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The funding the scientist is seeking is a pittance compared to MIT's endowment, especially considering they own his patents, they should be funding it.

MIT Lincoln Labs is owned by MIT but operated relatively independently. It is funded, AFAIK from defense spending. Although I'm slightly surprised it wasn't moved to MIT the University.

I believe that Lincoln Labs was intentionally setup separately because MIT pledged not to do any weapons/defense related research. We have something similar with Georgia Tech and GTRI, but probably not for the same reason.

under Bayh-Dole I would expect them to get 33%-33%-33% or 60%-40%, something like that? That's how it works for mine.

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