CELEX: 51996PC0468
Language: en
Date: 1996-10-04
Title: Proposal for a COUNCIL DECISION concerning the conclusion on behalf of the European Community of an agreement for international cooperation in research and development in the domain of Intelligent Manufacturing Systems between the European Community and Australia, Canada, Japan, the United States of America, Norway and Switzerland

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51996PC0468

Proposal for a COUNCIL DECISION concerning the conclusion on behalf of the European Community of an agreement for international cooperation in research and development in the domain of Intelligent Manufacturing Systems between the European Community and Australia, Canada, Japan, the United States of America, Norway and Switzerland  /* COM/96/0468 FINAL - CNS 96/0235 */  

Official Journal C 371 , 09/12/1996 P. 0001

Proposal for a Council Decision concerning the  conclusion on behalf of the European Community of an agreement for international cooperation in  research and development in the domain of intelligent manufacturing systems between the European  Community and Australia, Canada, Japan, the United States of America, Norway and Switzerland (96/C  371/01) (Text with EEA relevance) COM(96) 468 final - 96/0235 (CNS)(Submitted by the  Commission on 4 October 1996) THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 130m, in  conjunction with the first sentence of Article 228 (2) and the first subparagraph of Article 228  (3) thereof, Having regard to the proposal from the Commission, Having regard to the opinion of the European Parliament, Whereas international cooperation in the domain of intelligent manufacturing systems will  strengthen the scientific and technological bases of the Community in industry and will contribute  to the competitiveness of Community industry; Whereas a two-year feasibility study on international collaboration in the domain of intelligent  manufacturing systems proved that there is added value in such cooperation; Whereas the Council has authorized the Commission to negotiate an agreement with Australia, Canada,  Japan, the United States of America, Norway and Switzerland; Whereas an agreement in the form of an exchange of letters was reached with the third countries, HAS DECIDED AS FOLLOWS: Article 1 The Agreement for international cooperation in research and development in the domain of  intelligent manufacturing systems between the European Community and Australia, Canada, Japan, the  United States of America, Norway and Switzerland is hereby approved. The text of the Agreement is  attached to this Decision. Article 2 The President of the Council is hereby authorized to designate the person empowered to sign the  Agreement referred to in Article 1 in order to bind the Community.  Principles of international cooperation on research and development activities in the  domain of intelligent manufacturing systems between the European Community and the United States of  America, Japan, Australia, Canada, and the EFTA countries of Norway and Switzerland (Title,  greeting) I refer to discussions that have taken place concerning international cooperation on research and  development activities in the domain of intelligent manufacturing systems (IMS) between the  participants, i.e. the European Community, and the United States of America, Japan, Australia,  Canada, and the EFTA countries of Norway and Switzerland. The purpose of this letter is to record the common understanding reached on the principles of  cooperation on IMS. The letter complements the terms of reference (ToR) developed by the  International Steering Committee at the end of the IMS feasibility study in 1994 and modifies  Article VIII of the ToR and Article 1.13 of Appendix 2 of the ToR as indicated below. The ToR, and  the appendices to the ToR, are annexed to this letter. 1. Objective Participants will encourage and facilitate cooperation between entities - established within their  territories (within the territories of its Member States in the case of the European Community) -  in the domain of intelligent manufacturing systems. Such cooperation should ensure a balance of  benefits and contributions, be of industrial relevance and be based on the principle of mutual  interest and understanding. 2. Technical themes for IMS cooperation The cooperation will initially cover the following five technical themes: (a) total product life cycle issues; (b) process issues; (c) strategy/planning/design tools; (d) human/organizational/social issues; and, (e) virtual/extended enterprise issues. Other themes within the scope of IMS may be envisaged. However, it should be ensured that new  technical themes are consistent with government policies and industrial priorities of the  participating regions. 3. Forms and means of cooperation Cooperation will involve participation in projects by entities, in accordance with procedures  adopted in common for the creation and operation of international consortia and may include visits,  training and exchanges of scientists, engineers and other appropriate personnel for purposes  relevant to the successful implementation and completion of the projects. 4. Dissemination and utilisation of information Intellectual property rights (IPR) resulting from projects carried out within IMS will be subject  to the IMS IPR provisions given in Appendix 2 of the ToR. This Appendix will be amended in Article  1.13 to reflect that Austria, Finland and Sweden are members of the European Union. 5. Financing Financing of cooperative activities will be subject to the availability of funds and to the  applicable laws and regulations, policies and programmes of the participating regions. Each participant will cover its own participation. Each participant will contribute - in funding or in kind - in an equitable manner to the execution  of the functions and the costs of the inter-regional secretariat. 6. Implementation of IMS Representatives of the participants appointed to the International Steering Committee (ISC) will  act as the liaison between the ISC and their respective public administrationsgovernments. The  representatives of the participants will monitor the implementation with respect to the purpose,  principles and programme structure of IMS and they will have a facilitating role. In addition, they  will have the following functions: - to facilitate good cooperation between the regional secretariats; - to exchange information on local practices, laws, regulations and programmes relevant to the  cooperation; - to facilitate participation of SMEs directly and indirectly in the IMS programme. In particular  this would include access to an electronic partner search facility and an electronic register of  expressions of interest; and, - to present to government/public administrations for decision the recommendations of the ISC for  the admission of new participants. The participants will organize, manage or designate their respective regional secretariats. In  particular, the regional secretariats will have the following responsibilities: - to facilitate the timely selection of projects at regional level, according to the rules and  procedures in force in the participant's region; - to assist in consortium formation within and across respective regions; and, - to work with regional infrastructure groups to facilitate IMS. 7. Duration The IMS programme will have a duration of ten years. Each participant may withdraw at any time  subject to twelve month's notice. The participants will review the principles of their cooperation  five years after its launch in order to see whether it should be continued, modified or terminated.  This replaces Article VIII of the ToR. 8. Implementation of IMS in Europe The European Community and Switzerland and Norway reserve the option to act together as a single  European region, to be represented by a combined delegation on the International Steering Committee  and to be supported by a single European IMS secretariat. The Commission of the European Community will provide the necessary support for its regional  secretariat. This letter, together with its acceptance by the participants, complements and modifies the ToR and  records the common understanding on the principles of cooperation on IMS. I would be pleased to  receive your early confirmation of this understanding. (ending) Terms of reference for a programme for international cooperation in advanced manufacturing I.  PURPOSE This document sets forth the terms of reference for the participants in the intelligent  manufacturing systems (IMS) programme for international cooperation in research and development in  intelligent manufacturing systems. These terms of reference are not intended to create obligations  under international or domestic law. II. OBJECTIVES Objectives of the IMS programme are as follows: A. to enable greater sophistication in manufacturing operations; B. to improve the global environment; C. to improve the efficiency with which renewable and non-renewal resources are used; D. to create new products and conditions which significantly improve the quality of life for  users; E. to improve the quality of the manufacturing environment; F. to develop a recognized and respected discipline of manufacturing which will encourage the  transfer of knowledge to future generations; G. to respond effectively to the globalization of manufacturing; H. to enlarge and open markets around the world; and I. the advancement of manufacturing professionalism worldwide by providing global recognition and  establishing an educational discipline for manufacturing. In achieving its objectives, the IMS programme should be a catalytic agent for: A. global manufacturing cooperation involving large and small companies, users and suppliers,  universities, and governments; B. the dissemination of the results of significant manufacturing improvements worldwide; C. the development of global manufacturing recommendations for standards through cooperative work  on pre-standardization topics; D. the assessment and selection of priorities for global cooperation in manufacturing process  development; E. the dissemination, understanding, and application of consistent guidelines, provisions and model  agreements that respect intellectual property rights (IPR) of participants and project consortium  partners. III. BACKGROUND Six participants took part in the feasibility study to define the IMS programme. The participants  are: - Australia, - Canada, - the European Community (EC), - the participating European Free Trade Association (EFTA) countries: Austria, Finland, Sweden, Norway and Switzerland, - Japan, and - the United States. The EC and EFTA countries acted together as a single European region. The participants completed the feasibility study as defined under the terms of reference for the  feasibility study on international collaboration in advanced manufacturing. The International Steering Committee for the feasibility study stated in their final report that  the feasibility study proved an international cooperative programme in research and development in  advanced manufacturing can be created that is equitable and beneficially structured, and provides  equitable and beneficial outcomes. The International Steering Committee for the feasibility study in its final report recommended the  commencement of the IMS programme and proposed a management structure, technical themes, and  intellectual property rights provisions for it. IV. PRINCIPLES Manufacturing is a primary generator of wealth and is critical to establishing a sound economic  basis for economic growth. The need for excellence in manufacturing operations has become critical as a result of the  establishment of global markets. The role of research and development in the field of advanced manufacturing is increasingly pivotal  to manufacturing operations. Substantial research in advanced manufacturing is being carried out  worldwide. Properly managed international cooperation in research and development in advanced manufacturing  can help improve manufacturing operations. International cooperation in advanced manufacturing should proceed upon the following bases: A. contributions to, and benefits from, such cooperation are equitable and balanced; B. collaborative projects must have industrial relevance; C. collaborative projects are carried out by inter-regional, geographically distributed consortia; D. collaborative projects can occur throughout the full innovation cycle; E. results of collaborative projects are shared through a process of controlled information  diffusion that protects and equitably allocates any intellectual property rights created or  furnished during cooperation; and F. IMS project activities under government sponsorship or utilizing government resources should not  involve competitive research and development. V. PROGRAM STRUCTURE AND FUNDING The IMS programme is a form of international cooperation in which participants work cooperatively  to boost industrial competitiveness, to solve problems facing manufacturing worldwide and to  develop advanced manufacturing technologies and systems to benefit humanity. The scope of the IMS  programme is as broad as practicable. A. The IMS programme is governed by a management structure which consists of: 1. an International IMS Steering Committee; 2. an Inter-Regional Secretariat; and 3. regional secretariats. The IMS Program will include projects that comply with the technical themes described in Appendix  1. Project partners must comply with the IPR provisions described in Appendix 2. The IPR provisions  include a minimum set of mandatory requirements, non-mandatory provisions than need to be  addressed, and optional provisions. B. Funding for the management structure 1. Each participant will fund its own participation. 2. Each participant will determine the method by which its own participation will be funded. 3. Each participant will contribute in an equitable manner in funding or in kind to defray the  costs of operating the Inter-Regional Secretariat. 4. Each participant will be responsible for supporting its own delegation and providing any  necessary liability coverage. C. Funding for the Projects 1. Each participant will fund its own participation. 2. Each participant will determine the method by which its own participation will be funded. VI. MANAGEMENT STRUCTURE A. International IMS Steering Committee. The IMS programme will be overseen by an International IMS  Steering Committee. Members must be eminent representatives of the participants' industrial,  academic, or governmental sectors who are knowledgeable about manufacturing issues. Members must be  willing and able to devote the necessary time and effort involved in guiding the IMS programme. 1. Composition. Two members and one observer from each participant. The total number of members and observers will expand as additional participants are admitted  according to the procedure spelled out in Section IX. Delegation members may be from the industrial, academic or governmental sectors of each  participant. Strong industrial representation is encouraged. At least one of the two members must  be from the industrial sector, and the head of the delegation must be non-governmental. The members  should be appointed for a significant term. However, observers can be changed as the need  dictates. Each participant's delegation to the meetings of the International IMS Steering Committee may be  accompanied by two representatives from its designated regional secretariat. 2. The International IMS Steering Committee will reach decisions by consensus of the members. 3. Chairmanship. The chair of the International IMS Steering Committee will rotate among the six  participants. Each term will last for two years. During the term when a participant chairs, that  participant is also responsible for organizing the Inter-Regional Secretariat. Canada will chair  the first term. Australia will take the second term and serve as vice-chair in the first term to  guarantee continuity. EFTA will take the third term. The sequence of subsequent chairmanships will  be decided during the third year after the commencement of the IMS programme. 4. Responsibilities. The International IMS Steering Committee will recommend policies and  strategies for undertaking, and for the evolution of, the IMS programme, including the matter of  new participants. It will also: (a) provide overall guidance, set strategic priorities and oversee program implementation; (b) sponsor and approve new IMS documents; (c) form interim task forces or committees, e.g., for technical or legal issues, if necessary, to  accomplish its work; (d) oversee the Inter-Regional Secretariat; (e) provide international promotion for IMS and for manufacturing as a generic discipline; (f) endorse projects as described in Section IX; (g) ensure projects and work undertaken under this programme are done in a manner consistent with  the purpose, principles and programme structure agreed upon by the participants; and (h) foster communication among the International IMS Steering Committee, the Inter-Regional  Secretariat and regional secretariats, and the project consortium members. B. Inter-Regional Secretariat. The participant which chairs the International IMS Steering  Committee will be responsible for managing the Inter-Regional Secretariat. It will be the Inter-Regional Secretariat's responsibility to: 1. provide logistics for inter-regional proposals; 2. maintain and distribute IMS meeting and other documents; 3. provide logistics for inter-regional publicity at the direction of the International IMS  Steering Committee; 4. educate new and prospective participants; 5. disseminate information during, and upon the conclusion of, projects; 6. assist with inter-regional consortia formation; and 7. organize and arrange studies and/or work as requested by the International IMS Steering  Committee. C. Regional secretariats. The governments and/or the public administration and public organizations  of the participants will organise and manage their respective regional secretariats in a manner  they see fit. In order to facilitate the IMS programme, it will be the regional secretariats' responsibility to: 1. provide regional logistics for inter-regional proposals; 2. maintain and distribute IMS meeting and other documents within respective regions; 3. provide logistics for regional meetings and promotion; 4. disseminate information during and upon the conclusion of projects within respective regions; 5. assist in consortium formation within and across respective regions; 6. support regional delegations in attending the International IMS Steering Committee meetings; 7. facilitate regional selections and reviews; and 8. work with regional infrastructure groups to facilitate the IMS programme. VII. COMMENCEMENT OF THE IMS PROGRAMME The IMS programme will commence upon: 1. the ratification of the terms of reference for the IMS programme by each participant; 2. the appointment of the members of the International IMS Steering Committee; and 3. the designation of the regional secretariats. VIII. END OF THE IMS PROGRAMME The IMS programme will end on the the anniversary of the agreed commencement date of the programme,  unless in the seventh year of the programme, the governments and/or the public administration  decide differently. IX. ADMISSION OF NEW PARTICIPANTS A. The government and/or public administration of an applicant region will first have to comply  with the terms of reference for the IMS programme. B. After ratification of the terms of reference for the IMS programme, project partners from an  applicant region are allowed to form consortia with the consent of other partners. The  contributions of the applicant region's partners will have to be carefully monitored over a period  of time to build up a profile of the applicant region's participation. C. After this period of time has elapsed (possibly a number of years), the governments and/or  public authorities will reach a decision based on recommendations from the International IMS  Steering Committee on whether the applicant region should have representation on the International  IMS Steering Committee. X. CONSORTIUM FORMATION The regional secretariats together with the Inter-Regional Secretariat provide assistance in  forming consortia for IMS projects. A. Basic consortium formation document The Inter-Regional Secretariat and the regional secretariats together will develop, based on the  terms of reference for the IMS programme, a basic document that explains: - the organization of the programme; - the structure of operation and the aims; - the requirements for project and consortium selection; - the technical themes; and - the evaluation and selection process and the supporting criteria. B. International coordinating partner An international coordinating partner must be appointed by each consortium. The appointed  international coordinating partner must be an industrial firm with the necessary resources to lead  the project to its completion and a demonstrated capacity for managing complex international  projects. International coordinating partner duties include: 1. coordinating consortia formation; 2. coordinating preparation of full proposal and cooperation agreements; 3. acting as the primary contact for all communication between the consortium and the International  Steering Committee and Inter-Regional Secretariat; 4. facilitating successful execution of the project; and 5. coordinating project review preparation and information dissemination. C. List of interested entities Within a region, its regional secretariat will distribute to all organizations in the industrial,  academic and governmental sectors identified as potential project partners the basic document, the  domestic funding opportunities, and the domestic agenda for the IMS programme. The regional  secretariat will compile a list of interested entities. The list must include the area of interest  and the capabilities of each of the interested entities. D. Exchange of lists of interested entities This list will be routinely updated and distributed to all other regions via the Inter-Regional  Secretariat. The regional secretariat also collects lists of interested entities from other  regions. It forwards a list of interested entities from other regions to those domestic entities  with potential similar interests. The regional secretariat cultivates common interests between  domestic and foreign entities, and facilitates the formation of consortia. E. Exchange of project proposals Any interested entity can submit preliminary proposals to the regional secretariat to which it  belongs for facilitating formation of international consortia. The regional secretariat will distribute these proposals to all interested entities on the list.  Based on the information, potential partners can strive to form international consortia. XI. EVALUATION, SELECTION AND REVIEW OF PROJECTS Proposals must be consistent with the principles, the structure of the programme and the IPR  provisions set forth in these terms of reference. A. Project selection criteria 1. Industrial relevance. 2. Compliance with the technical themes in Appendix 1 as may be amended from time to time by the  International IMS Steering Committee. 3. Scientific and technical merit. 4. Adoption and commercialization potential. 5. Compliance with IPR provisions in Appendix 2 as may be amended from time to time by the  International IMS Steering Committee. 6. Added value. B. Consortium selection criteria 1. Inter-regional distribution of partners Consortium partners must be from at least three participants. 2. Balanced contributions and benefits The consortium partners will show how the contributions to, and the benefits from, participation  are equitable and balanced. To this end, the contributions should be identified by type (including  in-kind contributions such as equipment, facilities, personnel, documentation, techniques and  background intellectual property) and by value for each partner and group. 3. Inter-regional leadership The inter-regional consortium must appoint the international consortium coordinator for the  consortium. 4. Dissemination of results The consortium must commit to and submit a plan to disseminate project results, including the  lessons learned in forming and managing IMS consortia, and non-proprietary technical results  permitted by the IPR provisions. C. Project evaluation The proposal process consists of three stages. 1. Project abstract evaluation The consortium must produce an abstract of the planned research. This abstract shall be submitted  to the regional secretariats for initial regional reviews. Each delegation will make a  recommendation to the International IMS Steering Committee. Proposers of unapproved projects will  be given feedback as to why they did not receive support. 2. Full proposal evaluation The consortium must submit a final proposal using a standardized format for detailed evaluation by  all partners' regions. The final proposal shall include the formal commitment of each partner to  the principles, the structure and the IPR provisions of the IMS programme, including a signed  cooperation agreement including an IPR agreement. 3. Final endorsement Final endorsement will be made by the International IMS Steering Committee based on the regional  recommendations and the submitted proposals. D. Project review The International IMS Steering Committee will monitor and review progress regularly. To facilitate  this, each consortium will submit a summary report once a year to the International IMS Steering  Committee, in a standardized format. Any region may review the progress of partner(s) from its region at any time as it sees fit. XII. ROLE OF 'IMS` VIS-A-VIS SMALL AND MEDIUM-SIZED ENTERPRISES (SMEs), UNIVERSITIES AND GOVERNMENT  RESEARCH INSTITUTES The participants individually and the International IMS Steering Committee will develop mechanisms  to enlist SMEs directly and indirectly in the IMS programme. In addition to this, all regions  should consider activities such as: A. clear and well documented advice on IPR issues; B. a 'road map` of existing constraints in law or custom in the participants' territories, and  their practical implications; C. help desks for answering simple queries; D. an electronic partner search facility specifically oriented to SMEs; E. an electronic register of 'expressions of interest` by SMEs, which are looking for opportunities  to join existing or emerging project clusters; F. an ongoing 'case-book` of IMS experiences with donations from project teams; G. dissemination events specifically geared to various SME sectors. The list is not exhaustive, and research should continue alongside the evolving programme, to  monitor the participation of SMEs, and to identify further needs. The items listed above also are useful for encouraging the participation of universities and  government research institutes. Harnessing the educational role of universities in dissemination of  results of research through to the next generation of practitioners is necessary. XIII. DISSEMINATION OF RESULTS Dissemination of information is of the utmost importance and is required in the IMS programme.  However, all information dissemination must comply with the IPR provisions in Appendix 2. This  includes the dissemination of interim and final project technical results. Information dissemination will occur at the project, regional, and inter-regional levels. This  dissemination might include written reports, international symposia, and publications by members of  the academie sector. APPENDIX 1 TECHNICAL THEMES FOR A FULL-SCALE IMS PROGRAMME AS PROPOSED BY ITC This framework of  themes should encourage possible project applicants to develop proposals which show a clear  contribution to the necessity of global cooperation. If it is shown in the project proposal that  global cooperation could solve these themes better than regional efforts, the project should get  priority. 1. Total product life cycle issues - Future general models of manufacturing systems Examples of this theme are agile manufacturing, fractual factory, bionic manufacturing, holistic  enterprise integration, etc., proposals. - Intelligent communication network systems for information processes in manufacturing To understand the productivity of global distribution and global sourcing, the communication  networks and tools and their applications have to be improved. - Environment protection, minimum use of energy and materials Environment, energy and materials questions have reached a complexity that can only be handled via  cooperation with a variety of specialists. Due to the fact that the conditions in that field are  very different in different regions, a common understanding and harmonized views for the response  of manufacturing technologies to environment protection are necessary. - Recyclability and refurbishment Up to now it has been nearly impossible to recycle a product from one region in another region. In  the longer term that situation may significantly damage free trade between regions. Therefore  methods and new ideas for recyclability that are globally accepted should be developed under the  IMS umbrella. - Economic justification methods In spite of manufacturing scientists' efforts, the speed of new problems arising has by far  outstripped the supply of troubleshooting ideas and their implementation in the manufacturing area.  Very often this is caused by non-harmonized assessment and economic justifications of new  manufacturing systems. Therefore IMS should support projects with the development of clear  specifications for monotoring and economic justification methods that can lead to common  understanding in the evaluation of manufacturing systems. 2. Process issues To realize the needs for rapid response to changing requirements and for saving human and material  resources and improving working conditions for employees, the following themes can be identified: - clean manufacturing processes that can minimize effects on the environment process emission minimized systems, process disposal minimized systems, factory (process) life-cycle pre-assessed systems. - energy efficient processes that can meet manufacturing requirements with minimum consumption of  energy minimum consumption of energy, integrated cycled process for less energy consumption,modules of energy conservation type, production management technology of energy conservation type, - technology innovation in manufacturing processes methods that can quickly produce different products through 'rapid prototyping methods`, manufacturing processes that can flexibly respond to changes in labour conditions, changes of  products or materials. - improvement in the flexibility and autonomy of processing modules that compose manufacturing  systems open distributed systems and their modules that can match both unmanned, man machine mixed and  labour intensive systems, and can metamorphologically architect system components in correspondence  with changes of products. - improvement in interaction or harmony among various components and functions of manufacturing pen infrastructure for manufacturing, inter-connected information systems such as 'remote ID` among respective modules. 3. Strategy/planning/design tools Manufacturing takes place in a global economy. How and where raw materials are transformed is a  strategic decision. The decision is complicated in terms of what to make and where to make or buy  it in what is becoming a single global economy. Many of today's manufacturing organizations are designed using vertical and hierarchical  structures. The move towards heterarchical structures is and will continue to require major changes  in organizations, systems and work practices. We need methodologies and tools to help us to  appropriate manufacturing strategies and to design appropriate organizations and business/work  processes. Methods and tools to support business process re-engineering. Modelling tools to support the  analyses and development of manufacturing strategies. Design support tools to support planning in an extended enterprise or virtual enterprise  environment. 4. Human/organisation/social issues - Promotion and development projects for improved image of manufacturing Manufacturing engineers tend to be at the bottom of the pay scale in relation to other engineers,  and the profession as a whole has a lower status. Therefore ITC considers as projects globally  recognized, strong professional societies and educational institutions for the promotion of  manufacturing as a discipline. These proposals include the creation of international organizations  to promote manufacturing. - Improved capability of manufacturing workforce/education, and training Engineering education has often tended to emphasize theory over process. In addition, basic  education has not always met the needs of industry, producing graduates with often inadequate  skills. This has led to industries that are poor at turning innovation into successful products.  This necessitates a change in priorities and closer ties between industry and educational  institutions. In addition, changes in system organization mean that training within companies is a  continuous process which seeks to update skills and increase the potential of employees - the  crucial elements in any system. - Autonomous offshore plants (integration of supplementary business functions in subsidiaries) Offshore plants were originally meant to increase market share and decrease production costs:  development of the transplant labour forces were a secondary consideration. However, giving more  autonomy to these plants enables them to react more flexibly to changing conditions in the areas  where they are based, and is consistent with organizational ideas of decentralization, empowerment  and hierarchy flattening. It also serves to contribute to domestic development in the countries  where the plants are located and further the IMS goal of spreading widely basic manufacturing  knowledge. - Corporate technical memory - preserving, developing, accessing Often in a manufacturing enterprise knowledge and sources of information are isolated or locked.  'Organisational learning` is a strategy for translating such knowledge into a framework or a model  that leads to better decision making and could be an important theme within IMS. - Appropriate performance measures for new models New manufacturing models must offer superiority in performance from the point of view of costs,  quality, delivery and flexibility. The first three are familiar performance criteria used for mass  production, while flexibility is a key attribute of new model manufacturing. To increase the  acceptance of new models, performance evaluation methods should be developed. 5. Virtual/extended enterprise issues The extended enterprise is an expression of the market-driven requirement to embrace external  resources in the enterprise without owning them. Core business focus is the route to excellence but  product/service delivery requires the amalgam of multiple world class capabilities. Changing  markets require a fluctuating mix of resources. The extended enterprise, which can be likened to  the ultimate in customizable, reconfigurable manufacturing resource, is the goal. The process is  applicable even within large organizations as they increasingly metamorphasize into umbrellas for  smaller units/focused factories. The operation of the extended enterprise requires take-up of communications and database  technologies which are near to the current state-of-the-art. However, the main challenge is  organizational rather than technological. Research and development opportunities in this area are: - methodologies to determine and support information processes and logistics across the value chain  in the extended enterprise, - architecture (business, functional and technical) to support engineering cooperation across the  value chain, e.g. concurrent engineering across the extended enterprise, - methods and approaches to assign cost/liability/risk and reward to elements of the extended  enterprise, - team working across individual units within the extended enterprise. APPENDIX 2 INTELLECTUAL PROPERTY RIGHTS PROVISIONS FOR RESEARCH AND DEVELOPMENT PROJECTS  Objectives These provisions lay down mandatory requirements as well as recommended principles for partners  wishing to participate in a project conducted within the intelligent manufacturing systems  programme (IMS programme). The objectives of these provisions are to provide adequate protection  for intellectual property rights used in and generated during joint research and development  projects under the IMS programme while ensuring that: (a) contributions and benefits, from and to participants cooperating in such projects, are  equitable and balanced; (b) the proper balance is struck between the need for flexibility in partners' negotiations and the  need for uniformity of procedure among projects and among partners; and (c) the results of the research will be shared by the partners through a process that protects and  equitably allocates any intellectual property rights created or furnished during cooperation. Article 1 Definitions 1.1. Accounting: The sharing of any consideration such as royalties or other license fees by one  partner with another partner when the first partner that solely or jointly owns foreground  discloses, licenses or assigns it to a third party. 1.2. Affiliate: Any legal entity directly or indirectly owned or controlled by, or owning or  controlling, or under the same ownership or control as, any partner. Common ownership or control  through government does not in itself create affiliate status. Ownership or control shall exist through the direct or indirect: (a) ownership of more than 50 % of the nominal value of the issued equity share capital; (b) ownership of more than 50 % of the shares entitling the holders to vote for the election of  directors or persons performing similar functions, or the right by any other means to elect or  appoint directors, or persons performing similar functions, who have a majority vote; or (c) ownership of 50 % of the shares, and the right to control management or operation of the  company through contractual provisions. 1.3. Background: All information and intellectual property rights except background rights owned or  controlled by a partner or its affiliate and which are not foreground. 1.4. Background rights: Patents for inventions and design and utility models, and applications  therefor as soon as made public, owned or controlled by a partner or its affiliates, a licence for  which is necessary for the work in a project or for the commercial exploitation of foreground, and  which are not foreground. 1.5. Confidential information: All information which is not made generally available and which is  only made available in confidence by law or under written confidentiality agreements. 1.6. Consortium: Three or more groups which have agreed to carry out jointly a project. 1.7. Cooperation agreement: The one or more signed agreements among all partners in a consortium  concerning the conduct of the project. 1.8. Foreground: All information and intellectual property rights first created, conceived,  invented or developed in the course of work in a project. 1.9. Group: All partners in a given project from the geographic area of a participant. 1.10. IMS Program: The intelligent manufacturing systems programme. 1.11. Intellectual property rights: All rights defined by Article 2 (viii) of the Convention  Establishing the World Intellectual Property Organization signed at Stockholm on July 14, 1967 (1),  excluding trade marks, service marks and commercial names and designations. 1.12. Non-profit institutions: Any legal entity, either public or private established or organized  for purposes other than profit-making, which does not itself commercially exploit foreground. 1.13. Participant: Australia, Canada, the EC, the group of participating EFTA countries (Austria,  Finland, Norway, Sweden and Switzerland), Japan and the USA and any other country or geographic  region whose participation in the IMS programme may be approved in the manner determined by the  participants. 1.14. Partner: Any legal or natural person participating as a contracting party to the cooperation  agreement for a given project. 1.15. Project: Any research and development project carried out by a consortium within the IMS  programme. 1.16. Summary information: A description of the objectives, status and results of a project which  does not disclose confidential information. Article 2 Mandatory provisions Each cooperation agreement must contain substantive terms and conditions that are fully consistent  with each of the provisions 2.1 through 2.13 of this Article and the definitions used in each  cooperation agreement shall be those specified in Article 1 of this document. Where a project or a potential partner or its affiliates is subject to government requirements,  whether by law or agreement, and such requirements will affect rights or obligations pursuant to  the cooperation agreement, the potential partner shall disclose to the other partners all such  requirements of which it is aware prior to signing the cooperation agreement. Partners must ensure  that ownership, use, disclosure and licensing of foreground will comply with these mandatory  provisions if the project is subject to government requirements. Partners will, at the outset of a project, promptly notify one another of their affiliates which  will be involved in the performance of the project, and will notify one another of any changes in  the affiliates so involved during the life of the project. At the time of entering into a  cooperation agreement, and immediately after new legal entites have come to meet the affiliate  definition, partners may exclude affiliates from the rights and obligations set forth in these  provisions in accordance with the terms of the cooperation agreement. Written agreement 2.1. Partners shall enter into a written cooperation agreement that governs their participation in  a project consistent with this document. Ownership 2.2. Foreground shall be owned solely by the partner or jointly by the partners creating it. 2.3. A partner which is the sole owner of foreground may disclose and non-exclusively license that  foreground to third parties without accounting to any other partner. 2.4. A partner that is a joint owner of foreground may disclose and non-exclusively license that  foreground to third parties without the consent of and without accounting to any other partner,  unless otherwise agreed in the cooperation agreement. 2.5. A partner may assign its sole and/or joint ownership interests in its background, background  rights and foreground to third parties without the consent of and without accounting to any other  partner. Partners who assign any of their rights to background rights or foreground must make each  assignment subject to the cooperation agreement and must require each assignee to agree in writing  to be bound to the assignor's obligations under the cooperation agreement in respect of the  assigned rights. Dissemination of information 2.6. Summary information shall be available to all partners in other projects and to the committees  formed under the IMS programme. 2.7. The consortium will make available at the end of the project a public report setting out  summary information about the project. License rights Foreground 2.8. Each partner and its affiliates may use foreground, royalty-free, for research and development  and for commercial exploitation. Commercial exploitation includes the rights to use, make, have  made, sell and import. However, in exceptional circumstances, (a) partners may agree in their cooperation agreement to pay a royalty to partners which are  non-profit institutions for commercial exploitation of foreground which is solely owned by such  non-profit institutions; and (b) partners may agree in their cooperation agreement to pay a royalty to partners which are  non-profit institutions for commercial exploitation of foreground which is jointly owned with such  non-profit institutions, provided such royalties are both small and consistent with the principle  that contributions and benefits in the IMS programme must be balanced and equitable. 2.9. A non-owning partner and its affiliates may not disclose or sub-license foreground to third  parties except that each partner or its affiliates may, in the normal course of business: (a) disclose foreground in confidence solely for the purposes of manufacturing, having  manufactured, importing or selling products; (b) sub-license any software forming part of foreground in object code; or (c) engage itself in the rightful provision of products or services that inherently disclose the  foreground. Background 2.10. A partner in a project may, but is not obliged to, supply or license its background to other  partners. 2.11. Partners and their affiliates may use another partner's or its affiliates' background rights  solely for research and development in the project without additional consideration, including, but  not limited to, financial consideration. 2.12. Partners and their affiliates must grant to other partners and their affiliates a licence of  background rights on normal commercial conditions when such licence is necessary for the commercial  exploitation of foreground unless: (a) the owning partner or its affiliate is by reason of law or by contractual obligation existing  before signature of the cooperation agreement unable to grant such licences and such background  rights are specifically identified in the cooperation agreement; or (b) the partners agree, in exceptional cases, on the exclusion of background rights specifically  identified in the cooperation agreement. Survival of rights 2.13. The cooperation agreement shall specify that the rights and obligations of partners and  affiliates concerning foreground, background and background rights shall survive the natural  expiration of the term of the cooperation agreement. Article 3 Provisions that need to be addressed in the cooperation agreement Partners shall address each of the following items in their cooperation agreement: Publication of results 3.1. Partners shall address the issue of the consent required, if any, from the other partners for  publication of the results from the project other than summary information. 3.2. Partners shall address the issue of whether partners which are non-profit institutions may,  for academic purposes, publish foreground which they solely own, provided that adequate procedures  for protecting foreground are taken in accordance with Articles 3.3 and 3.4. Protection of foreground 3.3. Partners shall identify the steps they will take to seek legal protection of foreground by  means of intellectual property rights and upon making an invention shall notify other partners in  the same project in a timely manner of the protection sought and provide a summary description of  the invention. 3.4. Partners shall address the issue of prompt notification of all other partners in the same  project and, upon request and on mutually agreed conditions, of disclosure of the invention; they  shall reasonably cooperate in such protection being undertaken by another partner in the same  project in the event and to the extent that a partner or partners which own foreground do(es) not  intend to seek such protection. Confidential information 3.5. Partners shall identify the measures they will take to ensure that any partner which has  received confidential information only uses or discloses this confidential information by itself or  its affiliates as far as permitted under the conditions under which it was supplied. Dispute settlement and applicable laws 3.6. Partners shall agree in their cooperation agreement on the manner in which disputes will be  settled. 3.7. Partners shall agree in their cooperation agreement on the law which will govern the  cooperation agreement. Article 4 Optional provisions Partners may, but are not required to, address each of the following provisions in their  cooperation agreement: affiliate provisions antitrust/competition law issues cancellation and termination employer/employee relationships export controls and compliance field of the agreement intent of the parties licensing partners in other projects licensor's liability arising from licensee's use of licensed technology loaned or assigned employees and resulting rights new partners and withdrawal of partners from projects post cooperation agreement background protection, use and non-disclosure obligations regarding confidential information residual information royalty rates for background right licences software source code taxation term/duration of agreement. There are likely to be other provisions the partners will need to put into their cooperation  agreements depending on the particular circumstances of their project. Partners should seek their  own expert advice on this and note that no additional terms may conflict with Articles 1 and 2 of  these provisions. APPENDIX 3 CONVENTION ESTABLISHING THE WORLD INTELLECTUAL PROPERTY ORGANIZATION  (STOCKHOLM, 14 JULY 1967) Article 2 (viii) defines Intellectual Property to include: '. . . the rights to literary, artistic and scientific works; performances of performing artists;  phonograms, and broadcasts; inventions in all fields of human endeavour; scientific discoveries;  industrial designs; trademarks, servicemarks, and commercial names and designations; protection  against unfair competition; and all other rights resulting from intellectual activity in the  industrial, scientific, literary or artistic fields.` Sir, I acknowledge receipt of your letter of . . . which reads as follows: Principles of international cooperation on research and development activities in the domain of  intelligent manufacturing systems between the European Community and the United States of America,  Japan, Australia, Canada, and the EFTA countries of Norway and Switzerland (Title, greeting) I refer to discussions that have taken place concerning international cooperation on research and  development activities in the domain of intelligent manufacturing systems (IMS) between the  participants, i.e. the European Community, and the United States of America, Japan, Australia,  Canada, and the EFTA countries of Norway and Switzerland. The purpose of this letter is to record the common understanding reached on the principles of  cooperation on IMS. The letter complements the terms of reference (ToR) developed by the  International Steering Committee at the end of the IMS feasibility study in 1994 and modifies  Article VIII of the ToR and Article 1.13 of Appendix 2 of the ToR as indicated below. The ToR, and  the appendices to the ToR, are annexed to this letter. 1. Objective Participants will encourage and facilitate cooperation between entities - established within their  territories (within the territories of its Member States in the case of the European Community - in  the domain of intelligent manufacturing systems. Such cooperation should ensure a balance of  benefits and contributions, be of industrial relevance and be based on the principle of mutual  interest and understanding. 2. Technical themes for IMS cooperation The cooperation will initially cover the following five technical themes: (a) total product life cycle issues; (b) process issues; (c) strategy/planning/design tools; (d) human/organizational/social issues; and, (e) virtual/extended enterprise issues. Other themes within the scope of IMS may be envisaged. However, it should be ensured that new  technical themes are consistent with government policies and industrial priorities of the  participating regions. 3. Forms and means of cooperation Cooperation will involve participation in projects by entities, in accordance with procedures  adopted in common for the creation and operation of international consortia and may include visits,  training and exchanges of scientists, engineers and other appropriate personnel for purposes  relevant to the successful implementation and completion of the projects. 4. Dissemination and utilisation of information Intellectual property rights (IPR) resulting from projects carried out within IMS will be subject  to the IMS IPR provisions given in Appendix 2 of the ToR. This Appendix will be amended in Article  1.13 to reflect the fact that Austria, Finland and Sweden are members of the European Union. 5. Financing Financing of cooperative activities will be subject to the availability of funds and to the  applicable laws and regulations, policies and programmes of the participating regions. Each participant will cover its own participation. Each participant will contribute - in funding or in kind - in an equitable manner to the execution  of the functions and the costs of the Inter-Regional Secretariat. 6. Implementation of IMS Representatives of the participants appointed to the International Steering Committee (ISC) will  act as the liaison between the ISC and their respective public administrations/governments. The  representatives of the participants will monitor the implementation with respect to the purpose,  principles and programme structure of IMS and they will have a facilitating role. In addition, they  will have the following functions: - to facilitate good cooperation between the regional secretariats, - to exchange information on local practices, laws, regulations and programmes relevant to the  cooperation, - to facilitate participation of SMEs directly and indirectly in the IMS programme. In particular  this would include access to an electronic partner search facility and an electronic register of  expressions of interest, and - to present to government/public administrations for decision the recommendations of the ISC for  the admission of new participants. The participants will organize, manage or designate their respective regional secretariats. In  particular, the regional secretariats will include the following responsibilities: - to facilitate the timely selection of projects at regional level, according to the rules and  procedures in force in the participant's region, - to assist in consortium formation within and across respective regions, and - to work with regional infrastructure groups to facilitate IMS. 7. Duration The IMS programme will have a duration of ten years. Each participant may withdraw at any time  subject to twelve month's notice. The participants will review the principles of their cooperation  five years after its launch in order to see whether it should be continued, modified or terminated.  This replaces Article VIII of the ToR. 8. Implementation of IMS in Europe The European Community and Switzerland and Norway reserve the option to act together as a single  European region, to be represented by a combined delegation on the International Steering Committee  and to be supported by a single European IMS secretariat. The Commission of the European Community will provide the necessary support for its regional  secretariat. This letter, together with its acceptance by the participants, complements and modifies the ToR and  records the common understanding on the principles of cooperation on IMS. I would be pleased to  receive your early confirmation of this understanding. (ending) I have the honour to confirm that my Government is in agreement with the contents of your letter. (1) See Appendix 3.