Federal Agency A provides a grant under which a piece of equipment--a
monitoring device--is invented.  Grantee patents the monitor and
commercializes it.  Grantee receives royalty income from Company X, the
only manufacturer and distributor of the monitor.  Grantee applies for a
grant from Federal Agency B in which ten monitors will be needed to do
research.  Only the monitor  patented and commercialized by the Grantee
will work for the type of research in question; there is no other
monitor on the market that can do such precise measurements.  Grantee
will purchase the ten monitors from Company X.   Is it legal/appropriate
for Grantee to pay for 100% of the purchase price of the monitors from
Company X with grant funds and then receive the royalty income?  Or
should Grantee charge only the monitor cost minus the royalty payment to
the grant?  Any other suggestions on how to handle this?  (Citation of
applicable federal regs will be helpful.)  Assume that the royalties to
the PI are under $10K so there is no individual COI issue.  Thanks!
Barbara

--
Barbara H. Gray
Director of Sponsored Research
Desert Research Institute
2215 Raggio Parkway
Reno, Nevada  89512-1095
Telephone:	775-673-7381
Fax:		775-673-7459
E-mail:	xxxxxx@dri.edu
www.dri.edu

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