Life Sciences Advisory Bulletin
NIH Grants May Now Cover Patent and Licensing
Costs
By Jane
E.R. Potter, Ph.D.
[December 2004]
This Advisory is a reminder to organizations
and research institutes that obtain funding from the National Institutes
of Health (NIH) about a change in NIH grants policy on invention,
licensing and patent costs. Previously, such costs were not covered
as direct costs or as facilities and administration (F&A) costs.
Under a revision released earlier this year, such costs may be allowable
as direct costs if they are specifically authorized on the grant
award. Such costs may be allowable as F&A costs if they are
authorized "under applicable cost principles” and are
included in the negotiation of F&A cost rates. According to
the revised text, the costs can include “licensing or option
fees, attorney's fees for preparing or submitting patent applications,
and fees paid to the U.S. Patent and Trademark Office for patent
application, patent maintenance, or recordation of patent-related
information.” The change is announced on the NIH website (www.nih.gov)
under Notice
NOT-OD-04-045. Further details on this change will be provided
as they become available.
For further information, please contact:
This Life Sciences Advisory Bulletin is a publication of the Life
Sciences Group of Davis Wright Tremaine LLP. Our purpose in publishing
this Advisory Bulletin is to inform our clients and friends of developments
in life sciences law. It is not intended, nor should it be used,
as a substitute for specific legal advice as legal counsel may be
given only in response to inquiries regarding particular situations.
Copyright © 2004, Davis
Wright Tremaine LLP.
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