Technology Fundamentals

Proprietary Software

Definition

Proprietary software, also known as closed-source software, is software that is owned by an individual or a company. It has restrictions on its use, modification, and copying. The source code is almost always kept secret.

Why It Matters

This is the traditional model of software distribution, where software is sold as a product. It allows companies to protect their intellectual property and generate revenue directly from software sales.

Contextual Example

Microsoft Windows and Adobe Photoshop are examples of proprietary software. You must purchase a license to use them, and you cannot view or modify their source code.

Common Misunderstandings

  • Proprietary software is the opposite of open-source software.
  • While you pay for the software, you are typically buying a license to use it, not ownership of the software itself.

Related Terms

Last Updated: December 17, 2025