It looks like you are using Unicode ISO-8859-1, so change assignment to:
Code:
<mvt:assign name="l.settings:feed_description" value="glosub( l.settings:feed_description, '®', 'U+00AE' )" />
And on the Google Feed declare:
Code:
<?xml version="1.0" encoding="ISO-8859-1"?> // rest of feed
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