[Code of Federal Regulations]

[Title 32, Volume 1]

[Revised as of July 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 32CFR37.550]



[Page 235]

 

                       TITLE 32--NATIONAL DEFENSE

 

              CHAPTER I--OFFICE OF THE SECRETARY OF DEFENSE

 

PART 37_TECHNOLOGY INVESTMENT AGREEMENTS--Table of Contents

 

                 Subpart E_Pre-Award Business Evaluation

 

Sec.  37.550  May I accept intellectual property as cost sharing?



    (a) In most instances, you should not count costs of patents and 

other intellectual property (e.g., copyrighted material, including 

software) as cost sharing, because:

    (1) It is difficult to assign values to these intangible 

contributions;

    (2) Their value usually is a manifestation of prior research costs, 

which are not allowed as cost share under Sec.  37.545; and

    (3) Contributions of intellectual property rights generally do not 

represent the same cost of lost opportunity to a recipient as 

contributions of cash or tangible assets. The purpose of cost share is 

to ensure that the recipient incurs real risk that gives it a vested 

interest in the project's success.

    (b) You may include costs associated with intellectual property if 

the costs are based on sound estimates of market value of the 

contribution. For example, a for-profit firm may offer the use of 

commercially available software for which there is an established 

license fee for use of the product. The costs of the development of the 

software would not be a reasonable basis for valuing its use.