Lessors of Nonfinancial Intangible Assets (Except Copyrighted Works)

Lessors of Nonfinancial Intangible Assets (NAICS 533) covers establishments that lease patents, trademarks, brand names, franchise rights, and other intellectual property to third parties. This subsector excludes copyrighted works (classified under NAICS 512) and focuses on IP assets that generate recurring royalty and licensing revenue.

Franchise licensing represents the largest and most visible segment. McDonald's, Subway, and Marriott International generate substantial revenue from licensing their brand names, operational systems, and proprietary processes to franchisees. The Federal Trade Commission's Franchise Rule (16 CFR 436) requires franchisors to provide a Franchise Disclosure Document (FDD) with detailed financial, legal, and operational information before selling a franchise — the primary regulatory framework governing this segment.

Patent licensing constitutes the other major activity. Qualcomm's licensing division earns billions annually from FRAND (fair, reasonable, and non-discriminatory) licensing of wireless communication standard-essential patents. InterDigital and Dolby Laboratories operate similar patent licensing models. Non-practicing entities (patent assertion entities) also fall within this classification when their primary business is licensing rather than manufacturing. The sector concentrates in states with strong IP ecosystems — California, Texas, New York, and Illinois — and is shaped by federal patent law under Title 35 U.S.C., the Lanham Act for trademarks, and ongoing antitrust scrutiny from the FTC and DOJ regarding FRAND licensing and patent pooling practices.