53311 - Lessors of Nonfinancial Intangible Assets (except Copyrighted Works)
When it comes to the dynamic world of intellectual property and intangible asset management, NAICS code 53311 stands out as a critical classification. Known as Lessors of Nonfinancial Intangible Assets (except Copyrighted Works), this category captures businesses leasing or licensing valuable intangible assets like patents, trademarks, and franchises without transferring ownership. If you're involved in patent licensing, franchise management, or trademark leasing, understanding this code is essential for business classification, government contracting, or industry analysis.
What is NAICS 53311?
NAICS 53311 covers establishments primarily engaged in leasing or licensing nonfinancial intangible assets, excluding copyrighted works. These assets include:
- Patents
- Trademarks
- Franchises
Unlike selling these assets, lessors in this industry generate income by granting use rights without transferring ownership, allowing businesses to capitalize on intellectual property benefits through agreements and contracts.
Sector Overview: Rental and Leasing Services
NAICS 53311 falls under the broader Rental and Leasing Services sector. The sector comprises businesses focused on the rental or leasing of tangible and intangible assets. Specifically, the lessors in this industry provide access to intangible property rights, forming a unique niche that blends legal frameworks, intellectual property law, and business strategy.
Typical Business Activities Include:
- Licensing patents to manufacturers or technology firms
- Leasing franchise rights to business operators
- Licensing trademarks to companies for brand use
- Managing royalty agreements related to intangible assets
These business models emphasize recurring revenue streams through license fees or leasing contracts without relinquishing ownership.
NAICS 53311 Size Standards and Eligibility
The U.S. Small Business Administration (SBA) sets size standards to determine small business eligibility for various programs, including government contracting. For NAICS code 53311, the size standard is typically based on average annual receipts, which may vary with updates.
- Size Standard: $16.5 million in average annual receipts
- Businesses under this threshold are generally considered small and can access SBA benefits.
Always verify current SBA standards since they can be updated regularly.
Examples of Businesses Under NAICS 53311
- Patent Licensing Companies: Organizations that acquire patents and license them to manufacturers or inventors.
- Trademark Licensors: Businesses that grant rights to use trademarks for products or services.
- Franchise Lessors: Companies that own franchise rights and lease these rights to franchisees operating individual outlets.
These examples illustrate the variety of businesses that rely on intangible asset leasing as a core business function.
NAICS 53311 Code Details
| Item | Description |
|---|---|
| NAICS Code | 53311 |
| Title | Lessors of Nonfinancial Intangible Assets (except Copyrighted Works) |
| Sector | Rental and Leasing Services |
| Industry Description | Establishments primarily engaged in leasing or licensing nonfinancial intangible assets such as patents, trademarks, and franchises |
| Typical Businesses | Patent licensing companies, trademark licensors, franchise lessors |
| Size Standard | $16.5 million average annual receipts (subject to SBA updates) |
| Exclusions | Copyrighted works leasing (covered under separate NAICS codes) |
Frequently Asked Questions (FAQ)
What types of intangible assets are included under NAICS 53311?
NAICS 53311 includes patents, trademarks, and franchise rights, but excludes copyrighted works.
Does this code include the sale of intangible assets?
No, this code is specific to leasing or licensing intangible assets without transferring ownership.
What sector does NAICS 53311 belong to?
It belongs to the Rental and Leasing Services sector.
Who sets the size standards for NAICS 53311?
The U.S. Small Business Administration (SBA) defines size standards based on average annual receipts, currently set at $16.5 million.
Can businesses leasing copyrighted works use NAICS 53311?
No. Leasing or licensing copyrighted works falls under other NAICS codes.
Conclusion
Understanding NAICS code 53311 is crucial for businesses dealing with the leasing of patents, trademarks, and franchises. These lessors play a vital role in enabling companies to leverage intangible assets without ownership transfer, fueling innovation and brand expansion in many industries. Whether you're establishing your business, applying for government contracts, or simply researching the rental and leasing services sector, NAICS 53311 provides a clear framework for classification and opportunity.
Optimize your business strategy today by aligning with the right NAICS code — and NAICS 53311 may be your gateway to success in intangible asset leasing.
