Once per turn, you can Normal Summon 1 Psychic-Type monster in addition to your Normal Summon or Set. If successful, place 1 Psychic Counter on this card. You can also place 1 Psychic Counter on this card instead of paying Life Points to activate any Psychic-Type monster's effect that you control. When this card is removed from the field, the controller of this card takes 1000 damage for each Psychic Counter on it.
Doesn't work with Master Gig either, even if you have counters on Brain Research Lab. When you activate Master Gig's, you pay 1000LP and can destroy up to a number of monsters your opponent controls, up to the number of psychic monsters that are on your side of field (including Master Gig). Could be a bug, idk...
I think it only applies to certain psychic monster effects. You can’t use brain research lab for any psychic monster effect damage. I think brain research lab can only be used when a psychic monster’s effect damage is the price to use the effect not if the damage is a result of the effect.
Example: you can use Brain Research Lab with Master Gig, but not Armored Axon Kicker.