Very often in communication, we can hear about the term proprietary. Our first association for the term proprietary is the exclusive legal right of the inventor or maker, for somebody that holds the exclusive right to something.
What does proprietary mean?
Proprietary refers to property and represents things that are owned by businesses or individuals. A proprietary claim is usually protected by trademark or copyright. For example, proprietary software is non-free computer software because usually, somebody has the source code’s copyright.
A proprietary product signifies such an idea or object that solely belongs to a specific owner. Please note that proprietary products, objects, and ideas are the sole property of the owner. These items can’t be recreated without the consent of the owner. Typically, patents are used to cover a proprietary product, idea, and object.
What is a proprietary product?
A proprietary product represents a digital or physical product produced by a private person or company, and it is protected by patent, trademark, or copyright. The owner of a proprietary product exercises certain exclusive rights over the product.
These products mainly work on a specific device. Well, many of you have already used a proprietary product to a particular device without your knowledge. For example, have you ever faced situations like this? — you have a film that works only with a specific video camera or if you have a disc that works only a particular type of media player. Chances are there that these are all proprietary products.
Proprietary products offer various unique advantages specifically to their manufacturers. The first benefit is quality control, where the manufacturers can monitor and control the creation of products at various steps. In this way, they ensure the best quality of their products.
This benefit is beneficial for those manufacturers who boast of delivering excellent quality products. Consider an example of a well-known and reputed electronic device manufacturer. They may rely on their own proprietary products, and they ensure the very best quality of their creations through it. Aside from ensuring superior quality, they provide exclusive licenses to those manufacturers who can uphold the quality. Example: Sony. This company mostly relies on its own proprietary products regarding their quality, endurance, and utility.
There is one more excellent benefit when it comes to owning and creating proprietary products. These products are meant for exclusive usage, and that’s why they can cater to large revenues. Example: Fuji. This company is a leading player in digital cameras. In fact, they are a trendy name in the digital camera market. They generate tremendous revenues through proprietary products. They have a clever yet lucrative profit strategy. They manufacture their parts and devices in such a way so that they can only work with their proprietary products. This strategy helps them maintain a steady stream of high-profit outcomes and revenues.
It’s a very well-known fact that if a company owns the exclusive right to offering sales for a specific product, they can earn great revenue. The famous camera manufacturer, i.e., Fuji, is a perfect example of this. Not only they sell thousands of digital cameras daily, but also they make more revenues by selling xD picture cards that work only with their proprietary cameras.
To summarize, the owners and developers of proprietary products have various exclusive benefits. These developers ensure proper quality control of their creations. By adhering to the best quality, these manufacturers open up space for an unrestricted revenue base. With this quality control and large revenue base, it brings the best financial fortunes to these companies.