5331 - Lessors of Nonfinancial Intangible Assets (except Copyrighted Works)
In today’s knowledge-driven economy, intangible assets like patents, trademarks, and franchises play a crucial role in business growth and innovation. NAICS Code 5331, titled Lessors of Nonfinancial Intangible Assets (except Copyrighted Works), represents a specialized sector that focuses on leasing and licensing these valuable assets. Whether you're an entrepreneur exploring government contracting opportunities or a business owner in the rental and leasing industry, understanding this NAICS code is essential.
What is NAICS Code 5331?
NAICS Code 5331 covers establishments primarily engaged in leasing or licensing nonfinancial intangible assets, excluding copyrighted works. Unlike creators or original owners of these assets, lessors under this classification earn income by granting usage rights through licensing agreements.
Key Characteristics:
- Deals with patents, trademarks, and franchises
- Does not include copyrights or financial assets
- Focuses on leasing or licensing rather than producing intangible assets
Sector Overview: Rental and Leasing Services
This industry falls under the broader Rental and Leasing Services sector, which encompasses companies that own and provide tangible or intangible assets for temporary use. Within this sphere, NAICS 5331 spotlights businesses specializing in intangible assets, enabling another wave of innovation by facilitating asset access without full ownership transfer.
Typical Business Activities
Businesses classified under NAICS 5331 often engage in:
- Licensing patents to manufacturers or technology firms
- Granting trademark rights to franchisees or third-party users
- Managing franchise agreements and royalty collections
- Negotiating licensing contracts and protecting asset usage rights
Size Standards for NAICS Code 5331
To qualify as a small business under this NAICS code for government contracting and federal assistance programs:
- The average annual receipts must not exceed $16.5 million (subject to SBA updates)
- Size standards help determine eligibility for SBA programs, set-asides, and other contracting preferences
Be sure to check with the latest SBA guidelines as size standards can be revised.
Examples of Businesses Under NAICS 5331
- Patent Licensing Companies: Firms that acquire patents and license the rights to use the technology
- Trademark Licensing Firms: Organizations that control brand name usage and authorize partners to use trademarks
- Franchise Licensors: Companies that develop franchise systems and grant franchise rights to entrepreneurs
NAICS Code 5331 Details Table
| Attribute | Description |
|---|---|
| NAICS Code | 5331 |
| Title | Lessors of Nonfinancial Intangible Assets (except Copyrighted Works) |
| Sector | Rental and Leasing Services |
| Industry Description | Leasing or licensing of patents, trademarks, franchises, excluding copyrighted works |
| Typical Business Types | Patent licensing, trademark licensing, franchise licensing |
| Size Standard (Small Biz) | $16.5 million average annual receipts |
Frequently Asked Questions (FAQ)
Q1: Does NAICS 5331 cover copyrighted works?
No, this industry excludes copyrighted works. Copyrighted works fall under different NAICS codes, specifically in publishing or media sectors.
Q2: Can a business both own and lease nonfinancial intangible assets?
Yes, but businesses primarily engaged in leasing or licensing these intangible assets are classified under 5331. Those mainly producing or creating intangible assets may fall under other classifications.
Q3: What is the difference between NAICS 5331 and financial leasing?
NAICS 5331 deals with nonfinancial intangible assets such as patents or trademarks. Financial leasing involves financial instruments or assets like securities, which are classified separately.
Q4: How can small businesses benefit from understanding NAICS 5331?
Knowing this code helps small firms identify contracting opportunities, apply for federal assistance, and connect with partners requiring licensed intangible assets.
Understanding the dynamics of NAICS Code 5331 can empower businesses to leverage licensing opportunities, maximize intangible asset value, and navigate the government contracting landscape with confidence. Whether you're a patent licensing startup or an established franchise licensor, this industry is a vital pillar in today’s asset-driven economy.
