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.
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.