NAICS 533110 Quarterly Industry Report
Lessors of Nonfinancial Intangible Assets (except Copyrighted Works)
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 533110Sector: Real Estate and Rental and Leasing (53)Updated: Q1 2026
About This Report
This industry profile for Lessors of Nonfinancial Intangible Assets (NAICS 533110) draws on data from the U.S. Census Bureau[5], Bureau of Labor Statistics[6], and SBA size standards[7]. Published by Fair Market Value and updated quarterly, it provides IP licensing professionals, franchise operators, and technology transfer offices with classification guidance and market context. The editorial analysis reflects the independent assessment of FairMarketValue.com's research team.
Industry Snapshot
Key metrics for the lessors of nonfinancial intangible assets (except copyrighted works) industry.
NAICS Sector
53
Real Estate and Rental and Leasing
Industry Definition & Overview
Lessors of Nonfinancial Intangible Assets (Except Copyrighted Works) (NAICS 533110) encompasses establishments primarily engaged in assigning rights to assets such as patents, trademarks, brand names, and franchise agreements for which royalty payments or licensing fees are collected. Per the U.S. Census Bureau[5], these businesses own the intangible assets they license, though they may or may not have originally created them. This classification falls within the broader Real Estate and Rental and Leasing sector alongside tangible asset rental businesses.
The industry generates revenue through licensing fees and royalty collections from companies authorized to use proprietary technology, brand names, trade secrets, formulas, and franchise systems. Patent licensing dominates in pharmaceutical, technology, and manufacturing sectors where proprietary processes command significant royalty streams. Franchise licensing represents another major segment, with franchisors collecting ongoing fees from operators who use established brand names, operating systems, and business methods under structured franchise agreements.
Per the Bureau of Labor Statistics[6], this subsector employs professionals in licensing, legal compliance, and intellectual property portfolio management. The industry differs fundamentally from copyrighted works licensing (music, literature, software), which falls under separate information sector classifications. Establishments may function as holding companies for intellectual property portfolios, research organizations that license their discoveries, or franchise systems that license brand and operating rights to independent operators across domestic and international markets.
What's Included in This Industry
- Patent licensing and royalty collection
- Trademark and brand name licensing
- Franchise agreement licensing and administration
- Trade name licensing and rights management
- Process technology and know-how licensing
- Design rights and formula licensing
- Domain name and brand portfolio management
- International intellectual property rights licensing
- Royalty administration and collection services
- Licensing agreement negotiation and compliance
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Real Estate and Rental and Leasing | 53 |
| Subsector | Lessors of Nonfinancial Intangible Assets (except Copyrighted Works) | 533 |
| Industry Group | Lessors of Nonfinancial Intangible Assets (except Copyrighted Works) | 5331 |
| NAICS Industry | Lessors of Nonfinancial Intangible Assets (except Copyrighted Works) | 53311 |
| National Industry | Lessors of Nonfinancial Intangible Assets (except Copyrighted Works) | 533110 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 512230 | Music Publishers | Music Publishers license copyrighted musical works, a category explicitly excluded from 533110 because copyrighted works fall under separate information sector classifications |
| 519210 | Libraries and Archives | Libraries and Archives manage information access and preservation, representing a different model of intellectual property distribution than commercial licensing operations |
| 532490 | Other Commercial and Industrial Machinery and Equipment Rental and Leasing | Other Commercial and Industrial Equipment Rental represents the tangible asset counterpart to intellectual property licensing, involving physical equipment rather than intangible rights |
| 541713 | Research and Development in Nanotechnology | Research and Development in Nanotechnology creates patentable inventions and proprietary processes that may subsequently be licensed through 533110 IP leasing establishments |
| 541714 | Research and Development in Biotechnology (except Nanobiotechnology) | Research and Development in Biotechnology produces pharmaceutical patents and biotech innovations that generate licensing revenue when commercialized through IP leasing arrangements |
| 541715 | Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology) | Research and Development in Physical and Life Sciences creates intellectual property assets across engineering and scientific disciplines that 533110 lessors commercialize through licensing |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | Texas | 13.1% | 357 |
| 2 | California | 12.1% | 329 |
| 3 | Florida | 7.4% | 202 |
| 4 | New York | 5.4% | 148 |
| 5 | North Carolina | 3.4% | 92 |
| 6 | Virginia | 3.3% | 90 |
| 7 | Maryland | 3.1% | 86 |
| 8 | Ohio | 3.0% | 83 |
| 9 | Georgia | 2.9% | 78 |
| 10 | Pennsylvania | 2.8% | 77 |
% Of Establishments
0%
13%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
56
Total SBA Loans
$76.9M
Total Loan Volume
$1.4M
Average Loan Size
10 yrs
Average Loan Term
10.54%
Average Interest Rate
720
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: The SBA size standard for NAICS 533110 is $47.0 million in average annual receipts (SBA Size Standards[7]). This higher threshold reflects the high-value nature of intellectual property assets and the revenue potential of patent and franchise licensing operations. Small IP licensing firms, independent inventors, and regional franchise systems operating below this threshold qualify for SBA programs. SBA 7(a) loans can fund IP portfolio development, legal protection, and licensing infrastructure for qualifying businesses. Additionally, 504/CDC loans[8] provide long-term, fixed-rate financing for major fixed assets such as real estate and equipment.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Heritage Bank Inc | 8 | $40.0M | $5.0M |
| 2 | Byline Bank | 8 | $21.5M | $2.7M |
| 3 | Port 51 Lending LLC | 8 | $7.8M | $976K |
| 4 | Newtek Bank, National Association | 8 | $2.4M | $300K |
| 4 | Idaho Central CU | 8 | $2.4M | $300K |
Frequently Asked Questions
Common questions about this industry.
What types of intellectual property are classified under NAICS 533110?
NAICS 533110 covers licensing of patents, trademarks, brand names, trade names, process technology, design rights, formulas, and franchise agreements. Per the Census Bureau[5], the key distinction is nonfinancial intangible assets excluding copyrighted works.
What is excluded from NAICS 533110?
Copyrighted works including music, literature, and software are explicitly excluded and classified under separate information sector codes. Per BLS classifications[6], insurance products and financial instruments are also classified separately from intangible asset licensing.
What is the SBA size standard for NAICS 533110?
The SBA size standard is $47.0 million in average annual receipts (SBA Size Standards[7]). This higher threshold reflects the high-value nature of intellectual property portfolios and the revenue potential of successful licensing operations.
Do establishments need to have created the IP they license?
No. Per the Census Bureau[5], establishments may or may not have created the intellectual property they license. Portfolio holders who acquired rights through purchase, assignment, or transfer are included alongside original inventors and developers.
What NAICS codes are related to IP licensing?
Closely related codes include 512230 (Music Publishers), 519210 (Libraries and Archives), 532490 (Industrial Equipment Rental), and R&D codes 541713-541715 (Research and Development). R&D codes create the IP that 533110 establishments subsequently license for royalty income.
How do franchise licensing operations work under this code?
Franchisors collect ongoing royalty fees from operators authorized to use established brand names, operating systems, and business methods. Per the Census Bureau[5], franchise agreement licensing falls within this classification when the primary business activity is collecting licensing fees rather than operating franchise locations.
Can you get an SBA loan for an IP licensing business?
SBA loans are available for qualifying firms meeting the $47.0 million size standard. SBA 7(a) loans[9] can fund IP portfolio acquisition, patent prosecution costs, legal protection, licensing infrastructure, and working capital for intellectual property businesses.
How does patent licensing generate revenue?
Patent holders collect royalty payments from licensees authorized to use proprietary technology, manufacturing processes, or product designs. Revenue structures include upfront licensing fees, ongoing per-unit royalties, milestone payments tied to commercial success, and cross-licensing arrangements between technology companies with complementary patent portfolios.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]U.S. Census Bureau census.gov
- [6]Bureau of Labor Statistics bls.gov
- [7]SBA size standards sba.gov
- [8]504/CDC loans sba.gov
- [9]SBA 7(a) loans sba.gov
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