Last updated January 2010

Eco-innovation actions can be co-financed under the EU Competitiveness and Innovation Framework Programme (CIP), in particular under the CIP sub-programme ‘Entrepreneurship and Innovation Programme’ (EIP) 1 - Eco-innovation first application and market replication.

This paper aims to briefly introduce the intellectual property (IP) rules applicable to the CIP Eco-innovation first application and market replication projects on the basis of the grant agreement model (hereafter the ‘grant agreement’). However, project proposers should always verify the relevant documentation, in particular the call for proposals they are dealing with and the relevant grant agreement.

The preparation of the proposal requires careful consideration of IP related issues.

To start with, proposers should ensure that their proposed solution is described in the proposal in sufficient detail to allow evaluators to assess whether it is eco-innovative and beyond the research phase. Proposers should also explain in the proposal their strategy for the exploitation of the proposed eco-innovative solutions and the dissemination of project results (plans which will be later included in the ‘description of the action’ in Annex I to the grant agreement). The replication factor and market uptake of the proposed solution during and after the project are an award criterion and essential objectives projects need to comply with. Proposers should, therefore, ensure their plans for the market uptake of the solution, whether or not such solution is protected, and convincingly describe this in their proposal.

As regards negotiation among proposers, they may foresee arrangements for the information, including IP rights, that they hold before the project starts (so called ‘background’) and which may be necessary for the project. They may think about, negotiate among themselves and describe the necessary authorisations (users’ rights/access rights) and conditions for the use of background (including economic conditions if appropriate) both during and after the project. In this regard, it may be advisable to sign a confidentiality agreement before entering a proposal with others and before exchanging sensitive scientific and technical information.

Often, these issues are dealt with in a consortium agreement. It should be noted that a consortium agreement could be a means to conclude ‘appropriate arrangements for the proper performance of the work’ to be carried out under that project, as stated in the grant agreement (article I.3.2 (a)). For an example of consortium agreements, proposers may take a look at the templates used under FP7 (Seventh Framework Programme for research, technological development and demonstration activities) 2 .

The grant agreement does not contain provisions for the protection of the project results, for example when they are capable of commercial application. The participants may nevertheless wish to examine whether the results should be protected by IP rights.

Unlike other EU funding schemes, the Eco-innovation agreement does not contain either specific provisions on use and dissemination of the project results by the participants. The participants should therefore clarify among themselves all the necessary measures that may be needed to guarantee the wide application and dissemination of the expected results in light of the requirements of the call. In this respect, the participants may foresee what best fit their needs in the consortium agreement (e.g. use for commercial applications, dissemination plans, etc), provided that they remain in a position to grant to the EACI the right to make use of the results as indicated above.

Model Grant Agreement and related documents

EACI’s FAQs on Call 2009

EACI’s web page on Eco-innovation

1. Eco-innovation is to be understood as any form of innovation aimed at significant and demonstrable progress towards the goal of sustainable development by reducing the impact on the environment or achieving a more efficient and responsible use of natural resources, including energy (see Call for Proposals 2009, p. 4).

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2. The consortium agreement models referred are not official documents. They should be used as an example and be carefully adapted to the particularities of each project.

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3. ARTICLE II.3 – OWNERSHIP/USE OF THE RESULTS

II.3.1 Unless stipulated otherwise in the agreement, ownership of the results of the action, including

industrial and intellectual property rights, and of the reports and other documents relating to it shall be

vested in the beneficiaries.

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4. II.3.2 Without prejudice to Article II.3.1, the beneficiaries grant the Agency the right to make free use of

the results of the action as it deems fit, provided it does not thereby breach its confidentiality obligations

or existing industrial and intellectual property rights.

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5. ARTICLE II.4 – CONFIDENTIALITY

The Agency and the beneficiaries undertake to preserve the confidentiality of any document, information or other material directly related to the subject of the agreement that is duly classed as confidential, if disclosure could cause prejudice to the other party. The parties shall remain bound by this obligation beyond the closing date of the action.

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