  as is 
legally  possible  acquire  such  rights  in all  the  Community 
countries.  After  a European  patent  office  has  been  esta-
blished,  the  beneficiary  must  file  a claim,  or a fresh  claim, 
with  that  office  during  the  priority  period. 
2. The  ECSC  shall  contribute  to the  costs  of applying  for, 
preserving  and  defending  the  patents,  and  to the  payment  of 
appropriate  royalties  to the  inventors,  in the  same  proportion 
as it contributed  to the  financing  of the  research. 
A rticle  4 
Filing  of claim  in some  Community  countries 
If, in derogation  of the  principles  of Article  3, the beneficiary 
does  not  wish  or is unable  to claim  rights  of industrial  prop-
erty in all the  Community  countries,  it must  immediately 
after  filing  its claim,  effect  publication  destructive  of the 
novelty  of the  research  results  as provided  in Article  2. A rticle  5 
Dissemination  of research  results 
1. Within  a suitable  time  of filing  the first  claim  for  indus-
trial property  rights  or effecting  the  publication  destructive 
of novelty,  the  main  aspects  of the  research  results,  even  if 
incomplete  or negative,  and  the  procedure  that  should  be 
followed  to arrive  at them,  shall  be made  known  by extensive 
publication  in the  Community,  either  by "the  beneficiary  or 
by the  ECSC. 
2. If  carried  out  by  the  beneficiary,  the  following 
minimum  requirements  must  be observed  : 
(a) publication  must  be effected  in specialized  journals  of 
recognized  value  and  wide  circulation  ; 
(b) the  publication  must  be  marked  'Research  carried  out 
with  a financial  grant  from  the  European  Coal  and  Steel 
Community'  and  accompanied  by  a summary  of the 
results; 
(d) the  publisher  must  undertake  to provide  the  ECSC  on 
request,  against  payment,  with  as many  copies  of the 
publication  as the  ECSC  shall  consider  necessary;  the 
publisher  and  the  author  shall  authorize  the  ECSC  to 
circulate  such  reprints,  together,  where  appropriate,  with 
summaries  and  translations  into  other  languages. 
3. Research  results  which  are  not  capable  of giving  rise  to 
industrial  property  rights  shall  likewise  be published  in the 
Community  by the  beneficiary  or by the  ECSC  as soon  as 
they  have  reached  a stage  suitable  for  announcement. 
Article  6 
Transfer  of rights 
The beneficiary  may  transfer  rights  in the  research  results  or 
grant  exclusive  licences  in respect  of industrial  property 
rights  within  the  Community  only  with  the  consent  of the 
ECSC.  The  ECSC  shall  give  its consent  where  it has  full 
assurance  that  the  beneficiary's  obligations  regarding  dissemi-
nation  of the  research  results  will  be met. 
Article  7 
Direct  exploitation  of the  research  results  ; granting  of 
licences  and  dissemination  of information  to persons 
concerned 
1. Where  the  beneficiary  has  obtained  final  or provisional 
industrial  property  rights  in respect  of the  research  results,  it 
shall  grant  to any  person  concerned  who  shall  so request 
non-exclusive  licences  for  such  person's  own  use,  and  shall 
place  at such  person's  disposal  for  his  own  use  the  experi-
ence  obtained  and  improvements  to be obtained  thereafter  in 
the field  to which  the  licence  pertains,  including  experience 
and improvements  obtained  as  provided  in  paragraph  4 
hereunder. 
12. 11.  74 Official  Journal  of the  European  Communities No C 139/7 
2. Where  the  beneficiary  has  not  applied  for  or obtained 
rights  of industrial  property  in respect  of the  research  results, 
it shall  place  the  research  results  at the  disposal  of any 
person  concerned  who  shall  so request  for such  person's  own 
use, and  shall  likewise  place  the  experience  obtained  and  the 
improvements  to be obtained  thereafter  in the  field  in ques-
tion. 
3. Where  exploitation  of the  research  results  as provided 
in paragraphs  1 and  2 can  be effected  only  simultaneously 
with  the  exploitation  of other  rights  of industrial  property 
previously  acquired  by  the  beneficiary  (prior  patents),  the 
beneficiary  shall  also  grant  licences  in respect  of such  rights 
to the  persons  concerned. 
4. The  beneficiary  shall  arrange  with  the  persons 
concerned  when  granting  licences  and  information  as 
provided  in paragraphs  1 to 3 that  information  relating  to 
experience  obtained  and  improvements  to  be  obtained 
thereafter  in the  field  in question  are  to be  exchanged 
between  the  parties. 
Article  8 
Royalties 
1. In  performing  its obligations  under  Article  7 the  benefi-
ciary  shall  be at liberty  to grant  licences  and  information  to 
persons  concerned  in the  Community  royalty-free  or for valu-
able  consideration.  If it elects  to grant  royalty-free  licences 
and information  it may  stipulate  for  payment  of  its 
expenses:  • 
(a) if it elects  to charge  no  royalty,  it shall  be entitled  to 
receive  all royalties  accruing  outside  the  Community  ; 
(b) if it elects  to charge  royalties,  it shall  share  with  the 
ECSC  as provided  in Article  12 the  aggregate  proceeds 
accruing  inside  and  outside  the  Community. 
2. In  fixing  the  amount  of the  royalty  there  shall  be no 
discrimination  among  the  persons  concerned.  In this  connec-
tion the  licences  and  information  referred  to in Article  7 (1) 
and the  information  referred  to in Article  7 (2) shall,  in so far 
as they  relate  to the  same  techniques,  be treated  as considera-
tions  of equal  value. 
3. Save  where  special  circumstances  justify  the  making  of 
an exception,  the  royalty  shall  not  exceed  the  amount  which 
persons  not  concerned  are  required  to pay  for  like  licences 
and information. 
Article  9 
Indirect  exploitation  of the  research  results  ; manufac-
ture and  sale  of machines  or appliances  by the benefi-
ciary 
1. If  the  beneficiary  itself  manufactures  for  sale  machines 
or appliances  on the  basis  of the  research  results  whether 
protected  or unprotected,  it shall  be obliged  to supply  them 
without  discrimination,  by way  of sale,  lease  or hire,  to any 
person  concerned  for  his  own  use.  The  royalty  shall  not  be 
disproportionate  and  shall  not,  save  where  special  circum-
stances  justify  the  making  of an  exception,  exceed  the 
amount  which  persons  not  concerned  are  required  to pay  for 
the same. 
2. If  the  beneficiary  is unable  or unwilling  to execute 
orders  to a delivery  date  of nine  months,  it shall  grant 
licences  to one  or  more  other  competent  manufacturers selected  by  it within  the  territory  of the  Community  and 
shall  communicate  to  them  the  experience  needed  to 
execute  the  said  orders. 
Article  10 
Indirect  exploitation  of the  research  results  ; manufac-
ture and  sale  of machines  and  appliances  by other 
undertakings 
If the  research  results  consist  of inventions  or experience  for 
the making  of machines  or appliances  which  the  beneficiary 
itself  is unable  or unwilling  to manufacture  for  sale,  it shall 
grant  licences  to one  or  more  competent  manufacturers 
selected  by  it within  the  territory  of the  Community  to 
ensure  manufacture  thereof  and  shall  communicate  to them 
the experience  needed.  Such  manufacturer  or manufacturers 
shall  then  undertake  to supply  the  machines  or appliances 
without  discrimination,  by  way  of sale,  lease  or hire  to 
persons  concerned  for  their  own  use.  The  royalty  shall  not  be 
disproportionate  and  shall  not,  save  where  special  circum-
stances  justify  the  making  of an  exception,  exceed  the 
amount  which  persons  not  concerned  are  required  to pay  for 
the same. 
Article  11 
Licences  in favour  of the  ECSC 
1. To  ensure  due  performance  of its obligations  under  Arti-
cles 7, 9 and  10,  the  beneficiary  shall  grant  to the  ECSC 
royalty-free  non-exclusive  licences  in respect  of all industrial 
property  rights  for which  the  beneficiary  has  obtained  protec-
tion in the  Community  countries,  and  such  licences  shall 
confer  the  right  to grant  the  sub-licences  referred  to below. 
2. On  the  basis  of the  licences  aforesaid  the  ECSC  may 
grant  sub-licences  to persons  concerned  where  the  benefi-
ciary  agrees  with  it that  the  applicant  for  a licence  qualifies 
as a 'person  concerned'  but  nevertheless  refuses  to grant  a 
licence  in accordance  with  Article  7. The  ECSC  shall  notify 
the beneficiary  not  less  than  four  weeks  before  granting  the 
sub-licence. 
3. In  granting  sub-licences,  the  ECSC  shall  adhere  to the 
terms  normally  adopted  by  the  beneficiary  when  granting 
licences  in respect  of the  industrial  property  rights  in ques-
tion.  For  this  purpose  the  ECSC  shall  request  the  beneficiary 
to inform  it of these  terms  within  four  weeks.  If the  benefi-
ciary  does  not  comply  within  that  period,  the  ECSC  shall 
settle  the  terms  as it thinks  fit.  Any  royalty  agreed  upon  in 
connection  with  the  sub-licence  shall  be paid  direct  to the 
beneficiary  after  deduction  of the  ECSC's  expenses. 
4. If  the  ECSC  and  the  beneficiary  do not  agree  as to 
whether  the  applicant  for  a licence  qualifies  as a 'person 
concerned',  this  matter,  in accordance  with  Article  14,  must 
first be decided  by  the  Court  of Justice  of the  European 
Communities.  If the  Court  of Justice  finds  that  the  applicant 
qualifies  as a 'person  concerned',  the  ECSC  may  then  grant 
sub-licences  as provided  in paragraphs  2 and  3. 
5. If  the  beneficiary  does  not  fulfil  its undertaking  to grant 
licences  to other  manufacturers  as provided  in Article  9 (2) or 
Article  10,  the  ECSC  may  then  grant  sub-licences  to those 
concerned  and  communicate  to them  the  experience  neces-
sary to enable  them  to make,  or to cause  to be made  by 
others,  machines  or appliances  for  their  own  use.  Paragraphs 
2, 3 and  4 shall  apply  by analogy. 
No C 139/8 Official  Journal  of the  European  Communities 12. 11.  74 
Article  12 
The ECSC  share  of royalties 
1. Where  royalties  accrue  to the  beneficiary  from  the 
grant  of licences  in respect  of rights  of industrial  property  or 
the communication  of experience  (Article  7 and  Article  11 
(3), the ECSC  shall  be entitled  to the following  share  of the 
amount  payable  : 
(a) there  shall  first  be repaid  to the parties  to this  Agreement 
the costs  of applying  for,  preserving  and  defending  the 
rights  of industrial  property,  and  where  appropriate  a 
suitable  amount  by way  of inventor's  remuneration  ; 
(b) from  the  balance,  which  shall  be calculated  for  each 
calendar  year,  the  ECSC  shall  receive  a share  propor-
tionate  to the amount  of its contribution  to the invention 
in question  as against  the contribution  of the beneficiary 
(personnel  and  equipment  costs,  technical  experience 
made  available  for the research). 
2. Paragraph  1 shall  apply  by analogy  where  the  benefi-
ciary  grants  to other  manufacturers,  as provided  in Article  9 
(2) or Article  10,  licences  for  the  manufacture  and  sale  of 
machines  or appliances. 
3. Where  the  beneficiary  itself  manufactures  machines  or 
appliances  and  supplies  them  to those  concerned  in the 
Community  (Article  9), the ECSC  shall  be entitled  to a share 
in the profits.  In determining  that  share  due  account  shall  be 
taken  of the  amount  of its contribution  to the development 
of the  machines  or appliances  in question. 
4. The  share  of the  ECSC  in royalties  or profits  (para-
graphs  1 to 3) shall  be fixed  by agreement  between  the 
parties  to this  Agreement  within  six months  after  completion 
of the  research.  Failing  agreement  within  that  period  the 
Court  of Justice  of the  European  Communities  shall 
determine  the  matter  as provided  in Article  14. 
Article  13 
Filing  in non-Community  countries  of claim  to indus-
trial  property  rights 
1. The  beneficiary  shall  be at liberty  to file,  or not  to file, 
claims  to rights  of industrial  property  in countries  outside 
the Community,  and  to determine  to what  extent  and  for 
how long  they  shall  be effected. 2. Where  such  industrial  property  rights  constitute  an 
impediment  to the  export  of products  from  the  Commu-
nity's  coal  and  steel  industries,  the beneficiary  shall  obviate 
such  impediment  by granting  the  requisite  licences.  If the. 
beneficiary  transfers  an industrial  property  right  acquired 
outside  the  Community,  or grants  an exclusive  licence  in 
respect  of any  such  right,  it must  impose  like  obligations 
upon  the  transferee  or licensee.  Article  8 (1) and  (3) shall 
apply. 
3. The  costs  of applying  for,  preserving  and  defending 
rights  of industrial  property  in countries  outside  the Commu-
nity shall  be borne  solely  by the  beneficiary.  Nevertheless, 
where  proceeds  accruing  from  the grant  of licences  or infor-
mation  in such  countries  are shared  between  the  beneficiary 
and the ECSC  as provided  in Article  8 (1) (b), the provisions 
of Article  12 (1) (in particular  with  respect  to repayment  of 
such  costs)  shall  apply. 
Article  14 
Jurisdiction  of the  Court  of Justice 
1. It  shall  be provided  in contracts  for the grant  of finan-
cial aid that  the  ECSC  and  the  beneficiary  accept  that  the 
Court  of Justice  of the  European  Communities  is to have 
jurisdiction,  pursuant  to Article  42 of the  ECSC  Treaty,  in 
respect  of all disputes  arising  out  of any  such  contract. 
2. The  like  provision  shall  be inserted  by the  ECSC  in 
. such  contracts  as it shall  conclude  under  Article  11 (2) to (5) 
of this  Annex.  The  same  shall  also  be agreed  with  persons  or 
undertakings  subrogated  to the obligations  of the beneficiary 
upon  acquiring  rights  arising  out  of inventions  or rights  of 
industrial  property  (Articles  6 and  13). 
Article  15 
Area  of territorial  application 
For the purpose  of determining  which  countries  are Commu-
nity countries  and,  accordingly,  which  persons  are 'persons 
concerned  in the Community'  account  shall  be taken  of any 
changes  which  take  place  in this  respect  after  conclusion  of 
the contract  for the grant  of aid.