Source: EURLEX
Language: en
Format: md

No C 223 / 2 EN Official Journal of the European Communities 29 . 8 . 95

Notice pursuant to Article 19 ( 3 ) of Council Regulation No 17 (') concerning Case No

rV / 34 . 563 — Ecomet

( 95 / C 223 / 02 )

( Text with EEA relevance )

I. THE NOTIFICATION Organization ( hereinafter : ' WMO '). According to a
WMO principle, the exchange of data ( whether
falling within or outside the WMO requirements )

1992 the Commission received takes place on a reciprocal basis and free of

, pursuant to Articles 2 and 4 of charge ( 3 ).

( 1 ) On 23 December 1992 the Commission received

formal notification, pursuant to Articles 2 and 4 of
Regulation No 17, of a number of draft
arrangements concerning the creation and
operation of an Economic Interest Grouping under
Belgian law under the name of Ecomet ( European
Cooperation in Meteorology ). The notification was
made on behalf of 16 European national meteoro ­
logical services ( NMSs ), who have asked for
negative clearance or, in the alternative, an
exemption pursuant to Article 85 ( 3 ) of the EC
Treaty and Article 53 ( 3 ) of the EEA Agreement .

Two different types of data are thus exchanged :

— global basic data sets are ( 4 ) ' all sets of meteoro ­

logical, oceanographic, hydrological and
environmental observations obtained under

# WMO / WW ( 5 ) auspices and regulations and

declared essential to support WMO
programmes by members of WMO to be
available for worldwide exchange, without
conditions on their use, via the global telecom ­
II . THE RELEVANT MARKETS munications system ( GTS )',

1 . The market for data — additional data sets, in particular European data

sets ( 6 ) ; these data sets are also exchanged
through the GTS or by other means of trans ­
( 2 ) Meteorological data ( hereinafter : ' data ') contain mission .
the basic information for the provision of meteoro ­
logical services . Data are collected by the obser ­
vation networks ( 2 ) which each NMS has set up in

its home country . The data collected are trans ­
mitted from the point of observation to the head ­
quarters of the NMS of that country . After a
quality control has been made the data are stored in
a database, which is normally contained in a
computer, from which they can be extracted to
make meteorological products ( hereinafter :
' products ') or for other purposes ; see point 5 . The
NMSs and some international organizations like
Eumetsat are the only ones to own or commission
major observation networks .

( 3 ) The weather development in one country depends

in the short run on the weather development in the
surrounding territories and in the long run on the
weather development at a continental or even world
level . For its weather forecasts each NMS needs the
data collected by the other NMSs . There has been
a long tradition amongst NMSs of exchanging
these data on a European scale and — for a
reduced amount of information — on a worldwide
basis in the context of the World Meteorological

O OJ No 13, 21 . 2 . 1962, p . 204 / 62 .

( 2 ) The observation network consists mainly of the surface

network, radiosondes, satellite observation and radar obser ­
vation and measurement .

( 4 ) Most NMSs use these data to make meteorological

products or value added services ( hereafter : VAS )
for their public duties . NMSs also pursue
commercial activities . On the one hand, they use
the same data internally to make products and VAS
which are sold to customers . On the other hand,
they sell some data to independent service providers
( hereinafter SPs ) who do not have an infrastructure
for the collection of data and who are fully
dependent on the NMSs as regards the access to
such data . SPs use data to make their own products

and to render VAS .

( 3 ) See : The Third WMO Long-Term Plan : Overall Policy and

Strategy 1992-2000, paragraph 127 ( e ); resolution 11.4
( Cg-XII ): WMO policy and practice for the exchange of
meteorological and related data and products including
guidelines on relationships in commercial meteorological
activities .
( 4 ) See ' FA Article '). 2 ( 3° ) of the Formation Agreement ( hereinafter :

( s ) World weather watch .
( 6 ) European data sets are defined by Article 2, ( 5° ) FA as : ' all

sets of meteorological, oceanographic, hydrological and
environmental observations generated in the European
region and its surroundings which members of the Grouping
are prepared to offer to third parties under specific licence
conditions .'

29 . 8 . 95 MÉN Official Journal of the European Communities No C 223 / 3

2 . The market of meteorological products 3 . The market for value added services ( VAS )

( 5 ) Products consist of charts, texts or data files which

( 9 ) VAS are obtained from further transformation or

are obtained by transforming or processing data processing of data and / or products and furnish
sets, either manually or by introducing them into more comprehensive information which can also be
numerical weather prediction models, which are understood by non-meteorologists . In general they
run on computers . Products may cover a specific are tailored to meet the requirements of the
geographic region ( such as the territory of a recipient, be it a public authority ( such as flood
country, of Europe or the whole world ) and may warning or wind forecasts for aviation ) or a private
contain information about the weather development customer ( such as a weather-map for a television
in general or about certain specific parameters chain or a newspaper or for an oil company
( wind, rainfall, temperature ). Even if the process of planning to move an oil rig ).
making products is to a large extent automated,
many products have to be checked and corrected by
meteorologists in order to achieve the highest
possible reliability . Products are in principle
( 10 ) Whereas the NMSs render the VAS on the basis of
designed only for use by meteorologists .

processing of data and / or products and furnish
more comprehensive information which can also be
understood by non-meteorologists . In general they
are tailored to meet the requirements of the
recipient, be it a public authority ( such as flood
warning or wind forecasts for aviation ) or a private
customer ( such as a weather-map for a television
chain or a newspaper or for an oil company
planning to move an oil rig ).

( 6 ) Owing to the abovementioned WMO principle,

NMSs exchange products amongst themselves on a
reciprocal basis, free of charge .

data and / or products that they have collected for
their public duties or received free of charge from
the other NMSs, the independent SP have to buy
these data and products from an NMS . The market
for VAS is the main market in which the NMSs

compete with the independent SP .

( 7 ) There exist two different categories of products : III . THE MARKET PLAYERS

— Global basic products are ( 7 ) ' Products which

are declared essential to support WMO
programmes in accordance with WMO
procedures by a world meteorological centre or
regional specialized meteorological centre which
produces this information to be available for
worldwide distribution via the GTS, without
conditions on their use .'

( 11 ) The 16 NMSs which intend to found Ecomet are

are located in 13 EC ( 9 ) and 3 EFTA ( 10 ) Member
programmes in accordance with WMO States . They are government authorities or agencies
procedures by a world meteorological centre or which have to carry out certain public duties such
regional specialized meteorological centre which as weather forecasting relating to defence, civil
produces this information to be available for aviation and the safety of life and property . All 16
worldwide distribution via the GTS, without NMSs have their own budget which is partially or
conditions on their use .' totally financed by the State . Their total budget

amounts to ECU 900 million per annum . This
covers in particular the expenses for the NMS
— Additional products, in particular the European infrastructures annum . which are ECU 700 million per

products ( 8 ) which are also exchanged between
the NMSs by the GTS or by other means .

( 8 ) The NMSs make and use products for their public

duties and for commercial activities, in particular as
a basis for VAS, and they sell products to SPs,
which in general do not have enough staff and
technical means to make them ( in particular the SPs
do not have the supercomputers to run the
numerical weather prediction models ).

( 12 ) Some Member States now require the NMSs to

earn part of their budget through commercial
activities and / or to satisfy the meteorological
requirements of private customers against payment .
In other Member States the NMSs themselves have
decided to develop such activities . As set forth
above, these include the selling of meteorological
information, mainly VAS, to customers ( end users
or broadcasters / publishers ) or of data and products
to SPs . The commercial activities of all Ecomet
members generate a total commercial turnover of

( 7 ) See Article 2 ( 4° ) of the FA . (') The Danish NMS has the status of an observer whereas the

Luxembourg NMS did not participate at all in the
proceedings of the Ecomet working group which had to
draft the notified agreements .

( 8 ) European ' Products created products by are one defined or several by Article members 2 ( 6° ) of FA the as : proceedings of the Ecomet
Grouping which these members are prepared to offer to draft the notified agreements .
third parties under specific licence conditions .' ( 10 ) Liechtenstein does not participate .

No C 223 / 4 EN Official Journal of the European Communities 29 . 8 . 95

ECU 80 million per annum . As the total volume of
the commercial markets amounts to ECU 100

million, the Ecomet members ' share is 80 % . The
yearly overall turnover of the Ecomet members
generated by items which are subject to the Ecomet
rules concerning distribution ( sublicensing and
revenue sharing ), namely VAS sold across the
national boundaries and data and products sold to
SP ( whether or not across these boundaries ) is
expected to be about ECU 5 million . It should be
noted that the sale of VAS by the NMSs within
their national boundaries represents the bulk of the
remaining ECU 75 million .

( 13 ) Since the market for commercial meteorology is

still in its infancy, there are no more than a dozen
independent SPs in the Ecomet territory ("). They
are mainly rather small but innovative . Their yearly
total turnover is estimated by the NMSs at about
ECU 20 million .

IV . THE AGREEMENTS

( 14 ) The notification comprises three different draft

agreements :

1 . the Formation Agreement ( hereinafter : ' FA ')
concerning the creation of an Economic Interest
Grouping under Belgian law called Ecomet with
its headquarters in Brussels ;

2 . the internal rules of administration (' IRA ')
concerning rules on the representation of
Members in the General Assembly ( Article 1 ),
the functioning of the General Assembly ( Article
2 ) and the administration of the Grouping
( Article 3 );

3 . the internal rules of operation (' IRO ') governing

the day-to-day functioning of Ecomet ;

and three related documents :

1 . the tariff guidelines ( TG ) concerning the price

structure for data, products and VAS ;

2 . the Ecomet catalogue, and

3 . the licensing system and model sublicensing

contracts .

The three draft agreements are now described in
greater detail .

(") The Ecomet territory is according to Article 2 ( 9° ) FA : ' the

geographical area covered by the activities of the Members
of the Grouping according to their legal status and
composed of the national territories, including coastal and
territorial waters, of the countries where the Members have
their headquarters, and at least the geographical area
covered by the European Economic Area .'

1 . The Ecomet formation agreement ( FA )

( 15 ) According to Article 3 ( 1 ) of the FA, the main

objectives of this Grouping include :

( a ) preserving the free exchange of data sets and

products between members of the Grouping
within the framework of WMO regulations ;

( b ) assisting the members of the Grouping to

maintain and improve their infrastructure ;

( c ) expanding the availability of meteorological
information within the Ecomet territory ;

( d ) increasing the use and improving the
distribution of data, products and services of
the members of the Grouping while maintaining
and improving their quality ;

( e ) creating the conditions for members of the

Grouping to develop their economic activities .

( 16 ) In order to achieve these objectives, Article 3 ( 2 )

provides that the Grouping will :

3.1 . agree on the content of the Ecomet catalogue
with respect to the global and European data
sets, products and value added services ;

3.2 . ensure that its members propose for inclusion
in the catalogue all items which fall within its
scope, namely :

— all items ( data sets, products or VAS )
intended for delivery to an end-user,
broadcaster / publisher or SP outside the
originating country but inside Ecomet
territory ( except for data sets exclusively
belonging to the originating NMS or for
products and VAS derived solely from
such data sets and for VAS limited to
internal use ( 12 ) or official duty ( n )
categories ),

(") Internal use is according to Article 2 ( 19° ): ' all activity

which takes place within the organization of a member
including but not limited to, the processing of data sets,
global basic products and European products in order to
create further European products .'
(") Official duty is according to Article 2 ( 20° ): ' all activity

resulting from legal, governmental or intergovernmental
requirements relating to defence, civil aviation and the
safety of life and property .'

29 . 8 . 95 riNl Official Journal of the European Communities No C 223 / 5

— all items for delivery to SP, except those

acting under a cooperation agreement with
an NMS for an activity pertaining to
national use ( 14 ) or official duty, and to
broadcasters / publishers whose ' target
audience ' is clearly greater than the
country in which the items at issue
originate .

3.3 . administer the licensing of global and
European data sets, products and VAS by indi ­
vidual NMS for use in the Ecomet territory

according to the IRO ;

3.4 . share between the members of the Grouping
part of the revenue generated by the licensing
of data sets, products and VAS ;

3.5 . provide a forum for the exchange of
information on the availability and devel ­
opment of European data sets and products
and on relationships with third parties ;

3.6 . facilitate the exchange of information on new
techniques developed by members that may
lead to new European products ;

3.7 . undertake promotional activities concerning
the availability of data sets and products from
the Ecomet catalogue .

At the Commission 's request a similar clause

allowing common promotional activities
concerning the availability of VAS has been
deleted ;

3.8 . act as a repository of information regarding
the licensing of data sets, products and VAS
and legal matters associated with such
licensing ;

3.9 . facilitate arrangements by which the members
of the Grouping that are already most active in
the sale of data sets, products and VAS share
their expertise with the other members of the
Grouping which wish to develop their own
expertise in this domain ;

3.10 . define tariff guidelines, which will provide an

agreed target contribution to the infrastructure
cost, for all items in the catalogue ;

( 14 ) National use is according to Article 2 ( 21° ): ' any sale of

data sets, products or VAS by an NMS to a
nationally-based end-user or to a broadcaster / publisher for
target including recipients sublicensing in the to territory service providers of that ' NMS, but not

3.11 . provide a forum for debates on and, if duly

mandated by the general assembly, handle
relationships with NMS that are not parties to
the formation agreement, as well as other
third parties .

( 17 ) The FA contains further rules, the most important

of which are the following :

— members must contribute to the budget of the

Grouping . In the first two years their
contribution shall be in proportion to the gross
national product ( GNP ) of the respective
countries of the NMS ( Article 10.2 ). In
subsequent financial years, members will
contribute 50 % in proportion to the GNP of
their respective countries and the other 50 % in
proportion to the financial return they receive
as originating ( 1S ) or delivering ( 16 ) members or
as members initiating sales ( Article 10.3 ),

— the General Assembly has inter alia to adopt

unanimously the internal rules of administration
( IRA ) and the internal rules of operation ( IRO ).
The same is true as regards revision of the
object of the FA . Other topics have to be
decided by a majority of two-thirds : modifi ­
cations of the IRA and the IRO, the adoption
or modification of the model licensing
agreements, the adoption or modification of the
Ecomet catalogue, the tariff guidelines and the
admission and the exclusion of members

( Articles 11.6 . b ) and c )).

2 . The internal rules of administration ( IRA )

( 18 ) Rule 3.1 specifies the tasks of the secretariat, which

has to manage the Grouping under the guidance of
the chief executive . The most important of the
secretariat 's tasks are to be a guardian of the FA,
the IRA and IRO, to report quarterly on modifi ­
cations to the Ecomet catalogue, on licences
granted to members and on sublicences granted to
third parties by members .

( 19 ) Rule 3.2 specifies that each member is deemed to

have received a licence for the use, including the
sublicensing, of any item in the Ecomet catalogue
in accordance with the IRO ( Article 3.2, fourth
indent ; see below ). A member has the right to

( 15 ) The originating member is according to Article 2 ( 15° ): ' the

member of the Grouping which creates a data set, product
or VAS for transfer within the framework of the internal
rules of operation '
( 16 ) The delivering member is according to Article 2 ( 16° ): ' the

member of the Grouping which provides the service of
delivering a data set, product or VAS to a third party
within the framework of the internal rules of operation .'

No C 223 / 6 I EN I Official Journal of the European Communities 29 . 8 . 95

propose for inclusion in the Ecomet catalogue any
item it has created ( Article 3.2, sixth indent ). Any
member retains the intellectual property right in
any item it has created ( Article 3.2, seventh indent ).

( 20 ) Pursuant to Rule 3.3 members must propose for

inclusion in the catalogue all items which fall within
its scope ( first indent ). Members are obliged to
observe the standard terms laid down in the model
sublicensing agreements ( fourth indent ). Each
member must ensure delivery of any item it has
submitted for inclusion in the catalogue ( fifth
indent ). Every member is also obliged to inform the
secretariat of sublicences granted to third parties
( sixth indent ) and to prevent breaches by any third
party of a sublicence granted in the name and on
behalf of the Grouping .

( 21 ) Rule 3.4 gives the chief executive at the request of

the president of the general assembly or any
member the right to order an audit of members .
Where a member is found not to be complying with
the rules of the Grouping, the case is brought
before the general assembly which shall decide on
possible sanctions .

( 22 ) Rule 4 contains rules for an arbitration procedure

in the event of a dispute between members on
matters concerning the FA, the IRA or the IRO or
vital interests of the members . Each member has the

right to choose one arbitrator . The arbitrators then
choose a further arbitrator who shall act as the

chairman of the arbitral tribunal .

( 23 ) Rule 5 concerns the observance of licensing rules by

third parties .

— Rule 5.1 requires the permanent representative

of each member to make sure that all meteoro ­
logical services which participate in WMO
programmes without being members of Ecomet
and which operate in the country he is repre ­
senting abide by the Ecomet rules .

— Rules 5.2 and 5.3 require the members to refer

all actions of third parties within their territory
regarding unauthorized use of items included in
the Ecomet catalogue to the secretariat, which
is responsibile for taking action against such
third parties .

3 . The Internal Rules of Operations ( IRO )

( 24 ) Rule 2.1 is about licensing and sublicensing . If a

member of Ecomet proposes an item for inclusion

in the Ecomet catalogue, this so-called originating
member grants Ecomet an authorization to license
the use of this item to its other members whilst
retaining the intellectual property rights in the item .
The other members of Ecomet are allowed to grant
sublicences to third parties in accordance with the
terms laid down in the relevant model agreement
and subject to any conditions laid down by the
originating member . Members are required to send
copies of all sublicences to the secretariat . Ecomet
may not grant licences directly to third parties .

( 25 ) At the Commissions 's request, Ecomet has supple ­

mented Rule 2.1 by a rule contained in the 12th
recital in the preamble to the FA which addresses
the question of access to data and products which
are not included in the Ecomet catalogue . The 12th
recital explains that access to all such data and
products which are intended for commercial use,
namely those which NMSs sell to SP, but also those
used by themselves for their other commercial
activities, will be made available to any interested
third party on non-discriminatory terms . This
commitment ensures that the NMSs and the SP will
have a level playing field as regards availability of
data and products .

( 26 ) Rule 2.2 contains a set of rules regarding the prin ­

ciples of distribution . According to Rule 2.2.1, all
data sets and products contained in the Ecomet
catalogue shall be available for exchange free of
charge between Ecomet members for internal use,
official duty and national use . Rule 2.2.2 provides
that NMSs which are not members of Ecomet, and
intergovernmental organizations which participate
in WMO programmes, may also benefit from this
exchange free of charge, subject to conditions laid
down in a model agreement agreed upon by the
general assembly by a two-thirds majority . This
model agreement has not been notified to the
Commission . Rule 2.2.3 allows for sublicences to
third parties for global basic data sets and global
basic products for use inside and outside the
Ecomet territory without any conditions on use
being attached except for use that is limited to the
Ecomet territory . This exception has been
introduced following a request from the
Commission 's services . Rule 2.2.4 allows for
sublicences for European data sets, European
products and VAS contained in the Ecomet
catalogue for use outside Ecomet territory, unless
the NMS participating in the WMO programme
and covering the national territories where the item
shall be used has objected to the issue of a
sublicence . At the Commission 's request, Ecomet
also allows sublicences granted for the use of items
in international waters to the extent permitted
under relevant international rules and obligations .

29 . 8 . 95 " EN~1 Official Journal of the European Communities No C 223 / 7

( 27 ) Rule 2.3 provides that the tariff charged to a

customer or SP for a data set, a product or a VAS
has to comprise two elements : the tariff for delivery
fixed by the delivering member at a rate which
implies no State subsidy and the tariff for the
Ecomet sublicence .

( 28 ) The latter tariff will be determined as follows :

— it is for the general assembly to fix the
sublicensing tariff for global basic data sets and
global basic products . Until it has done so, the
price will be set at a rate of ECU 12 000 . In this
context it should be noted that these data can
be obtained, for the time being at marginal cost,
in the USA and that the ECU 12 000 tariff is

meant to be lower than the transmission cost of
these data from the USA to a potential
customer . The tariff to be fixed by the general
assembly must reflect the cost of the members '
contribution to these items and in any event this
tariff should never exceed the price that would
result from applying the Ecomet tariff
guidelines . The income generated by the sale of
global basic data sets and global basic products
will be allocated entirely to Ecomet,

— for other data sets and products it is the orig ­

inating member which has to fix the sublicence
tariff in accordance with the tariff guidelines
( see point 35 ) so as to make sure that the tariffs
include a portion of the infrastructure cost
incurred by the NMSs ( Rule 2.3.3 ),

— as regards VAS, the sublicence tariffs are to

take into account the value of data and
products embodied in the quoted item and the
full production costs ( Rule 2.3.4 ),

— the different sublicence tariffs are to be
commensurate with the type, the frequency and
the geographical coverage of the use that is
made of the data sets, products and VAS that
are the subject of the sublicence ( Rule 2.3.5 ),

— if a member has grounds to suspect that a

sublicence tariff for a specific item is not in
accordance with these principles, he can request
the general assembly to scrutinize this tariff
( Rule 2.3.6 ). The originating member has to
abolish this tariff if a two-thirds majority finds
that the rules for setting a tariff contained in
Rules 2.3.3 to 2.3.5 have not been followed . The
member must then adopt a new sublicence tariff
for this item ( Rule 2.3.7 ).

( 29 ) Rule 3 contains some specific procedural rules
regarding content of the Ecomet catalogue . All the

global basic data sets and the global basic products
are to be in the Ecomet catalogue ( Rule 3.1 ). For
other items, the general assembly has to decide by a
two-thirds majority which items are to be included
into the catalogue . Members normally agree on the
inclusion of items into the catalogue unless they
judge this to be incompatible with the object of the

Grouping as defined in Article 3 of the FA . At the
Commission 's request Ecomet has declared in Rule
3.2 its willingness to make all reasonable efforts to
conclude special arrangements with ECMWF ( 17 )
and Eumetsat ( 18 ) to ensure that all items emanating
from them and which are relevant to commercial
activities are included in the Ecomet catalogue .

( 30 ) Rule 4 contains specific rules for global basic data

sets and global basic products . Ecomet will license
them to its members with the right to grant
sublicences without conditions as to their use .

The sublicence may be for the whole set or, at the
Commission 's request, a subset, for the whole
Ecomet territory or part of it .

( 31 ) Rule 5 contains rules for European data sets and

European products . For those items which are
included in the catalogue, Ecomet is to grant
licences to members with the right to sublicense
them to end-users, service providers and broad ­

casters .

The sublicences will normally be for the whole

Ecomet territory or, at the Commission 's request,
for part of it .

( 32 ) Rules 5.3 and 6 are about the distribution of the

revenues from the sublicensing . The revenues from
sublicensing of global basic data sets and products

are entirely allocated to Ecomet . As regards
European data sets, European products or VAS
they are distributed between the originating
member ( 60 or 75 % ), the delivering member
( 15 ° / o ) and Ecomet ( 25 or 10 % ).

(") European Centre of Medium Range Weather Forecast . This

centre aims to develop and operate sophisticated numerical
models for medium-range weather forecasting, i.e. forecasts
covering between four and 10 days . Most of these
numerical models require extensive research and devel ­
opment and are prepared with the help of powerful super ­
computers .
( 1S ) European Organization for the Exploitation of Meteoro ­

logical Satellites . Its aim is to provide meteorological
information covering European and other territories on the
basis of satellite observations .

No C 223 / 8 | EN Official Journal of the European Communities 29 . 8 . 95

( 33 ) Rule 7.1 stresses again the principle of exchanging

3 . The price for the Ecomet sublicence itself, which

free of charge the data sets and products that are is fixed by the originating member ( see points 38
not included in the Ecomet catalogue if those items and 39 ).
are intended for internal use, official duty or
national use of the members . 4 . In some countries, VAT .

( 34 ) Rule 7.2 states that any activities of the members,

acting alone or in cooperation with a SP, which fall
under the definitions of internal use, official duty
or national use are outside the scope of Ecomet and
do not give rise to any financial obligations vis-a-vis
the Grouping or any of its members . At the
Commission 's request, Ecomet has accepted an
exception to these principles : members must comply
with the principles of the tariff guidelines when
setting their prices for commercial activities falling
under the definition of national use . This will be
the case for an important part of the NMSs '
commercial activities . This rule will make sure that
the NMSs set their prices properly, namely by
including the real cost of the input data and
products, as ainy SP which has to pay for such items
would do .

4 . The Ecomet tariff guidelines ( TG )

( 35 ) The initial notification contained a ' basic price list '

and the ' Ecomet basic tariff principles '. These
documents contained fixed sublicensing fees of
ECU 35 000 for global basic data sets and products,
without giving sufficient justification for this price ;
they also contained Ecomet standard prices for
other data and products and a list of fixed national
tariff factors which NMSs should have used in
order to include in the prices an element reflecting
their different cost structures . The Commission
objected to such fixed prices . Ecomet consequently
replaced these rules by the tariff guidelines ( TG ),
which consist of 10 chapters about how the Ecomet
members should set their tariffs for data, products
and VAS . In particular they introduce a royalty
scheme for small SP and a common rebate scheme .

( 36 ) Chapter I is about the prices charged to customers .

These prices must include the following elements :

1 . The delivery price which is fixed by the
delivering member ( see point 37 ).

2 . The transmission price, which in some cases may

be included in the delivery price, but in some
other cases is paid by the customer direct : for
example, telecommunication costs .

( 37 ) According to Chapter II the delivery price should

include the cost of acquisition of the information
from the originating member, a contribution for the
use of the distribution system, personnel costs of
data administration and overhead costs . The
delivery price should be set at levels which do not
imply State subsidies .

( 38 ) Chapter III is about the price for sublicensing

global basic data sets and products . It is repeated
here that the price is set initially at ECU 12 000 per
annum but may be updated by the general
assembly . It is provided that in setting the price, the
assembly will seek a compromise between two
requirements : the requests from the governments
that the NMSs contribute to infrastructure costs,
and the need to have a price which is compatible
with the market and affordable by the SP . It is
further specified that this price will always be lower
than the price which could be charged separately
for the European data sets and products included in
the global basic data sets and products . If a
customer should wish to buy a subset, the delivery
charge should include all extra administrative and
technical costs and overheads associated with
implementing the specific selection . The tariff for
such selection should, however, not exceed ECU

12 000 .

( 39 ) Chapter IV is about sublicensing tariffs for
European data sets, European products and VAS .
Pursuant to Chapter IV   - 1 the originating members
must set prices for their items at levels which are in
line with the ' minimum target percentage
contribution to infrastructure cost '. This percentage
will be 3 % for an initial period of three years after
the launch of Ecomet . This percentage may then be
modified by the general assembly and should be
achieved during a definite period of time, typically
five to 10 years . It should be noted that this
percentage is a minimum which the Ecomet
members all together should try to earn . In other
words, Ecomet will not subdivide or reallocate it to
the participating NMSs . In practical terms this
means that an NMS with few commercial activities
is likely to make a lower contribution to the 3 %
target than an NMS with larger commercial
activities .

( 40 ) It should further be noted that each originating

member must set the sublicensing tariffs at levels
such that the contribution to its infrastructure
resulting from the commercial activities with
end-users, broadcasters and publishers and the
contribution resulting from the sale of data and
products to SP will probably be in proportion to

29 . 8 . 95 I EN I Official Journal of the European Communities No C 223 / 9

their respective turnover levels . The aim of this
clause is to share the burden as regards the
contributions of the commercial arms of the NMSs

on the one hand and the SP on the other to the

infrastructure costs . Without such a clause there
would be no level playing field for competition
between the commercial arms of the NMSs and the

SP .

( 41 ) Ecomet defines infrastructure costs as including :

— national costs of the observation programme,

including quality control and storage of
information,

— capital and running costs of telecommunication

equipment for internal use and exchange
between NMSs,

— development and operational running of
numerical weather prediction models,

— meteorological guidance for other staff based

within an NMS,

— capital and running costs of computers directly

associated with the above activities,

— staff and accommodation costs directly
associated with the above activities,

— overheads appropriate to the resources
identified above,

— national contributions to WMO ( irrespective of

which funding organization pays this element ).

( 42 ) The following costs are specifically excluded :

— national contributions to ECMWF,

— national contributions to Eumetsat .

The price of Ecomet sublicences for products and
VAS incorporating ECMWF or Eumetsat outputs is

assumed to take the costs of these outputs into

account .

( 43 ) Chapter IV-2 requires members in principle to

determine prices by direct method . After having
calculated the full production cost, including amor ­
tization, the NMS has to decide which percentage
of this cost it will recover through its commercial
activities . It may adopt the abovementioned 3 %
figure but may also use a higher or lower
percentage . The only requirement is that all NMSs
together cover 3 % of their aggregated infra ­

structure costs .

( 44 ) Chapter IV - 3 states that it may be necessary to

determine prices for products by the indirect
method because it may be very difficult to compute
the full price of production of meteorological
information . This is said to be the case for most

products, since they contain vast amounts of
meteorological information . The computation of
the exact cost would require sophisticated analytical
accounting methods, which are not generally used
by the NMSs . In these cases it is suggested that
NMSs compute only the direct ( marginal ) cost of
an item — that is, without taking account at this
stage of the input data and products . Then a
markup of a certain percentage is added to this
' direct ' price in order to represent the cost of the
data and / or products utilized . On the basis of an
overall target contribution to infrastructure of 3 %
a markup by each NMS of 15 % is suggested .

( 45 ) Once the total sum to be recovered by commercial

activities has been computed by using one of these
methods, the NMS has to divide this sum by the
expected number of customers . This number
includes the end users, broadcasters, publishers and
independent SPs in Europe as well as the
commercial arms of the Ecomet members which are
SPs in their own right .

( 46 ) Chapter V illustrates the practical application of the

direct method of price fixing for data . In one of the
examples it is suggested that SPs be charged prices
four times higher than those paid by end users .
Ecomet justifies this by referring to the fact that the
sublicence allows an SP to make unlimited use of

the sublicensed item . Where an SP is not able to use

an item several times Ecomet members will,
however, take this limited use into account when
setting the price for such a limited licence .

( 47 ) Chapter VI provides guidance on the practical

fixing of prices for products . It introduces the
Ecomet Product Unit ( EPU ), a common standard
which allows the NMSs to quantify the information

contained in the products .

( 48 ) Chapter VI-2 is about how to determine the EPU

of different types of products .

— For standard numerical weather prediction
( NWP ) products expressed in GRID or GRIB
format, the basic rule for a usual geographical
grid with a mesh of 0,5 degrees to 2,5 degrees
is : 1 EPU = 5 000 points as a reference .
However, it is not possible to adopt a strict rule
of proportionality between the number of grid
points and the number of EPUs, since it is
possible to increase the resolution by interpo ­
lating the values without adding useful
information . Therefore the rule that one EPU

No C 223 / 10 I EN I Official Journal of the European Communities 29 . 8 . 95

equals 5 000 points is only possible if the
original resolution of the NWP model is
consistent with the output grid resolution . As
regards tailored NWP products, the number of
EPUs depends on the number of numeric
elementary values given in the product . An
elementary value is the value of a meteoro ­
logical element for one grid point, one level and
one time of forecast . The TG suggest that one
EPU should equal 1 000 elementary values .

The EPU value of a meteorological chart
should be determined empirically . It is proposed
to use the following principles : for charts based
on NWP models, the price should be consistent
with the price of GRID or GRIB messages
containing the same meteorological
information ; for plotted charts, the price should
be consistent with the price of the data which
are plotted on the chart . The price of a
hand-drawn chart should depend on the time
spent by the meteorologist who drew it .

( 49 ) Chapter VI-3 gives an example of how to calculate

the price for an EPU by using the indirect method .
In this example, the cost for core forecasting is
assessed as ECU 37 million and the total annual

quantity of products is assessed at 50 000 EPU .
Thus the production cost of each EPU is ECU 740 .
In the example the NMS tries in view of the
' minimum percentage of contribution to infra ­
structure ' to recover 3 % of this cost from
commercial exploitation ( in the example, this gives
ECU 22,2 ). If it is assumed that each EPU will be
sold on average to five SPs, the price of one EPU
will be ECU 4,4 . In order to contribute also to the
cost of the observing infrastructure, a mark up of

15 % has to be added . As a result the price of the
information element of one EPU will be

4,4 4    - 15 % = ECU 5,1 .

( 50 ) Chapter VII is about the pricing of VAS . It is stated

that the Ecomet rules require the NMSs to set their
prices for VAS as if they had paid for the necessary
data and products . This should prevent them from
undercutting prices offered by the SPs . The prices
of VAS must cover all costs of the staff involved,
the costs of the technical installations and infra ­

structure amortization, the costs of distribution and
commercialization and the cost of the input
meteorological data and products . As regards the
costs of the technical installation and infrastructure
amortization it is suggested that in the Ecomet
countries 80 to 90 % are dedicated to

non-commercial activities .

( 51 ) Chapter VIII states that the originator has to set its

prices as a function of the intensity of the use made
of certain information or of the geographical extent
of the sublicence . Higher prices may thus be

50 001—100 000 0,411 0,576 0,647 0,742 0,809

( 55 ) Chapter X introduces a royalty scheme which the

NMS have to offer as an option to small SPs . It
does so in recognition of the need for an SP to
have a large amount of data or products available
in order to be able to start up its business . The
royalty scheme is based on two elements : the
volume of information acquired and the turnover of
the SP . The tariffs under the royalty scheme are
computed by applying a variable reduction to the
normal Ecomet sublicence price to service
providers . The royalty scheme works as follows :

charged to SPs and broadcasters in the event of
multiple use or redistribution than the prices
charged to end-users .

( 52 ) Chapter IX introduces a common volume discount

scheme for data and products, which is applicable
as soon as the data or products of more than one
NMS are sublicensed .

As regards data, the discount scheme is based on
the number of observations passed on per year to a
client . If more than 10 000 are sold, the rebate for
the observations above this threshold is 25 ° / o ; if
more than 100 000 are sold, the rebate for the
observations above this threshold is 50 % and if

more than 1 000 000 observations are sold, then the
rebate for the observations is 65 % .

( 53 ) As regards products, the rebate scheme is based on

the EPUs sold . The rebate level depends on the
number of EPUs passed on per year . For the first
2 000 EPUs there is no rebate ; for the EPUs above
this figure the rebate is 40 % . If more than 20 000
are passed on, the rebate is 60 %, and if more than
200 000 are passed on then these benefit from a
rebate of 80 ° / o .

( 54 ) There is also a twofold degressive pricing system

for radar pictures . The price depends on the
number of pictures and on the number of radars
taken into account in every image for composite
radar pictures . The price of an image is obtained by
multiplying the unit price by a coefficient contained
in a table . The multiplicator is specified in detail in
a table of which the following is an extract :

Number of

radars 1-2 3-5 6-12 13—20 20

Number of

pictures

1-500

501-5 000

1,000 1,188 1,336 1,532 1,671

0,890 1,058 1,190 1,364 1,488

29 . 8 . 95 I EN I Official Journal of the European Communities No C 223 / 11

( 56 ) the formula for calculating the royalty fee is :

if TO < 3 X ;

if 3 X < TO < 9 X ;

if 9 X < TO :

F = X / 3,

F = TO / 9,

F = X,

where X is the normal price of the whole data and
products sublicenced to a SP ; TO is the SP 's
turnover ; and F is the fee to be paid for the data
and products .

By way of an example : if the SP purchases the
global basic data and products set, the synops from
the European stations of the global data sets at
intermediate hours, a daily set of products of a
value of 40 EPU per day and a licence for
Meteosat pictures, then an assumed full price of
ECU 210 000 per annum is used to illustrate the
application of this scheme . Such application leads to
the followings fees :

Turnover ( ECU ): Fees :

lower than 630 000 ECU 70 000

in costly infrastructure and extensive, ongoing
efforts to cover meteorological and climatological
developments . In addition, most of the items, and
in particular products and VAS, reflect a creative
act that causes these items to enjoy a high level of
protection under relevant intellectual property laws
in the Ecomet countries . Where there is no
copyright protection, Ecomet draws a parallel with
the rights of a database owner, on which the
Commission recently made a proposal for a
directive for the protection of the contents of
databases irrespective of whether the contents
themselves are protected by copyright ( 19 ). In view
of this legal protection of the items, Ecomet
members should distribute the items on the basis of

a licensing system .

( 59 ) Items included in the catalogue can be sublicenced

by each Ecomet member . For this purpose the orig ­
inating member of an item has to put it, on a
non-exclusive basis, at the disposal of Ecomet,
while retaining any intellectual property right in the

item . Ecomet gives the other NMSs a non-exclusive
licence for the marketing of the items under
sublicensing contracts and according to the terms
laid down by the originating NMS .

( 60 ) The general assembly of Ecomet will adopt the

ranging between 630 000 and

1 890 000

TO / 9

ECU 210 000

greater than 1 890 000

standard sublicensing agreements to be concluded

This example, particularly the figures, is subject to with end-users, service providers or publishers /

an agreement being reached between Ecomet and broadcasters ; another standard sublicensing
Eumetsat . agreement university, educational shall be or used research for establishments sublicences to .

Those agreements contain the normal clauses of
licensing agreements .
5 . The Ecomet catalogue

This example, particularly the figures, is subject to

an agreement being reached between Ecomet and
Eumetsat .

( 57 ) The Ecomet catalogue will contain a description of

all items which fall within its scope, namely all the
global basic data sets, global basic products,
European data sets, European products and the
VAS which NMSs wish to commercialize across the
boundaries or which are for sale to SPs ( whether
located in the same country as the NMS or in a
foreign country ). Whereas the description of most
items will also indicate the sublicencing price, the
description of VAS will only contain a rough indi ­
cation of their price . A precise tariff indication is
not possible because VAS must normally be
adjusted to the specific needs of the customer .

( 61 ) Under those sublicensing agreements an end-user

will only be able to use the item for his own
commercial purposes and a broadcaster or publisher
may use it only for broadcasting or publishing
purposes . By contrast, an SP can make unlimited
use of the item for the supply of VAS to third
parties . However, such third parties must be clearly

same country as or a identifiable and be known to the SP, but may be a
foreign country ). Whereas the description of most broadcaster or a publisher . It follows that, under
items will also indicate the sublicencing price, the this sublicence, an SP may not redistribute in their
description of VAS will only contain a rough indi ­ unaltered state any items that it has acquired ; but it
cation of their price . A precise tariff indication is may use it to provide a service to a broadcaster . If
not possible because VAS must normally be an SP should wish to make limited use of an item,
adjusted to the specific needs of the customer . the Ecomet members are prepared to negotiate a

lower price . Conversely, higher fees will be required
if the licence is to include the option of acting as
6 . The licensing system and the model sublicence distributor of the items .

agreements used for the distribution of the items
contained in the Ecomet catalogue

( 58 ) Ecomet claims that all items contained in the
Ecomet catalogue are strictly proprietary in nature .
They constitute the result of both large investments

( 19 ) Proposal for a Council Directive on the legal protection of

databases ; OJ No C 156, 23 . 6 . 1992, p. 4 . See more
recently : amended proposal for a Council Directive on the
legal protecion of databases ; OJ No C 308, 15 . 11 . 1993,
p. 1 .

No C 223 / 12 lENl Official Journal of the European Communities 29 . 8 . 95

V. REGULATORY FRAMEWORK OF THE WMO FOR

COMMERCIAL METEOROLOGICAL ACTIVITIES

( 62 ) The WMO adopted during the 12th Congress, on

20 June 1995, resolution 11.4 / 1 ( Cg-XII ) ' WMO
policy and practice for the exchange of meteoro ­
logical and related data and products including
guidelines on relationships in commercial meteoro ­
logical activities '.

( 63 ) The first reason for this resolution is the funda ­

mental importance, in the provision of meteoro ­
logical services in all countries and the international
meteorological programmes, of the exchange of
meteorological data and products between the
WMO members ' national meteorological or hydro ­
logical services . The second reason in that some of
the WMO members, particularly those of
developing countries, have expressed great concern
about adverse impacts on the development and
operation of their NMSs from increased
commercial activities in their countries by foreign
providers of meteorological services .

( 64 ) In view of these aims the WMO has adopted the

following practice on the international exchange of
meteorological information :

( 1 ) essential data and products are to be exchanged

between NMSs on a free and unrestricted basis .

' Free ' means : at no more cost than the cost of
reproduction and delivery, without charge for
the data and products themselves . ' Unrestricted '
means : in a non-discriminatory way ( 20 ), that is,
with no conditions as to their use ( 21 ). Essential
data and products are those which are
necessary for the provision of services in
support of the protection of life and property
and the well-being of all nations, particularly
those basic data and products at a minimum
required to accurately describe and forecast
weather and climate and support WMO
programmes . Annex 1 to resolution 11.4
contains a list of the minimum set of data and

products considered essential ;

( 2 ) additional data and products should be
exchanged among WMO members, which are
allowed to place conditions on their re-export

( 20 ) See definition in Annex 4 to resolution 11.4 .
( 21 ) See title of Annex 1 to resolution 11.4 .

for commercial purposes outside the receiving
country or group of countries forming a single
economic group for reasons such as national
laws or costs of production . As regards the
European Economic Area the WMO Congress
has noted that those countries form a single
economic territory ( point 11.4.13 of the general
summary of Cg.-XII ).

Additional data and products are those which
are required to sustain WMO programmes at
the global, regional and national level ;

( 3 ) members should provide the research and
education     - communities, for their
non-commercial activities, with free and unre ­
stricted access to all data and products
exchanged under the auspices of the WMO .

( 65 ) The most important rules for the commercial
activities of the NMSs listed in Annex 2 to

resolution 11.4 are as follows :

— ( 3 ) if conditions regarding the re-export of

additional data and products are not
honoured by a receiving member, then the
originating NMSs may take appropriate
action including denial of access to this
information ;

— ( 4 ) NMSs may export numerical weather
prediction ( NWP ) regional model products
employing additional data and products for
commercial purposes outside the country
running the model, unless an affected
member objects . In order to avoid harm to
other members, the NMSs should coor ­
dinate the provision of such services ;

— ( 5 ) NMSs may distribute and export products

from global NWP models without regard to
conditions attached to the original data and
products ;

— ( 6 ) services or products whose construction
would suffer significant deterioration by
removal of the additional data and products
and from which the additional data or
products can be retrieved easily, or whose
use can be identified unambiguously, should
carry the same conditions on their re-export
for commercial purposes as those additional
data and products ;

— ( 7 ) an NMS receiving a request from a local

client for a service that it cannot provide

29 . 8 . 95 Γ ΕΝ Official Journal of the European Communities No C 223 / 13

may seek the assistance of another NMS
with the capacity to provide it . The service
should as far as possible be made available
through the first NMS ;

— ( 8 ) NMSs receiving a request to provide a

service in another country should refer the
request back to the local NMS . In case this
NMS is unable to provide the service, the
external NMS may seek to establish a
collaborative arrangement with the local
NMS to provide the service .

( 66 ) The last sentence of Annex 2 provides that for cases

where a group of countries form a single economic
territory ("), the internal laws and regulations
appropriate to that group shall for all internal
group activities take precedence over any
conflicting ( WMO ) guidelines .

( 67 ) The Ecomet rules are applicable to meteorological

and hydrological information . However, in Annex 4
it is noted that the " WMO resolution 1 1 .4 does not,
at this stage, include hydrological data and
products within the above practice adopted by the

12th Congress for the exchange of meteorological
information . WMO members are working towards
the introduction of similar guidelines for hydrology
as soon as practicable .

VI . OTHER COMMITMENTS

( 68 ) At the Commission 's request Ecomet members with

a commercial turnover already in excess of ECU 1
million per annum are to use their best endeavours
to introduce transparent accounting systems as soon
as possible, and in any event within three years .
Members reaching that threshold in the future will
introduce such accounting systems within two
years . Members with commercial activities in excess
of ECU 100 000 per annum are to ensure that all
commercial transactions are recorded and that

information on associated costs can be made

available .

The Commission intends to take a favourable view of the

notified agreements and decisions pursuant to Article 85
of the EC Treaty and Article 53 of the European
Economic Area Agreement . Before doing so, it invites
interested third parties to send their observations within
one month of publication of this notice to the following
address, quoting the reference IV / B-3 / 34.563 —
Ecomet :

Commission of the European Communities,
Directorate General for Competition ( DG IV ),
Directorate IV / B — Restrictive Practices,
Abuse of Dominant Positions

and other Distortions of Competition I,
(") According to 11.4.13 of the summary of the 12th WMO Rue de la Loi / Wetstraat 200,

Congress, the EEA is such a group of countries . B-1049 Brussels .