PART III Terms of reference for a program for international cooperation in advanced manufacturing


This document sets forth the Terms of Reference for the Participants in the Intelligent Manufacturing Systems (IMS) Program 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.


Objectives of the IMS Program are as follows: In achieving its objectives, the IMS Program should be a catalytic agent for:


Six Participants took part in the Feasibility Study to define the IMS Program. The Participants are: The EC and the 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 program 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 Program and proposed a management structure, technical themes, and intellectual property rights provisions for it.


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:


The IMS Program is an 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 Program is as broad as practicable. 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 that need to be addressed, and optional provisions.



The IMS Program will commence upon:


The IMS Program will end on the tenth anniversary of the agreed commencement date of the program, unless in the seventh year of the program, the governments and/or the public administration decide differently.



The Regional Secretariats together with the Inter-Regional Secretariat provide assistance in forming consortia for IMS projects.


Proposals must be consistent with the Principles, the structure of the program and the IPR Provisions set forth in these Terms of Reference.


The Participants individually and the International IMS Steering Committee will develop mechanisms to enlist SME's directly and indirectly in the IMS Program. In addition to this, all regions should consider activities such as: The list is not exhaustive, and research should continue alongside the evolving program, to monitor the participation of SME's, 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.


Dissemination of information is of the utmost importance and is required in the IMS Program. 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 academic sector.

Appendix III.1 Technical themes for full scale IMS program 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

2 Process issues

To realise the needs for rapid response to changing requirements and to saving human and material resources and to improving working conditions for employees the following themes can be identified.

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 organisations are designed using vertical and hierarchical structures. The move towards hetrarchical structures is and will continue to require major changes in organisations, systems and work practices. We need methodologies and tools to help us to define appropriate manufacturing strategies and to design appropriate organisations 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

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 customisable, reconfigurable manufacturing resource, is the goal. The process is applicable even within large organisations as they increasingly metamorphasise 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 organisational rather than technological.

Research and Development opportunities in this area are:

Appendix III.2 Intellectual property rights provisions for research and development projects


These provisions lay down mandatory requirements as well as recommended principles for PARTNERS which wish to participate in a PROJECT conducted within the Intelligent Manufacturing Systems Program (IMS PROGRAM). 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 PROGRAM while ensuring:

Article 1: Definitions 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 in 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 entities 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

Ownership Dissemination of Information License Rights


Background Survival of Rights 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

Protection of Foreground Confidential Information Dispute Settlement and Applicable Laws Article 4: Optional Provisions

PARTNERS may, but are not required to address each of the following provisions in their COOPERATION 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 III.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."

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