NACE 77.4 – Leasing of Intellectual Property and Similar Products | Public Tenders

Definition: NACE 77.4 covers the leasing and licensing of non-financial intangible assets such as patents, trademarks, franchise rights and software licences. In the public sector, this group is particularly relevant for IT procurement, software volume licensing and the acquisition of usage rights to digital resources.

Legal basis: NACE Rev. 2 (Regulation (EC) No 1893/2006) · Last updated: January 2026

What does NACE 77.4 cover?

NACE 77.4 (Leasing of intellectual property and similar products, except copyrighted works) classifies companies that grant rights to intangible assets on a time-limited or permanent basis against payment — in public administration, particularly relevant in the context of digitisation and IT procurement.

Group 77.4 comprises a single class:

Public contracting authorities under NACE 77.4 are IT departments of federal authorities, central IT service providers of the public sector (e.g. ITZBund, BRZ), regional administrations, municipalities and public undertakings with high software demand.

Public Tenders: NACE 77.4 in Practice

Software licences and intangible usage rights are among the largest IT procurement categories in the public sector — central purchasing bodies negotiate framework agreements for entire administrative tiers.

Typical types of contract

• Software volume licensing: Enterprise Agreements for operating systems, office suites and productivity software (e.g. Microsoft EA, SAP licences)
• Cloud-based software usage rights (SaaS): Time-limited usage rights to cloud-based applications (ERP, CRM, collaboration tools)
• Database licences: Usage rights to commercial database systems for public authorities (Oracle, IBM DB2, Microsoft SQL Server)
• GIS software licences: Geographic information systems for cadastral offices, urban planning offices and infrastructure operators
• Security software: Antivirus, firewalls, identity management for public-authority IT infrastructure
• Patent licences: Use of protected processes for public research institutions and technical authorities

Thresholds and procedure types

Software licence contracts are classified under procurement law as supply contracts (where physical data carriers are acquired) or service contracts (for SaaS/cloud). The EU thresholds are EUR 143,000–443,000. For strategic software framework agreements, the negotiated procedure with prior call for competition or the competitive dialogue is frequently used.

Relevant CPV Codes for NACE 77.4

Software licences and intangible usage rights are predominantly tendered under IT-specific CPV codes — the NACE 77.4 classification of the supplier is then statistically relevant.

Current tenders with these CPV codes are published on TED (Tenders Electronic Daily) and on national procurement platforms.

Who is NACE 77.4 relevant to in procurement law?

Public Contracting Authorities

Central IT service providers and procurement bodies of the public sector dominate this segment. In Germany, ITZBund negotiates framework agreements for federal authorities; the Federal Office of Administration (BMI procurement) coordinates IT framework agreements under ITEP. In Austria, BRZ (Federal Computing Centre) enters into central software contracts. At EU level, significant software framework agreements are awarded through institutions such as DIGIT (DG Informatics of the European Commission).

Companies and Bidders

Software providers and licence resellers participating in public tenders under NACE 77.4 typically need to:

• Authorised reseller status: Evidence of authorised reseller or OEM partner status for the software tendered
• Licence compliance: Ensure regular licence models (no grey-market licences)
• Support undertakings: Evidence of manufacturer support and update guarantees over the contract term
• Data protection and IT security: GDPR compliance, BSI C5 attestations for cloud services
• Open source alternatives: Some tenders treat proprietary and open source solutions on an equal footing

NACE 77.4 in Context: Section N and Division 77

NACE 77.4 represents the digital dimension within rental Division 77 — with close links to Section J (information and communication) and IT procurement.

• NACE N – Administrative and support service activities: Parent section
• NACE 77 – Rental and leasing activities: Division covering all rental activities
• NACE 77.1 – Renting and leasing of motor vehicles: Vehicle rental, fleet management
• NACE 77.2 – Renting and leasing of personal and household goods: Office equipment, event technology
• NACE 77.3 – Renting and leasing of other machinery, equipment and tangible goods: Construction machinery, site equipment

Frequently Asked Questions on NACE 77.4 and Public Tenders

Which companies fall under NACE 77.4?
Software providers and licence resellers that grant usage rights to intangible assets. Pure IT service companies (development, maintenance), by contrast, are typically assigned to Section J or M.

Is SaaS (Software as a Service) a supply or service contract?
SaaS contracts are predominantly classified as service contracts under procurement law, since the software is not physically supplied. The classification affects the applicable threshold and procedure type.

How does the public sector handle software monopolies?
Where a manufacturer has de facto unique market features (e.g. proprietary systems without an equivalent alternative), the negotiated procedure without prior call for competition under § 14 (4) VgV or Article 32(2)(b) of Directive 2014/24/EU may be permissible. Contracting authorities must, however, justify this exception.

Must open source licences be tendered?
Open source software can usually be used free of charge; in such cases only the implementation, customisation and maintenance services are tendered — not the licence itself.

Last updated: January 2026
All information is provided without guarantee. For legally binding advice, please consult a law firm specialising in public procurement law.