Navigating Intangible Property in Grants: Key Insights
When managing federal grants, many organizations are well-versed in budgeting, reporting, and achieving programmatic outcomes. However, one area that often catches recipients off guard is the management of intangible property non-physical assets such as data, copyrights, patents, and trademarks. This aspect, governed by 2 CFR 200.315, plays a pivotal role in ensuring compliance from grant application to closeout.
What is Intangible Property?
Intangible property refers to non-physical assets developed or acquired using federal funds. These include:
Trademarks
Copyrights
Research data
Patents
Websites
Though they have no tangible form, their value and impact are significant—particularly in research, education, and innovation-focused grants.
Ownership and Use: It’s Yours, With Conditions
According to the regulation, if you acquire intangible property as a recipient or subrecipient using federal funds, your organisation owns it. However, ownership doesn't mean unrestricted use. You must use the property strictly for the authorised purpose of the grant. Once it is no longer needed, it must be disposed of properly—not retained, repurposed, or sold without prior federal approval.
Moreover, recipients must avoid encumbering the property—meaning you cannot transfer or restrict access to it without federal or pass-through entity consent.
Copyrights: Shareable but Shared
Works developed under federal grants, such as research studies or educational materials, can be copyrighted by the grantee. That said, the federal agency retains a royalty-free, non-exclusive, irrevocable right to:
Reproduce the work
Use it internally
Authorise others to do the same
This ensures publicly funded work can benefit the wider community, even beyond the original grant project.
Research Data and the Freedom of Information Act (FOIA)
Perhaps the most misunderstood part of intangible property rules is the handling of research data. If your federally funded research is cited in rulemaking or public policy, your supporting data may be subject to public access under FOIA.
This doesn’t mean all your internal files are exposed. Only factual data supporting published findings may need to be disclosed not:
Preliminary analysis
Drafts of scientific papers
Peer reviews
Personal information
Trade secrets
Having a clear data management plan from the beginning is essential. Legal and compliance teams should be looped in to ensure sensitive information remains protected, while meeting disclosure obligations.
Ensuring Public Access Without Compromising Integrity
Federal agencies now encourage broader public access to research outcomes while maintaining privacy and security. If you’re uncertain about what needs to be shared, consult your federal agency. They can guide you on best practices and help you comply without overexposing proprietary or confidential data.
It’s wise to understand public access expectations from the start of your grant. Doing so not only aids in compliance but also safeguards your organization and strengthens internal controls.
Final Thoughts
Intangible property may be invisible to the eye, but its management is central to grant compliance. By understanding your responsibilities regarding ownership, copyrights, research data, and public access, you can avoid legal pitfalls and maximize the impact of your federally funded work.
For deeper insights into grant regulations and real-world compliance strategies,
Listen to the Grants Management Experts podcast here.
