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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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