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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 Patent Advisory Bulletin is a publication of the Patent Group of Davis Wright Tremaine LLP. Our purpose in publishing this Advisory Bulletin is to inform our clients and friends of developments in patent 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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