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Rental and leasing services and lessors of intangible assets

This industry group includes rental and leasing services and lessors of nonfinancial intangible assets (except copyrighted works).

Industries in the Rental and Leasing Services subsector include establishments that provide a wide array of tangible goods, such as automobiles, computers, consumer goods, and industrial machinery and equipment, to customers in return for a periodic rental or lease payment. The subsector includes two main types of establishments: (1) those that are engaged in renting consumer goods and equipment and (2) those that are engaged in leasing machinery and equipment often used for business operations. The first type typically operates from a retail-like or store-front facility and maintains inventories of goods that are rented for short periods of time. The latter type typically does not operate from retail-like locations or maintain inventories, and offers longer term leases. These establishments work directly with clients to enable them to acquire the use of equipment on a lease basis, or they work with equipment vendors or dealers to support the marketing of equipment to their customers under lease arrangements. Equipment lessors generally structure lease contracts to meet the specialized needs of their clients and use their remarketing expertise to find other users for previously leased equipment. Establishments that provide operating and capital (i.e., finance) leases are included in this subsector.

Industries in the Lessors of Nonfinancial Intangible Assets (except Copyrighted Works) NAICS subsector include establishments that are primarily engaged in assigning rights to assets, such as patents, trademarks, brand names, and/or franchise agreements for which a royalty payment or licensing fee is paid to the asset holder. Establishments in this subsector own the patents, trademarks, and/or franchise agreements that they allow others to use or reproduce for a fee and may or may not have created those assets. Establishments that allow franchisees the use of the franchise name, contingent on the franchisee buying products or services from the franchiser, are classified elsewhere. Excluded from this subsector are establishments primarily engaged in leasing real property and establishments primarily engaged in leasing tangible assets, such as automobiles, computers, consumer goods, and industrial machinery and equipment. These establishments are classified in Subsector 531, Real Estate and Subsector 532, Rental and Leasing Services, respectively.