Notice

Open Networks Ecosystem competition: proposed Grant Funding Agreement changes

Published 16 May 2023

1. Introduction

The Department for Science, Innovation and Technology (DSIT) is considering making a small number of changes to the draft Open Networks Ecosystem (ONE) Competition Grant Funding Agreement (“GFA”) that was published on the Competition website.

This documents set out the changes which are being considered, the potential impact on grant recipients / project partners, and the rationale for the changes.

DSIT believes that all of the potential changes would be beneficial to grant recipients / project partners, either by reducing the obligations placed on them or by providing additional clarification, and thereby avoiding queries and misunderstandings.

DSIT’s considered view is that none of the potential changes is likely to materially influence whether potential applicants decide to submit an application or not.

DSIT is currently assessing which (if any) of the proposed changes should be implemented, with the aim of publishing a revised GFA (or confirming that no changes will be made) prior to the closing date of the Competition.

2. Intellectual Property (IP) provisions

2.1 Changes being considered

DSIT is considering amending the IP provisions in the GFA to make it clear that DSIT only requires limited rights regarding IP generated by each project, including that DSIT:

• only needs sufficient rights to be able to disseminate and publish the learnings from the project (in order to meet Subsidy Control rules and the competition’s objectives); and
• will not take ownership of IP generated by the project.

2.2 Why this change could be needed

During previous competitions, project partners and recipients have expressed concerns regarding the extent of the IP provisions and the rights and licences which DSIT might require in relation to IP generated by the project. DSIT is considering making these amendments to clarify DSIT’s actual requirements for recipients and project partners, and to reduce the number of potential queries and objections.

2.3 How this change could impact recipients or project partners

The suggested amendments to the IP provisions should address the main questions and concerns that recipients / project partners have raised in the past and during the current ONE competition, and should mean that DSIT’s IP provisions can be accepted by projects more easily and with no further discussion or negotiation with DSIT required.

3. Data Protection provisions

3.1 Changes being considered

DSIT is considering incorporating some high-level data protection provisions in the Collaboration Agreement, which currently requires project partners to add their own provisions with no further  guidance.

3.2 Why this change could be needed

During previous competitions DSIT has often received questions regarding what data protection provisions project partners should include in their Collaboration Agreement. DSIT is considering introducing suggested provisions to provide guidance and greater clarity to project partners in an attempt to streamline the process.

3.3 How this change could impact recipients or project partners

These suggested data protection provisions should:

• provide a helpful starting point for project partners and help ensure that project partners process personal data in accordance with data protection laws; and
• help to avoid confusion / misunderstanding as to the content DSIT would expect to see. The provisions should be reviewed and amended (if necessary) by the project partners to ensure that they are suitable for each specific project.

4. Subsidy control rules

4.1 Changes being considered

DSIT is proposing to remove the requirement for the recipient to obtain independent advice(and submit that advice to DSIT for review) that its project is compliant with Subsidy Control rules.

4.2 Why this change could be needed

This proposed change acknowledges that some recipients / project partners may have the internal capabilities to determine Subsidy Control compliance, and that external advice is not always necessary. This should also help to streamline the GFA finalisation process.

4.3 How this change could impact recipients or project partners

This change would simplify the process for recipients, as they would be able to determine what steps they should take to reasonably determine the project’s compliance with Subsidy Control rules.

The recipient would no longer be required to engage a third-party expert, but projects may still wish to take their own legal advice, given that recipients will be liable for repayment of grant funding if claimed costs are found to be ineligible.

DSIT would continue to have minimum requirements within the GFA to reflect the project’s obligations under the Subsidy Control Act 2022 (SCA 2022).

5. DSIT approval of the collaboration agreement

5.1 Changes being considered

DSIT is considering removing the requirement for DSIT to review and approve the Collaboration Agreement that the project partners intend to sign for the purposes of project governance.

However, the template Collaboration Agreement would still be available, and DSIT would still have minimum requirements with regard to the content of each Collaboration Agreement, with the recipient liable under the GFA for any failure to put such minimum requirements in place.

5.2 Why this change could be needed

During previous competitions the requirement for DSIT to review and approve the Collaboration Agreement has made the process lengthier, as it has added an additional level of review / approval, without providing tangible benefit to DSIT.

On the basis that DSIT is not a party to the Collaboration Agreement, DSIT considers that placing responsibility on the recipient and the project partners regarding the content of the Collaboration Agreement should make the process more efficient.

As per the current arrangements, the recipient would (under the GFA) be required to:

• put in place a Collaboration Agreement whereby the project partners agree to comply with their obligations under the GFA; and
• procure such compliance.

5.3 How this change could impact recipients or project partners

This change would enable the recipient and project partners to agree terms more quickly, and without having to raise queries with DSIT.

6. Additional explanatory notes

6.1 Changes being considered

DSIT is considering introducing additional explanatory notes in the template Collaboration Agreement section of the GFA.

The proposed explanatory notes would address questions / areas that DSIT has previously received queries on during previous competitions. In particular, DSIT would provide further detail about what ‘eligible costs’ consist of.

6.2 Why this change could be needed

DSIT is considering introducing further guidance to make the process and requirements clearer, having received queries or incorrect information from recipients and project partners during past competitions.

6.3 How this change could impact recipients or project partners

The explanatory notes would help to ensure that project partners have a clear understanding of how to correctly complete the Collaboration Agreement, and what project costs may be claimed as grant funding. It should also help to ensure consistency across the projects.