Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL laying down the rules for the participation and dissemination in 'Horizon 2020 – the Framework Programme for Research and Innovation (2014-2020)'
Date: 2011-11-30
Institutions: European Commission
Subjects: EU financing, EU research policy, Framework Programme for Research and Development, innovation, research and development, scientific cooperation, self-employed person, small and medium-sized enterprises, technical cooperation, tendering

EUROPEAN COMMISSION 

Brussels, 30.11.2011 
COM(2011) 810 final 

2011/0399 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

laying down the rules for the participation and dissemination in 'Horizon 2020 – the 
Framework Programme for Research and Innovation (2014-2020)' 

(Text with EEA relevance) 

{SEC(2011) 1427-Volume 2} 
{SEC(2011) 1428-Volume 2} 

 
 
  
 
EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

The  set  of  proposals  for  "Horizon  2020"  fully  supports  the  Europe  2020  strategy, 
which  identified  research  and  innovation  as  central  to  achieving  the  objectives  of 
smart, sustainable and inclusive growth. They consist of proposals for a Framework 
Programme  "Horizon  2020",  a  single  set  of  Rules  for  Participation  and 
Dissemination, a single Specific Programme to  implement  "Horizon  2020",  as  well 
as a separate proposal for the parts of "Horizon 2020" corresponding to the Euratom 
Treaty. 

Designed  to  support  the  Europe  2020  Flagship  Initiative  "Innovation  Union"1,  the 
basic principle of "Horizon 2020" and these rules is to adopt a much more strategic 
approach  to  research  and  innovation.  All  policy  instruments  and  measures  are 
designed  to  contribute  to  research  and  innovation  and  to  further  develop  the 
European  Research  Area  whereby  knowledge,  researchers  and  technology  circulate 
freely, and to accelerate the commercialisation and diffusion of innovation across the 
Single Market. 

The rules proposed were drawn up with the twofold aim of: 

– 

– 

Ensuring  a  single  and  sufficiently  flexible  regulatory  framework  which  will 
render participation easier, create a more coherent set of instruments covering 
both research and innovation and increase the scientific and economic impact 
while avoiding duplication and fragmentation.  

Simplifying the terms and procedures from the perspective of the participants 
to  ensure  the  most  efficient  implementation,  taking  into  account  the  need  for 
easy access for all participants. 

The following new features have been introduced into the rules for participation and 
dissemination in order to apply the above principles and to bring the rules into line 
with the characteristics and objectives of the new framework programme: 

– 

– 

The rules will apply to all components of "Horizon 2020", including initiatives 
under Articles 185 and 187 TFEU, actions currently falling within the scope of 
the  Competitiveness  and  Innovation  Programme  as  well  as  the  EIT  activities. 
The necessary flexibility corresponding to the different nature of the research 
and innovation actions is ensured by appropriate derogations and by allowing 
to set out specific participation details in the work programmes; 

The  rules  for  participation  relating  to  the  Union  funding  are  based  on  the 
revised Regulation of the European Parliament and the Council on the financial 
rules applicable to the annual budget of the Union2 which has streamlined and 
rendered more efficient the way in which Union policies can be implemented. 

1 
2 

COM (2010) 546 final, 6.10.2010. 
OJ L, , p. 

EN 

2 

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– 

– 

– 

– 

– 

– 

The  financial  provisions  relating  to  the  Union  funding  in  the  form  of  grants 
have  been  clarified  and  simplified.  Thus,  they  are  now  establishing  a  single 
funding  rate  depending  for  each  type  of  action  funded  under  "Horizon  2020" 
with  no  differentiation  among  participants.  Enhanced  use  of  lump  sums,  flat 
rates and scale of unit costs is also proposed. 

For  direct  costs,  these  rules  provide  for  a  broad  acceptance  of  the  usual 
accounting  practices  of  grant  beneficiaries,  subject  to  a  minimum  number  of 
boundary  conditions.  The  grant  agreement  will  include  further  simplification 
provisions allowing beneficiaries to gain legal certainty on the eligibility of the 
costs charged to actions under "Horizon 2020". Those simplification provisions 
will  include,  among  others,  a  clear  definition  of  the  time  recording 
requirements and objective references regarding the annual productive hours. 

For  indirect  costs,  the  calculation  is  radically  simplified;  the  reimbursement 
foresees  a  flat  rate  based  on  total  direct  eligible  costs  of  participants  with  a 
possibility to declare costs actually incurred which is limited to non-profit legal 
entities. 

Rules applying to the new forms of funding allow for more flexibility, such as 
those  related  to  prizes  to  be  awarded  for  the  achievement  of  pre-specified 
targets or those related to public pre-commercial procurement and procurement 
of innovative solutions as well as those related to the financial instruments. 

Given its demonstrated efficiency as a safeguard mechanism, the participants' 
Guarantee  Fund  set  up  under  the  Seventh  Framework  Programme  will  be 
renewed  for  the  entire  duration  of  "Horizon  2020"  with  clearer  rules  and  the 
possibility  to  extend  it  to  cover  risks  undertaken  in  actions  under  the 
EURATOM Framework Programme. 

The  rules  regarding  intellectual  property,  exploitation  and  dissemination  have 
been  modelled  on  the  widely  acknowledged  Seventh  Framework  Programme 
provisions  with  further 
improvements  and  clarifications.  Specific  new 
emphasis has been put on open access to research publications and an opening 
was  made  for  experiments  with  open  access  to  other  results.  The  enlarged 
scope and new forms of funding as well as the need for flexibility in this area 
of  the  rules  has  been  taken  into  account  by  the  possibility  to  lay  down 
additional  or  specific  provisions  where  appropriate.  Access  rights  for  the 
European Union, and in the field of security research also for Member States, 
have been foreseen. 

Furthermore,  the  participation  of  legal  entities  established  in  third  countries  and  of 
international organisations in actions under "Horizon 2020" will be streamlined and 
stimulated,  in  line  with  the  objectives  of  international  cooperation  set  out  in  the 
Treaty,  based  on  mutual  benefits  and  taking  into  account  the  conditions  for  the 
participation of European Union entities to third countries’ programmes. 

Within  the  clear  and  stable  framework,  participants  will  enjoy  further  flexibility  to 
determine the most appropriate internal arrangements for the implementation of their 
actions.  This  should  encourage  and  facilitate  the  participation  of  all  research 
stakeholders, including small research units, particularly SMEs. 

EN 

3 

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2. 

RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND 
IMPACT ASSESSMENTS 

The  preparation  of  the  proposal  took  full  account  of  the  responses  to  an  extensive 
public  consultation  based  on  a  Green  Paper,  "From  challenges  to  opportunities: 
towards a common strategic framework for Union research and innovation funding", 
COM(2011)48. Views were expressed by the European Council, Member States and 
a wide range of stakeholders from industry, academia and civil society. 

The consultations carried out have identified the following obstacles: 

– 

– 

– 

The most important one from the participant's perspective is the complexity of 
administrative procedures along with the administrative burden. 

Participants  also  find  very  burdensome  to  apply  different  sets  of  rules 
depending  on  the  Union  research  and  innovation  programme  and  called  for  a 
greater consistency of rules between instruments. 

The last issue is the need to introduce a risk/trust balance. Currently too many 
procedures,  in  particular  regarding  financial  controls,  appear  to  be  designed 
exclusively  to  ensure  a  very  low  risk  of  errors,  but  also  result  in  control 
mechanisms perceived as rigid and excessive. 

The basic principles established by these rules have been reviewed through a formal 
Impact Assessment. 

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

1.1. 

Legal base 

Horizon  2020  legislative  package  integrates  research  and  innovation  activities  in  a 
seamless way in order to achieve the policy objectives.  

The  Rules  for  Participation  and  dissemination  will  be  based  on  the  TFEU  Titles 
"Industry"  and  "Research  and  technological  development  and  space"  (Articles  173, 
183 and 188). 

1.2. 

Subsidiarity and proportionality principles 

The  Horizon  2020  package  has  been  designed  to  maximise  EU  added  value  and 
impact,  focusing  on  objectives  and  activities  that  cannot  be  efficiently  realised  by 
Member  States  acting  alone.  The  Rules  for  participation  and  dissemination  are 
intended to facilitate the implementation of Horizon 2020 proposal and therefore the 
subsidiary analysis presented with therein applies. 

The principle of proportionality is satisfied inasmuch as the proposed simplification 
and  rationalisation  ensure  that  EU  action  would  not  go  beyond  the  minimum 
necessary  to  achieve  the  objectives  of  ensuring  the  implementation  of  the  Horizon 
2020.

EN 

4 

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2011/0399 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

laying down the rules for the participation and dissemination in 'Horizon 2020 – the 
Framework Programme for Research and Innovation (2014-2020)' 

(Text with EEA relevance) 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union  ("TFEU"),  and  in 
particular Articles 173, 183 and the second paragraph of Article 188 thereof, 

Having regard to the proposal from the European Commission, 

After transmission of the draft legislative act to the national Parliaments, 

Having regard to the opinion of the European Economic and Social Committee1, 

Having regard to the opinion of the Court of Auditors 2, 

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

(2) 

"Horizon  2020  -  the  Framework  Programme  for  Research  and  Innovation  (2014-
2020)" (Horizon 2020) was adopted by Regulation [X] of the European Parliament and 
of  the  Council  of  [X]  establishing  Horizon  2020  –  The  Framework  Programme  for 
Research  and  Innovation3.  That  Regulation  needs  to  be  complemented  by  rules  for 
participation and dissemination. 

Horizon 2020 should be implemented with a view to contributing directly to creating 
industrial  leadership,  growth  and  employment  in  Europe  and  should  reflect  the 
strategic vision of the Commission Communication of 6 October 2010 to the European 
Parliament,  the  Council,  the  European  Economic  and  Social  Committee  and  the 
Committee of the Region "Europe 2020 Flagship Initiative Innovation"4 whereby the 
Commission engages to radically simplify access of participants. 

1 
2 
3 
4 

OJ C , , p. . 
OJ C , , p. . 
OJ C , , p. . 
COM (2010) 546 final, 6.10.2010. 

EN 

5 

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(3) 

(4) 

(5) 

(6) 

Horizon  2020  should  support  the  achievement  and  functioning  of  the  European 
Research  Area  in  which  researchers,  scientific  knowledge  and  technology  circulate 
freely,  by  strengthening  cooperation  between  the  Union  and  the  Member  States, 
notably through application of a coherent set of rules. 

The  rules  for  the  participation  and  dissemination  should  adequately  reflect  the 
recommendations  of  the  European  Parliament,  as  summarised  in  the  "Report  on 
simplifying  the  implementation  of  the  Research  Framework  Programmes"5,  and 
Council  with  regard  to  the  simplification  of  the  administrative  and  financial 
requirements of the research framework programmes. The rules should give continuity 
to the simplification measures already implemented under Decision No 1982/2006/EC 
of the European Parliament and of the Council of 18 December 2006 concerning the 
the  European  Community  for  research, 
Seventh  Framework  Programme  of 
technological  development  and  demonstration  activities  (2007-2013)6  and  progress 
further in reducing the administrative burden for participants and the complexity of the 
financial  provisions  in  order  to  decrease  financial  errors.  The  rules  should  also  duly 
consider  the  concerns  and  recommendations  from  the  research  community  resulting 
from the debate initiated by the Commission Communication of 29 April 2010 to the 
European Parliament, the Council, the European Economic and Social Committee and 
the  Committee  of  the  Regions  "Simplifying  the  implementation  of  the  research 
framework programmes",7 and the subsequent Green Paper of 9 February 2011 "From 
Challenges  to  Opportunities:  Towards  a  Common  Strategic  Framework  for  EU 
Research and Innovation funding"8. 

In  order  to  ensure  coherence  with  other  Union  funding  programmes,  Horizon  2020 
should  be  implemented  in  accordance  with  Regulation  (EU)  No.  XX/XX  of  the 
European Parliament and of the Council of […] on the financial rules applicable to the 
annual  budget  of  the  Union,9  and  the  Delegated  Commission  Regulation  (EU)  No. 
X/X  of  […]  amending  the  detailed  rules  for  the  implementation  of  the  Financial 
Regulation10. 

An integrated approach should be ensured by bringing together activities covered by 
the Seventh Framework Programme for research, the Competitiveness and Innovation 
Framework Programme and the European Institute of Innovation and Technology (the 
EIT)  to  make  participation  easier,  create  a  more  coherent  set  of  instruments  and 
increase  the  scientific  and  economic  impact  while  avoiding  duplication  and 
fragmentation.  Common  rules  should  apply  in  order  to  ensure  a  coherent  framework 
which  should  facilitate  the  participation  in  programmes  receiving  Union  financial 
contribution  from  the  budget  of  Horizon  2020,  including  the  participation  in 
programmes  managed  by  the  EIT,  joint  undertakings  or  any  other  structures  under 
Article  187  TFEU  or  participation  in  programmes  undertaken  by  Member  States 
pursuant to Article 185 TFEU. However, flexibility to adopt specific rules should be 

5 

6 
7 
8 
9 
10 

Report  of  the  Committee  on  Industry,  Research  and  Energy  of  6  October  2010,  rapporteur:  Maria  da 
Graça Carvalho, P7 TA(2010)0401. 
OJ L 412, 30.12.2006, p.1. 
COM (2010) 187. 
COM (2011) 48. 
OJ L, , p. 
OJ L, , p 

EN 

6 

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(7) 

(8) 

(9) 

ensured  when  justified  by  the  specific  needs  of  the  respective  actions  and  with 
Commission consent. 

Actions  which  fall  within  the  scope  of  this  Regulation  should  respect  fundamental 
rights  and  observe  the  principles  acknowledged  in  particular  by  the  Charter  of 
Fundamental  Rights  of  the  European  Union.  Such  actions  should  be  in  conformity 
with any legal obligation and with ethical principles, which include avoiding any kind 
of plagiarism.  

In line with the objectives of international cooperation as set out in Articles 180 and 
186  TFEU,  the  participation  of  legal  entities  established  in  third  countries  and  of 
international  organisations  should  be  promoted.  The  implementation  of  these  rules 
should be in conformity with the measures adopted in accordance with Articles 75 and 
215 TFEU and be in compliance with international law. Moreover, the implementation 
of these rules should duly take into account conditions for the participation of Union 
entities in third countries’ programmes. 

These  rules  for  the  participation  and  dissemination  should  provide  a  coherent, 
comprehensive and transparent framework to ensure the most efficient implementation 
possible, taking into account the need for easy access by all participants, notably small 
and medium-sized enterprises, through simplified procedures. The financial assistance 
from the Union could be provided through different forms. 

(10)  Handling of confidential data and classified information should be governed by all the 
relevant  Union  legislation,  including  the  Institutions'  internal  rules,  such  as 
Commission Decision 2001/844/EC, ECSC, Euratom of 29 November 2001 amending 
its  internal  Rules  of  Procedure11  which  lays  down  the  provisions  on  security  of 
European Union classified information. 

(11) 

(12) 

It is necessary to establish the minimum conditions for participation, both as a general 
rule  and  with  regard  to  the  specificities  of  the  actions  under  Horizon  2020.  In 
particular,  rules  should  be  laid  down  regarding  the  number  of  participants  and  their 
place of establishment. In the case of an action without the participation of an entity 
established in a Member State, the attainment of the objectives laid down in Articles 
173 and 179 TFEU should be pursued. 

It is appropriate to establish the terms and conditions for providing Union funding for 
participants  in  actions  under  Horizon  2020.  In  order  to  reduce  the  complexity  of  the 
existing  funding  rules  and  have  a  higher  flexibility  in  the  project  implementation,  a 
simplified cost reimbursement system should be adopted with enhanced use  of lump 
sums,  flat  rates  and  scale  of  unit  costs.  For  simplification  purposes,  a  single 
reimbursement  rate  should  be  applied  for  each  type  of  action  with  no  differentiation 
according to the type of participant. 

(13)  Specific challenges in the area of research and innovation should be addressed through 
new  forms  of  funding  such  as  prizes,  pre-commercial  procurement  and  public 
procurement of innovative solutions which require specific rules. 

11 

OJ L 317, 3.12.2001, as amended by Decision 2006/548/EC, Euratom (OJ L 215, 5.8.2006). 

EN 

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(14) 

In  order  to  maintain  a  level  playing  field  for  all  undertakings  active  in  the  internal 
market,  funding  provided  by  Horizon  2020  should  be  designed  in  accordance  with 
State aid rules so as to ensure the effectiveness of public spending and prevent market 
distortions  such  as  crowding-out  of  private  funding,  creating  ineffective  market 
structures or preserving inefficient firms. 

(15)  The  financial  interests  of  the  Union  should  be  protected  through  proportionate 

measures throughout the expenditure cycle. 

(16)  The  participant  Guarantee  Fund  set  up  under  Regulation  No  1906/2006/EC  of  the 
European Parliament and of the Council of 18 December 2006 laying down the rules 
for the participation of undertakings, research centres and universities in actions under 
the  Seventh  Framework  Programme  and  for  the  dissemination  of  research  results 
(2007-2013)12  and  managed  by  the  Commission  has  proved  to  be  an  important 
safeguard mechanism which mitigates the risks associated to the amounts due and not 
reimbursed  by  defaulting  participants.  Therefore,  a  new  participant  Guarantee  Fund 
(the Fund) should be established. In order to ensure a more efficient management and 
a  better  coverage  of  participants'  risk,  the  Fund  should  cover  actions  under  the 
programme set up under Decision No 1982/2006/EC, under the programme set up by 
Council  Decision  of  18  December  2006  concerning  the  Seventh  Framework 
Programme  of  the  European  Atomic  Energy  Community  (Euratom)  for  nuclear 
research  and  training  activities  (2007  to  2011)13,  under  the  programme  set  up  by 
Council  Decision  […]  of  X  2011  establishing  the  Framework  Programme  of  the 
European  Atomic  Energy  Community  (2012-2013)  as  well  as  actions  under 
Regulation (EU) No XX/XX [Horizon 2020] and Regulation (Euratom) No XX/XX of 
the Council on the Research and Training Programme of the European Atomic Energy 
the  Framework 
Community  (2014-2018)  complementing 
Programme  for  Research  and  Innovation  [Euratom  H2020]14.  Programmes  managed 
by entities other than Union bodies should not be covered by the Fund.  

the  Horizon  2020- 

(17) 

In  order  to  enhance  transparency,  the  names  of  experts  that  have  assisted  the 
Commission  or  relevant  funding  bodies  in  application  of  this  Regulation  should  be 
published. Where the publication of the name would endanger the security or integrity 
of the expert or would unduly prejudice his or her privacy, the Commission or funding 
bodies should be able to refrain from the publication of such names. 

(18)  Personal  data  relating  to  the  experts  should  be  processed  in  accordance  with 
Regulation  (EC)  No  45/2001  of  the  European  Parliament  and  of  the  Council  of  18 
December  2000  on  the  protection  of  individuals  with  regard  to  the  processing  of 
personal data by the Community institutions and bodies and on the free movement of 
such data15. 

(19)  Rules governing the exploitation and dissemination of results should be laid down to 
ensure  that  the  participants  protect,  exploit  and  disseminate  those  results  as 
appropriate,  in  particular  the  possibility  of  additional  exploitation  conditions  in  the 
European strategic interest. 

12 
13 
14 
15 

OJ L 391, 30.12.2006, p.1. 
OJ L 54, 22.2.2007, p. 21 
OJ L… 
OJ L 8, 12.1.2001, p. 1. 

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(20)  For  reasons  of  legal  certainty  and  clarity,  Regulation  (EC)  No  1906/2006  should  be 

repealed. 

HAVE ADOPTED THIS REGULATION: 

Title I 
INTRODUCTORY PROVISIONS 

Article 1 

Subject matter and scope 

1. 

2. 

3. 

4. 

This  Regulation  lays  down  specific  rules  for  the  participation  in  indirect  actions 
undertaken under Regulation (EU) No XX/XX of the European Parliament and of the 
Council  [Horizon  2020],  including  the  participation  in  indirect  actions  funded  by 
funding bodies in accordance with Article 9(2) of that Regulation. 

This Regulation also lays down the rules governing the dissemination of results. 

Subject  to  the  specific  rules  laid  down  in  this  Regulation,  the  relevant  rules  of 
Regulation  (EU)  No  XX/2012  of  the  European  Parliament  and  of  the  Council  [the 
Financial Regulation] and Commission Regulation (EU) No XX/2012 [its Delegated 
Regulation] shall apply. 

A  funding  body  may  establish  rules  which  depart  from  those  laid  down  in  this 
Regulation  or  Regulation  (EU)  No  XX/2012  [the  Financial  Regulation]  if  this  is 
provided  for  in  the  basic  act  or,  subject  to  the  consent  of  the  Commission,  if  its 
specific operating needs so require. 

This  Regulation  shall  not  apply  to  direct  actions  carried  out  by  the  Joint  Research 
Centre (JRC). 

Article 2 

Definitions 

1. 

For the purposes of this Regulation, the following definitions apply: 

(1) 'access rights' means rights to use results or background under the terms and conditions 
laid down in accordance with this Regulation; 

(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,  or  is  directly  or 
indirectly controlling a participant;  

(3)  ‘associated  country’  means  a  third  country  which  is  party  to  an  international  agreement 
with the Union, as identified in Article 7 of Regulation (EU) No XX/XX [Horizon 2020]; 

EN 

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(4) 'background' means any data, know-how and/or information whatever their form or nature 
as  well  as  any  rights  such  as  intellectual  property  rights  which  are  (i)  held  by  participants 
prior to their accession to the action and (ii) identified by the participants in accordance with 
Article 42; 

(5) 'basic act' means a legal act adopted by the Union institutions in the form of a regulation, 
a directive or a decision within the meaning of Article 288 TFEU which provides a legal basis 
for the action; 

(6) 'coordination and support action' means an action consisting primarily of accompanying 
measures  such  as  dissemination,  awareness  raising  and  communication,  networking, 
coordination or support services, policy dialogues and mutual learning exercises and studies, 
including design studies for new infrastructure; 

(7) 'dissemination' means the public disclosure of the results by any appropriate means (other 
than  resulting  from  protecting  or  exploiting  the  results),  including  by  publishing  in  any 
medium; 

(8)  'funding  body'  means  a  body  or  authority,  other  than  the  Commission,  to  which  the 
Commission  has  entrusted  budget  implementation  tasks  in  accordance  with  Article  9(2)  of 
Regulation (EU) No XX/XX [Horizon 2020];  

(9)  ‘international  European  interest  organisation’  means  an  international  organisation,  the 
majority of whose members are Member States or associated countries, and whose principal 
objective is to promote scientific and technological cooperation in Europe; 

(10)  'legal  entity’  means  undertakings,  research  centres  and  universities,  encompassing  any 
natural person, or any legal person created under national law, Union law or international law, 
which  has  legal  personality  and  which  may,  acting  in  its  own  name,  exercise  rights  and  be 
subject to obligations; 

(11)  ‘participant’  means  any  legal  entity  carrying  out  an  action  or  part  of  an  action  under 
Regulation (EU) No XX/XX [Horizon 2020] having rights and obligations with regard to the 
Union or another funding body under the terms of this Regulation; 

(12) 'programme co-fund action' means an action funded through a grant the main purpose of 
which is supplementing individual calls or programmes funded by entities, other than Union 
bodies, managing research and innovation programmes;  

(13) 'pre-commercial procurement' means procurement of research and development services 
involving  risk-benefit  sharing  under  market  conditions,  and  competitive  development  in 
phases,  where  there  is  a  separation  of  the  research  and  development  phase  from  the 
deployment of commercial volumes of end-products; 

(14)  'public  procurement  of  innovative  solutions'  means  procurement  where  contracting 
authorities  act  as  a  launch  customer  for  innovative  goods  or  services  which  are  not  yet 
available on a large-scale commercial basis, and may include conformance testing; 

(15)  'results'  means  any  data,  knowledge  and  information  whatever  their  form  or  nature, 
whether or not they can be protected, which are generated in the action as well as any attached 
rights, including intellectual property rights; 

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(16)  ‘work  programme’  means  the  document  adopted  by  the  Commission  for  the 
implementation  of  the  specific  programme  in  accordance  with  Article  5  of  Decision  No 
XX/XX/EU of the Council [Specific programme H2020]; 

(17) ‘work plan’ means the document similar to the Commission work programme adopted by 
funding bodies entrusted with part of the implementation of Horizon 2020 in accordance with 
Article 9(2) of Regulation (EU) No XX/XX [Horizon 2020]. 

2. 

3. 

4. 

5. 

For the purposes of point (2) of paragraph 1, control may take any of the forms set 
out in Article 7. 

For the purposes of this Regulation an entity which does not have legal personality 
under  the  applicable  national  law  is  assimilated  to  a  legal  entity  provided  that  the 
conditions  set  out  in  Regulation  (EU)  No  XX/2012  [the  Financial  Regulation]  are 
complied with. 

For the purposes of this Regulation, grant recipients shall not be considered funding 
bodies. 

For  the  purposes  of  point  (12)  of  paragraph  1,  actions  may  also  include 
complementary  activities  of  networking  and  coordination  between  programmes  in 
different countries. 

Article 3 

Confidentiality 

Subject to the conditions established in the implementing agreements, decisions or contracts, 
any data, knowledge and information communicated as confidential in the frame of an action 
shall  be  kept  confidential,  taking  due  account  of  any  rules  regarding  the  protection  of 
classified information. 

Article 4 

Information to be made available 

1. 

Without prejudice to Article 3, the Commission shall, upon request, make available 
to  the  Union  institutions  and  bodies,  any  Member  State  or  associated  country,  any 
useful  information  in  its  possession  on  results  of  a  participant  that  has  received 
Union funding, provided that both the following conditions are met: 

(a) 

the information concerned is relevant to public policy; 

(b) 

the participants have not provided sound and sufficient reasons for withholding 
the information concerned. 

In actions under the activity 'Secure societies' within the specific objective 'Inclusive, 
innovative  and  secure  societies',  the  Commission  may  make  available  to  Union 
institutions and bodies or Member States' national authorities any useful information 
in its possession on results of a participant that has received Union funding. 

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2. 

The provision of information pursuant to paragraph 1 shall not be deemed to transfer 
to  the  recipient  any  rights  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  participants,  or  unless  it  was 
communicated  to  the  Commission  without  restrictions  concerning  confidentiality. 
The Commission rules on security shall apply regarding classified information. 

Title II 
RULES FOR THE PARTICIPATION 

Chapter I 
GENERAL PROVISIONS  

Article 5 

Forms of funding  

In accordance with Article 10 of Regulation (EU) XX/2012 [Horizon 2020], funding may take 
one  or  several  of  the  forms  of  provided  for  by  Regulation  (EU)  No  XX/2012  [Financial 
Regulation], in particular grants, prizes, procurement and financial instruments.  

Article 6 

Legal entities that may participate in actions 

1. 

2. 

3. 

4. 

Any  legal  entity  regardless  of  its  place  of  establishment  and  international 
organisations may participate in an action provided that the conditions laid down in 
this  Regulation  have  been  met  as  well  as  any  conditions  laid  down  in  the  relevant 
work programme or work plan. 

The relevant work programme may restrict the participation in Horizon 2020 or parts 
thereof  of  legal  entities  established  in  third  countries  where  conditions  for  the 
participation of legal entities from Member States in the third country’s research and 
innovation programmes are considered prejudicial to the Union's interests.  

The relevant work programme or work plan may exclude entities not able to provide 
satisfactory security guarantees, including as regards personnel security clearance if 
justified by security reasons.  

The  JRC  may  participate  in  actions  with  the  same  rights  and  obligations  as  a  legal 
entity established in a Member State.  

Article 7 

Independence 

12 

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1. 

2. 

Two  legal  entities  shall  be  regarded  as  independent  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. 

For  the  purposes  of  paragraph  1,  control  may,  in  particular,  take  either  of  the 
following forms: 

(a) 

the  direct  or  indirect  holding  of  more  than  50  %  of  the  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 holding, 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  indirect  holding  of  more  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 owned or supervised by the same public body. 

Chapter II 
GRANTS 

SECTION I 
AWARD PROCEDURE 

Article 8 

Conditions for participation 

1. 

The following minimum conditions shall apply: 

(a) 

at least three legal entities shall participate in an action;  

(b) 

each of the three shall be established in a Member State or associated country; 

(c)  no two of the three may be established in the same Member State or associated 

country; 

(d) 

all three legal entities shall be independent of each other within the meaning of 
Article 7. 

2. 

For  the  purposes  of  paragraph  1,  where  one  of  the  participants  is  the  JRC,  or  an 
international European interest organisation or an entity created under Union law, it 
shall be deemed to be established in a Member State or associated country other than 

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3. 

4. 

5. 

any  Member  State  or  associated  country  in  which  another  participant  in  the  same 
action is established.  

By way of derogation from paragraph 1, in the case of European Research Council 
(ERC)  frontier  research  actions,  the  SME  instrument,  programme  co-fund  actions 
and  in  justified  cases  provided  for  in  the  work  programme  or  work  plan,  the 
minimum  condition  shall  be  the  participation  of  one  legal  entity  established  in  a 
Member State or associated country. 

By  way  of  derogation  from  paragraph  1,  in  the  case  of  coordination  and  support 
actions  and  training  and  mobility  actions,  the  minimum  condition  shall  be  the 
participation of one legal entity. 

Work programmes or work plans may provide for additional conditions according to 
specific policy requirements or to the nature and objectives of the action, including 
inter alia conditions regarding the number of participants, the type of participant and 
the place of establishment. 

Article 9 

Eligibility for funding 

1. 

The following participants are eligible for funding from the Union: 

(a) 

any legal entity established in a Member State or associated country, or created 
under Union law; 

(b) 

any international European interest organisation; 

(c) 

any  legal  entity  established  in  a  third  country  identified  in  the  work 
programme. 

2. 

In  the  case  of  a  participating  international  organisation  or  in  the  case  of  a 
participating legal entity established in a third country, neither of which are eligible 
for  funding  according  to  paragraph  1,  funding  from  the  Union  may  be  granted 
provided that at least one of the following conditions is fulfilled: 

(a) 

(b) 

the  participation  is  deemed  essential  for  carrying  out  the  action  by  the 
Commission or the relevant funding body; 

such  funding  is  provided  for  under  a  bilateral  scientific  and  technological 
agreement  or  any  other  arrangement  between  the  Union  and  the  international 
organisation or, for entities established in third countries, the country in which 
the legal entity is established. 

Article 10 

Calls for proposals 

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Without prejudice to the other cases provided for in Regulation (EU) No XX/2012 [Financial 
Regulation] and in Regulation (EU) No XX/2012 [Delegated Regulation], calls for proposals 
shall not be issued for coordination and support actions and programme co-fund actions to be 
carried out by legal entities identified in the work programmes provided that the action does 
not fall under the scope of a call for proposals. 

1. 

2. 

3. 

1. 

2. 

3. 

Article 11 

Joint calls with third countries or with international organisations 

Joint  calls  for  proposals  with  third  countries  or  their  scientific  and  technological 
organisations  and  agencies  or  with  international  organisations  may  be  launched  to 
jointly  fund  actions.  Proposals  shall  be  evaluated  and  selected  through  joint 
evaluation and selection procedures to be agreed upon. Such evaluation and selection 
procedures  shall  ensure  compliance  with  the  principles  set  out  in  Title  VI  of 
Regulation  (EU)  XX/2012  [Financial  Regulation]  and  involve  a  balanced  group  of 
independent experts appointed by each party. 

Legal  entities  receiving  funding  from  the  Union  shall  conclude  a  grant  agreement 
with the Union or the relevant funding body. That grant agreement shall include the 
description  of  work  to  be  done  by  those  participants  and  by  the  participating  legal 
entities from the third countries involved. 

Legal  entities  receiving  funding  from  the  Union  shall  conclude  a  coordination 
agreement  with  the  participating  legal  entities  receiving  funding  from  the  relevant 
third countries or international organisations. 

Article 12 

Proposals 

Where  appropriate,  proposals  shall  include  a  draft  plan  for  the  exploitation  and 
dissemination of the results. 

Any  proposal  for  research  on  human  embryonic  stem  cells  shall  include,  as 
appropriate,  details  of  licensing  and  control  measures  that  will  be  taken  by  the 
competent authorities of the Member States as well as details of the ethical approvals 
that  will  be  provided.  As  regards  the  derivation  of  human  embryonic  stem  cells, 
institutions,  organisations  and  researchers  shall  be  subject  to  strict  licensing  and 
control in accordance with the legal framework of the Member States involved. 

A  proposal  which  contravenes  ethical  principles  or  any  applicable  legislation,  or 
which  does  not  fulfil  the  conditions  set  out  in  Decision  No  XX/XX/EU  [specific 
programme], the work programme or work plan or in the call for proposals may be 
excluded from the evaluation, selection and award procedures at any time. 

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Article 13 

Ethics review 

The  Commission  shall  systematically  carry  out  ethics  reviews  for  proposals  raising  ethical 
issues. This review shall verify the respect of ethical principles and legislation and, in the case 
of research carried out outside the Union, that the same research would have been allowed in 
a Member State. 

Article 14 

Selection and award criteria  

1. 

The  proposals  submitted  shall  be  evaluated  on  the  basis  of  the  following  award 
criteria: 

(a) 

excellence; 

(b) 

impact; 

2. 

3. 

4. 

5. 

6. 

1. 

(c)  quality and efficiency of the implementation. 

The sole criterion of excellence shall apply for proposals for ERC frontier research 
actions. 

The work programme or work plan shall lay down further details of the application 
of  the  award  criteria  laid  down  in  paragraph  1,  and  specify  weightings  and 
thresholds. 

Proposals shall be ranked according to the evaluation results. The selection shall be 
made on the basis of this ranking.  

The Commission or the relevant funding body shall verify the financial capacity in 
advance  only  for  coordinators  when  the  requested  funding  from  the  Union  for  the 
action is equal or superior to EUR 500 000, unless where, on the basis of available 
information,  there  are  grounds  to  doubt  the  financial  capacity  of  the  coordinator  or 
other participants.  

The  financial  capacity  shall  not  be  verified  for  legal  entities  whose  viability  is 
guaranteed by a Member State or an associated country and for higher and secondary 
education establishments. 

Article 15 

Evaluation review procedure 

The  Commission  or  the  relevant  funding  body  shall  provide  an  evaluation  review 
procedure  for  applicants  who  consider  that  the  evaluation  of  their  proposal  has  not 
been carried out in accordance with the procedures set out in these rules, the relevant 
work programme or work plan and the call for proposals. 

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2. 

3. 

4. 

5. 

6. 

7. 

1. 

2. 

3. 

4. 

A request for review shall relate to a specific proposal, and shall be submitted by the 
coordinator of the proposal within 30 days of the date when the Commission or the 
relevant funding body informs the coordinator of the evaluation results. 

The  Commission  or  the  relevant  funding  body  shall  be  responsible  for  the 
examination of this request. This examination shall only cover the procedural aspects 
of the evaluation, and not the merit of the proposal. 

An  evaluation  review  committee  composed  of  Commission  staff  or  of  the  relevant 
funding  body  staff  shall  provide  an  opinion  on  the  procedural  aspects  of  the 
evaluation  process.  It  shall  be  chaired  by  an  official  of  the  Commission  or  of  the 
relevant funding body, from a department other than the one responsible for the call 
for proposals. The committee may recommend one of the following: 

(a) 

re-evaluation of the proposal;  

(b) 

confirmation of the initial opinion. 

On the basis of that recommendation a decision shall be taken by the Commission or 
the relevant funding body and notified to the coordinator of the proposal. 

The review procedure shall not delay the selection process of proposals which are not 
the subject of requests for review. 

The review procedure shall not preclude any other actions the participant may take in 
accordance with Union law. 

Article 16 

Grant agreement 

The Commission or the relevant funding body shall enter into a grant agreement with 
the participants.  

The grant agreement shall establish the rights and obligations of the participants, of 
the Commission or the relevant funding bodies. It shall also establish the rights and 
obligations of legal entities which become participants during the implementation of 
the action. 

The  grant  agreement  may  establish  rights  and  obligations  of  the  participants  with 
regard to access rights, exploitation and dissemination, additional to those laid down 
in this Regulation.  

The  grant  agreement  shall,  where  appropriate,  reflect  the  general  principles  laid 
down in Commission Recommendation on the European Charter for Researchers and 
the Code of Conduct for the Recruitment of Researchers16. 

16 

C(2005) 576 final, 11.3.2005 

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5. 

6. 

The  grant  agreement  shall,  where  appropriate,  contain  provisions  ensuring  the 
respect  of  ethical  principles,  including  the  establishment  of  an  independent  ethics 
board and the right of the Commission to carry out an ethics audit. 

Specific  grants  for  actions  may  form  part  of  a  framework  partnership  according  to 
the  provisions  of  Regulation  (EU)  No  XX/2012  [the  Financial  Regulation]  and 
Regulation (EU) No [the Delegated Regulation]. 

Article 17 

Grant decisions 

Where  appropriate  the  Commission,  in  accordance  with  Article  X  of  Regulation  (EU)  No 
XX/2012  [Financial  Regulation],  or  the  relevant  funding  body  may  adopt  grant  decisions 
instead of entering into grant agreements. The provisions of this Regulation referring to grant 
agreements shall apply mutatis mutandis. 

Article 18 

Secure electronic system 

The  Commission  or  the  relevant  funding  body  may  establish  a  secure  electronic  system  for 
exchanges  with  the  participants.  A  document  submitted  by  means  of  this  system,  including 
grant  agreements,  shall  be  deemed  to  be  the  original  of  that  document  where  the  user 
identification  and  password  of  the  participant's  representative  have  been  used.  Such 
identification shall constitute the signature of the document concerned. 

SECTION II 
IMPLEMENTATION 

Article 19 

Implementation of the action 

1. 

2. 

The participants shall implement the action in compliance with all the conditions and 
obligations  set  out  in  this  Regulation,  Regulation  (EU)  No  XX/2012  [Financial 
Regulation],  Regulation  (EU)  No  [the  Delegated  Regulation],  Decision  (EU)  No 
XX/XX  [the  specific  programme],  the  work  programme  or  work  plan,  the  call  for 
proposals and the grant agreement.  

Participants  shall  make  no  commitments  which  are  incompatible  with  the  grant 
agreement.  Where  a  participant  fails  to  comply  with  its  obligations  regarding  the 
technical implementation of the action, the other participants shall comply with the 
obligations without any additional Union funding unless the Commission or funding 
body expressly relieves them of that obligation. The financial responsibility of each 
participant shall be limited to its own debt, subject to the provisions relating to the 
Fund. The participants shall ensure that the Commission or funding body is informed 

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of any event which might affect the implementation of the action or the interests of 
the Union. 

The  participants  shall  implement  the  action  and  shall  take  all  necessary  and 
reasonable  measures  to  that  end.  They  shall  have  the  appropriate  resources  as  and 
when  needed  for  carrying  out  the  action.  Where  it  is  necessary  for  the 
implementation  of  the  action,  they  may  call  upon  third  parties,  including 
subcontractors, to carry out certain elements of the action or may use resources made 
available  by  third  parties  by  means  of  contributions  in  kind  according  to  the 
conditions  set  out  in  the  grant  agreement.  The  participant  shall  retain  sole 
responsibility towards the Commission or the relevant funding body and towards the 
other participants for the work carried out. 

The  award  of  subcontracts  for  carrying  out  certain  elements  of  the  action  shall  be 
limited to the cases provided for in the grant agreement. 

Third  parties  other  than  subcontractors  may  carry  out  part  of  a  participant's  work 
under the action, provided that the third party and the work to be carried out by it are 
identified in the grant agreement. 

Costs incurred by these third parties may be deemed eligible if the third party meets 
all the following conditions: 

(a) 

it is eligible for funding if it were a participant; 

(b) 

it is an affiliated entity or has a link to a participant in the framework of a legal 
structure covering a collaboration not limited to the project; 

(c) 

it is identified in the grant agreement;  

(d) 

it  abides  by  the  rules  applicable  to  the  participant  under  the  grant  agreement 
with regard to eligibility of costs and control of expenditure. 

Third  parties  may  also  make  available  resources  to  a  participant  by  means  of 
contributions in kind to the action. Costs incurred by third parties in relation to their 
in-kind contributions which are made free of charge are eligible for funding provided 
they meet the conditions established in the grant agreement. 

The  action  may  involve  financial  support  to  third  parties  under  the  conditions 
established in Regulation (EU) No XX/2012 [Financial Regulation] and Regulation 
(EU)  No  XX/2012  [Delegated  Regulation].  The  amounts  referred  to  in  Article 
[127(2)(c)]  of  Regulation  (EU)  XX/2012  [the  Financial  Regulation]  may  be 
exceeded where it is necessary to achieve the objectives of an action. 

The  action  carried  out  by  participants  which  are  contracting  authorities  within  the 
meaning  of  Directives  2004/17/EC17,  2004/18/EC18  and  2009/81/EC19  of  the 
European  Parliament  and  of  the  Council  may  involve  or  have  as  primary  aim  pre-

OJ L 134, 30.4.2004, p. 1. 
OJ L 134, 30.4.2004, p. 114. 
OJ L 216, 20.8.2009, p. 76. 

3. 

4. 

5. 

6. 

7. 

8. 

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18 
19 

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9. 

10. 

1. 

2. 

3. 

commercial  procurement  and  procurement  of  innovative  solutions,  where  provided 
for in a work programme or a work plan and required for its implementation. In such 
a case, the rules set out in Article 35(2) and in Article 49(2) and (3) shall apply to the 
procurement procedures carried out by the participants. 

Participants  shall  comply  with  national  legislation,  regulations  and  ethical  rules  in 
the  countries  where  the  action  will  be  carried  out.  Where  appropriate,  participants 
shall seek the approval of the relevant national or local ethics committees prior to the 
start of the action. 

Work  using  animals  shall  be  carried  out  in  accordance  with  Article  13  TFEU  and 
shall comply with the requirement to replace, reduce and refine the use of animals for 
scientific  purposes  in  accordance  with  Union  legislation  and  in  particular  with 
Directive 2010/63/EU of the European Parliament and the Council20. 

Article 20 

Consortium 

The members of any consortium wishing to participate in an action shall appoint one 
of them to act as coordinator which shall be identified in the grant agreement. 

The  members  of  a  consortium  participating  in  an  action  shall  conclude  an  internal 
agreement (the consortium agreement), except in duly justified cases provided for in 
the work programme or work plan or call for proposals. 

The consortium may propose to add or remove a participant in accordance with the 
respective  provisions  of  the  grant  agreement,  provided  that  this  change  is  in 
conformity  with  the  conditions  for  participation,  does  not  adversely  affect  the 
implementation of the action and is not contrary to the principle of equal treatment. 

SECTION III 
FORMS OF GRANTS AND FUNDING RULES  

Article 21 

Forms of grants 

Grants  may  take  any  of  the  forms  provided  for  in  Article  [116]  of  Regulation  (EU)  No 
XX/2012 [the Financial Regulation]. 

20 

OJ L 276, 20.10.2010,p.33. 

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1. 

2. 

3. 

4. 

5. 

6. 

1. 

2. 

Article 22 

Funding of the action 

The funding for an action shall not exceed the total eligible costs minus the receipts 
of the action. 

The following shall be considered as receipts of the action: 

(a)  Resources  made  available  by  third  parties  to  the  participants  by  means  of 
financial  transfers  or  contributions  in  kind  free  of  charge,  provided  that  they 
have been contributed by the third party specifically to be used in the action; 

(b) 

(c) 

Income generated by the action, except income generated by the exploitation of 
the results of the action;  

Income generated from the sale of assets purchased under the grant agreement 
up to the value of the cost initially charged to the action by the participant. 

A  single  reimbursement  rate  of  the  eligible  costs  shall  be  applied  per  action  for  all 
activities funded therein. The maximum rate shall be fixed in the work programme or 
work plan. 

The Horizon 2020 grant may reach a maximum of 100 % of the total eligible costs, 
without prejudice to the co-financing principle. 

The Horizon 2020 grant shall be limited to a maximum of 70 % of the total eligible 
costs for the following actions: 

(a) 

actions  primarily  consisting  of  activities  such  as  prototyping,  testing, 
demonstrating, experimental development, piloting, market replication; 

(b)  programme co-fund actions. 

The  reimbursement  rates  determined  in  this  Article  shall  also  apply  in  the  case  of 
actions where flat rate, scale of unit or lump-sum financing is fixed for the whole or 
part of an action. 

Article 23 

Eligibility of costs 

Conditions for eligibility of costs are defined in Article X of Regulation (EU) No xx 
[the  Financial  Regulation/Delegated  Regulation].  Costs  incurred  by  third  parties 
under the action may be eligible according to the provisions of this Regulation and of 
the grant agreement.  

Ineligible  costs  are  those  not  complying  with  the  above  conditions  in  particular 
provisions  for  possible  future  losses  or  charges,  exchange  losses,  costs  related  to 
return on capital, costs reimbursed in respect of another Union action or programme, 
debt and debt service charges and excessive or reckless expenditure. 

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Article 24 

Indirect costs 

1. 

2. 

1. 

2. 

3. 

Indirect eligible costs shall be determined by applying a flat rate of 20% of the total 
direct eligible costs, excluding direct eligible costs for subcontracting and the costs 
of  resources  made  available  by  third  parties  which  are  not  used  on  the  premises  of 
the beneficiary, as well as financial support to third parties.  

By way of derogation from paragraph 1, indirect costs may be declared in the form 
of  a  lump  sum  or  scale  of  unit  costs  when  provided  for  in  the  work  programme  or 
work plan.  

Article 25 

Annual productive hours 

Eligible  personnel  costs  shall  only  cover  the  actual  hours  worked  by  the  persons 
directly carrying out work under the action. The evidence regarding the actual hours 
worked  shall  be  provided  by  the  participant,  normally  through  a  time  recording 
system. 

For persons working exclusively for the action, no time recording is required. In such 
cases,  the  participant  shall  sign  a  declaration  confirming  that  the  person  concerned 
has worked exclusively for the action. 

The grant agreement shall contain the minimum requirements for the time recording 
system  as  well  as  the  number  of  annual  productive  hours  to  be  used  for  the 
calculation of the hourly personnel rates. 

Article 26 

Personnel costs of the owners of small and medium-sized enterprises and natural 
persons without salary 

The  owners  of  small  and  medium-sized  enterprises  who  do  not  receive  a  salary  and  other 
natural persons who do not receive a salary may charge personnel costs on the basis of a scale 
of unit cost. 

Article 27 

Scales of unit costs 

1. 

In accordance with Article X of Regulation (EU) No XX/XX [financial regulation], 
the Commission may establish methods to determine scales of unit costs based on: 

(a) 

statistical data or similar objective means; 

(b) 

auditable historical data of the participant.  

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2. 

Direct  eligible  personnel  costs  may  be  financed  on  the  basis  of  scale  of  unit  costs 
determined  according  to  the  participant's  usual  cost  accounting  practices,  provided 
that they comply with the following cumulative criteria: 

(a) 

they are calculated on the basis of the total actual personnel costs recorded in 
the  participant's  general  accounts  which  may  be  adjusted  on  the  basis  of 
budgeted  or  estimated  elements  according  to  the  conditions  defined  by  the 
Commission; 

(b) 

they comply with the provisions in Article 23; 

(c) 

(d) 

they  ensure  compliance  with  the  non-profit  requirement  and  avoidance  of 
double funding of costs; 

they  are  calculated  with  due  regard  to  the  provisions  on  productive  hours  in 
Article 25. 

Article 28 

Certificate on the financial statements 

The certificate on financial statements shall cover the total amount of the grant claimed by a 
participant  under  the  form  of  reimbursement  of  actual  costs  and  under  the  form  of  scale  of 
unit costs referred to Article 27(2). The certificate shall only be submitted when that amount 
is equal to or greater than EUR 325 000 at the time of claiming the payment of the balance of 
the grant. 

Article 29 

Certificates on the methodology 

Participants  that  calculate  and  claim  direct  personnel  costs  on  the  basis  of  scale  of 
unit  costs  may  submit  to  the  Commission  a  certificate  on  the  methodology.  That 
methodology shall comply with the conditions set out in Article 27(2) and meet the 
requirements of grant agreement. 

Where the Commission accepts a certificate on the methodology, it shall be valid for 
all  actions  financed  under  Regulation  (EU)  No  XX/XX  [Horizon  2020]  and  the 
participant shall calculate and claim costs on its basis. 

Article 30 

Certifying auditors 

The  certificates  on  the  financial  statements  and  on  the  methodology  referred  to  in 
Articles 28 and 29 shall be established by an independent auditor qualified to carry 
out  statutory  audits  of  accounting  documents  in  accordance  with  Directive 

1. 

2. 

1. 

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2006/43/EC  of  the  European  Parliament  and  of  the  Council21  or  similar  national 
regulations or by a competent and independent public officer for whom the relevant 
national  authorities  have  established  the  legal  capacity  to  audit  the  participant  and 
who has not been involved in the preparation of the financial statements. 

2. 

Upon request by the Commission, the Court of Auditors or the European Anti-fraud 
Office  (OLAF),  the  auditor  who  delivers  the  certificate  on  the  financial  statements 
and  on  the  methodology  shall  grant  access  to  the  supporting  documents  and  audit 
working  papers  on  the  basis  of  which  a  certificate  on  the  financial  statements  was 
issued. 

Article 31 

Cumulative funding 

An action for which a grant from the Union budget has been awarded may also give rise to the 
award of a grant on the basis of Regulation (EU) No XX/XX [Horizon 2020] provided that 
the grants do not cover the same cost items. 

SECTION IV 
GUARANTEES  

Article 32 

Participant Guarantee Fund 

1. 

2. 

3. 

4. 

A participant guarantee fund ("the Fund") is hereby  established and shall cover the 
risk associated with non-recovery of sums due to the Union under actions financed 
through  grants  by  the  Commission  under  Decision  No  1982/2006/EC  and  by  the 
Commission or Union bodies under "Horizon 2020" according to the Rules set out in 
this Regulation. The Fund shall replace and succeed the Participant Guarantee Fund 
set up under Regulation (EC) No 1906/2006. 

The  Fund  shall  be  operated  in  accordance  with  Article  33.  Financial  interest 
generated by the Fund shall be added to the Fund and shall serve exclusively for the 
purposes set out in Article 33(3). 

Where  interest  is  insufficient  to  cover  the  operations  described  in  Article  33(3)  the 
Fund  shall  not  intervene  and  the  Commission  or  the  relevant  Union  funding  body 
shall recover directly from beneficiaries any amount owed. 

The  Fund  shall  be  considered  as  a  sufficient  guarantee  under  Regulation  (EU)  No 
XX/XX  [the  Financial  Regulation].  No  additional  guarantee  or  security  may  be 
accepted  from  participants  or  imposed  on  them  except  in  the  case  described  in 
paragraph 3. 

21 

OJ L 157, 09.06.2006, p.87. 

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5. 

1. 

2. 

3. 

4. 

The  participants  in  actions  under  Horizon  2020  whose  risk  is  covered  by  the  Fund 
shall make a contribution of 5 % of the Union funding for the action. At the end of 
the  action  the  amount  contributed  to  the  Fund  shall  be  returned  to  the  participants, 
via the coordinator. 

Article 33 

Operation of the Fund 

The Fund shall be managed by the Union represented by the Commission acting as 
executive agent on behalf of the participants, according to the conditions established 
by the grant agreement. 

The Commission may manage the Fund directly or entrust the financial management 
of  the  Fund  either  to  the  European  Investment  Bank  or  to  an  appropriate  financial 
institution  (the  depository  bank).  The  depository  bank  shall  manage  the  Fund 
pursuant to the instructions of the Commission. 

The participants' contribution to the Fund may be offset from the initial pre-financing 
and be paid to the Fund on behalf of the participants. 

Where amounts are due to the Union by a participant the Commission may, without 
prejudice  to  penalties  which  may  be  imposed  on  the  defaulting  participant,  take 
either of the following actions: 

(a) 

transfer or order the depository bank to transfer directly the amount due from 
the Fund to the coordinator of the action. That transfer shall be made after the 
termination  or  withdrawal  of  the  participation  of  the  defaulting  participant  if 
the action is still ongoing and if the remaining participants agree to implement 
it  according  to  the  same  objectives.  Amounts  transferred  from  the  Fund  shall 
be regarded as Union funding;  

(b) 

recover effectively that amount from the Fund. 

The Commission shall issue a recovery order against that participant to the benefit of 
the Fund. The Commission may adopt to that end a recovery decision in accordance 
with Regulation (EU) No XX/XX [the Financial Regulation]. 

The  amounts  recovered  shall  constitute  revenue  assigned  to  the  Fund  within  the 
meaning  of  Article  X  of  Regulation  (EU)  No  XX/2012  [the  Financial  Regulation]. 
Once the implementation of all grants whose risk is covered by the Fund is complete, 
any  sums  outstanding  shall  be  recovered  by  the  Commission  and  entered  into  the 
budget of the Union, subject to decisions of the legislative authority. 

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Chapter IV 
PRIZES, PROCUREMENT AND FINANCIAL INSTRUMENTS 

Article 34 

Prizes 

Union  funding  may  take  the  form  of  prizes  as  defined  in  Title  VII  of  Regulation  (EU)  No 
XX/XX [Financial Regulation]. 

Article 35 

Procurement, pre-commercial procurement  
and public procurement of innovative solutions 

1. 

2. 

Any  procurement  carried  out  by  the  Commission  on  its  own  behalf  or  jointly  with 
Member  States  shall  be  subject  to  the  rules  on  public  procurement  as  set  out  in 
Regulation  (EU)  No  xx/2012  [Financial  Regulation]  and  Regulation  (EU)  No 
XX/XX [the Delegated Regulation]. 

Union funding may take the form of pre-commercial procurement or procurement of 
innovative solutions carried out by the Commission or the relevant funding body on 
its  own  behalf  or  jointly  with  contracting  authorities  from  Member  States  and 
associated countries. 

The procurement procedures: 

(a) 

shall  comply  with  the  principles  of  transparency,  non-discrimination,  equal 
treatment, sound financial management, proportionality, and with competition 
rules  and,  where  applicable,  with  Directives  2004/17/EC,  2004/18/EC  and 
2009/81/EC, or, where the Commission acts on its own behalf, with Regulation 
(EU) No XX/2012 [the Financial Regulation]; 

(b)  may  provide  for  specific  conditions  such  as  the  place  of  performance  of  the 
procured  activities  being  limited  for  pre-commercial  procurement  to  the 
territory  of  the  Member  States  and  of  countries  associated  to  Horizon  2020 
where duly justified by the objectives of the actions;  

(c)  may  authorise  the  award  of  multiple  contracts  within  the  same  procedure 

(multiple sourcing); 

(d) 

shall provide for the award of the contracts to the tender(s) offering best value 
for money. 

Article 36 

Financial instruments 

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1. 

2. 

3. 

Financial  instruments  may  take  any  of  the  forms  referred  to  in  and  shall  be 
implemented  in  accordance  with  [Title  VIII]  of  Regulation  (EU)  No  XX/XX  [the 
Financial  Regulation]  and  may  be  combined  with  grants  funded  under  the  Union 
budget, including under Horizon 2020. 

In  accordance  with  Article  [18(2)]  of  Regulation  (EU)  No  XX/XX  [the  Financial 
Regulation],  revenues  and  repayments  generated  by  a  financial  instrument  set  up 
under Regulation (EU) No XX/XX [Horizon 2020] shall be assigned to that financial 
instrument. 

Revenues  and  repayments  generated  by  the  Risk-Sharing  Finance  facility  set  up 
under Decision No  1982/2006/EC  and the early stage part of the  High-Growth and 
Innovative SME Facility (GIF1) set up under the Decision No 1639/2006/EC of the 
European  Parliament  and  of  the  Council22,  shall  be  assigned  to  the  succeeding 
financial instruments under Regulation (EU) No XX/XX [Horizon 2020]. 

Chapter VII 
EXPERTS 

Article 37 

Appointment of independent experts 

1. 

The  Commission  and,  where  appropriate,  funding  bodies  may  appoint  independent 
experts to evaluate proposals or to advise on or assist with: 

(a) 

the evaluation of proposals; 

(b) 

(c) 

the  monitoring of the  implementation  of actions carried out under Regulation 
(EU)  No  XX/XX  [Horizon  2020]  as  well  as  of  previous  Research  and/or 
Innovation Programmes; 

the  implementation  of  Union  research  and  innovation  policy  or  programmes 
including Horizon 2020, as well as with the achievement and functioning of the 
European Research Area; 

(d) 

the evaluation of Research and Innovation Programmes; 

(e) 

the  design  of  the  Union  research  and  innovation  policy  including  the 
preparation of future programmes. 

2. 

Independent experts shall be chosen on the basis of skills, experience and knowledge 
appropriate  to  carry  out  the  tasks  assigned  to  them.  In  cases  where  independent 
experts  have  to  deal  with  classified  information,  the  appropriate  security  clearance 
shall be required before appointment. 

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OJ L 310, 9.11.2006, p. 15. 

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Independent  experts  shall  be  identified  and  selected  on  the  basis  of  calls  for 
applications  from  individuals  and  calls  addressed  to  relevant  organisations  such  as 
national  research  agencies,  research  institutions,  standardisation  organisations  or 
enterprises with a view to establishing a database of candidates. 

The  Commission  or  the  relevant  funding  body  may,  if  deemed  appropriate  and  in 
duly justified cases, select any individual with the appropriate skills from outside the 
database. 

Appropriate  measures  shall  be  taken  to  seek  gender  balance  and  geographical 
diversity when appointing independent experts. 

The Commission or the relevant funding body may call upon the advice of advisory 
bodies  for  the  appointment  of  independent  experts.  In  the  case  of  ERC  frontier 
research  actions,  the  Commission  shall  appoint  experts  on  the  basis  of  a  proposal 
from the Scientific Council of the ERC. 

The Commission or the relevant funding body shall take all necessary steps to ensure 
that  the  expert  is  not  faced  with  a  conflict  of  interests  in  relation  to  the  matter  on 
which the expert is required to provide an opinion. 

The appointment of the experts may take the form of a framework appointment valid 
for the entire duration of Horizon 2020 with specific assignments of tasks. 

The  names  of  experts  appointed  in  a  personal  capacity,  who  have  assisted  the 
Commission or the funding bodies in implementation of Regulation (EU) No XX/XX 
Horizon  2020  and  Decision  No  XX/XX/EU  [the  specific  programme],  shall  be 
published at least once a year on the Internet site of the Commission or the funding 
body.  The  names  of  experts  shall  be  collected,  processed  and  published  in 
accordance with Regulation (EC) No 45/2001. 

3. 

4. 

5. 

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Title III 
RULES GOVERNING DISSEMINATION OF RESULTS 

Chapter I 
GRANTS  

SECTION I 
RESULTS 

Article 38 

Ownership of results 

1. 

2. 

3. 

1. 

Results shall be owned by the participant generating these results. 

Where  participants  in  an  action  have  jointly  generated  results  and  where  their 
respective share of the work cannot be ascertained, they shall have joint ownership of 
those results. The joint owners shall establish an agreement regarding the allocation 
and  terms  of  exercise  of  that  joint  ownership  in  accordance  with  their  obligations 
under the grant agreement. 

Unless otherwise agreed in the joint ownership agreement, each joint owner shall be 
entitled to grant non-exclusive licences to third parties to exploit  the jointly owned 
results, without any right to sub-licence, subject to the following conditions: 

(a)  prior notice shall be given to the other joint owners; 

(b) 

fair and reasonable compensation shall be provided to the other joint owners. 

If employees or any party working for a participant are entitled to claim rights to the 
results generated, the participant concerned shall ensure that it is possible to exercise 
these rights in a manner compatible with its obligations under the grant agreement. 

Article 39 

Protection of results 

Where  results  are  capable  of  commercial  or  industrial  application,  the  participant 
owning these results shall examine the possibility for protection and, if possible and 
justified  given  the  circumstances,  shall  adequately  protect  them  for  an  appropriate 
period of time and with an appropriate territorial coverage, having due regard to its 
legitimate interests and the legitimate interests, particularly the commercial interests, 
of the other participants in the action. 

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29 

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2. 

3. 

1. 

2. 

Where  a  participant  that  has  received  Union  funding  intends  not  to  protect  results 
generated by it  for  reasons other than impossibility under Union or national law or 
the lack of potential for commercial exploitation, and unless the participant intends to 
transfer  them  to  another  legal  entity  established  in  a  Member  State  or  associated 
country in view of their protection, it shall inform the Commission or funding body 
before  any  dissemination  relating  to  these  results  takes  place.  The  Commission  on 
behalf of the Union or the funding body may assume ownership of these results and 
take the necessary steps for their adequate protection. 

The participant may refuse consent only if it demonstrates that its legitimate interests 
would  suffer  significant  harm.  No  dissemination  relating  to  these  results  may  take 
place until the Commission or the funding body has taken a decision or has decided 
that it will assume ownership and has taken the necessary steps to ensure protection. 
The grant agreement shall lay down time-limits in this respect. 

Where  a  participant  that  has  received  Union  funding  intends  to  abandon  the 
protection of results or not to seek extension of such protection for reasons other than 
the lack of potential for commercial exploitation, it shall inform the Commission or 
the funding body which may continue or extend  protection  by assuming  ownership 
thereof. The participant may refuse consent only if it demonstrates that its legitimate 
interests  would  suffer  significant  harm.  The  grant  agreement  shall  lay  down  time-
limits in this respect. 

Article 40 

Exploitation and dissemination of results 

Each participant that has received Union funding shall use its best efforts to exploit 
the results it owns in further research or commercially, or to have them exploited by 
another legal entity for these purposes, in particular through transfer and licensing of 
results in accordance with Article 41. 

Additional  exploitation  obligations  may  be  laid  down  in  the  grant  agreement.  Any 
such additional obligations shall be indicated in the work programme or work plan. 

Subject to any restrictions due to the protection of intellectual property, security rules 
or legitimate commercial interests, each participant shall through appropriate means 
disseminate  the  results  it  owns  as  soon  as  possible.  The  grant  agreement  may  lay 
down time-limits in this respect.  

Additional dissemination obligations may be laid down in the grant agreement. 

With regard to dissemination through research publications, open access shall apply 
under  the  terms  and  conditions  laid  down  in  the  grant  agreement.  With  regard  to 
dissemination of other results, including research data, the grant agreement may lay 
down  the  terms  and  conditions  under  which  open  access  to  such  results  shall  be 
provided, in particular in ERC frontier research or in other appropriate areas. 

Prior  notice  of  any  dissemination  activity  shall  be  given  to  the  other  participants. 
Following notification, a participant may object if it demonstrates that its legitimate 
interests in relation to its results or background would suffer significant harm by the 

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3. 

4. 

1. 

2. 

3. 

intended dissemination. In such cases, the dissemination activity may not take place 
unless  appropriate  steps  are  taken  to  safeguard  these  legitimate  interests.  The  grant 
agreement may lay down time-limits in this respect. 

Each participant shall report to the Commission or funding body on its exploitation 
and  dissemination  related  activities.  For 
the  purposes  of  monitoring  and 
dissemination  by  the  Commission  or  funding  body,  participants  shall  provide  any 
information and documents useful in accordance with the conditions laid down in the 
grant agreement. 

All  patent  applications,  standards,  publications  or  any  other  dissemination,  also  in 
electronic  form,  relating  to  results  shall  include  a  statement,  which  may  include 
visual means, that the action received financial support from the Union. The terms of 
that statement shall be established in the grant agreement. 

Article 41 

Transfer and licensing of results 

Where  a  participant  transfers  ownership  of  results,  it  shall  pass  on  its  obligations 
under  the  grant  agreement  regarding  those  results  to  the  transferee,  including  the 
obligation to pass them on in any subsequent transfer.  

Without  prejudice  to  confidentiality  obligations  arising  from  laws  or  regulations  in 
the case of mergers and acquisitions, where other participants still enjoy access rights 
to the results to be transferred, the participant who intends to transfer the results shall 
give  prior  notice  to  those  other  participants,  together  with  sufficient  information 
concerning the intended new owner of the results to permit the other participants to 
analyse  the  effect  of  the  intended  transfer  on  the  possible  exercise  of  their  access 
rights. 

Following  notification,  a  participant  may  object  to  the  transfer  of  ownership  if  it 
demonstrates  that  the  intended  transfer  would  adversely  affect  the  exercise  of  its 
access rights. In such case, the transfer may not take place until agreement has been 
reached  between  the  participants  concerned.  The  grant  agreement  may  lay  down 
time-limits.  

The  other  participants  may  by  prior  written  agreement,  waive  their  right  to  prior 
notice and to object in  the case of transfers  of ownership from one participant  to a 
specifically identified third party. 

Provided that any access rights to the results can be exercised and that any additional 
exploitation  obligations  are  complied  with,  the  participant  who  owns  results  may 
grant  licences  or  otherwise  give  the  right  to  exploit  them  to  any  legal  entity, 
including on an exclusive basis. 

With regard to results which are generated by participants that have received Union 
funding, the Commission or funding body may object to transfers of ownership or to 
grants  of  an  exclusive  licence,  to  third  parties  established  in  a  third  country  not 
associated  to  Horizon  2020,  if  it  considers  that  the  grant  or  transfer  is  not  in 

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accordance  with  the  interests  of  developing  the  competitiveness  of  the  Union 
economy or is inconsistent with ethical principles or security considerations. 

In such cases, the transfer of ownership or grant of exclusive licence shall not take 
place unless the Commission or funding body is satisfied that appropriate safeguards 
will be put in place. 

Where  appropriate,  the  grant  agreement  shall  provide  that  the  Commission  or 
funding body is to be notified in advance of any such transfer of ownership or grant 
of an exclusive licence. The grant agreement shall lay down time-limits. 

SECTION 2 
ACCESS RIGHTS TO BACKGROUND AND RESULTS 

Article 42 

Background 

Participants  shall  identify  the  background  for  their  action  in  any  manner  in  a  written 
agreement. 

Article 43 

Access rights principles 

1. 

2. 

3. 

4. 

5. 

6. 

Any request to exercise access rights or any waiving of access rights shall be made in 
writing. 

Unless otherwise agreed by the owner of the results or background to which access is 
requested, access rights shall not include the right to sub-licence. 

Participants in the same action shall inform each other before their accession to the 
grant  agreement  of  any  legal  restriction  or  limit  to  granting  access  to  their 
background.  Any  agreement  concluded  thereafter  by  a  participant  regarding 
background shall ensure that any access rights may be exercised. 

For the purposes of access rights, fair and reasonable conditions may be royalty-free 
conditions. 

The  termination  of  the  participation  in  an  action  shall  not  affect  the  obligation  of 
such a participant to grant access under the terms and conditions established in the 
grant agreement.  

Where a participant defaults on its obligations and such default is not remedied, the 
consortium  agreement  may  stipulate  that  such  a  participant  shall  no  longer  enjoy 
access rights. 

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1. 

2. 

1. 

2. 

3. 

4. 

1. 

Article 44 

Access rights for implementation 

A participant shall enjoy access rights to the results of another participant in the same 
action, if such access is needed by the former to carry out its work under the action. 

Such access shall be granted on a royalty-free basis. 

A  participant  shall  enjoy  access  rights  to  background  of  another  participant  in  the 
same action, if such access is needed by the former to carry out its work under the 
action and subject to any restrictions pursuant to Article 43(3). 

Such access shall be granted on a royalty-free basis, unless otherwise agreed by the 
participants before their accession to the grant agreement. 

Article 45 

Access rights for exploitation 

A participant shall enjoy access rights to the results of another participant in the same 
action, if such access is needed by the former to exploit its results. 

Subject  to  agreement,  such  access  shall  be  granted  under  fair  and  reasonable 
conditions. 

A  participant  shall  enjoy  access  rights  to  background  of  another  participant  in  the 
same action, if such access is needed by the former to exploit its results and subject 
to any restrictions or limits pursuant to Article 43(3).  

Subject  to  agreement,  such  access  shall  be  granted  under  fair  and  reasonable 
conditions. 

An affiliated entity established in a Member State or associated country shall, unless 
otherwise provided for in the consortium agreement, also have access rights to results 
or  background  under  the  same  conditions  if  such  access  is  needed  to  exploit  the 
results generated by the participant to which it is affiliated.  

A request for access under paragraphs 1, 2 and 3 may be made up to one year after 
the end of the action. However, the participants may agree on a different time-limit. 

Article 46 

Access rights for the Union and the Member States 

The Union institutions and bodies shall, for the purpose of developing, implementing 
and monitoring Union policies or programmes, enjoy access rights to the results of a 
participant  that  has  received  Union  funding.  Such  access  rights  are  limited  to  non-
commercial and non-competitive use. 

Such access shall be granted on a royalty-free basis. 

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2. 

1. 

2. 

3. 

4. 

5. 

6. 

7. 

Regarding  actions  in  the  activity  'Secure  societies'  within  the  specific  objective 
'Inclusive, innovative and secure societies', the Union institutions and bodies as well 
as  Member  States'  national  authorities  shall,  for  the  purpose  of  developing, 
implementing and monitoring their policies or programmes in this area, enjoy access 
rights to the results of a participant that has received Union funding. Notwithstanding 
Article  43(2),  such  access  rights  shall  include  the  right  to  authorise  third  parties  to 
use the results in public procurement in the case of the development of capabilities in 
domains  with  very  limited  market  size  and  a  risk  of  market  failure,  and  where  a 
predominant public interest exists. 

Such  access  shall  be  granted  on  a  royalty-free  basis,  except  for  use  in  public 
procurement where it shall be granted on fair and reasonable conditions to be agreed 
upon. The Union funding received in generating the results shall be fully taken into 
account in the determination of the fair and reasonable conditions. The Commission 
rules on security shall apply regarding classified information. 

SECTION 3 
SPECIFIC CASES 

Article 47 

Specific provisions 

In the case of actions involving security-related activities, the grant agreement may 
lay  down  specific  provisions,  in  particular  on  changes  to  the  consortium's 
composition,  classified  information,  exploitation,  dissemination,  transfers  and 
licences of results. 

In  the  case  of  actions  to  support  existing  or  new  research  infrastructures,  the  grant 
agreement may lay down specific provisions relating to users of the infrastructure. 

In  the  case  of  ERC  frontier  research  actions,  the  grant  agreement  may  lay  down 
specific  provisions,  in  particular  on  access  rights,  portability  and  dissemination, 
relating to participants, researchers and any party concerned by the action. 

In  the  case  of  training  and  mobility  actions,  the  grant  agreement  may  lay  down 
specific  provisions  on  commitments  relating  to  the  researchers  benefiting  from  the 
action, ownership, access rights and portability. 

In the case of coordination and support actions, the grant agreement may lay down 
specific  provisions,  in  particular  on  ownership,  access  rights,  exploitation  and 
dissemination. 

In the case of the SME instrument and grants by funding bodies targeting SMEs, the 
grant agreement may lay down specific provisions, in particular on ownership, access 
rights, exploitation and dissemination. 

In  the  case  of  the  Knowledge  and  Innovation  Communities  of  the  EIT,  the  grant 
agreement  may  lay  down  specific  provisions,  in  particular  on  ownership,  access 
rights, exploitation and dissemination. 

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CHAPTER II 
PRIZES AND PROCUREMENT 

Article 48 

Prizes 

Any  prize  awarded  shall  be  conditional  on  the  acceptance  of  the  appropriate  publicity 
obligations.  The  work  programme  or  work  plan  may  contain  specific  obligations  regarding 
exploitation and dissemination. 

Article 49 

Procurement, pre-commercial procurement  
and public procurement of innovative solutions 

1. 

2. 

Unless otherwise stipulated in the call for tenders, results generated by procurement 
carried out by the Commission shall be owned by the Union. 

Specific  provisions  regarding  ownership,  access  rights  and  licensing  shall  be  laid 
down  in  the  contracts  regarding  pre-commercial  procurement  to  ensure  maximum 
uptake  of  the  results  and  to  avoid  any  unfair  advantage.  The  contractor  generating 
results  in  pre-commercial  procurement  shall  own  at  least  the  attached  intellectual 
property  rights.  The  contracting  authorities  shall  enjoy  at  least  royalty-free  access 
rights  to  the  results  for  their  own  use  as  well  as  the  right  to  grant,  or  require  the 
participating  contractors  to  grant,  non-exclusive  licences  to  third  parties  to  exploit 
the results under fair and reasonable conditions without any right to sub-licence. If a 
contractor  fails  to  commercially  exploit  the  results  within  a  given  period  after  the 
pre-commercial  procurement  as  identified  in  the  contract,  it  shall  transfer  any 
ownership of the results to the contracting authorities. 

3. 

Specific  provisions  regarding  ownership,  access  rights  and  licensing  may  be  laid 
down in the contracts regarding public procurement of innovative solutions to ensure 
maximum uptake of the results and to avoid any unfair advantage. 

TITLE IV 
FINAL PROVISIONS 

Article 50 

Repeal and transitional provisions 

1. 

2. 

EN 

Regulation (EC) No 1906/2006 is repealed with effect from 1 January 2014. 

Without prejudice to paragraph 1, this Regulation shall not affect the continuation or 
modification, including the total or partial termination of the actions concerned, until 

35 

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their  closure,  or  the  award  of  financial  assistance  by  the  Commission  or  funding 
bodies  under  Decision  No  1982/2006/EC,  or  any  other  legislation  applying  to  that 
assistance  on  31  December  2013,  which  shall  continue  to  apply  to  the  actions 
concerned until their closure. 

3. 

Any  sums  from  the  participant  Guarantee  Fund  set  up  by  Regulation  (EC)  No 
1906/2006 as well as all its rights and obligations shall be transferred to the Fund as 
of  31  December  2013.  The  participants  in  actions  under  the  Seventh  Framework 
Programme  signing  grant  agreements  after  31  December  2013  shall  make  their 
contribution to the Fund. 

This Regulation shall enter into force on the third day following that of its publication in the 
Official Journal of the European Union. 

Article 51 

This Regulation shall be binding in its entirety and directly applicable in all Member States. 

Done at Brussels, 

For the European Parliament 
The President 

For the Council 
The President 

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