What Is Proprietary Technology? Types, Benefit, 7 Facts

The term “proprietary technology” refers to a collection of procedures, instruments, or systems that belong to a company or an individual and which give the owner a benefit or competitive advantage.

What Is Proprietary Technology?

Any combination of methods, apparatuses, or networks of linked connections that belongs to a company or a specific person is referred to as proprietary technology. The owners of proprietary technology gain from these pairings or gain an advantage over their rivals.

What Is Proprietary Technology?

Businesses that successfully create beneficial proprietary technologies in-house are rewarded with a valuable asset that they can either use exclusively or sell or license to third parties for a profit.

Additionally, it is possible to buy access to priceless exclusive technology. Although there are more limitations on the usage of underlying technology, this choice is frequently more expensive.

Understanding Proprietary Technology

A tool, program, or system that is only available through a certain company is known as proprietary technology.

In order to manufacture and sell goods or services to end users or customers, they are often developed and used internally by the business owner. In other instances, an end-user or client may be charged for receiving them.

Exclusive technology have a major role in determining success in various businesses. They are private because of this. They are legally protected by patents and copyrights and are closely guarded within a business.

Intellectual property can represent the bulk of assets on the balance sheet for many organizations, especially those in knowledge-based sectors. Investors and other stakeholders with an interest in these companies go to considerable efforts to evaluate and value proprietary technology and their contribution to business outcomes.

Realizing how important an asset private technology is as an asset is one of the first actions a company can take to safeguard it.

Many firms are reluctant to publicly divulge what they are working on in secret since research and development (R&D) costs are essentially a silent key to success.

What Is Proprietary Technology?

So that they may benefit from private investment accounts as well, analysts and investors look for unreported advances in company proprietary technology.

Types of Proprietary Technology

Depending on the nature of the company that owns it, proprietary technology can take on a variety of shapes. Both actual and intangible assets that the organization has created and uses might qualify.

A business could have its own data system, as one illustration. To gather and handle data for internal use, financial organizations, for instance, create their own internal systems.

These systems may be seen at a bank branch, where staff members enter data whenever consumers walk in to conduct ordinary banking at the teller line.

Another option for businesses is to create their own software. Software that imposes restrictions on who can use it is known as proprietary software, as opposed to free software. Only the publisher or distributor are allowed to possess it.

The owner won’t provide an end user access to the program unless a few requirements are satisfied. To utilize their software to complete their tax returns, for instance, clients of a tax preparation business could be charged a fee.

Examples of Proprietary Technology

Some patented technologies have advantages that are obvious, while others do not. And the only way to realize the actual value of a technology is through recombination with other technologies; this process is now simply referred to as innovation.

The Steve Jobs and Xerox anecdote is a well-known illustration. Unaware of what they had on their hands in the late 1970s, Xerox effectively gave Steve Jobs the concept for a computer mouse, and Jobs later used the technology in Apple’s early computer designs.

Another significant component of the biotech sector is proprietary technologies. Consider the case when a business in this sector creates a new medicine that effectively combats a serious illness.

The corporation may profit significantly from its efforts to build its own technology by patenting the drug’s manufacturing process, technique, and final product.

Protecting Proprietary Technology

The protection of intellectual technology is a top priority for businesses. After all, businesses invest a considerable amount of time, money, and effort generating the knowledge that underpins their goods and services. Their business might suffer if they don’t take the effort to safeguard their interests.

What Is Proprietary Technology?

Proprietary technology is constantly under danger because it is so valuable. As previously stated, businesses may safeguard themselves by obtaining patents and copyrights on their intellectual technologies. These grant ownership of intellectual property to the owner and forbid imitations of the innovations.

Intentionally or unintentionally, employees may accidently divulge or share information with third parties, including the competition, or a data breach may expose trade secrets to hackers. What are the best ways for businesses to protect themselves from these unforeseen events?

Many businesses regulate and/or restrict the access of employees to information. Non-disclosure agreements (NDAs), which provide the company legal action if internal, secret information is shared with other parties, may also be demanded of employees.

To avoid a data breach that might reveal their secrets to outsiders, businesses might also need to regularly upgrade their security measures.

How Proprietary Tech Is Changing The Service Industry

The following information is essential if you want to remain abreast of marketing trends and are interested in the potential benefits of unique technology for your company:

1. Companies that don’t embrace the proprietary tech movement risk their competitive advantage.

Innovative businesses have already started embracing technology to enhance their services and strengthen their competitive edge, despite the fact that the change is still relatively new and the demand for adoption is rising.

A fantastic illustration of this benefit was provided by Robb Lee, VP of Professional Services at Praxent:

Recently, the service delivery methods used by the vehicle insurance sector have undergone fast innovation.

The widespread use of mobile connected devices enables insurance companies to provide services in ways that were previously impractical, such as on-the-spot video chats with claims agents at the scene of an incident, real-time claims process monitoring, and, of course, always up-to-date proof of insurance cards that are just a tap away on your smartphone.

What Is Proprietary Technology?

How would you process all these significant changes if you worked in the auto insurance sector? What type of communication management plan do you anticipate for your team?

What are the chances that you may discover a current technology that exactly satisfies the requirements of your business, in your opinion?

Businesses on the verge of extinction are those that don’t use technology to enhance their offerings and satisfy changing client expectations.

No matter how good your services are, they will be outperformed by those that combine them with the ease of use, organization, and effectiveness of exclusive tailored solutions.

Businesses who provide a service-technology combination that gives the customer the best experience will be the main winners over the next few years.

2. Proprietary tech will help your company operate more effectively — and save money.

Try using software or a different technological instrument if you can do so without compromising the quality of your services or the experience your consumers receive.

Create a list of time-consuming procedures with the help of your operations staff, then have them come up with suggestions for how you might speed up those processes.

3. Proprietary technology can improve communication between teams, across the company as a whole, and even with clients.

My team and I have learnt personally that communication is essential to a company’s success. Our content generation and dissemination have always involved some kind of cloud-based technology, but team members were unable to properly connect with one another using that conventional technology.

Additionally, using technology to enhance internal communication is not the only option. You may expose it to your customers as well through continuing development.

4. Customers expect the highest level of service, and proprietary tech delivers it.

The Internet has always existed, according to Lee, who was born after 1993.

These folks started their adolescence with the contemporary smartphone, and their transition to adulthood has been accompanied by an ever-increasingly potent, constantly connected, ultra-personal computer in their pocket.

Technology and service are mutually exclusive to this group; none would be possible without the other.

Recognizing that service alone isn’t sufficient for today’s clients is crucial for firms that wish to succeed. What will spur loyalty, engagement, and income is the platform for service delivery, such as an app, a website, or a subscription portal.

What Is Proprietary Technology?

Successful, flexible company leaders create technology as their organizations expand, as they discover what their customers value and don’t, and as they focus their offers to the knowledge, procedures, and services that nobody else can supply.

Don’t pass up the potential for your business to create unique technology that will enable you to provide superior customer service. It could provide you with the chance to stand out that you were seeking.

3 Ways to Create Successful Proprietary Tech

1. Find some kind of fault

Successful, flexible company leaders create technology as their organizations expand, as they discover what their customers value and don’t, and as they focus their offers to the knowledge, procedures, and services that nobody else can supply.

Don’t pass up the potential for your business to create unique technology that will enable you to provide superior customer service. It could provide you with the chance to stand out that you were seeking.

According to a CB Insights report, 42 percent of goods fail because there aren’t enough consumers who need them. Investigate the most common challenges faced by your audience and provide solutions.

Analyze typical market issues that you could theoretically be able to tackle before you start looking to develop a solution. Make it the objective of your technology to close a gap in the market that you have identified.

The emphasis was turned in Drive.ai’se to pedestrian communication, something that rivals reportedly hadn’t paid much care to.

This investment proved to us that, as compared to our rivals, our customers receive substantially higher returns on their purchases. A company may seize a portion of the market and establish itself as a successful alternative by providing a wiser, more economical solution.

2. Don’t be a cog

The Marketing Research Association estimates that 10% of product expenses are lost on features that consumers either don’t value or don’t appreciate. Consider how you might enhance the tried-and-true items in your industry.

Inside of thriving industries, innovate. Water firms have been for a very long time, but my organization intended to deviate from the conventional strategy of changing toilets or showerheads.

We created goods and services to address the market’s gaps because we wanted to accomplish something that genuinely functioned and had long-term advantages.

When a technology addresses the underlying causes of a customer’s issue rather than just providing a quick fix, the customer is ecstatic.

3. Do more by doing less

Because it serves as a central location for all Google products, including Gmail, Docs, Hangouts, and more, Google Drive has become so popular and has more than 1 million paying users. Create trustworthy, user-friendly goods and services.

Proprietary technology ought to be available, as consumers seek straightforward, simple-to-use solutions. Create backend systems that are easy to use for the internal team as well as for clients.

My firm made an investment in a single, behind-the-scenes platform that serves as the brains for data collection and water analysis, as opposed to using several spreadsheets and software packages.

We are better able to see patterns and generate use projections for our clients since we have access to all of their data in one location. A customer-facing site has also been set up so that customers may see these analytics on their own.

What Is Proprietary Technology?

Your product needs to always stand out from the competitors. Entrepreneurs that consistently make investments in their own unique proprietary technologies make their businesses stand out and give competitors in their industry something to strive for.

Businesses must provide unique items that are unrivaled in the market. A company’s competitive advantage may be established and honed with the use of proprietary technologies.

Continuously spending time, money, and creativity into a proprietary product is a fantastic method for entrepreneurs to ensure that clients continue to find your services valuable, whether you’re improving a car’s capacity to drive itself or coming up with ways to better preserve water consumption.


System, tool, or technical procedure kinds that are created by and for a particular commercial organization are referred to as proprietary technologies.

These types of technologies are frequently created as a result of an organization’s continuing research activities, but they can also be the result of the creativity of staff members working in roles that are not directly related to research and development.

In any case, the concepts created and presented by workers are often regarded as the intellectual property of the company, making them eligible for the designation of proprietary technology.


In information technology, proprietary describes a technology or product that is owned exclusively by a single company that carefully guards knowledge about the technology or the product’s inner workings.
Proprietary Technology means the technical innovations that are unique and legally owned or licensed by a business and includes, without limitation, those innovations that are patented, patent pending, a subject of trade secrets, or copyrighted.
Proprietary Tools means software (in source code form or in object code form), models and/or data, and other instrumentalities that are not commercially available and are either owned by a Party or under which a Party has the right to grant royalty-free licenses, and that are used in Process Development Projects.
Nonproprietary technology includes knowledge contained in technical literature, hardware, and services that can be imitated or reproduced by observation and through reverse engineering without infringing on the proprietary rights.
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