Article 17 | Period of Exemption

(1)   The exemption period for all categories of entities (Start-ups, Research Labs, and Social Enterprises) shall be valid for two years from the date of approval by the Alliance’s governing body.

(2)   After the completion of the two-year exemption period, entities may apply for re-exemption for a maximum of two additional terms, each term lasting one year. To qualify for re-exemption, entities must provide updated documentation demonstrating their continued eligibility based on the specified criteria and their fulfilment of the special obligations during the previous exemption period.

(3)   The maximum total duration of exemption, including the initial two-year period and any subsequent re-exemption terms, shall not exceed four years. After the completion of the maximum exemption duration, entities must apply for regular membership in the Alliance, subject to the applicable membership fees and requirements.

(4)   During the exemption period and any subsequent re-exemption terms, entities must promptly notify the Alliance’s governing body of any significant changes in their revenue, budget, or other eligibility criteria that may impact their exemption status. To ensure continued eligibility, entities are expected to provide supporting documentation, including financial records or other relevant filings, as part of their regular compliance reporting. The Secretariat and the Governing Body of the Alliance reserve the right to review and revoke the exemption status at any time if the entity fails to meet the eligibility criteria or fulfil the special obligations.

(5)   In exceptional circumstances, such as a global pandemic or economic crisis, the Alliance’s governing body may consider granting a one-time extension of the exemption period for up to one additional year, on a case-by-case basis. This extension shall be based on the entity’s demonstration of hardship and continued commitment to AI development and deployment aligned with the Alliance’s objectives. The extension shall not exceed the maximum total duration of exemption as specified in paragraph (3).

(6)   Entities that have completed their exemption period and any subsequent re-exemption terms, and do not qualify for regular membership, may choose to apply for associate membership or observer status, subject to the applicable fees and requirements as determined by the Alliance’s governing body.

(7)   The Alliance’s governing body shall provide guidance and support to facilitate the transition of exempted entities to regular membership or other suitable membership categories, recognising their contributions and potential for continued engagement in the AI ecosystem.