533 - Lessors of Nonfinancial Intangible Assets (except Copyrighted Works)
When it comes to understanding the landscape of intangible asset leasing, NAICS code 533 plays an essential role. Officially titled Lessors of Nonfinancial Intangible Assets (except Copyrighted Works), this classification covers businesses that lease or license intangible assets like patents, trademarks, and franchisesâwithout transferring ownership. Whether you're a government contractor, a startup, or an industry analyst, knowing the ins and outs of NAICS 533 can help you navigate this specialized segment within the rental and leasing services sector.
What is NAICS Code 533?
NAICS 533 refers to establishments primarily engaged in leasing or licensing nonfinancial intangible assets, excluding copyrighted works. These assets typically include:
- Patents
- Trademarks
- Franchise agreements
The key characteristic of businesses in this category is that they generate income by granting usage rights to these intangible assets, while retaining ownership.
Sector Overview: Rental and Leasing Services
NAICS 533 falls under the wider Rental and Leasing Services sector. This sector encompasses a variety of industries where businesses rent or lease assets to generate revenue.
Typical Business Activities in NAICS 533:
- Patent Licensing Companies: Entities that allow others to use patented technology or inventions for a fee.
- Trademark Licensors: Businesses that license trademarks or service marks to other companies for branding purposes.
- Franchise Lessors: Organizations that grant franchise rights to individual operators under a corporate brand without transferring ownership of the underlying brand or system.
Size Standards for NAICS 533 Eligibility
The U.S. Small Business Administration (SBA) defines size standards for businesses to qualify as small for government contracting and other purposes.
For NAICS code 533 - Lessors of Nonfinancial Intangible Assets (except Copyrighted Works):
| Metric | Size Standard Threshold |
|---|---|
| Average Annual Receipts | $41.5 million (for all receipts) |
Businesses with average annual receipts under this threshold are considered small businesses.
Examples of Businesses Under NAICS Code 533
To better understand the scope of this industry, here are some real-world business types under this NAICS code:
- Intellectual Property Licensing Firms: Licensing patents and trademarks for commercial use
- Franchise Development Companies: Selling and managing franchise agreements for various industries
- Trademark Holding Companies: Holding and licensing well-known brand names and trademarks to third parties
NAICS 533 Code Details
| NAICS Code | Title | Sector | Description | Size Standard (Annual Receipts) |
|---|---|---|---|---|
| 533 | Lessors of Nonfinancial Intangible Assets (except Copyrighted Works) | Rental and Leasing Services | Establishments leasing or licensing patents, trademarks, franchises, generating income without ownership transfer | $41.5 million |
Frequently Asked Questions (FAQ)
What types of assets are leased under NAICS 533?
NAICS 533 covers nonfinancial intangible assets, such as patents, trademarks, and franchise agreements, excluding copyrighted works.
How does a business qualify under NAICS code 533?
A business qualifies if it primarily leases or licenses intangible assets and generates revenue through their use without transferring ownership.
What is the SBA size standard for NAICS 533?
The size standard is generally $41.5 million in average annual receipts for the business to be classified as small.
Is copyright licensing included in NAICS 533?
No. Copyrighted works are explicitly excluded from this classification and fall under a different NAICS code.
Can franchise companies be classified under NAICS 533?
Yes, franchise lessors who lease franchise rights without transferring ownership fall under NAICS code 533.
Conclusion
NAICS Code 533 plays a vital role in the rental and leasing services sector by categorizing businesses that lease or license nonfinancial intangible assets outside of copyrighted works. These companies create value by allowing others to use patents, trademarks, and franchises while retaining ownershipâan important distinction with significant legal and contractual implications.
Understanding NAICS 533 will help businesses, contractors, and government agencies better identify and engage with organizations in this niche segment. Whether youâre a patent licensing firm or a franchise lessor, knowing where your business fits in the NAICS classification system is key to compliance and opportunity exploration.
Keywords: NAICS 533, Lessors of Nonfinancial Intangible Assets, Patent licensing, Trademark licensors, Franchise lessors, Rental and Leasing Services, SBA size standards, intangible asset leasing, government contracting.
