Selling and marketing

Rule

Flag costs of selling and marketing products or special services.

Exception

Do not flag costs to:

• File a patent application if the government will hold title to the patent
• Prepare research proposals
• Recruit faculty, staff, or students

Example

A faculty member discovers a new compound that stimulates hair growth. The discovery was made under an Organized Research project. The sponsor has no claim or interest in a patent or in selling the new compound. The faculty member applies for a patent through the Technology Management Office (TMO). TMO also looks for a company to market the product.

1. Do the costs of applying for a patent require an X Class?

   Yes. The sponsor has no claim on patents for discoveries that occur under the sponsored award. Costs of the patent application are ICRX expenditures.

2. Do the costs of looking for a company to market the product require an X Class?

   Yes. Marketing expenditures are ICRX.