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it -k COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 10.11.1998 
COM(1998) 654 final 
97/0309 (SYN) 
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COMMUNICATION FROM THE COMMISSION 
concerning the re-examination of the Commission proposal on the basis of 
which the Council adopted its common position concerning the rules for the 
participation of undertakings, research centres and universities and for the 
dissemination of research results for the implementation of the fifth 
framework programme of the European Community (1998-2002) 
(presented by the Commission pursuant to Article 189 c (d) 
of the EC Treaty) 

In accordance with Article 189 C, point d, of the EC Treaty, the purpose of this 
Communication is to set out the results of the re-examination of the Commission 
proposal on the basis of which the Council adopted its common position on 10 July 1998, 
taking into account the amendments proposed by the European Parliament on second 
reading on 8 October 1998. lis purpose is also to forward to the Council the European 
Parliament amendments that the Commission has not accepted, giving its opinion on 
them. 
The Commission proposal of 15 December 1997 concerns the participation and 
dissemination rules which are intended to supplement, alongside the RTD framework 
programme and the specific programmes which they implement, the Segal structure of 
Community research and technological development policy. 
Re-examination of the Commission proposal 
As indicated in its Communication to the European Parliament, of 14 July 1998, 
concerning the Council common position with a view to the adoption of a Council 
decision concerning the rules for the participation of undertakings, research centres and 
universities and ,for the dissemination of research results for the implementation of the 
fifth framework programme of the European Community (1998-2002) [SEC(98) 1205], 
on 22 June 1993 the Commission endorsed the Council draft which led to the common 
position. 
For the reasons given below, the Commission is unable to accept the following 
amendments adopted by the European Parliament at its plenary session on 
8 October 1998 and following re-examination it is maintaining its proposal which is 
identical to the common position. 
European Parliament amentinients to the common position 
• No Î (Article 4 - Cluster of SMEs and one large enterprise): SMBs are entitled to 
participate in indirect RTD actions just like any other legal entity. 
• No 2 (Article 5 - Exception to the requirement that an enterprise must have been 
operational for at least one year in order to qualify for Community subsidies): The 
Article in question makes no mention of any rule as regards how long an enterprise 
must have been in existence, and "start-up companies" (entities'on the point of 
exercising an RTD activity) can also participate. 
• No 3 (Article 8 - Advance financing- of innovative projects): This Article is not 
intended to determine the point in time when the contribution is paid but simply 
concerns the conditions concerning the resources which participants must have. 
Advance financing should also be seen in conjunction with the question of the 
payment of the advance. 
• No 4 (Article 10 - Agreement of the partners during the negotiation stage and 
submission of a new proposal if the contract is not signed within a fixed deadline): A 
fixed deadline might not be sufficiently flexible. In addition, it might be inappropriate 
to make provision for a simple option, that is already encountered in practice, in a 
legally binding text. 
No 5 (Article 12 - Contribution to the dissemination, use and alteration of innovative 
projects carried out in a rapidly changing market): The detailed rules for 
dissemination and use should be specified at the level of technological 
implementation. In addition, the contracts will contain provisions enabling 
supplementary agreements to be concluded. 
No 6 (Article 15 - Extending the cases of ownership of knowledge by the 
Community): Certain indirect RTD actions would fall into a legal vacuum; the 
Commission also feels that results should only be its property if it has borne the full 
costs. 
No 7 (Article 20 - Electronic data communication) : This would introduce a routine 
administrative rule into a text of principle ; the Commission already makes use of this 
possibility in practice. 
Nos 8 and 9 (Articles 22 and 22a - Protection of the Community's financial interests): 
The Commission favours sectoral legislation specific to research and intends to make 
provision both for contractual penalties and a recital in this connection in the specific 
programmes, as called for by the European Parliament. 
No 10 (Article 23a- Facilitating participation in projects): This would introduce a 
routine administrative rule into a text of principle ; moreover, the Commission is 
encouraging the establishment of assistance networks. 
No 11 (Article 23b - Reasoned decisions): This is already covered by the EC Treaty. 
3> 

ISSN 0254-1475 
COM(98) 654 final 
DOCUMENTS 
EN 15 08 16 01 
Catalogue number : CB-CO-98-654-EN-C 
Office lor Official Publications of the European Communities 
I ,-2()K5 I Aixembour^ ISSN 0254-1475 
COM(98) 654 final 
DOCUMENTS 
EN 15 08 16 01 
Catalogue number : CB-CO-98-654-EN-C 
Office lor Official Publications of the European Communities 
I ,-2()K5 I Aixembour^ ISSN 0254-1475 
COM(98) 654 final 
DOCUMENTS 
EN 15 08 16 01 
Catalogue number : CB-CO-98-654-EN-C 
Office lor Official Publications of the European Communities 
I ,-2()K5 I Aixembour^