"The payor reported the payments on Form 1099-NEC, as nonemployee compensation. I believe this is wrong."

It's not wrong if they are treating it as if he did some work and we are ignoring this fact. That would make it Sched C.

It's Wrong, if the license is linked to the corporation for purposes of labor, insurance, etc, because that would not entail a 1099-NEC.

Is that listed to the SSN or FEIN?

It's not Misc, because you can't be renting out the license, and it's not royalty.

"not subject to SE tax"

So what? Apparently, they can't get away with the scam fully.