Intangible assets are nonphysical assets (used in operations) that confer on their owners long-term rights, privileges, or competitive advantages. Examples are patents, copyrights, licenses, leaseholds, franchises ,goodwill, and trademarks. Lack of physical substance does not necessarily imply an intangible asset. Notes and accounts receivable, for instance, lack physical substance, but they are not intangibles. This section identifies the more common types of intangible assets and explains the accounting for them.