# proprietary software

> computer software released under a license restricting use, study or redistribution

**Wikidata**: [Q218616](https://www.wikidata.org/wiki/Q218616)  
**Wikipedia**: [English](https://en.wikipedia.org/wiki/Proprietary_software)  
**Source**: https://4ort.xyz/entity/proprietary-software

## Summary  
Proprietary software is computer software that is released under a license that restricts how it can be used, studied, or redistributed. The license typically keeps the source code closed and grants the publisher exclusive control over copying, modification, and distribution.

## Key Facts  
- **License type:** Uses a proprietary software license that limits use, study, and redistribution.  
- **Industry classification:** Listed under the Prepackaged Software industry (SIC code 7372).  
- **Aliases:** Also known as non‑free software, closed‑source software, or unfree software.  
- **Opposites:** Contrasted with free and open‑source software, source‑available software, and proprietary hardware.  
- **Characteristic:** Defined by the “closed source” attribute.  
- **Wikidata description:** “computer software released under a license restricting use, study or redistribution.”  
- **Wikipedia presence:** Article titled *Proprietary software* with 52 language‑specific sitelinks.  
- **Freebase identifier:** `/m/067xd`.  
- **Subclass:** Categorized as a subclass of both *software* and *club good*.  
- **Related concepts:** Distinct from the term “proprietary license,” which refers specifically to the legal instrument rather than the software itself.

## FAQs  
### Q: What exactly makes software “proprietary”?  
A: Proprietary software is distributed under a license that keeps the source code hidden and restricts copying, modification, and sharing, giving the rights holder exclusive control.  

### Q: How does proprietary software differ from open‑source software?  
A: Open‑source software’s source code is publicly available and can be freely modified and redistributed, whereas proprietary software’s source code is closed and its use is limited by a restrictive license.  

### Q: Can I modify or redistribute proprietary software?  
A: Generally no; the license explicitly forbids modification and redistribution without permission from the rights holder.  

## Why It Matters  
Proprietary software dominates many commercial technology markets because it enables companies to protect intellectual property, monetize development, and control product quality. By keeping source code closed, vendors can enforce brand consistency, offer paid support, and generate revenue through licensing fees or subscriptions. This model fuels substantial investment in research and development, leading to sophisticated applications such as Microsoft Office, Adobe Creative Suite, and countless industry‑specific tools. However, the restrictions also raise concerns about vendor lock‑in, transparency, and user autonomy. Understanding proprietary software is essential for businesses evaluating cost, security, and compliance, as well as for end‑users who need to know their rights regarding installation, modification, and redistribution. The balance between commercial incentives and openness continues to shape software policy, competition, and innovation across the global tech ecosystem.

## Notable For  
- **Closed‑source nature:** The source code is deliberately hidden from users.  
- **Restrictive licensing:** Use, study, and redistribution are limited by the publisher’s license.  
- **Commercial focus:** Often sold or licensed for profit, supporting ongoing development and support services.  
- **Legal distinction:** Treated as a separate legal entity from the “proprietary license” that governs it.  
- **Widespread adoption:** Recognized across 12+ Wikipedia language editions and cited in major reference works (e.g., Encyclopædia Britannica).

## Body  

### Definition  
Proprietary software is software that is released under a **proprietary license**. The license explicitly restricts the user’s ability to view, modify, or redistribute the underlying source code. This contrasts with software that is released under permissive or open licenses.

### Licensing Characteristics  
- **Closed source:** The source code is not publicly available.  
- **Usage limits:** Licenses may limit the number of installations, devices, or users.  
- **No right to modify:** Users cannot legally alter the software without permission.  
- **Distribution control:** Redistribution is typically prohibited unless the licensor grants explicit rights.

### Industry Context  
- Classified in the **Prepackaged Software** sector (SIC 7372).  
- Frequently bundled with support contracts, updates, and proprietary documentation.  
- Companies often use proprietary models to protect competitive advantage and recoup R&D costs.

### Comparison with Open‑Source and Source‑Available Software  
| Aspect | Proprietary Software | Open‑Source Software | Source‑Available Software |
|--------|---------------------|----------------------|---------------------------|
| Source code visibility | Closed | Public | Public, but may have restrictive reuse terms |
| Modification rights | Usually prohibited | Granted | May be limited |
| Redistribution | Restricted | Allowed | May be restricted |

### Examples of Proprietary Software (illustrative)  
- **Microsoft Office Excel 2007** – a spreadsheet program released under a proprietary license.  
- **LeechFTP** – a file‑transfer client with a restrictive license.  
- **CrossOver** – a compatibility layer for running Windows applications on macOS/Linux, distributed under a proprietary license.  
- **THalcyonDataSet** – a Delphi component for DBF files that is proprietary.  

These examples demonstrate the breadth of applications that employ proprietary licensing, from office productivity to specialized development tools.

### Legal and Economic Implications  
- **Intellectual property protection:** Proprietary licenses enforce copyright and prevent unauthorized copying.  
- **Revenue models:** Vendors monetize through license fees, subscriptions, or per‑seat pricing.  
- **Vendor lock‑in:** Users may become dependent on a single vendor for updates, support, and compatibility.  
- **Compliance requirements:** Organizations must track license compliance to avoid legal penalties.

### Future Outlook  
The rise of cloud‑based SaaS (Software‑as‑a‑Service) blurs traditional boundaries, but the core principle of restricting source‑code access remains central to the proprietary model. Emerging licensing frameworks continue to balance commercial interests with calls for greater transparency and user rights.

## Schema Markup  

```json
{
  "@context": "https://schema.org",
  "@type": "Thing",
  "name": "Proprietary software",
  "description": "Computer software released under a license restricting use, study, or redistribution.",
  "sameAs": [
    "https://en.wikipedia.org/wiki/Proprietary_software",
    "https://www.freebase.com/m/067xd"
  ],
  "additionalType": "Software"
}

## References

1. Freebase Data Dumps. 2013
2. Wikibase TDKIV