What is Proprietary Software: Definition, Advantages, Disadvantages (2024)

Proprietary Software

Proprietary software is available only after buying the proper license of the software. Moreover, it has proper copyright and license. Besides, the software always remains the property of the owner/developer itself. The users can only use the software and that too under certain predefined conditions. Furthermore, only the owner has the right to modify or sell the software.

The owner can be an individual developer or an organization. Closed Source Software, Non-free Software, or Commercial Software is its other name.Examples are macOS, Adobe Suite, Microsoft Windows Professional Edition. Besides, it has certain restrictions like:

  • The number of people who can use the software is limited.
  • Requires a license.
  • Users cannot distribute the software further
  • The system or type of environment that the software requires.

Examples of common Proprietary Software

1. Antivirus Software

  • Norton
  • Bitdefender
  • McAfee

2. Password Software

  • Keeper (Password Manager and Digital Vault)
  • LastPass

3. Asset Management Software

  • AssetCloud
  • AssetManage

4. Remote Working Software

  • RemotePC
  • ZohoAssist

Browse more Topics underOpen Source Concepts

  • Open source Software
  • Freeware
  • Shareware

Rights of Proprietary Software owners

There are certain rights that the owners hold while selling this software. They are as follows:

1. Software Use

The owners can restrict the number of computer systems that a user can use to run the software. Besides they can restrict this through a product key, serial number, or product activation, etc.

2. Modification in Source Code

The owners do not provide the source code of the software. Moreover, users have no right to modify the software.

3. Distributing the software

The users have no right to distribute or share the software. Moreover, every user requires a proper license for use.

4. Software Compatibility

This software is usually not compatible with other software. Besides, the software have their own protocols and codes which are not compatible with other software.

5. Hardware Compatibility

Some vendors restrict particular hardware for use. Such as the macOS can run only on Apple devices.

Advantages of Proprietary Software

The advantages are as follows:

1. Stability

The software is stable because the development is totally the responsibility of the owner. Hence, the software is stable in working. Moreover, it does not crash easily. Therefore, it is better to use them for business purposes.

2. Revenue

Since the users pay for the software hence, it is a great source of revenue for the developers.

3. Customer Service

The users are paying for the software hence, it is the duty of the vendors to provide customer service. Since the vendors are making money from the customers so, they cannot refuse to provide any technical support.

4. Good user interface

Since the vendors depend on the customers to buy their software. Therefore, it is important to build user-friendly software. Besides, there are many open-source software that people can choose from. Hence, developers need to provide a good user experience. Therefore, this software is easy to use.

Disadvantages of Proprietary Software

The disadvantages are as follows:

  • The lifespan of the software depends on the vendors. Hence, there may be a great loss while using this software in business if the software is removed from the market.
  • Software is quite costly.
  • The software is rigid in nature. it means that you cannot modify the features according to your needs.
  • The users have no right to share the software.

Open Source Software

Open-source software is software in which the source code is also available along with the software. Moreover, the users have the right to view, modify, and enhance this code. Furthermore, no license is required for the software. Besides, the software can be cost-free or chargeable. besides, the user can also share the software without any license violation. Examples are Android, Linux, Apache Server, Ionic, MySQL, etc.

Difference between Open Source Software and Proprietary Software

Open Source Software
Proprietary Software
Source code is available to the usersThe source code is not available to the users.
Short-form is OSS.Short-form is CSS (closed source software).
The access specifier for OSS is ‘public’.The access specifier for proprietary software is ‘private’.
Users can view and modify the source code.Only the owner of the software can modify or view the source code.
It is less costly.It is more costly.
All types of developers can provide improvement for the software.Only the owner or the organization of software can hire developers to improve the code.
A license is not required.It is compulsory to have a license.
No one is responsible for any failure.The owner of the software is responsible if anything happens to the software.
Examples are Android, Linux, Apache Server, Ionic, MySQL, etc.Examples are Skype, Java, Adobe flash, WinRAR, macOS, etc.

Frequently Asked Questions (FAQs)

Q1. What is a Proprietary Software?

A1. Proprietary software is available only after buying the proper license of the software. Besides, the software always remains the property of the owner/developer itself. The users can only use the software under certain predefined conditions.

Q2. What is the other name for proprietary software?

A2. Closed Source Software, Non-free Software, or Commercial Software is its other name.

Q3. Give some examples of proprietary software.

A3. Few examples are as follows:

  • Norton
  • Bitdefender
  • McAfee
  • Keeper (Password Manager and Digital Vault)
  • LastPass
  • AssetCloud
  • AssetManage

Q4. What is the difference between proprietary and open source software?

A4. The difference between them is that in OSS source code is available along with the software whereas, this is not the case in proprietary software. Moreover, a user has no rights to share or modify the software in closed surface software.

What is Proprietary Software: Definition, Advantages, Disadvantages (2024)

FAQs

What is Proprietary Software: Definition, Advantages, Disadvantages? ›

Proprietary software is software that grants its creator, publisher, or other rightsholder or rightsholder partner a legal monopoly by modern copyright and intellectual property law to exclude the recipient from freely sharing the software or modifying it, and—in some cases, as is the case with some patent-encumbered ...

What are the advantages and disadvantages of using proprietary software? ›

Open source software is usually free to use, while proprietary software typically has a license fee. Proprietary software companies can also charge for upgrades and support, while open source software companies may not. Proprietary software is often more user-friendly since it's designed for a specific purpose.

What is proprietary software definition easy? ›

Proprietary software refers to software that is privately owned, controlled, and distributed under specific licensing terms that restrict users' rights to modify, distribute, or access its underlying source code.

What is proprietary software quizlet? ›

PROPRIETARY SOFTWARE. also called closed source software. The closed source software offers a stable system with support if the. software fails or malfunctions.

Which of these is an example of proprietary software? ›

Microsoft Windows is an example of a proprietary software. It is owned by Microsoft Corporation and its source code is not disclosed to the public. Other examples include Adobe Acrobat, iTunes from Apple and Skype.

What are the advantages and disadvantages of proprietary firms? ›

While a proprietorship offers advantages such as ease of formation, control, flexibility, and direct profits, it also comes with disadvantages, including unlimited liability, limited resources, limited skills and expertise, and potential business continuity challenges.

What is the definition of proprietary advantage? ›

What does that term mean, proprietary advantage? essentially, it's something that you own, or is exclusive to you, something that gives you something that no one else, no other business can have. It's not necessary to have a proprietary advantage, but it can add a tremendous amount of value to a business idea.

What is an example of proprietary? ›

The investors have a proprietary interest in the land. The computer comes with the manufacturer's proprietary software. “Merriam-Webster” is a proprietary name. The journalist tried to get access to proprietary information.

Why is proprietary software better? ›

Proprietary software typically offers numerous benefits, including high quality, robust security, and dedicated support. However, it also comes with potential challenges such as higher costs and limited flexibility.

How do you explain proprietary? ›

The word is most often used in relation to new inventions or patents. Proprietary refers to property: things that are owned by individuals or businesses. People talk about proprietary drugs, proprietary software, and other things that can only be made and sold by those who discovered or created them.

Which of the following are advantages of proprietary software? ›

The advantages are as follows:
  • Stability. The software is stable because the development is totally the responsibility of the owner. ...
  • Revenue. Since the users pay for the software hence, it is a great source of revenue for the developers.
  • Customer Service. ...
  • Good user interface.

Is Netflix a proprietary software? ›

Netflix is committed to open source. Netflix both leverages and provides open source technology focused on providing the leading Internet television network. Our technology focuses on providing immersive experiences across all internet-connected screens.

What is a proprietary system? ›

A 'Proprietary System' refers to a closed system with data managed in a way that restricts access and integration due to factors like hidden structures, dependencies, and lack of alignment with organizational standards.

Which of the following is a disadvantage of proprietary software? ›

Answer. You have to pay for this type of software. Reason — The disadvantage of proprietary software is that users have to pay to access it.

Is proprietary software free? ›

Proprietary software can be distributed at no cost or for a fee, and free software can be distributed at no cost or for a fee. The difference is that whether proprietary software can be distributed, and what the fee would be, is at the proprietor's discretion.

Is Word a proprietary software? ›

Other examples of proprietary software are iOS, which is the operating system used by iPhones, and the Microsoft Office family of products, which includes the programs Word, Excel, PowerPoint, and Outlook.

What are the disadvantages of proprietary components? ›

Proprietary protocols are often restrictive, only allowing customers to install components from the same company due to compatibility issues. Additionally, any repairs must be done with associates from that company. This can lead to severely limited flexibility, high costs and suboptimal components.

What are the advantages of proprietary technology? ›

One of the primary advantages of proprietary technology is that it can create barriers to entry, making it more difficult for competitors to enter the market. For example, a company that owns a patent on a key technology may be able to prevent others from using that technology, creating a significant advantage.

What are the advantages of proprietary software vs off the shelf software? ›

Advantages of Proprietary Software

This can be helpful for businesses that don'tdon't have the resources to provide their technical support. Security: Proprietary software is often more secure than off-the-shelf software because it is designed to meet the specific security needs of the company that created it.

What are the disadvantages of proprietary specifications? ›

2) Higher costs: Proprietary specs tend to be more expensive than generic products due to the exclusive features, customization options, and support provided by the manufacturer. 3) Limited choice: The availability of products with proprietary specs may be limited to a specific manufacturer, limiting consumer choice.

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