In the first grant, was there a condition that the federal government be
given the right to use any inventions without royalties?  If so, wouldn't
that eliminate the generation of royalties in the second federal grant?

Dr. Dolores Brzycki
Assistant Dean
College of Health and Human Services
724-357-2088/2555
xxxxxx@iup.edu

----- Original Message -----
From: "Julie Edgerton" <xxxxxx@STANFORD.EDU>
To: <xxxxxx@HRINET.ORG>
Sent: Monday, September 11, 2006 12:31 PM
Subject: Re: [RESADM-L] Royalties and Institutional Conflict of Interest?

> Hmm, I am seeing a conflict of interest issue with this one but not sure.
> What do any of you think out there?
>
> Julie
>
> -----Original Message-----
> From: Research Administration List [mailto:xxxxxx@HRINET.ORG] On Behalf
> Of
> Barbara Gray
> Sent: Monday, September 11, 2006 9:09 AM
> To: xxxxxx@HRINET.ORG
> Subject: [RESADM-L] Royalties and Institutional Conflict of Interest?
>
> The situation:  A faculty member at a public institution of higher
> education invents a new instrument under a federal research grant.  The
> university patents the instrument and commercializes it.  ABC Scientific
> Supply has an exclusive license to make and sell the instrument, and the
> univesity receives royalty payments, which are generously shared with
> the inventor.  Now the same faculty member is working on a proposal to
> another federal agency.  He wants to buy twenty of the instruments from
> ABC Scientific to deploy in the field (meaning the university would earn
> royalties on the sale).  This particular instrument allows measurements
> that are important for the research that no other similar instrument on
> the market can do, so a sole source procurement is justified.  Is it
> appropriate for the university to pay full price for the twenty
> instruments using the new grant dollars and earn the royalties, which it
> will then share with the inventor/PI, or should the university charge
> the new grant for the cost of the equipment minus the royalty payment
> (assuming that ABC Scientific is willing to sell the equipment to the
> university at this reduced price)?  I suspect there will be a difference
> of opinion on this, so please share your rationale.
> 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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