533110 - Lessors of Nonfinancial Intangible Assets (except Copyrighted Works)
When it comes to navigating the complex world of government contracting and business classifications, understanding NAICS codes is crucial. One important code in the Rental and Leasing Services sector is NAICS 533110 - Lessors of Nonfinancial Intangible Assets (except Copyrighted Works). This industry plays a unique role in the economy by facilitating the leasing and licensing of valuable intangible assets such as patents, trademarks, and franchises.
What is NAICS Code 533110?
NAICS 533110 encompasses establishments primarily engaged in leasing or licensing a variety of nonfinancial intangible assets, excluding copyrighted works. These businesses generate revenue by granting others the right to use their intangible property through licensing fees or royalties. Unlike companies dealing in physical goods or financial assets, 533110 firms focus exclusively on intellectual property and similar assets, excluding copyrights.
Sector Overview: Rental and Leasing Services
- Sector Name: Rental and Leasing Services
- NAICS Code: 533110
- Industry Description: Businesses involved in leasing or licensing intellectual property such as patents, trademarks, and franchises but not copyrighted works.
Typical Business Activities under NAICS 533110
Companies classified under this NAICS code engage in a variety of leasing and licensing activities, including but not limited to:
- Brand name licensing
- Franchise agreements
- Leasing, selling, or licensing of intangible assets without providing additional services
- Industrial design licensing
- Oil royalty companies, leasing, and trading (not for own account)
- Patent buying, leasing, and licensing
- Performance rights licensing
- Trademark licensing
These activities generate income primarily through royalties or licensing fees rather than direct sales.
Size Standard for NAICS 533110
For government contracting and eligibility purposes, the small business size standard for this industry is:
$47 million in average annual receipts.
This means companies with revenues up to $47 million may qualify as a small business under this NAICS code for federal contracting opportunities.
Examples of Businesses in NAICS 533110
- Patent Licensing Companies: Firms that purchase patent rights and license these patents to manufacturers or other businesses.
- Trademark Licensors: Organizations that own brand trademarks and license them for use in marketing or product branding.
- Franchise Licensors: Entities granting the rights to operate businesses under their franchise name and system.
Detailed Breakdown of NAICS 533110 Code Activities
| Code Activity | Description |
|---|---|
| Brand Name Licensing | Licensing of recognizable brand names for use in products or services |
| Franchise Agreements | Granting rights under franchise contracts |
| Leasing, Selling, or Licensing (No Services) | Transactions involving intangible assets without additional services |
| Industrial Design Licensing | Licensing designs that impact product appearance and differentiation |
| Oil Royalty Companies | Entities managing royalties from oil production |
| Oil Royalty Leasing | Leasing rights related to oil resources |
| Oil Royalty Traders (Except Own Account) | Trading rights for oil royalties, distinct from self-account activity |
| Patent Buying and Licensing | Acquiring patents for licensing purposes |
| Patent Leasing | Leasing patents to other firms |
| Performance Rights Licensing | Licensing rights to music, performances (excluding copyrights) |
| Trademark Licensing | Licensing use of trademarks |
Frequently Asked Questions (FAQ)
What types of intangible assets are included in NAICS 533110?
This industry covers nonfinancial intangible assets such as patents, trademarks, franchises, performance rights, and industrial designs, excluding copyrighted works.
Does NAICS 533110 include businesses leasing copyrighted works?
No. Copyrighted works are excluded from this classification. Licensing of copyrights falls under a different NAICS code.
What is the size standard for small business eligibility under this NAICS code?
The size standard is $47 million in average annual receipts.
Can an oil royalty company be classified under NAICS 533110?
Yes, oil royalty companies and activities such as oil royalty leasing and trading (except own account) fall within this NAICS classification.
Are franchise licensors part of NAICS 533110?
Yes, franchise licensors are key businesses under this code as they license their franchise rights to operators.
Conclusion
NAICS Code 533110 plays a vital role in the leasing and licensing of valuable nonfinancial intangible assets across many industries. From patents and trademarks to franchise agreements and oil royalties, businesses in this sector generate income primarily through licensing fees and royalties. Understanding this code is essential for businesses seeking federal contracts or strategic partnerships involving intangible asset leasing.
Make sure your business classification aligns with NAICS 533110 when engaging in nonfinancial intangible asset licensing to maximize your government contracting opportunities and growth potential.
Keywords: NAICS code 533110, Lessors of Nonfinancial Intangible Assets, patent licensing, trademark licensing, franchise agreements, oil royalties, small business size standard, rental and leasing services
