IMPLEMENTING AGREEMENT between the European Atomic Energy Community represented by the Commission of the European Communities and Atomic Energy of Canada Limited designated as implementing agent by the Government of Canada on the involvement of Canada in the European Atomic Energy Community contribution to the engineering design activities (EDA) for the International Thermonuclear Experimental Reactor (ITER)

THE EUROPEAN ATOMIC ENERGY COMMUNITY (hereinafter referred to as 'Euratom`) represented by the Commission of the European Communities (hereinafter referred to as 'the Commission"), and ATOMIC ENERGY OF CANADA LIMITED (hereinafter referred to as 'AECL`), designated as implementing agent by the Government of Canada pursuant to Article IV of the memorandum of understanding for cooperation in the field of controlled nuclear fusion (hereinafter referred to as 'the MoU`) concluded by Euratom and the Government of Canada on 25 July 1995;

Whereas Article V of the MoU anticipates that specific details and procedures to implement activities under the MoU will, when necessary, be established, on a case by case basis, in specific implementing agreements,

WHEREAS Article III of the MoU anticipates the involvement in either Party's contribution to fusion projects involving third parties such as the International Thermonuclear Experimental Reactor (ITER);

WHEREAS Euratom concluded, on 21 July 1992, the Agreement among Euratom, the Government of Japan, the Government of the Russian Federation, and the Government of the United States of America on Cooperation in the Engineering Design Activities (EDA) for the International Thermonuclear Experimental Reactor (ITER) (hereinafter referred to as the 'EDA Agreement`) and, on 21 March 1994, its Protocol 2 (1);

WHEREAS Article 19 of the EDA Agreement specifies that each Party to the EDA Agreement may involve in its contribution to the implementation of the Agreement, its Annexes and Protocols other countries which possess relevant specific capabilities;

WHEREAS the Government of Canada, through AECL, has expressed the wish to be involved in the Euratom contribution to the ITER DEA;

WHEREAS AECL administers the Canadian National Fusion Programme which is implemented principally through two provincial electrical utility-based projects - the Centre canadien de fusion magnétique (CCFM), managed by Hydro Québec and the Canadian Fusion Fuels Technology Project (CFFTP), managed by Ontario Hydro; whereas staff of the Canadian National Fusion Programme include staff of CFFTP, CCFM, and their contractors, and are hereinafter referred to as 'AECL or its personnel`;

WHEREAS the ITER Council has approved, on 21 to 22 April 1993 and 27 to 28 January 1994, the conditions of such an involvement,

HAVE REACHED THE FOLLOWING UNDERSTANDING:

1. Euratom will involve Canada, through AECL, in its contribution to the EDA.

2. The Government of Canada, through AECL, has noted, and will comply with the terms of the EDA Agreement, its Annexes, Protocol 2, and the Negotiators' Shared Views (together with their attachments) accompanying Protocol 2.

3. The modalities for AECL's involvement in the process by which tasks are assigned by ITER to the Euratom Party will be agreed between the Director of the Canadian National Fusion Programme, or a person designated by him, and the Director of the Euratom Fusion Programme, or a person designated by him. Subject to paragraph 2, the arrangements for such activities will be consistent with the provisions of the MoU.

4. AECL's involvement in the Euratom contribution to the resources that the four ITER EDA Parties have agreed to make available on an equal basis for the implementation of the EDA Agreement will consist of up to about Can $ 4 million a year in terms of ITER tasks (design and technology R& D) and of up to about five professionals as part of the Euratom contingent to the Joint Central Team. Canada's involvement will be at no cost to Euratom and will be subject to the availability of appropriated funds.

5. As provided in Article V of the MoU, the provisions of Annex I and Annex II of the MoU will apply except as provided below.

Without prejudice to the full applicability of Annex C to the EDA Agreement in respect of the allocation of rights, title and interests in and to intellectual property created without the participation of Canada through AECL or its personnel the following provisions shall apply.

5.1. If intellectual property is created by AECL or its personnel in Canada in the execution of a task assigned to the Home Team of Euratom, Canada through AECL or its personnel shall be entitled to acquire all right, title and interest in all countries in and to such intellectual property according to applicable laws and regulations, subject to Euratom being granted licences with the right to sub-licence, on fair and reasonable terms for all purposes other than for research and development in controlled thermonuclear fusion as a source of energy for peaceful purposes. In that case, Canada through AECL shall ensure that the personnel of the Joint Central Team can freely use the protected subject matters for the execution of the tasks assigned to the Joint Central Team, and that all Parties including Euratom are granted an irrevocable, non-exclusive, royalty-free licence, with the right to sub-licence for research and development in controlled thermonuclear fusion as a source of energy for peaceful purposes.

5.2. If intellectual property is created by AECL or its personnel, working in the Home Team of Euratom, in the execution of a task assigned to that Home Team, Canada through AECL or its personnel shall be entitled to acquire all right, title and interest in Canada. Likewise Euratom or its personnel shall be entitled to acquire all right, title and interest in and to any such intellectual property in its own territory, and in all third countries other than Canada. Euratom and Canada through AECL shall ensure that the personnel of the Joint Central Team can freely use the projected subject matter for the execution of the tasks assigned to the Joint Central Team, and that all Parties including Euratom are granted an irrevocable, non-exclusive, royalty-free licence, with the right to sub-licence for research and development in controlled thermonuclear fusion as a source of energy for peaceful purposes.

5.3. If intellectual property is created by AECL or its personnel, which is seconded by Euratom to the Joint Central Team, the ITER Director shall promptly inform the ITER Council with a recommendation on the countries where intellectual property protection should be obtained. Each Party or its personnel and Canada through AECL and its personnel shall, however, be entitled to acquire all right, title and interest in and to intellectual property in their respective territories. The ITER Council shall decide whether and how to seek such protection in third countries other than Canada. Each Party and Canada through AECL shall ensure that the personnel of the Joint Central Team can freely use the protected subject matter for the execution of the tasks assigned to the Joint Central Team, and that all Parties including Euratom are granted an irrevocable, non-exclusive, royalty-free licence, with the right to sub-licence for research and development in controlled thermonuclear fusion as a source of energy for peaceful purposes.

5.4. If intellectual property is created by AECL or its personnel, which is seconded by Euratom to the Home Team of another Party (the receiving Party), subject to the relevant applicable laws:

(i) the receiving Party or its personnel shall be entitled to acquire all right, title and interest in and to any such intellectual property in all countries except Euratom and Canada subject to a non-exclusive, irrevocable, royalty-free licence, with the right to sub-licence, to the other Parties for research and development on controlled thermonuclear fusion as a source of energy for peaceful purposes;

(ii) Euratom or its personnel shall be entitled to acquire all right, title and interest in and to any such intellectual property in its own territory, subject to a non-exclusive, irrevocable, royalty-free licence, with the right to sub-licence, to the other Parties for research and development on controlled thermonuclear fusion as a source of energy for peaceful purposes;

(iii) Canada through AECL or its personnel shall be entitled to acquire all right, title and interest in and to any such intellectual property in Canada, subject to a non-exclusive, irrevocable, royalty-free licence, with the right to sub-licence, to the other Parties for research and development on controlled thermonuclear fusion as a source of energy for peaceful purposes.

5.5. If intellectual property is created by personnel of one Party (the sending Party) which is seconded to Canada, subject to the relevant applicable laws:

(i) Canada through AECL or its personnel shall be entitled to acquire all right, title and interest in and to any such intellectual property in all countries except the sending Party and Euratom, subject to a non-exclusive, irrevocable, royalty- free licence, with the right to sub-licence, to each Party for research and development on controlled thermonuclear fusion as a source of energy for peaceful purposes;

(ii) the sending Party or its personnel shall be entitled to acquire all right, title and interest in and to any such intellectual property in its own territory, subject to a non-exclusive, irrevocable, royalty-free licence, with the right to sub-licence, to the other Parties for research and development on controlled thermonuclear fusion as a source of energy for peaceful purposes;

(iii) Euratom or its personnel shall be entitled to acquire all right, title and interest in and to any such intellectual property in its own territory, subject to a non-exclusive, irrevocable, royalty-free licence, with the right to sub-licence, to the other Parties for research and development on controlled thermonuclear fusion as a source of energy for peaceful purposes.

Signed at Brussels, 25 July 1995.

For Atomic Energy of Canada Limited

designated as implementing agent by the Government of Canada

Jacques ROY

For the European Atomic Energy Community

represented by the Commission of the European Communities

Jacques SANTER

(1) OJ No L 114, 5. 5. 1994, p. 25.