CELEX: 32006R1908
Language: en
Date: 2006-12-19 00:00:00
Title: Council Regulation (Euratom) No 1908/2006 of 19 December 2006 laying down the rules for the participation of undertakings, research centres and universities in action under the Seventh Framework Programme of the European Atomic Energy Community and for the dissemination of research results (2007 to 2011)

30.12.2006      EN                Official Journal of the European Union                      L 400/1
                                                      I
                                Acts whose publication is obligatory
                      COUNCIL REGULATION (Euratom) No 1908/2006
                                        of 19 December 2006
                   laying down the rules for the participation of undertakings,
                       research centres and universities in action under the
                    Seventh Framework Programme of the European Atomic
                         Energy Community and for the dissemination of
                                  research results (2007 to 2011)
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Atomic Energy Community, and in particular
Articles 7 and 10,
Having regard to the proposal from the Commission,
Having regard to the Opinion of the European Parliament1,
Having regard to the Opinion of the European Economic and Social Committee2,
Having regard to the Opinion of the Court of Auditors3,
1
        Opinion of 30 November 2006 (not yet published in the Official Journal).
2
        Opinion of 5 July 2006 (not yet published in the Official Journal). Opinion delivered
        following non-compulsory consultation.
3
        OJ C 203, 25.8.2006, p. 1. Opinion delivered on its own initiative.
 ---pagebreak--- L 400/2           EN                 Official Journal of the European Union                    30.12.2006
Whereas:
(1)      The Seventh Framework Programme of the European Atomic Energy Community was
         adopted by Decision No 2006/970/Euratom of the Council of 18 December 2006
         concerning the Seventh Framework Programme of the European Atomic Energy
         Community for nuclear research and training activities (2007 to 2011)1. It is the
         responsibility of the Commission to ensure the implementation of the framework
         programme and its specific programmes, including the related financial aspects.
(2)      The Seventh Framework Programme is implemented in accordance with
         Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation
         applicable to the general budget of the European Communities2, hereinafter "the Financial
         Regulation", and Commission Regulation (EC, Euratom) No 2342/2002 of
         23 December 2002 laying down detailed rules for the implementation of the Financial
         Regulation3, hereinafter "the Implementing Rules".
(3)      The Seventh Framework Programme is also implemented in accordance with the state aid
         rules, in particular the rules on state aid for research and development, currently the
         Community Framework for State Aid for Research and Development4.
(4)      Treatment of confidential data is governed by all the relevant Community legislation,
         including the Institutions' internal rules such as Commission Decision 2001/844/EC,
         ECSC, EURATOM of 29 November 2001 amending its internal Rules of Procedure5
         regarding provisions of security.
1
        OJ L 400, 30.12.2006.
2
        OJ L 248, 16.9.2002, p. 1.
3
        OJ L 357, 31.12.2002, p. 1. Regulation as last amended by Regulation (EC, EURATOM)
        No 1248/2006 (OJ L 227, 19.8.2006, p. 3).
4
        OJ C 45, 17.2.1996, p. 5.
5
        OJ 317, 3.12.2001, p. 1. Decision as last amended by Decision 2006/548/EC, Euratom
        (OJ L 215 , 5.8.2006, p. 38).
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(5)      The rules for the participation of undertakings, research centres and universities should
         provide a coherent, comprehensive and transparent framework to ensure the most efficient
         implementation possible, taking into account the need for easy access for all participants
         through simplified procedures, in accordance with the principle of proportionality.
(6)      The rules should also facilitate the exploitation of intellectual property developed by a
         participant, taking also into account the way in which the participant may be organised
         internationally, whilst protecting the other participants' and the Community's legitimate
         interests.
(7)      The Seventh Framework Programme should promote participation from the outermost
         regions of the Community, as well as from a wide range of undertakings, research centres
         and universities.
(8)       The definition of micro, small and medium-sized enterprises (SMEs) provided in
         Commission Recommendation 2003/361/EC 1 should apply, for reasons of coherence and
         transparency.
(9)       It is necessary to establish the minimum conditions for participation, both as a general rule
         and with regard to the specificities of indirect actions under the Seventh Framework
         Programme. In particular, rules should be laid down regarding the number of participants
         and their place of establishment.
(10)      It is appropriate that any legal entity should be free to participate once the minimum
         conditions have been satisfied. Participation over and above the minimum should ensure
         the efficient implementation of the indirect action concerned.
1
        OJ L 124, 20.5.2003, p. 36.
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(11)    International organisations dedicated to developing cooperation in the field of nuclear
        research and training in Europe and largely made up of Member States or associated
        countries should be encouraged to participate in the Seventh Framework Programme.
(12)    The participation of legal entities established in third countries and the participation of
        international organisations should also be envisaged, as enshrined in Article 101 of the
        Treaty. However, it is appropriate to require that such participation be justified in terms of
        the enhanced contribution thereby made to the objectives sought under the Seventh
        Framework Programme.
(13)    Pursuant to Article 198 of the Treaty, legal entities of Member States' non-European
        territories under their jurisdiction are eligible for the Seventh Framework Programme.
(14)    In line with the objectives mentioned above, it is necessary to establish the terms and
        conditions for providing Community funding to participants in indirect actions.
(15)    There should be an effective and smooth transition from the cost calculation regime used in
        the Sixth Framework programme. For the benefit of participants the monitoring process of
        the Seventh Framework programme should, therefore, address the budgetary impact of this
        change in particular as regards its effect on the administrative burden for participants.
(16)    It is necessary for the Commission to establish further rules and procedures, in addition to
        those provided for in the Financial Regulation and its Implementing Rules and this
        Regulation, to govern the submission, evaluation and selection of proposals and award of
        grants, as well as redress procedures for participants. In particular the rules governing the
        use of independent experts should be established.
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(17)      It is appropriate for the Commission to establish further rules and procedures, in addition
         to those provided for in the Financial Regulation and its Implementing Rules, to govern the
         assessment of the legal and financial viability of participants in indirect actions under the
         Seventh Framework Programme. Such rules should strike the right balance between
         protecting the Community's financial interests and simplifying and facilitating the
         participation of legal entities in the Framework Programme.
(18)      In this context, the Financial Regulation and the Implementing Rules and Council
         Regulation (Euratom, EC) No 2988/95 of 18 December 1995 on the protection of the
         European Communities' financial interests1, govern inter alia the protection of the
         Community's financial interests, the fight against fraud and irregularity, the procedures for
         the recovery of sums owed to the Commission, exclusion from contract and grant
         procedures and related penalties, and audits, checks, and inspections by the Commission
         and the Court of Auditors, pursuant to Article 160c of the Treaty.
(19)      It is necessary that the Community financial contribution reaches the participants without
         undue delay.
(20)      The agreements concluded for each action should provide for supervision and financial
         control by the Commission, or any representative authorised by the Commission, as well as
         audits by the Court of Auditors and on-the-spot checks carried out by the European
         Anti-Fraud Office (OLAF), in accordance with the procedures laid down in Council
         Regulation No 2185/96 of 11 November 1996 concerning on-the-spot checks and
         inspections carried out by the Commission in order to protect the European Communities'
         financial interests against fraud and other irregularities2.
1
        OJ L 312, 23.12.1995, p. 1.
2
        OJ L 292, 15.11.1996, p. 2.
 ---pagebreak--- L 400/6          EN                Official Journal of the European Union                      30.12.2006
(21)     The Commission should monitor both the indirect actions carried out under the Seventh
         Framework Programme and the Seventh Framework Programme and its Specific
         Programmes. With a view to ensuring the efficient and coherent monitoring and evaluation
         of the implementation of indirect actions, the Commission should set-up and maintain an
         appropriate information system.
(22)     The Seventh Framework Programme should reflect and promote the general principles laid
         down in the Charter for Researchers and Code of Conduct for the Recruitment of
         Researchers1, while respecting their voluntary character.
(23)     The rules governing the dissemination of research results should ensure that, where
         appropriate, the participants protect the intellectual property generated in actions, and use
         and disseminate those results.
(24)     While respecting the rights of the owners of intellectual property, those rules should be
         designed to ensure that participants and, where appropriate, their affiliated entities
         established in a Member State or associated country have access to information they bring
         to the project and to knowledge arising from research work carried out in the project to the
         extent necessary to conduct the research work or to use the resulting knowledge.
(25)     The obligation established in the sixth Framework Programme for certain participants to
         take financial responsibility for their partners in the same consortium will be waived. In
         this context, a "Participants guarantee fund", managed by the Commission, should be
         established to cover amounts due and not reimbursed by defaulting partners. Such an
         approach will promote simplification and facilitate the participation, whilst safeguarding
         the Community's financial interests in a manner appropriate for the Framework
         Programme.
1
        OJ L 75, 22.3.2005, p. 67.
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(26)      Community contributions to a joint undertaking set up pursuant to Articles 45 to 51 of the
         Treaty do not fall within the scope of this Regulation.
(27)     This Regulation respects the fundamental rights and observes the principles recognised in
         particular by the Charter of Fundamental Rights of the European Union.
(28)      The Community may provide financial support, as established in the Financial Regulation,
         inter alia by means of:
         (a)    public procurements, in the form of a price for goods or services established by
                contract and selected on the basis of calls for tender;
         (b)    grants;
         (c)    subscriptions to an organisation in the form of a membership fee;
         (d)    honoraria for independent experts identified in Article 16 of this Regulation.
 ---pagebreak--- L 400/8           EN                Official Journal of the European Union                       30.12.2006
                                             CHAPTER I
                           INTRODUCTORY PROVISIONS
                                                  Article 1
                                               Subject matter
This Regulation lays down the rules for the participation of undertakings, research centres and
universities and other legal entities in actions undertaken by one or more participants by means of
funding schemes identified in part (a) of Annex II to Decision No 2006/970/Euratom establishing
the Seventh Framework Programme, hereinafter "indirect actions".
It also lays down rules, in accordance with those laid down in the Financial Regulation and the
Implementing Rules, concerning the Community financial contribution to participants in indirect
actions under the Seventh Framework Programme.
As regards the results of research carried out under the Seventh Framework Programme, this
Regulation lays down rules for the disclosure of foreground by any appropriate means other than
that resulting from the formalities for protecting it, and including the publication of foreground in
any medium, hereinafter "dissemination".
In addition, it lays down rules for the direct or indirect utilisation of foreground in further research
activities other than those covered by the indirect action concerned, or for developing, creating and
marketing a product or process, or for creating and providing a service, hereinafter "use".
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In respect of both foreground and background, this Regulation lays down rules concerning licences
and user rights thereto, hereinafter "access rights".
                                                 Article 2
                                                Definitions
For the purposes of this Regulation, the following definitions shall apply in addition to those set out
in the Financial Regulation and the Implementing Rules:
1)       "legal entity" means any natural person, or any legal person created under the national law
         of its place of establishment, or under Community law or international law, which has legal
         personality and which may, acting under its own name, exercise rights and be subject to
         obligations. In the case of natural persons, references to establishment are deemed to refer
         to habitual residence;
2)       "affiliated entity" means any legal entity that is under the direct or indirect control of a
         participant, or under the same direct or indirect control as the participant, control taking
         any of the forms set out in Article 7, paragraph 2;
3)       "fair and reasonable conditions" means appropriate conditions including possible financial
         terms taking into account the specific circumstances of the request for access, for example
         the actual or potential value of the foreground or background to which access is requested
         and/or the scope, duration or other characteristics of the use envisaged;
 ---pagebreak--- L 400/10         EN                 Official Journal of the European Union                       30.12.2006
4)       "foreground" means the results, including information, whether or not they can be
         protected, which are generated by the indirect action concerned. Such results include rights
         related to copyright; design rights; patent rights; plant variety rights; or similar forms of
         protection;
5)       "background" means information which is held by participants prior to their accession to
         the grant agreement, as well as copyrights or other intellectual property rights pertaining to
         such information, the application for which has been filed before their accession to the
         grant agreement, and which is needed for carrying out the indirect action or for using the
         results of the indirect action;
6)       "participant" means a legal entity contributing to an indirect action and having rights and
         obligations with regard to the Community under the terms of this Regulation;
7)       "research organisation " means a legal entity established as a non-profit organisation which
         carries out research or technological development as one of its main objectives;
8)       "third country" means a State that is not a Member State;
9)       "associated country" means a third country which is party to an international agreement
         with the Community, under the terms or on the basis of which it makes a financial
         contribution to all or part of the Seventh Framework Programme;
10)      "international organisation" means an intergovernmental organisation, other than the
         European Community, which has legal personality under international public law, as well
         as any specialised agency set up by such an international organisation;
 ---pagebreak--- 30.12.2006       EN                 Official Journal of the European Union                     L 400/11
11)      "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;
12)      "public body" means any legal entity established as such by national law, and international
         organisations;
13)      "SMEs" mean micro, small and medium-sized enterprises within the meaning of
         Recommendation 2003/361/EC in the version of 6 May 2003;
14)      "work programme" means a plan adopted by the Commission for the implementation of a
         specific programme as identified in Article 2 of Decision No 2006/970/Euratom;
15)      "funding schemes" mean the mechanisms for the Community funding of indirect actions as
         established in part (a) of Annex B to Decision No 2006/970/Euratom.
                                                  Article 3
                                               Confidentiality
Subject to the conditions established in the grant agreement, appointment letter or contract, the
Commission and the participants shall keep confidential any data, knowledge and documents
communicated to them as confidential.
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                                           CHAPTER II
                                      PARTICIPATION
                                                 Article 4
                               Specific rules for fusion energy research
The rules set out in this Chapter apply without prejudice to specific rules for activities under the
thematic area "Fusion energy research" set out in Chapter IV.
                                              SECTION 1
                                   MINIMUM CONDITIONS
                                                 Article 5
                                            General principles
1.       Any undertaking, university or research centre or other legal entity, whether established in
         a Member State or associated country, or in a third country, may participate in an indirect
         action provided that the minimum conditions laid down in this Chapter have been met,
         including any conditions specified pursuant to Article 11.
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         However, in the case of an indirect action as referred to in Articles 6 or 8, under which it is
         possible for the minimum conditions to be met without the participation of a legal entity
         established in a Member State, the attainment of the objectives laid down in Articles 1
         and 2 of the Treaty must thereby be enhanced.
2.       The Joint Research Centre of the European Commission, hereinafter "the JRC", may
         participate in indirect actions on the same footing and with the same rights and obligations
         as a legal entity established in a Member State.
                                                    Article 6
                                             Minimum conditions
1.       The minimum conditions for indirect actions shall be the following:
         (a)    at least three legal entities must participate, each of which is established in a Member
                State or associated country, and no two of which are established in the same Member
                State or associated country;
         (b)    all three legal entities must be independent of each other in accordance with
                Article 7.
2.       For the purposes of point (a) of paragraph 1, where one of the participants is the JRC, or an
         international European interest organisation or an entity created under Community law, it
         shall be deemed to be established in a Member State or associated country other than any
         Member State or associated country in which another participant in the same action is
         established.
 ---pagebreak--- L 400/14          EN                 Official Journal of the European Union                     30.12.2006
                                                   Article 7
                                                Independence
1.       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.
2.       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.
 ---pagebreak--- 30.12.2006        EN                Official Journal of the European Union                        L 400/15
                                                  Article 8
                             Coordination and support actions, and training
                                 and career development of researchers
For coordination and support actions, and actions in favour of training and career development of
researchers, the minimum condition shall be the participation of one legal entity.
The first paragraph shall not apply in the case of actions whose purpose is to coordinate research
activities.
                                                  Article 9
                                              Sole participants
Where the minimum conditions for an indirect action are satisfied by a number of legal entities,
which together form one legal entity, the latter may be the sole participant in an indirect action,
provided that it is established in a Member State or associated country.
                                                  Article 10
                              International organisations and legal entities
                                      established in third countries
Participation in indirect actions shall be open to international organisations and legal entities
established in third countries after the minimum conditions laid down in this Chapter have been
met, as well as any conditions specified in the specific programmes or relevant work programmes.
 ---pagebreak--- L 400/16         EN               Official Journal of the European Union                     30.12.2006
                                                Article 11
                                         Additional conditions
In addition to the minimum conditions laid down in this Chapter, specific programmes or work
programmes may lay down conditions regarding the minimum number of participants.
They may also lay down, according to the nature and objectives of the indirect action, additional
conditions to be met as regards type of participant and, where appropriate, place of establishment.
                                             SECTION 2
                                          PROCEDURES
                                         SUBSECTION 1
                                 CALLS FOR PROPOSALS
                                                Article 12
                                          Calls for proposals
1.       The Commission shall issue calls for proposals for indirect actions in accordance with the
         requirements laid down in the relevant specific programmes and work programmes.
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         In addition to the publicity specified in the Implementing Rules, the Commission shall
         publish calls for proposals in the Internet pages of the Seventh Framework Programme,
         through specific information channels, and at the national contact points set up by the
         Member States and the associated countries.
2.       Where appropriate, the Commission shall specify in the call for proposals that the
         participants need not establish a consortium agreement.
3.       Calls for proposals shall have clear objectives so as to ensure that applicants do not
         respond needlessly.
                                                 Article 13
                                                Exceptions
The Commission shall not issue calls for proposals for the following:
(a)      coordination and support actions to be carried out by legal entities identified in the specific
         programmes or in the work programmes when the specific programme permits the work
         programmes to identify beneficiaries, in accordance with the Implementing Rules;
(b)      coordination and support actions consisting of a purchase of goods or services subject to
         the rules on public procurement set out in the Financial Regulation;
(c)      coordination and support actions relating to the appointment of independent experts;
(d)      other actions, where so provided by the Financial Regulation or the Implementing Rules.
 ---pagebreak--- L 400/18         EN                 Official Journal of the European Union                   30.12.2006
                                           SUBSECTION 2
                           EVALUATION AND SELECTION OF
                        PROPOSALS AND AWARD OF GRANTS
                                                  Article 14
                                    Evaluation, selection and award
1.       The Commission shall evaluate all the proposals submitted in response to a call for
         proposals on the basis of the principles for evaluation, and the selection and award criteria.
         The criteria will be those of excellence, impact and implementation. Within this framework
         the work programme will specify the evaluation and selection criteria and may add
         additional requirements, weightings and thresholds, or set out further details on the
         application of the criteria.
2.       A proposal which contravenes fundamental ethical principles or which does not fulfil the
         conditions set out in the specific programme, the work programme or in the call for
         proposals shall not be selected. Such a proposal may be excluded from the evaluation,
         selection and award procedures at any time.
3.       Proposals shall be ranked according to the evaluation results. Funding decisions shall be
         made on the basis of this ranking.
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                                                   Article 15
                                  Submission, evaluation, selection and
                                              award procedures
1.       Where a call for proposals specifies a two-step evaluation procedure, only those proposals
         that pass the first step, based on the evaluation against a limited set of criteria, shall go
         forward for further evaluation.
2.       Where a call for proposals specifies a two-stage submission procedure, only those
         applicants whose proposals pass the evaluation for the first stage shall be requested to
         submit a complete proposal in the second stage.
         All applicants shall be swiftly informed of the results of the first stage evaluation.
3.       The Commission shall adopt and publish rules governing the procedure for the submission
         of proposals, as well as the related evaluation, selection and award procedures and publish
         guides for applicants including guidelines for evaluators. In particular, it shall lay down
         detailed rules for the two-stage procedure for submission (including as regards the scope
         and nature of the first stage proposal as well as those of the complete second stage
         proposal), and rules for the two-step evaluation procedure.
         The Commission shall provide information and set out redress procedures for applicants.
4.       The Commission shall adopt and publish rules to ensure consistent verification of the
         existence and legal status of participants in indirect actions as well as their financial
         capacity.
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         The Commission shall refrain from renewing such verification unless the situation of the
         participant concerned has changed.
                                                  Article 16
                                  Appointment of independent experts
1.       The Commission shall appoint independent experts to assist with evaluations of proposals.
         For coordination and support actions, referred to in Article 13, independent experts shall be
         appointed only if the Commission deems it appropriate.
2.       Independent experts shall be chosen on the basis of skills and knowledge appropriate to the
         tasks assigned to them. In cases where independent experts will have to deal with classified
         information, the appropriate security clearance shall be required for nomination.
         Independent experts shall be 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 or enterprises with a view to establishing lists of suitable
         candidates.
         The Commission may, if deemed appropriate, select any individual with the appropriate
         skills from outside the lists.
         Appropriate measures shall be taken to ensure reasonable gender balance when appointing
         groups of independent experts.
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3.       When appointing an independent expert, the Commission 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.
4.       The Commission shall adopt a model appointment letter, hereinafter "the appointment
         letter", which shall include a declaration that the independent expert has no conflict of
         interest at the time of appointment and that he undertakes to inform the Commission if any
         conflict of interest should arise in the course of providing his opinion or carrying out his
         duties. The Commission shall conclude an appointment letter between the Community and
         each independent expert.
5.       The Commission shall publish once a year in any appropriate medium the list of the
         independent experts that have assisted it for the Framework Programme and each specific
         programme.
                                           SUBSECTION 3
                  IMPLEMENTATION AND GRANT AGREEMENTS
                                                  Article 17
                                                   General
1.        The participants shall implement the indirect action and shall take all necessary and
         reasonable measures to that end. Participants in the same indirect action shall implement
         the work jointly and severally towards the Community.
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2.       The Commission shall draw up, on the basis of the model provided for in Article 18(8) and
         taking into account the characteristics of the funding scheme concerned, a grant agreement
         between the Community and the participants.
3.       Participants shall make no commitments incompatible with the grant agreement.
4.       Where a participant fails to comply with its obligations regarding the technical
         implementation of the indirect action, the other participants shall comply with the grant
         agreement without any complementary Community contribution unless the Commission
         expressly relieves them of that obligation.
5.       If the implementation of an action becomes impossible or if the participants fail to
         implement it, the Commission shall ensure the termination of the action.
6.       Participants shall ensure that the Commission is informed of any event which might affect
         the implementation of the indirect action or the interests of the Community.
7.       Where provided for in the grant agreement, the participants in the indirect action may
         subcontract certain elements of the work to be carried out to third parties.
8.       The Commission shall set out redress procedures for participants.
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                                                   Article 18
                          General provisions for inclusion in grant agreements
1.        The grant agreement shall establish the rights and obligations of the participants with
         regard to the Community, in accordance with Decision No 2006/970/Euratom, this
         Regulation, the Financial Regulation, and the Implementing Rules, and in accordance with
         the general principles of Community law.
         It shall also establish, in accordance with the same conditions, the rights and obligations of
         legal entities who become participants when the indirect action is ongoing.
2.       Where appropriate, the grant agreement shall specify which part of the Community
         financial contribution will be based on the reimbursement of eligible costs, and which part
         will be based on flat rates (including scale of unit costs) or lump-sums.
3.       The grant agreement shall specify which changes in the composition of the consortium are
         to require the prior publication of a competitive call.
4.        The grant agreement shall require the submission to the Commission of periodic progress
         reports concerning the implementation of the indirect action concerned.
5.       Where appropriate, the grant agreement may provide that the Commission is to be notified
         in advance of any intended transfer of ownership of foreground to a third party.
 ---pagebreak--- L 400/24         EN                 Official Journal of the European Union                     30.12.2006
6.       Where the grant agreement requires participants to carry out activities that benefit third
         parties, the participants shall advertise this widely and identify, evaluate and select third
         parties transparently, fairly and impartially. If provided for in the work-programme, the
         grant agreement shall establish criteria for the selection of such third parties. The
         Commission reserves the right to object to the selection of the third parties.
7.       The Commission shall, in close cooperation with Member States, establish a model grant
         agreement in accordance with this Regulation. If a significant modification of the model
         grant agreement proves necessary, the Commission shall, in close cooperation with
         Member States, revise it as appropriate.
8.       The model grant agreement shall reflect the general principles laid down in the European
         Charter for Researchers and the Code of Conduct for the Recruitment of Researchers. It
         shall address, as appropriate, synergies with education at all levels; readiness and capacity
         to foster dialogue and debate on scientific issues and research results with a broad public
         beyond the research community; activities to increase the participation and role of women
         in research; and activities addressing socio-economic aspects of the research.
9.       The model grant agreement shall provide for supervision and financial control by the
         Commission or any representative authorised by it, and the Court of Auditors.
10.      The grant agreement may lay down time limits for participants to give the various
         notifications referred to in this Regulation.
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                                                  Article 19
                                  Provisions concerning access rights
                                           use and dissemination
1.        The grant agreement shall establish the respective rights and obligations of the participants
          with regard to access rights, use and dissemination, in so far as those rights and obligations
          have not been laid down in this Regulation.
          For those purposes, it shall require the submission to the Commission of a plan for the use
          and dissemination of foreground.
2.        The grant agreement may specify the conditions under which the participants may object to
          a technological audit of the use and dissemination of the foreground being carried out by
          certain authorised representatives of the Commission.
                                                  Article 20
                                   Provisions concerning termination
The grant agreement shall specify the grounds for its termination, in whole or in part, in particular
for non-compliance with this Regulation, non-performance or breach, as well as the consequences
for participants of any non-compliance on the part of another participant.
 ---pagebreak--- L 400/26          EN                 Official Journal of the European Union                     30.12.2006
                                                   Article 21
                                              Specific provisions
1.        In the case of indirect actions to support existing research infrastructures and, where
          applicable, new research infrastructures, the grant agreement may lay down specific
          provisions relating to confidentiality, publicity and access rights and commitments that
          might affect users of the infrastructure.
2.        In the case of indirect actions to support training and career development of researchers,
          the grant agreement may lay down specific provisions on confidentiality, access rights and
          commitments relating to the researchers benefiting from the action.
3.        To safeguard the defence interests of the Member States within the meaning of Article 24
          of the Treaty, the grant agreement may lay down, where appropriate, specific provisions on
          confidentiality, classification of information, access rights, transfer of ownership of
          foreground and the use thereof.
                                                   Article 22
                                          Signature and accession
The grant agreement shall enter into force upon signature by the coordinator and the Commission.
It shall apply to each participant that has formally acceded thereto.
 ---pagebreak--- 30.12.2006        EN                 Official Journal of the European Union                    L 400/27
                                            SUBSECTION 4
                                               CONSORTIA
                                                   Article 23
                                          Consortium agreements
1.       Save where otherwise provided in the call for proposals, all participants in an indirect
         action shall conclude an agreement, hereinafter "the consortium agreement", to govern
         inter alia the following:
         (a)    the internal organisation of the consortium;
         (b)    the distribution of the Community financial contribution;
         (c)    rules additional to those in Chapter III Dissemination and use, and access rights as
                well as to related provisions in the grant agreement;
         (d)    the settlement of internal disputes including the cases of abuses of power;
         (e)    liability, indemnification and confidentiality arrangements between the participants.
2.       The Commission shall establish and publish guidelines on the main issues that may be
         addressed by participants in their consortium agreements.
 ---pagebreak--- L 400/28         EN                Official Journal of the European Union                      30.12.2006
                                                 Article 24
                                               Coordinator
1.       The legal entities wishing to participate in an indirect action shall appoint one of their
         number to act as coordinator to carry out the following tasks in accordance with this
         Regulation, the Financial Regulation, the Implementing Rules, and the grant agreement:
         (a)   to monitor the point compliance by participants in the indirect action with their
               obligations;
         (b)   to verify whether the legal entities identified in the grant agreement complete the
               necessary formalities for accession to the grant agreement;
         (c)   to receive the Community financial contribution and to distribute it in accordance
               with the consortium and grant agreement;
         (d)   to keep the records and financial accounts relevant for the Community financial
               contribution and to inform the Commission of its distribution in accordance with
               Articles 23(1) b) and 35;
         (e)   to be intermediary for efficient and correct communication between the participants
               and to report regularly to the participants and to the Commission on the progress of
               the project.
2.       The coordinator shall be identified in the grant agreement.
         The appointment of a new coordinator shall require the written approval of the
         Commission.
 ---pagebreak--- 30.12.2006       EN                 Official Journal of the European Union                     L 400/29
                                                  Article 25
                                       Changes in the consortium
1.        The participants in an indirect action may agree to add a new participant or to remove an
         existing participant in accordance with the respective provisions established in the
         consortium agreement.
2.       Any legal entity which joins an ongoing action shall accede to the grant agreement.
3.       In specific cases, where provided for in the grant agreement, the consortium shall publish a
         competitive call and advertise it widely using specific information support, particularly
         Internet sites on the seventh framework programme, the specialist press and brochures, and
         the national contact points set up by the Member States and associated countries for
         information and support.
         The consortium shall evaluate offers in the light of the criteria which governed the initial
         action and with the assistance of independent experts appointed by the consortium, in
         accordance with the principles laid down in Articles 14, and Article 16, respectively.
4.       The consortium shall notify any proposed change of its composition to the Commission,
         which may object within 45 days of the notification.
         Changes in the composition of the consortium associated with proposals for other changes
         to the grant agreement which are not directly related to the change in composition shall be
         subject to written approval by the Commission.
 ---pagebreak--- L 400/30         EN                Official Journal of the European Union                  30.12.2006
                                          SUBSECTION 5
                          MONITORING AND EVALUATION OF
                      PROGRAMMES AND INDIRECT ACTIONS
                     AND COMMUNICATION OF INFORMATION
                                                 Article 26
                                      Monitoring and evaluation
1.       The Commission shall monitor the implementation of indirect actions on the basis of the
         periodic progress reports submitted pursuant to Article 18(4).
         In particular, the Commission shall monitor the implementation of the plan for the use and
         dissemination of foreground, submitted pursuant to the second subparagraph of
         Article 19(1).
         For those purposes, the Commission may be assisted by independent experts appointed in
         accordance with Article 16.
2.       The Commission shall set up and maintain an information system allowing for this
         monitoring to take place in an efficient and coherent manner across the Framework
         Programme.
         Subject to Article 3, the Commission shall publish on any appropriate medium information
         on the funded projects.
 ---pagebreak--- 30.12.2006        EN                Official Journal of the European Union                     L 400/31
3.       The monitoring and evaluation referred to in Article 6 of the Decision No
         2006/970/Euratom shall include aspects relating to the application of this Regulation and
         shall address the budgetary impact of the changes in the cost calculation regime as
         compared to the sixth Framework Programme and its effects on the administrative burden
         for participants.
4.       The Commission shall appoint, in accordance with Article 16, independent experts to assist
         with evaluations required under the Seventh Framework Programme and its specific
         programme, and, as deemed necessary, for the evaluation of previous Framework
         Programmes.
5.       In addition, the Commission may set up groups of independent experts appointed in
         accordance with Article 16, to advise on the design and implementation of Community
         research policy.
                                                  Article 27
                                   Information to be made available
1.       Having due regard to Article 3, the Commission shall, upon request, make available to any
         Member State or associated country any useful information in its possession on foreground
         arising from work carried out in the context of an indirect action, provided that 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.
 ---pagebreak--- L 400/32         EN                Official Journal of the European Union                    30.12.2006
2.       Under no circumstances shall the provision of information pursuant to paragraph 1 be
         deemed to transfer to the recipient any 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 on its confidentiality.
                                              SECTION 3
                     COMMUNITY FINANCIAL CONTRIBUTION
                                          SUBSECTION 1
             ELIGIBILITY FOR FUNDING AND FORMS OF GRANTS
                                                 Article 28
                                         Eligibility for funding
1.       The following legal entities participating in an indirect action may receive a Community
         financial contribution:
         (a)   any legal entity established in a Member State or an associated country, or created
               under Community law;
         (b)   any international European interest organisation.
 ---pagebreak--- 30.12.2006         EN                  Official Journal of the European Union                     L 400/33
2.        In the case of a participating international organisation, other than an international
          European interest organisation, or a legal entity established in a third country other than an
          associated country, a Community financial contribution may be granted provided that at
          least one of the following conditions is satisfied:
          (a)    provision is made to that effect in the specific programmes or in the relevant work
                 programme;
          (b)    it is essential for carrying out the indirect action;
          (c)    such funding is provided for in a bilateral scientific and technological agreement or
                 any other arrangement between the Community and the country in which the legal
                 entity is established.
                                                     Article 29
                                                 Forms of grants
The Community financial contribution for grants identified in part a) of Annex B to the
Decision No 2006/970/Euratom shall be based on the reimbursement, in whole or in part, of eligible
costs.
However, the Community financial contribution may take the form of flat rate financing, including
scale of unit costs, or lump sum financing, or it may combine the reimbursement of eligible costs
with flat rates and lump sums. The Community financial contribution may also take the form of
scholarships or prizes.
 ---pagebreak--- L 400/34          EN                Official Journal of the European Union                      30.12.2006
The work programmes and calls for proposals shall specify the forms of grants to be used in the
actions concerned.
                                                  Article 30
                                    Reimbursement of eligible costs
1.       Indirect actions financed by grants shall be co-financed by the participants.
         The Community financial contribution to reimburse eligible costs shall not give rise to a
         profit.
2.       Receipts shall be taken into consideration for the payment of the grant at the end of the
         implementation of the action.
3.       In order to be considered eligible, costs incurred for the implementation of an indirect
         action shall meet the following conditions:
         (a)    they must be actual;
         (b)    they must have been incurred during the duration of the action, with the exception of
                final reports when provided for in the grant agreement;
         (c)    they must have been determined in accordance with the usual accounting and
                management principles and practices of the participant and used for the sole purpose
                of achieving the objectives of the indirect action and its expected results, in a manner
                consistent with the principles of economy, efficiency and effectiveness;
 ---pagebreak--- 30.12.2006        EN                Official Journal of the European Union                        L 400/35
         (d)    they must be recorded in the accounts of the participant and, in the case of any
                contribution from third parties, they must be recorded in the accounts of the third
                parties;
         (e)    they must be exclusive of non-eligible costs, in particular identifiable indirect taxes
                including value added tax, duties, interest owed, provisions for possible future losses
                or charges, exchange losses, cost related to return on capital, costs declared or
                incurred, or reimbursed in respect of another Community project, debt and debt
                service charges, excessive or reckless expenditure, and any other cost that does not
                meet the conditions referred to in points (a) to (d).
         For the purposes of point (a), average personnel costs may be used if they are consistent
         with the management principles and accounting practices of the participant and do not
         differ significantly from actual costs.
4.       While the Community financial contribution shall be calculated by reference to the cost of
         the indirect action as a whole, its reimbursement shall be based on the reported costs of
         each participant.
                                                  Article 31
                             Direct eligible costs and indirect eligible costs
1.        Eligible costs shall be composed of costs attributable directly to the action, hereinafter
         "direct eligible costs" and, where applicable, of costs which are not attributable directly to
         the action, but which have been incurred in direct relationship with the direct eligible costs
         attributed to the action, hereinafter "indirect eligible costs".
 ---pagebreak--- L 400/36         EN                 Official Journal of the European Union                           30.12.2006
2.       The reimbursement of participants' costs shall be based on their eligible direct and indirect
         costs.
         In compliance with Article 30(3), point (c), a participant may use a simplified method of
         calculation of its indirect eligible cost at the level of its legal entity if it is in accordance
         with its usual accounting and management principles and practices. Principles to be
         followed in this respect shall be set out in the model grant agreement.
3.       The grant agreement may provide that the reimbursement of indirect eligible costs is to be
         limited to a maximum percentage of the direct eligible costs, excluding the direct eligible
         costs for subcontracting, in particular in the case of coordination and support actions, and,
         where appropriate, actions for training and career development of researchers.
4.       By derogation from paragraph 2, for the coverage of indirect eligible costs a participant
         may opt for a flat-rate of its total direct eligible costs, excluding its direct eligible costs for
         subcontracting or reimbursement of third parties' costs.
         The Commission shall establish appropriate flat rates based on a close approximation of
         the real indirect costs concerned, in accordance with the Financial Regulation and its
         Implementing Rules.
5.       Non-profit public bodies, secondary and higher education establishments, research
         organisations and SMEs which are unable to identify with certainty their real indirect costs
         for the action concerned, when participating in funding schemes which include research
         and technological development and demonstration activities, as referred to in Article 32,
         may opt for a flat-rate equal to 60 % of the total direct eligible costs for grants awarded
         under calls for proposals closing before 1 January 2010.
 ---pagebreak--- 30.12.2006         EN                 Official Journal of the European Union                      L 400/37
         With a view to facilitating a transition to full application of the general principle referred to
         in paragraph 2, the Commission shall establish, for grants awarded under calls closing after
         31 December 2009, an appropriate level of flat rate which should be an approximation of
         the real indirect costs concerned but not lower than 40 %. This will be based on an
         evaluation of participation by non-profit public bodies, secondary and higher education
         establishments, research organisations and SMEs which are unable to identify with
         certainty their real indirect costs for the action concerned.
6.        All flat rates shall be set out in the model grant agreement.
                                                    Article 32
                                             Upper funding limits
1.       For research and technological development activities, the Community financial
         contribution may reach a maximum of 50 % of the total eligible costs.
         However, in the case of non-profit public bodies, secondary and higher education
         establishments, research organisations and SMEs, it may reach a maximum of 75 % of the
         total eligible costs.
2.       For demonstration activities, the Community financial contribution may reach a maximum
         of 50 % of the total eligible costs.
3.       For activities supported by coordination and support actions, and actions for the training
         and career development of researchers, the Community financial contribution may reach a
         maximum of 100 % of the total eligible costs.
 ---pagebreak--- L 400/38         EN                 Official Journal of the European Union                      30.12.2006
4.       For management activities, including certificates on the financial statements, and other
         activities not covered by paragraphs 1, 2 and 3, the Community financial contribution may
         reach a maximum of 100 % of the total eligible costs.
         The other activities referred to in the first subparagraph include, inter alia, training in
         actions that do not fall under the funding scheme for training and career development of
         researchers, coordination, networking, and dissemination.
5.       For the purposes of paragraphs 1 to 4, eligible costs and receipts shall be taken into
         consideration in order to determine the Community financial contribution.
6.       Paragraphs 1 to 5 shall apply, as appropriate, in the case of indirect actions where flat rate
         financing or lump sum financing is used for the whole indirect action.
                                                  Article 33
                                  Reporting and audit of eligible costs
1.       Periodic reports shall be submitted to the Commission regarding eligible costs, financial
         interest yielded by pre-financing, and receipts in relation with the indirect action concerned
         and, where appropriate, a certificate on the financial statements, in accordance with the
         Financial Regulation and the Implementing Rules.
         The existence of co-financing in relation with the concerned action shall be reported and,
         where appropriate, certified at the end of the action.
 ---pagebreak--- 30.12.2006       EN                Official Journal of the European Union                        L 400/39
2.       Notwithstanding the Financial Regulation and the Implementing rules, a certificate on the
         financial statements shall be compulsory only whenever the cumulative amount of interim
         payments and balance payments made to a participant is equal to EUR 375 000 or more for
         an indirect action.
         However, for indirect actions of duration of 2 years or less, not more than one certificate
         on the financial statements shall be requested from the participant, at the end of the project.
         Certificates on the financial statements shall not be required for indirect actions entirely
         reimbursed by means of lump sums or flat rates.
3.       In the case of public bodies, research organisations, and higher and secondary education
         establishments, a certificate on the financial statements as required under paragraph 1 may
         be established by a competent public officer.
                                                 Article 34
                                        Networks of Excellence
1.       The work programme shall provide for the forms of grants to be used for Networks of
         Excellence.
2.       Where the Community financial contribution to Networks of Excellence takes the form of
         a lump sum, it shall be calculated according to the number of researchers to be integrated
         in the Network of Excellence and the duration of the action. The unit value for lump sums
         paid shall be EUR 23 500 per year and per researcher.
 ---pagebreak--- L 400/40         EN                Official Journal of the European Union                    30.12.2006
         That amount shall be adjusted by the Commission in accordance with the Financial
         Regulation and the Implementing Rules.
3.       The work programme shall establish the maximum number of participants and, where
         appropriate, the maximum number of researchers that may be used as the basis for the
         calculation of the maximum lump sum. However, participants over and above the maxima
         for the establishment of the financial contribution may participate as appropriate.
4        The payment shall be effected by means of periodic releases.
         Those periodic releases shall be made according to the assessment of the progressive
         implementation of the Joint Programme of Activities through the measurement of
         integration of research resources and capacities based on performance indicators,
         negotiated with the consortium and specified in the grant agreement.
                                          SUBSECTION 2
                        PAYMENT, DISTRIBUTION, RECOVERY
                                      AND GUARANTEES
                                                 Article 35
                                       Payment and distribution
1.       The Community financial contribution shall be paid to the participants via the coordinator
         without undue delay.
 ---pagebreak--- 30.12.2006       EN                Official Journal of the European Union                       L 400/41
2.       The coordinator shall keep records making it possible to determine at any time what
         portion of the Community funds has been distributed to each participant.
         The coordinator shall communicate that information to the Commission upon request.
                                                 Article 36
                                                 Recovery
The Commission may adopt a recovery decision in accordance with the Financial Regulation.
                                                 Article 37
                                      Risk avoidance mechanism
1.       The financial responsibility of each participant shall be limited to its own debt, subject to
         paragraphs 2 to 5.
2.       In order to manage the risk associated with non-recovery of sums due to the Community,
         the Commission shall establish and operate a "Participant guarantee fund" (hereinafter "the
         Fund") in accordance with the Annex.
         Financial interests generated by the Fund shall be added to the Fund and shall serve
         exclusively for the purposes set out in point 3 of the Annex, without prejudice to point 4
         thereto.
 ---pagebreak--- L 400/42          EN                Official Journal of the European Union                   30.12.2006
3.       The contribution to the Fund by a participant to an indirect action taking the form of a
         grant shall not exceed 5 % of the Community financial contribution due to the participant.
         At the end of the action the amount contributed to the Fund shall be returned to the
         participant, via the coordinator, subject to paragraph 4.
4.       If the interests generated by the Fund are insufficient to cover sums due to the Community,
         the Commission may deduct from the amount to be returned to a participant a maximum of
         one per cent of the Community financial contribution to it.
5.       The deduction referred to in paragraph 4 shall not apply to public bodies, legal entities
         whose participation in the indirect action is guaranteed by a Member State or an associated
         country, and higher and secondary education establishments;
6.       The Commission shall only verify ex-ante the financial capacity of coordinators, and of
         participants other than those referred to in paragraph 5 applying for a Community financial
         contribution in an indirect action in excess of EUR 500 000, unless there are exceptional
         circumstances when, on the basis of information already available, there are justified
         grounds to doubt the financial capacity of these participants.
7.       The Fund shall be considered as a sufficient guarantee under the Financial Regulation.
         No additional guarantee or security may be requested from participants or imposed on
         them.
 ---pagebreak--- 30.12.2006       EN                Official Journal of the European Union                        L 400/43
                                          CHAPTER III
           DISSEMINATION AND USE, AND ACCESS RIGHTS
                                              SECTION 1
                                          FOREGROUND
                                                 Article 38
                               Specific rules for fusion energy research
The rules set out in this Chapter apply without prejudice to the specific rules for activities under the
thematic area "Fusion energy research" set out in Chapter IV of this regulation.
                                          SUBSECTION 1
                                            OWNERSHIP
                                                 Article 39
                                       Ownership of foreground
1.       Foreground arising from work carried out under indirect actions other than those referred
         to in paragraph 3 shall be the property of the participant carrying out the work generating
         that foreground.
 ---pagebreak--- L 400/44         EN                 Official Journal of the European Union                      30.12.2006
2.       If employees or other personnel working for a participant are entitled to claim rights to
         foreground, the participant shall ensure that it is possible to exercise those rights in a
         manner compatible with its obligations under the grant agreement.
3.       Foreground shall be the property of the Community in the following cases:
         (a)    coordination and support actions consisting in a purchase of goods or services
                subject to the rules on public procurement set out in the Financial Regulation;
         (b)    coordination and support actions relating to independent experts.
                                                  Article 40
                                      Joint ownership of foreground
1.       Where several participants have jointly carried out work generating foreground and where
         their respective share of the work cannot be ascertained, they shall have joint ownership of
         such foreground.
         They shall establish an agreement regarding the allocation and terms of exercising that
         joint ownership in accordance with the terms of the grant agreement.
 ---pagebreak--- 30.12.2006       EN                 Official Journal of the European Union                        L 400/45
2.        Where no joint ownership agreement has yet been concluded, each of the joint owners
         shall be entitled to grant non-exclusive licenses to third parties, without any right to
         sub-licence, subject to the following conditions:
         (a)   prior notice must be given to the other joint owners;
         (b)   fair and reasonable compensation must be provided to the other joint owners.
3.       Upon request, the Commission shall give guidance on possible aspects to be included in
         the joint ownership agreement.
                                                  Article 41
                                          Transfer of foreground
1.       The owner of the foreground may transfer it to any legal entity, subject to paragraphs 2
         to 5 and Article 42.
2.       Where a participant transfers ownership of foreground, it shall pass on its obligations
         regarding that foreground to the assignee, including the obligation to pass them on to any
         subsequent assignee, in accordance with the grant agreement.
 ---pagebreak--- L 400/46         EN                  Official Journal of the European Union                     30.12.2006
3.       Subject to its obligations concerning confidentiality, where the participant is required to
         pass on access rights, it shall give prior notice to the other participants in the same action,
         together with sufficient information concerning the new owner of the foreground to permit
         them to exercise their access rights under the grant agreement.
         However, the other participants may, by written agreement, waive their right to individual
         prior notice in the case of transfers of ownership from one participant to a specifically
         identified third party.
4.       Following notification in accordance with the first subparagraph of paragraph 3, any other
         participant may object to any transfer of ownership on the ground that it would adversely
         affect their access rights.
         Where any of the other participants demonstrate that their rights would be adversely
         affected, the intended transfer shall not take place until agreement has been reached
         between the participants concerned.
5.       Where appropriate, the grant agreement may provide, that the Commission is to be notified
         in advance of any intended transfer of ownership or any intended grant of a licence to a
         third party which is established in a third country not associated to the Seventh Framework
         Programme.
 ---pagebreak--- 30.12.2006       EN                 Official Journal of the European Union                        L 400/47
                                                  Article 42
                               Preservation of European competitiveness
                      the defence interest of Member States and ethical principles
The Commission may object to the transfer of ownership of foreground, or to the granting of a
licence regarding foreground, to third parties established in a third country not associated to the
Seventh Framework Programme, if it considers that this is not in accordance with the interests of
developing the competitiveness of the European economy, the defence interests of the Member
States within the meaning of Article 24 of the Treaty or is inconsistent with ethical principles.
In such cases, the transfer of ownership or grant of licence shall not take place unless the
Commission is satisfied that appropriate safeguards will be put in place.
                                           SUBSECTION 2
                               PROTECTION, PUBLICATION,
                                 DISSEMINATION AND USE
                                                  Article 43
                                        Protection of foreground
1.       Where foreground is capable of industrial or commercial application, its owner shall
         provide for its adequate and effective protection, having due regard to its legitimate
         interests and the legitimate interests, particularly the commercial interests, of the other
         participants in the indirect action concerned.
 ---pagebreak--- L 400/48          EN                Official Journal of the European Union                         30.12.2006
          Where a participant who is not the owner of the foreground invokes its legitimate interest,
          it must, in any given instance, show that it would suffer disproportionately great harm.
          Where the foreground is capable of industrial or commercial application and its owner
          does not protect it, and does not transfer it to another participant, an affiliated entity
          established in a Member State or associated country or any other third party established in
          a Member State or associated country along with the associated obligations in accordance
          with Article 41, no dissemination activities may take place before the Commission has
          been informed.
          In such cases, the Commission may, with the consent of the participant concerned, assume
          ownership of that foreground and adopt measures for its adequate and effective protection.
          The participant concerned may refuse consent only if it can demonstrate that its legitimate
          interests would suffer disproportionately great harm.
                                                  Article 44
                           Statement relating to Community financial support
All publications, patent applications filed by or on behalf of a participant, or any other
dissemination relating to foreground, shall include a statement, which may include visual means,
that the foreground concerned was generated with the assistance of financial support from the
Community.
The terms of that statement shall be established in the grant agreement.
 ---pagebreak--- 30.12.2006       EN                 Official Journal of the European Union                      L 400/49
                                                  Article 45
                                           Use and dissemination
1.       The participants shall use the foreground which they own, or ensure that it is used.
2.       Each participant shall ensure that the foreground of which it has ownership is disseminated
         as swiftly as possible. If it fails to do so the Commission may disseminate that foreground
         pursuant to Article 12 of the Treaty.
         The grant agreement may set out time limits in this respect.
3.        Dissemination activities shall be compatible with the protection of intellectual property
         rights, confidentiality obligations, and the legitimate interests of the owner of the
         foreground and the defence interests of the Member States within the meaning of
         Article 24 of the Treaty.
4.       Prior notice of any dissemination activity shall be given to the other participants
         concerned.
         Following notification, any of those participants may object if it considers that its
         legitimate interests in relation to its foreground or background could suffer
         disproportionately great harm. In such cases, the dissemination activity may not take place
         unless appropriate steps are taken to safeguard these legitimate interests.
 ---pagebreak--- L 400/50         EN                 Official Journal of the European Union                     30.12.2006
                                               SECTION 2
           ACCESS RIGHTS TO BACKGROUND AND FOREGROUND
                                                  Article 46
                                           Background covered
Participants may define the background needed for the purposes of the indirect action in a written
agreement and, where appropriate, may exclude specific background.
                                                  Article 47
                                                  Principles
1.       All requests for access rights shall be made in writing.
2.       Unless otherwise agreed by the owner of the foreground or background, access rights shall
         confer no entitlement to grant sub-licences.
3.       Exclusive licences for foreground or background may be granted, subject to written
         confirmation by all the other participants that they waive their access rights thereto.
4.       Without prejudice to paragraph 3, any agreement providing access rights to foreground or
         background to participants or third parties shall be such as to ensure that potential access
         rights for other participants are maintained.
 ---pagebreak--- 30.12.2006       EN                  Official Journal of the European Union                      L 400/51
5.       Without prejudice to Articles 48 and 49 and the grant agreement, participants in the same
         action shall inform each other as soon as possible of any limitation to the granting of
         access rights to background, or of any other restriction which might substantially affect the
         granting of access rights.
6.       The termination of its participation in an indirect action shall in no way affect the
         obligation of that participant to grant access rights to the remaining participants in the same
         action under the terms and conditions established by the grant agreement.
                                                   Article 48
                           Access rights for implementation of indirect actions
1.       Access rights to foreground shall be granted to the other participants in the same indirect
         action, if it is needed to enable those participants to carry out their own work under that
         indirect action.
         Such access rights shall be granted on a royalty-free basis.
2.       Access rights to background shall be granted to the other participants in the same indirect
         action, if it is needed to enable those participants to carry out their own work under that
         indirect action provided that the participant concerned is entitled to grant them.
         Such access rights shall be granted on a royalty-free basis, unless otherwise agreed by all
         participants before their accession to the grant agreement.
 ---pagebreak--- L 400/52         EN                 Official Journal of the European Union                     30.12.2006
                                                  Article 49
                                           Access rights for use
1.       Participants in the same indirect action shall enjoy access rights to foreground, if it is
         needed to use their own foreground.
         Subject to agreement, such access rights shall be granted either under fair and reasonable
         conditions or be royalty-free.
2.       Participants in the same indirect action shall enjoy access rights to background, if it is
         needed to use their own foreground provided that the participant concerned is entitled to
         grant them.
         Subject to agreement, such access rights shall be granted either under fair and reasonable
         conditions or be royalty-free.
3.       An affiliated entity established in a Member State or associated country shall also have
         access rights, referred to in paragraphs 1 and 2, to foreground or background under same
         conditions as the participant to which it is affiliated, unless otherwise provided for in the
         grant agreement or consortium agreement.
 ---pagebreak--- 30.12.2006        EN                Official Journal of the European Union                       L 400/53
4.       A request for access rights under paragraphs 1, 2 and 3 may be made up to one year after
         either of the following events:
         (a)    the end of the indirect action;
         (b)    termination of participation by the owner of the background or foreground
                concerned.
         However, the participants concerned may agree on a different time-limit.
                                           CHAPTER IV
                  SPECIFIC RULES FOR PARTICIPATION IN
                 ACTIVITIES UNDER THE THEMATIC AREA
                           "FUSION ENERGY RESEARCH"
                                                  Article 50
                                                    Scope
The rules set out in this Chapter apply to activities under the thematic area "Fusion energy research"
as set out in the specific programme. In the event of any conflict between the rules set out in this
Chapter and those set out in Chapters II and III, the rules set out in this Chapter shall apply.
 ---pagebreak--- L 400/54         EN                Official Journal of the European Union                    30.12.2006
                                                 Article 51
                             Implementation of Fusion Energy Research
Activities under the thematic area "Fusion energy research" may be implemented on the basis of
procedures and rules for dissemination and use set out in the following frameworks:
(a)      The Contracts of Association, concluded between the Community and Member States or
         associated third countries or legal entities within Member States or associated third
         countries;
(b)      The European Fusion Development Agreement (EFDA), concluded between the
         Community and organisations in, or acting for, Member States and associated countries;
(c)      The European Joint Undertaking for ITER, based on the provisions of Title II, Chapter 5 of
         the Treaty;
(d)      International agreements relating to cooperation with third countries, or any legal entity
         which may be established by such an agreement, in particular the ITER Agreement;
(e)      Any other multilateral agreement concluded between the Community and associated
         organisations, in particular the Agreement on Staff Mobility;
(f)      Cost sharing actions to promote and contribute to fusion energy research with bodies in the
         Member States or the countries associated with the Seventh Framework Programme in
         which there is no Contract of Association.
 ---pagebreak--- 30.12.2006       EN                 Official Journal of the European Union                      L 400/55
                                                  Article 52
                                    Community financial contribution
1.       The Contracts of Association referred to in Article 51(a) and cost sharing actions referred
         to in Article 51(f) shall establish the rules relating to the Community financial contribution
         to the activities they cover.
         The annual base rate for the Community financial contribution shall not exceed 20 % over
         the duration of the Seventh Framework Programme.
2.       After consultation of the consultative committee for the fusion programme referred to in
         Article 7(2) of the Specific Programme implementing the seventh Framework
         Programme (2007-11) of the European Atomic Energy Community (Euratom) for nuclear
         research and training activities1, the Commission may finance:
         (a)   within the framework of the Contracts of Association at a rate not exceeding 40 %:
               expenditure of specific cooperative projects between the Associates which have been
               recommended for priority support by the consultative committee and approved by the
               Commission; priority support will concentrate on actions of relevance to the
               ITER/DEMO, except in the case of projects which have already been awarded
               priority status during earlier framework programmes;
1
        OJ L
 ---pagebreak--- L 400/56         EN                  Official Journal of the European Union                      30.12.2006
         (b)    actions carried out under the European Fusion Development Agreement including
                procurements or within the framework of the Joint Undertaking referred to in
                Article 51(c),
         (c)    actions carried out under the Agreement on Staff Mobility.
3.       In the case of projects and actions receiving a financial contribution according to
         paragraph (2)(a) or (b), all the legal entities referred to in Article 51(a) and (b) shall have
         the right to take part in the experiments carried out on the equipment concerned.
4.       The Community financial contribution to actions carried out within the framework of an
         international cooperation agreement referred to in Article 51(d) shall be set out in
         accordance with the terms of such agreement or by any legal entity established by the
         agreement. The Community may manage its participation and its financial contribution to
         such an agreement through any appropriate legal entity.
 ---pagebreak--- 30.12.2006       EN                Official Journal of the European Union                       L 400/57
                                           CHAPTER V
                                   FINAL PROVISIONS
                                                 Article 53
This Regulation shall enter into force on the third day following its publication in the Official
Journal of the European Union.
This regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Brussels,
                                                For the Council
                                                The President
 ---pagebreak--- L 400/58          EN                Official Journal of the European Union                       30.12.2006
                                                  ANNEX
                                       Participant guarantee fund
1.       The Fund will be managed by the Community represented by the Commission acting as
         executive agent on behalf of the participants, under conditions to be established by the
         model grant agreement.
         The Commission will entrust the financial management of the Fund either to the European
         Investment Bank or, in accordance with Article 13(b), to an appropriate financial
         institution (hereinafter the "depository bank"). The depository bank shall manage the Fund
         pursuant to a brief by the Commission.
2.       The Commission may offset, from the initial prefinancing it will pay to the consortium, the
         participants' contribution to the Fund, and pay it on their behalf to the Fund.
3.       Where amounts are due to the Community by a participant, the Commission may, without
         prejudice to penalties which may be imposed on the defaulting participant in accordance
         with the Financial Regulation either:
         (a)    order the depositary bank to directly transfer the amount due from the Fund to the
                coordinator of the indirect action if it is still on-going and the remaining participants
                agree to implement it to the identical regarding its objectives, in accordance with
                Article 17(4). Amounts transferred from the Fund will be regarded as Community
                financial contribution; or
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         (b)   recover effectively the said amount from the Fund should the indirect action be
               terminated or already completed.
         The Commission will emit to the benefit of the Fund a recovery order against that
         participant. The Commission may adopt to that end a recovery decision in accordance with
         the Financial Regulation.
4.       The amounts recovered from the Fund during the Seventh Framework Programme will
         constitute revenue assigned to it within the meaning of Article 18(2) of the Financial
         Regulation.
         Once the implementation of all grants under the Seventh Framework Programme is
         complete, any sums outstanding from the Fund will be recovered by the Commission and
         entered into the budget of the Community, subject to decisions on the Eighth Framework
         Programme.