USIS Washington 
File

24 July 1998

TEXT: U.S.-RUSSIAN AGREEMENT ON MANAGEMENT OF USED PLUTONIUM

(Agreement announced at Gore-Kiriyenko working meeting 7/23-24) (3170)


(Following is the text of an agreement released by the White House
Office of the Vice President in Moscow following the working meeting
of Vice President Al Gore and Chairman of the Government of the
Russian Federation Sergei Kiriyenko July 23-24, 1998, in Moscow.)


AGREEMENT BETWEEN THE GOVERNMENT OF THE UNITED STATES OF AMERICA AND
THE GOVERNMENT OF THE RUSSIAN FEDERATION ON SCIENTIFIC AND TECHNICAL
COOPERATION IN THE MANAGEMENT OF PLUTONIUM THAT HAS BEEN WITHDRAWN
FROM NUCLEAR MILITARY PROGRAMS


The Government of the United States of America and the Government of
the Russian Federation, hereafter referred to as the Parties,


Taking into account:



(a) The January 14, 1994, Declaration of the Presidents of the United
States and the Russian Federation on "Non-proliferation of Weapons of
Mass Destruction and the Means of Their Delivery";


(b) The Declaration of the April 19-20, 1996, Summit on Nuclear Safety
and Security in Moscow;


(c) The Conclusions of the International Meeting of Experts in Paris,
on October 28-31, 1996, concerning the safe and efficient management
of fissile materials designated as no longer required for defense
purposes;


(d) The statement regarding fissile materials in the June 22, 1997,
Final Communique of the Denver Summit of the Eight;


(e) The statement of the President of the United States on March 1,
1995, that 200 tons of fissile material will be withdrawn from the
U.S. nuclear stockpile and directing that these materials will never
again be used to build a nuclear weapon; and


(f) The message of the President of the Russian Federation to the
participants of the 41st General Conference of the IAEA, September 26,
1997, on step-by-step removal from nuclear defense programs of up to
500 tonnes of highly enriched uranium and up to 50 tonnes of plutonium
released in the process of nuclear disarmament;


Have agreed as follows:



ARTICLE 1



THE PURPOSES OF THIS AGREEMENT ARE TO:



A) PROVIDE THE SCIENTIFIC AND TECHNICAL BASIS FOR DECISIONS ON HOW
PLUTONIUM, SUBJECT TO THIS AGREEMENT, SHALL BE MANAGED; AND


B) ESTABLISH A FRAMEWORK FOR CONTINUED AND EXPANDED SCIENTIFIC AND
TECHNICAL COOPERATION FOR THE ACCOMPLISHMENT OF THE OBJECTIVE IN
PARAGRAPH A.


ARTICLE 2



FOR PURPOSES OF THIS AGREEMENT:



1. "Plutonium" means plutonium that has been withdrawn from nuclear
military programs and is no longer required for defense purposes.


2. "Management of plutonium" means the transformation of plutonium
into spent fuel or other forms equally unusable for nuclear weapons or
other nuclear explosive devices, and may include conversion of
plutonium and its manufacture into MOX fuel, use of MOX fuel in
nuclear reactors, and immobilization of plutonium in various forms.


ARTICLE 3



1. THE PARTIES SHALL:



A) CONTINUE TO COOPERATE WITH SMALL-SCALE TESTS AND DEMONSTRATIONS
RELATING TO MANAGEMENT OF PLUTONIUM; AND


B) AS SOON AS IS PRACTICABLE, ALSO PROCEED TO PILOT-SCALE
DEMONSTRATIONS OF TECHNOLOGIES FOR PLUTONIUM MANAGEMENT.


2. THE PRINCIPAL SUBJECT AREAS FOR THE PARTIES' COOPERATIVE EFFORTS
SHALL BE:


A) CONVERSION OF METALLIC PLUTONIUM INTO OXIDE SUITABLE FOR THE
MANUFACTURE OF MOX FUEL FOR NUCLEAR POWER REACTORS OF VARIOUS TYPES;


b) Stabilization of unstable forms of plutonium;



c) Use of plutonium in the form of MOX fuel in various types of
nuclear power reactors;


d) Immobilization of plutonium, including wastes and hard-to-process
forms; and


e) Disposal of immobilized forms of materials containing plutonium in
deep geological formations.


ARTICLE 4



1. THE PARTIES SHALL DESIGNATE EXECUTIVE AGENTS TO CARRY OUT THE
PROVISIONS OF THIS AGREEMENT. THE EXECUTIVE AGENT FOR THE UNITED
STATES OF AMERICA SHALL BE THE U.S. DEPARTMENT OF ENERGY AND THE
EXECUTIVE AGENT FOR THE RUSSIAN FEDERATION SHALL BE THE RUSSIAN
MINISTRY FOR ATOMIC ENERGY.


2. THE PARTIES SHALL HAVE THE RIGHT, CONSISTENT WITH THEIR RESPECTIVE
LAWS AND REGULATIONS, AND FOLLOWING WRITTEN NOTIFICATION TO THE OTHER
PARTY, TO OBTAIN PARTICIPATION, AS NECESSARY, IN THE IMPLEMENTATION OF
THIS AGREEMENT, BY OTHER AGENCIES, DEPARTMENTS, AND UNITS OF THEIR
RESPECTIVE GOVERNMENTS.


3. TO ACCOMPLISH THE OBJECTIVES OF THIS AGREEMENT, THE PARTIES SHALL
ESTABLISH A U.S.-RUSSIAN JOINT STEERING COMMITTEE ON PLUTONIUM
MANAGEMENT, WHICH SHALL COORDINATE AND AGREE UPON WORK UNDERTAKEN
UNDER THIS AGREEMENT. EACH PARTY SHALL DESIGNATE ITS MEMBERS ON THE
JOINT STEERING COMMITTEE. DECISIONS OF THE JOINT STEERING COMMITTEE
SHALL BE TAKEN BY CONSENSUS.


4. THE TASKS OF THE JOINT STEERING COMMITTEE SHALL INCLUDE:



A) DEVELOPMENT OF OVERALL WORK PROGRAMS AND AREAS OF COOPERATION
WITHIN THE SCOPE OF THIS AGREEMENT;


B) PRIORITIZATION, COORDINATION, REVIEW AND APPROVAL OF THE
COOPERATIVE PROJECTS UNDER THIS AGREEMENT WITHIN THE RESOURCES MADE
AVAILABLE BY THE PARTIES;


C) RESOLUTION OF ANY DISPUTES THAT MAY ARISE WITH RESPECT TO THE
SCIENTIFIC AND TECHNICAL WORK PERFORMED UNDER THIS AGREEMENT; AND


D) SUCH OTHER MATTERS, AS THE PARTIES MAY AGREE, THAT ARE WITHIN THE
SCOPE OF THIS AGREEMENT.


5. WHEN AGREEMENT IS REACHED ON THE PERFORMANCE OF JOINT RESEARCH,
PROJECTS, OR EXPERIMENTS UNDER THIS AGREEMENT, DETAILED PROCEDURES FOR
PERFORMING THE ACTIVITIES INVOLVED SHALL BE OFFICIALLY DRAWN UP IN THE
FORM OF IMPLEMENTING ARRANGEMENTS, TO BE REVIEWED AND APPROVED BY THE
JOINT STEERING COMMITTEE.


ARTICLE 5



COOPERATION BETWEEN THE PARTIES WITHIN THE FRAMEWORK OF THIS AGREEMENT
MAY INCLUDE THE FOLLOWING:


A) SHARING OF SCIENTIFIC AND TECHNICAL INFORMATION;



B) DEVELOPMENT OF CONCEPTUAL APPROACHES;



C) RESEARCH, EXPERIMENTS AND SMALL-SCALE DEMONSTRATIONS OF
TECHNOLOGICAL SOLUTIONS;


D) DESIGN, CONSTRUCTION, AND OPERATION OF PILOT-SCALE FACILITIES FOR
DEMONSTRATING AND TESTING TECHNOLOGICAL SOLUTIONS OBTAINED AS A RESULT
OF RESEARCH;


E) TRANSFER OF EQUIPMENT AND NON-NUCLEAR MATERIALS;



F) MEETINGS, SEMINARS, CONFERENCES, PERSONNEL ASSIGNMENTS, AND
WORKSHOPS FOR THE SHARING OF INFORMATION;


G) FEASIBILITY STUDIES; AND



H) SUCH OTHER FORMS OF COOPERATION WITHIN THE SCOPE OF THIS AGREEMENT
AS THE EXECUTIVE AGENTS MAY AGREE UPON IN WRITING.


ARTICLE 6



1. IN THE IMPLEMENTATION OF THIS AGREEMENT, ONLY UNCLASSIFIED
INFORMATION SHALL BE EXCHANGED.


2. IN ORDER TO PREVENT ACCESS TO IT BY PEOPLE AND ORGANIZATIONS NOT
PARTICIPATING IN THE IMPLEMENTATION OF THIS AGREEMENT, INFORMATION
PROVIDED BY THE PARTIES PURSUANT TO, OR PRODUCED AS A RESULT OF, THIS
AGREEMENT WHICH IS CONSIDERED SENSITIVE BY THE PARTIES IS TO BE HELD
IN CONFIDENCE AND MUST BE CLEARLY DESIGNATED AND MARKED. THE PARTY
TRANSMITTING THE INFORMATION WILL DESIGNATE INFORMATION AS SENSITIVE
IN ACCORDANCE WITH ITS INTERNAL LAWS AND REGULATIONS. THE PARTY
RECEIVING THIS INFORMATION SHALL ASSIGN IT A DESIGNATION THAT PROVIDES
A DEGREE OF PROTECTION AT LEAST EQUIVALENT TO THAT REQUIRED BY THE
PARTY THAT FURNISHED THE INFORMATION.


3. SENSITIVE INFORMATION SHALL BE HANDLED IN ACCORDANCE WITH THE LAWS
AND REGULATIONS OF THE PARTY RECEIVING THE INFORMATION, AND SHALL NOT
BE DISCLOSED OR TRANSMITTED TO A THIRD PARTY NOT PARTICIPATING IN
IMPLEMENTATION OF THIS AGREEMENT WITHOUT THE WRITTEN CONSENT OF THE
PARTY TRANSMITTING THE INFORMATION. ACCORDING TO THE REGULATIONS OF
THE UNITED STATES, SUCH INFORMATION SHALL BE TREATED AS FOREIGN
GOVERNMENT INFORMATION PROVIDED IN CONFIDENCE AND SHALL BE PROTECTED
APPROPRIATELY. ACCORDING TO THE NORMS AND REGULATIONS OF THE RUSSIAN
FEDERATION, SUCH INFORMATION SHALL BE TREATED AS OFFICIAL INFORMATION
WITH LIMITED DISTRIBUTION AND SHALL BE PROTECTED APPROPRIATELY.


4. THE PARTIES SHALL ASSURE EFFECTIVE PROTECTION AND ALLOCATION OF
RIGHTS TO INTELLECTUAL PROPERTY TRANSMITTED OR CREATED UNDER THIS
AGREEMENT, AS SET FORTH IN THIS ARTICLE AND IN THE ANNEX TO THIS
AGREEMENT, WHICH FORMS AN INTEGRAL PART OF THIS AGREEMENT.


5. INFORMATION TRANSMITTED UNDER THIS AGREEMENT MUST BE USED SOLELY IN
ACCORDANCE WITH THIS AGREEMENT.


6. THE NUMBER OF PEOPLE HAVING ACCESS TO SENSITIVE INFORMATION MUST BE
LIMITED TO THE NUMBER NECESSARY TO IMPLEMENT THIS AGREEMENT AND OTHER
PROGRAMS ASSOCIATED WITH THIS AGREEMENT, AND SHALL BE DETERMINED BY
THE PARTIES' EXECUTIVE AGENTS.


ARTICLE 7



1. MATERIALS, EQUIPMENT AND TECHNOLOGIES, TRANSFERRED UNDER THE TERMS
OF THIS AGREEMENT, SHALL NOT BE USED FOR THE PRODUCTION OF NUCLEAR
WEAPONS, ANY NUCLEAR EXPLOSIVE DEVICES, OR FOR RESEARCH OR DEVELOPMENT
OF SUCH DEVICES OR FOR THE FURTHERANCE OF ANY MILITARY PURPOSE.


2. MATERIALS, EQUIPMENT AND TECHNOLOGIES, TRANSFERRED UNDER THE TERMS
OF THIS AGREEMENT, SHALL NOT BE EXPORTED, RE-EXPORTED, OR TRANSFERRED
FROM THE JURISDICTION OF THE RECIPIENT WITHOUT THE WRITTEN CONSENT OF
THE PARTIES.


3. PRIOR TO THE EXPORT UNDER THE TERMS OF THIS AGREEMENT TO A THIRD
PARTY OF ANY EQUIPMENT, MATERIALS OR TECHNOLOGIES, THE PARTIES BY
MUTUAL AGREEMENT IN WRITING SHALL DEFINE THE CONDITIONS IN ACCORDANCE
WITH WHICH SUCH ITEMS SHALL BE EXPORTED, RE-EXPORTED, OR TRANSFERRED
FROM THE JURISDICTION OF THE THIRD PARTY.


4. THE PARTIES' EXECUTIVE AGENTS SHALL TAKE ALL MEASURES NECESSARY TO
ENSURE ADEQUATE PHYSICAL PROTECTION OF NUCLEAR MATERIALS, EQUIPMENT,
INSTALLATIONS, AND NUCLEAR TECHNOLOGIES IN ITS JURISDICTION, AND SHALL
APPLY CRITERIA AND LEVELS OF PHYSICAL PROTECTION NOT LOWER THAN THOSE
IDENTIFIED IN THE CONVENTION ON THE PHYSICAL PROTECTION OF NUCLEAR
MATERIAL AND IN RECOMMENDATIONS OF THE IAEA.


ARTICLE 8



EQUIPMENT, SUPPLIES, MATERIALS, SERVICES AND ACTIVITIES PROVIDED OR
ACQUIRED BY THE UNITED STATES OF AMERICA, ITS CONTRACTORS,
SUBCONTRACTORS, AND THEIR PERSONNEL FOR THE IMPLEMENTATION OF THIS
AGREEMENT ARE FREE TECHNICAL ASSISTANCE AND ARE THUS EXEMPT FROM
CUSTOMS DUTIES AND TAXES. THE RUSSIAN FEDERATION SHALL TAKE ALL
NECESSARY MEASURES TO EXEMPT THIS EQUIPMENT, SHIPMENTS, MATERIALS,
SERVICES, AND WORK FROM ALL TAXES, TARIFFS, CUSTOMS DUTIES, AND LEVIES
OF THE RUSSIAN FEDERATION AND ITS INSTRUMENTALITIES.


ARTICLE 9



1. WITH THE EXCEPTION OF CLAIMS FOR DAMAGE OR INJURY AGAINST
INDIVIDUALS ARISING FROM THEIR PREMEDITATED ACTIONS, THE GOVERNMENT OF
THE RUSSIAN FEDERATION SHALL BRING NO CLAIMS OR OTHER LEGAL
PROCEEDINGS AGAINST THE GOVERNMENT OF THE UNITED STATES OF AMERICA AND
ITS PERSONNEL OR ITS CONTRACTORS, SUB-CONTRACTORS, CONSULTANTS,
SUPPLIERS OR SUBSUPPLIERS OF EQUIPMENT OR SERVICES AT ANY TIER AND
THEIR PERSONNEL, IN ANY COURT OR FORUM, FOR ANY DAMAGE, INCLUDING
INDIRECT, DIRECT OR CONSEQUENTIAL DAMAGE, ARISING FROM ACTIVITIES
UNDERTAKEN PURSUANT TO THIS AGREEMENT, TO PROPERTY OWNED BY THE
RUSSIAN FEDERATION. THIS PARAGRAPH SHALL NOT APPLY TO LEGAL ACTIONS
BROUGHT BY THE GOVERNMENT OF THE RUSSIAN FEDERATION TO ENFORCE THE
PROVISIONS OF CONTRACTS TO WHICH IT OR A RUSSIAN NATIONAL OR OTHER
LEGAL ENTITY IS A PARTY.


2. WITH THE EXCEPTION OF CLAIMS FOR DAMAGE OR INJURY AGAINST
INDIVIDUALS ARISING FROM THEIR PREMEDITATED ACTIONS, THE GOVERNMENT OF
THE RUSSIAN FEDERATION SHALL PROVIDE FOR THE ADEQUATE DEFENSE OF,
SHALL INDEMNIFY, AND SHALL BRING NO CLAIMS OR OTHER LEGAL PROCEEDINGS
AGAINST, THE GOVERNMENT OF THE UNITED STATES OF AMERICA AND ITS
PERSONNEL OR ITS CONTRACTORS, SUB-CONTRACTORS, CONSULTANTS, SUPPLIERS
OR SUBSUPPLIERS OF EQUIPMENT OR SERVICES AT ANY TIER AND THEIR
PERSONNEL, IN CONNECTION WITH THIRD-PARTY CLAIMS, IN ANY COURT OR
FORUM, FOR ANY INJURY OR DAMAGE, INCLUDING INDIRECT, DIRECT, OR
CONSEQUENTIAL INJURY OR DAMAGE, ARISING FROM ACTIVITIES UNDERTAKEN
PURSUANT TO THIS AGREEMENT, OCCURRING WITHIN OR OUTSIDE THE TERRITORY
OF THE RUSSIAN FEDERATION. NOTHING IN THIS PARAGRAPH SHALL BE
CONSTRUED AS ACKNOWLEDGING THE JURISDICTION OF ANY COURT OR FORUM OVER
THIRD-PARTY CLAIMS TO WHICH THIS PARAGRAPH APPLIES, NOR SHALL IT BE
CONSTRUED AS WAIVING THE SOVEREIGN IMMUNITY OF EITHER PARTY WITH
RESPECT TO THIRD-PARTY CLAIMS THAT MAY BE BROUGHT AGAINST IT.


3. THE PARTIES MAY, AS NECESSARY, CONDUCT CONSULTATIONS REGARDING
CLAIMS AND LEGAL PROCEEDINGS CONCERNING THIS ARTICLE.


4. THE PROVISIONS OF THIS ARTICLE SHALL NOT PREVENT THE PARTIES FROM
PROVIDING COMPENSATION IN ACCORDANCE WITH THEIR NATIONAL LAWS.


5. NOTHING IN THIS ARTICLE SHALL BE INTERPRETED TO PREVENT LEGAL
PROCEEDINGS OR CLAIMS AGAINST NATIONALS OF THE RUSSIAN FEDERATION OR
PERMANENT RESIDENTS OF THE RUSSIAN FEDERATION.


ARTICLE 10



1. JOINT ACTIVITIES UNDER THIS AGREEMENT SHALL BE SUPPORTED BY FUNDS
AND IN-KIND CONTRIBUTIONS OF EQUIPMENT, MATERIAL, AND LABOR PROVIDED
ON A NON-REIMBURSABLE BASIS FOR THESE PURPOSES BY THE UNITED STATES OF
AMERICA AND THE RUSSIAN FEDERATION. JOINT ACTIVITIES MAY ALSO BE
SUPPORTED, IN WHOLE OR IN PART, FROM FUNDS DIRECTLY FROM OTHER
SOURCES, INCLUDING NON-GOVERNMENT FUNDS AND FUNDS FROM THE PRIVATE
SECTOR.


2. IN ALL CASES, THE ACTIVITIES OF, AND FINANCIAL SUPPORT PROVIDED BY,
THE UNITED STATES OF AMERICA UNDER THIS AGREEMENT ARE SUBJECT TO THE
AVAILABILITY OF APPROPRIATED FUNDS. IN ALL CASES, THE ACTIVITIES OF,
AND FINANCIAL SUPPORT PROVIDED BY, THE RUSSIAN FEDERATION UNDER THIS
AGREEMENT ARE SUBJECT TO THE AVAILABILITY OF APPROPRIATED FUNDS.


ARTICLE 11



IN THE EVENT THAT A PARTY AWARDS CONTRACTS FOR THE ACQUISITION OF
ARTICLES AND SERVICES, INCLUDING CONSTRUCTION, TO IMPLEMENT THIS
AGREEMENT, SUCH CONTRACTS SHALL BE AWARDED IN ACCORDANCE WITH THE LAWS
AND REGULATIONS OF THAT PARTY.


ARTICLE 12



1. REPRESENTATIVES OF THE U.S. DEPARTMENT OF ENERGY SHALL HAVE THE
RIGHT UPON REASONABLE NOTICE TO EXAMINE AND AUDIT THE USE OF ANY
SUPPORT OR ASSISTANCE PROVIDED BY THE U.S. GOVERNMENT IN CONNECTION
WITH COOPERATION UNDER THIS AGREEMENT DURING THE LIFE OF THIS
AGREEMENT AND FOR THREE YEARS THEREAFTER. SUCH EXAMINATIONS MAY BE
CONDUCTED AT SITES OR LOCATIONS AS AGREED TO BY THE PARTIES' EXECUTIVE
AGENTS.


2. THE PARTIES' EXECUTIVE AGENTS SHALL DEVELOP APPROPRIATE
ARRANGEMENTS FOR CONDUCTING AUDITS AND EXAMINATIONS FOR ALL WORK
PERFORMED WITHIN THE FRAMEWORK OF THIS AGREEMENT.


ARTICLE 13



All questions regarding the interpretation or application of this
Agreement shall be resolved by means of consultation between the
Parties.


ARTICLE 14



1. THIS AGREEMENT SHALL ENTER INTO FORCE ON THE DATE OF SIGNATURE, AND
SHALL REMAIN IN FORCE FOR FIVE YEARS. THE AGREEMENT MAY BE EXTENDED
FOR SUCCESSIVE FIVE-YEAR PERIODS WITH THE WRITTEN CONSENT OF BOTH
PARTIES AFTER JOINT REVIEW BEFORE THE END OF EACH FIVE-YEAR PERIOD.
THE AGREEMENT MAY BE AMENDED BY WRITTEN AGREEMENT OF THE PARTIES.


2. THIS AGREEMENT MAY BE TERMINATED BY EITHER PARTY BY SENDING WRITTEN
NOTICE THROUGH DIPLOMATIC CHANNELS OF ITS INTENT TO TERMINATE THE
AGREEMENT, IN WHICH CASE THE AGREEMENT SHALL TERMINATE SIX MONTHS FROM
THE DATE OF THE NOTIFICATION.


3. IN THE EVENT THAT EITHER PARTY EXERCISES ITS RIGHT TO TERMINATE
THIS AGREEMENT, THE PARTIES MAY AGREE UPON THE IMPLEMENTATION OF
EXISTING CONTRACTS AND PROJECTS UNTIL THEIR COMPLETION, AND WILL
SETTLE ANY OUTSTANDING COSTS BY MUTUAL AGREEMENT. IF THIS AGREEMENT IS
TERMINATED OR EXPIRES, THE PARTIES AGREE THAT ALL SENSITIVE
INFORMATION AND INTELLECTUAL PROPERTY THAT WAS MADE AVAILABLE IN THE
COURSE OF THE AGREEMENT SHALL CONTINUE TO BE TREATED IN CONFORMANCE
WITH ARTICLE 6 OF THIS AGREEMENT, UNLESS OTHER ARRANGEMENTS ARE MADE
BY WRITTEN AGREEMENT OF THE PARTIES.


DONE AT MOSCOW THIS TWENTY-FOURTH DAY OF JULY, 1998, IN DUPLICATE IN
THE ENGLISH AND RUSSIAN LANGUAGES, BOTH TEXTS BEING EQUALLY AUTHENTIC.


FOR THE GOVERNMENT OF

THE UNITED STATES OF AMERICA:



_____________________________



FOR THE GOVERNMENT OF THE RUSSIAN FEDERATION:



_____________________________



ANNEX



TO THE AGREEMENT BETWEEN THE GOVERNMENT OF THE UNITED STATES OF
AMERICA AND THE GOVERNMENT OF THE RUSSIAN FEDERATION ON SCIENTIFIC AND
TECHNICAL COOPERATION IN THE MANAGEMENT OF PLUTONIUM THAT HAS BEEN
WITHDRAWN FROM NUCLEAR MILITARY PROGRAMS


INTELLECTUAL PROPERTY



PURSUANT TO ARTICLE 6 OF THIS AGREEMENT:



THE PARTIES SHALL ENSURE ADEQUATE AND EFFECTIVE PROTECTION OF
INTELLECTUAL PROPERTY CREATED OR FURNISHED UNDER THIS AGREEMENT AND
RELEVANT IMPLEMENTING AGREEMENTS. THE PARTIES AGREE TO NOTIFY ONE
ANOTHER IN A TIMELY FASHION OF ANY INVENTIONS OR COPYRIGHTED WORKS
RESULTING FROM SCIENTIFIC AND TECHNOLOGICAL WORK PERFORMED UNDER THIS
AGREEMENT AND TO SEEK PROTECTION FOR SUCH INTELLECTUAL PROPERTY IN A
TIMELY FASHION. RIGHTS TO SUCH INTELLECTUAL PROPERTY SHALL BE
ALLOCATED AS PROVIDED IN THIS ANNEX.


I.  SCOPE



A. THIS ANNEX IS APPLICABLE TO ALL COOPERATIVE ACTIVITIES UNDERTAKEN
PURSUANT TO THIS AGREEMENT, EXCEPT AS OTHERWISE SPECIFICALLY AGREED BY
THE PARTIES OR THEIR EXECUTIVE AGENTS.


B. FOR PURPOSES OF THIS AGREEMENT, "INTELLECTUAL PROPERTY" SHALL HAVE
THE MEANING FOUND IN ARTICLE 2 OF THE CONVENTION ESTABLISHING THE
WORLD INTELLECTUAL PROPERTY ORGANIZATION, DONE AT STOCKHOLM, JULY 14,
1967.


C. THIS ANNEX ADDRESSES THE ALLOCATION OF RIGHTS AND INTERESTS BETWEEN
THE PARTIES. EACH PARTY SHALL ENSURE THAT THE OTHER PARTY CAN OBTAIN
THE RIGHTS TO INTELLECTUAL PROPERTY ALLOCATED IN ACCORDANCE WITH THIS
ANNEX, BY OBTAINING THOSE RIGHTS FROM ITS OWN PARTICIPANTS THROUGH
CONTRACTS, LICENSE AGREEMENTS OR OTHER LEGAL DOCUMENTS, IF NECESSARY.
THIS ANNEX DOES NOT OTHERWISE ALTER OR PREJUDICE THE ALLOCATION
BETWEEN A PARTY AND ITS NATIONALS OR OTHER LEGAL ENTITIES, WHICH SHALL
BE DETERMINED BY THAT PARTY'S LAWS AND PRACTICES.


D. DISPUTES CONCERNING INTELLECTUAL PROPERTY ARISING UNDER THIS
AGREEMENT SHOULD BE RESOLVED THROUGH DISCUSSIONS BETWEEN THE CONCERNED
PARTICIPATING INSTITUTIONS, OR, IF NECESSARY, THE PARTIES OR THEIR
EXECUTIVE AGENTS. UPON MUTUAL AGREEMENT OF THE PARTIES, A DISPUTE
SHALL BE SUBMITTED TO AN ARBITRAL TRIBUNAL FOR BINDING ARBITRATION IN
ACCORDANCE WITH THE AGREEMENT AND WITH THE APPLICABLE RULES OF
INTERNATIONAL LAW.


E. TERMINATION OR EXPIRATION OF THIS AGREEMENT SHALL NOT AFFECT RIGHTS
OR OBLIGATIONS UNDER THIS ANNEX.


II.  ALLOCATION OF RIGHTS



A. EACH PARTY SHALL BE ENTITLED TO A NON-EXCLUSIVE, IRREVOCABLE,
ROYALTY-FREE LICENSE IN ALL COUNTRIES TO TRANSLATE, REPRODUCE, AND
PUBLICLY DISTRIBUTE SCIENTIFIC AND TECHNICAL JOURNAL ARTICLES, PAPERS,
REPORTS, AND BOOKS DIRECTLY ARISING FROM COOPERATION UNDER THIS
AGREEMENT. ALL PUBLICLY DISTRIBUTED COPIES OF A COPYRIGHTED WORK
PREPARED UNDER THIS PROVISION SHALL INDICATE THE NAMES OF THE AUTHORS
OF THE WORK UNLESS AN AUTHOR EXPLICITLY DECLINES TO BE NAMED.


B. RIGHTS TO ALL FORMS OF INTELLECTUAL PROPERTY, OTHER THAN THOSE
RIGHTS DESCRIBED IN PARAGRAPH II.A ABOVE, SHALL BE ALLOCATED AS
FOLLOWS:


(1) VISITING RESEARCHERS SHALL RECEIVE INTELLECTUAL PROPERTY RIGHTS
UNDER THE POLICIES OF THE HOST INSTITUTION. IN ADDITION, EACH VISITING
RESEARCHER NAMED AS AN INVENTOR OR AUTHOR SHALL BE ENTITLED TO AWARDS,
BONUSES, BENEFITS, OR ANY OTHER REWARDS IN ACCORDANCE WITH THE
POLICIES OF THE HOST INSTITUTION.


(2) (A) FOR INTELLECTUAL PROPERTY CREATED DURING JOINT RESEARCH, FOR
EXAMPLE, WHEN THE PARTIES, PARTICIPATING INSTITUTIONS, OR
PARTICIPATING PERSONNEL HAVE AGREED IN ADVANCE ON THE SCOPE OF WORK,
EACH PARTY SHALL BE ENTITLED TO OBTAIN ALL RIGHTS AND INTERESTS IN ITS
OWN COUNTRY. RIGHTS AND INTERESTS IN THIRD COUNTRIES WILL BE
DETERMINED IN IMPLEMENTING AGREEMENTS. IF RESEARCH IS NOT DESIGNATED
AS "JOINT RESEARCH" IN THE RELEVANT IMPLEMENTING AGREEMENT, RIGHTS TO
INTELLECTUAL PROPERTY ARISING FROM THE RESEARCH WILL BE ALLOCATED IN
ACCORDANCE WITH PARAGRAPH II.B.(1) ABOVE. IN ADDITION, EACH PERSON
NAMED AS AN INVENTOR OR AUTHOR SHALL BE ENTITLED TO RECEIVE AWARDS IN
ACCORDANCE WITH THE POLICIES OF THE PARTICIPATING INSTITUTIONS.


(B) NOTWITHSTANDING PARAGRAPH II.B.(2)(A) ABOVE, IF A TYPE OF
INTELLECTUAL PROPERTY IS AVAILABLE UNDER THE LAWS OF ONE PARTY BUT NOT
THE OTHER PARTY, THE PARTY WHOSE LAWS PROVIDE FOR THIS TYPE OF
PROTECTION SHALL BE ENTITLED TO ALL RIGHTS AND INTERESTS WORLDWIDE.
PERSONS NAMED AS INVENTORS OR AUTHORS OF THE PROPERTY SHALL
NONETHELESS BE ENTITLED TO AWARDS, BONUSES, BENEFITS, OR ANY OTHER
REWARDS IN ACCORDANCE WITH THE POLICIES OF THE PARTICIPATING
INSTITUTION OF THE PARTY OBTAINING RIGHTS.


III.  BUSINESS CONFIDENTIAL INFORMATION



IN THE EVENT THAT INFORMATION IDENTIFIED IN A TIMELY FASHION AS
BUSINESS-CONFIDENTIAL IS FURNISHED OR CREATED UNDER THIS AGREEMENT,
EACH PARTY AND ITS PARTICIPANTS SHALL PROTECT SUCH INFORMATION IN
ACCORDANCE WITH APPLICABLE LAWS, REGULATIONS, AND ADMINISTRATIVE
PRACTICES. INFORMATION MAY BE IDENTIFIED AS "BUSINESS-CONFIDENTIAL" IF
A PERSON HAVING THE INFORMATION MAY DERIVE AN ECONOMIC BENEFIT FROM IT
OR MAY OBTAIN A COMPETITIVE ADVANTAGE OVER THOSE WHO DO NOT HAVE IT,
THE INFORMATION IS NOT GENERALLY KNOWN OR PUBLICLY AVAILABLE FROM
OTHER SOURCES, AND THE OWNER HAS NOT PREVIOUSLY MADE THE INFORMATION
AVAILABLE WITHOUT IMPOSING IN A TIMELY MANNER AN OBLIGATION TO KEEP IT
CONFIDENTIAL.