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{{short description|Software released under a license restricting rights}}{{Redirect-confused|Non-free software|Commercial software|Business software}}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 and EULA-bound software—from making use of the software on their own, thereby restricting their freedoms.BOOK, Saraswati Experts, COMPUTER SCIENCE WITH C++,weblink 29 June 2017, Saraswati House Pvt Ltd, 978-93-5199-877-8, 1.27, 2.5.3, Proprietary software is a subset of non-free software, a term defined in contrast to free and open-source software; non-commercial licenses such as CC BY-NC are not deemed proprietary, but are non-free. Proprietary software may either be closed-source software or source-available software.BOOK, AUUG, Inc., AUUGN, March 2003, AUUG, Inc., 51, Chapter 1. Definitions, 29 June 2017,weblink

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!! colspan="3" |Free/Open Licenses! colspan="3" |Non-free Licenses! !!Public domain & equivalents!! Permissive license !! Copyleft (protective license) !! Noncommercial license !! {{no|}} Proprietary license !! Trade secret! scope=row | Software

CC0 >	BSD licenses>BSD, MIT license	, Apache license>Apache	GPL, GNU Affero General Public License	>	Java Research License>JRL, Aladdin Free Public License	>	}} proprietary software, no public license	private, internal software

! scope=row | Other creative works

CC0 >	CC BY >	CC BY-SA >	CC BY-NC >	}} Copyright, no public license	unpublished

{{clear}}

Origin

Until the late 1960s, computers—especially large and expensive mainframe computers, machines in specially air-conditioned computer rooms—were usually leased to customers rather than sold.BOOK, Paul E., Ceruzzi, A History of Modern Computing, 2003, MIT Press, Cambridge, MA, 0-262-53203-4, 128, Although IBM agreed to sell its machines as part of a Consent Decree effective January 1956, leasing continued to be its preferred way of doing business.then everyone started fighting,weblink {{citation |url=http://www.leasegenie.com/History_of_Leasing.html|title=The History of Equipment Leasingarchive-url=https://web.archive.org/web/20080411024345weblink |archive-date=April 11, 2008 |quote=In the 1960s, IBM and Xerox recognized that substantial sums could be made from the financing of their equipment. The leasing of computer and office equipment that occurred then was a significant contribution to leasings [sic] growth, since many companies were exposed to equipment leasing for the first time when they leased such equipment.date=March 2017}} Customers who developed software often made it available to the public without charge.HTTPS://WWW.GNU.ORG/GNU/GNU-HISTORY.EN.HTML >TITLE=OVERVIEW OF THE GNU SYSTEM PUBLISHER=FREE SOFTWARE FOUNDATION ACCESS-DATE=2017-05-01, Closed source means computer programs whose source code is not published except to licensees. It is available to be modified only by the organization that developed it and those licensed to use the software.In 1969, IBM, which had antitrust lawsuits pending against it, led an industry change by (History of IBM#1960–1969: The System/360 era, Unbundling software and services|starting to charge separately for mainframe software)PUGH >FIRST=EMERSON W., Origins of Software Bundling, IEEE Annals of the History of Computingnumber=1 pages=57–58, 10.1109/85.988580, HAMILTON >FIRST=THOMAS W., IBM's Unbundling Decision: Consequences for Users and the Industry, Programming Sciences Corporation, 1969, and services, by unbundling hardware and software.WEB,weblink Chronological History of IBM: 1960s date=n.d., Rather than offer hardware, services and software exclusively in packages, marketers 'unbundled' the components and offered them for sale individually. Unbundling gave birth to the multibillion-dollar software and services industries, of which IBM is today a world leader.author-link=IBM, Bill Gates' "Open Letter to Hobbyists" in 1976 decried computer hobbyists' rampant copyright infringement of software, particularly Microsoft's Altair BASIC interpreter, and asserted that their unauthorized use hindered his ability to produce quality software. But the legal status of software copyright, especially for object code, was not clear until the 1983 appeals court ruling in Apple Computer, Inc. v. Franklin Computer Corp.BILL >LAST=GATES, An Open Letter to Hobbyists, February 3, 1976,weblinkTITLE=EXECUTABLE CODE IS NOT THE PROPER SUBJECT OF COPYRIGHT LAWINSTITUTION=CAL POLY STATE UNIVERSITYauthor=Pamela Samuelsondate=Sep 1984volume=1984pages=663–769jstor=1372418url-status=dead weblink >archive-date= Aug 4, 2017 }}According to Brewster Kahle the legal characteristic of software changed also due to the U.S. Copyright Act of 1976.Robert X. Cringely's interview with Brewster Kahle, 46th minute {{Webarchive|url=https://web.archive.org/web/20190118221148weblink |date=2019-01-18 }}Starting in February 1983 IBM adopted an "object-code-only" model for a growing list of their software and stopped shipping much of the source code,WEB,weblinkweblink 2021-10-27, Corporate Open Source Anti-patterns, Bryan, Cantrill, Bryan Cantrill, 2014-09-17, 2015-12-26, At 3:15, video, YouTube, {{cbignore}}WEB,weblink Computerworld, John, Gallant, 1985-03-18, 2015-12-27, IBM policy draws fire - Users say source code rules hamper change, While IBM's policy of withholding source code for selected software products has already marked its second anniversary, users are only now beginning to cope with the impact of that decision. But whether or not the advent of object-code-only products has affected their day-to-day DP operations, some users remain angry about IBM's decision. Announced in February 1983, IBM's object-code-only policy has been applied to a growing list of Big Blue system software products, even to licensees.In 1983, binary software became copyrightable in the United States as well by the Apple vs. Franklin law decision,WEB, Hassett, Rob, Dec 18, 2012, Impact of Apple vs. Franklin Decision,weblink live,weblink Sep 8, 2023, InternetLegal.com, before which only source code was copyrightable.WEB,weblink Rob, Landley, landley.net, 2015-12-02, 2009-05-23, So if open source used to be the norm back in the 1960's and 70's, how did this _change_? Where did proprietary software come from, and when, and how? How did Richard Stallman's little utopia at the MIT AI lab crumble and force him out into the wilderness to try to rebuild it? Two things changed in the early 80's: the exponentially growing installed base of microcomputer hardware reached critical mass around 1980, and a legal decision altered copyright law to cover binaries in 1983. Increasing volume: The microprocessor creates millions of identical computers, May 23, 2009, live,weblink" title="web.archive.org/web/20151208135356weblink">weblink Dec 8, 2015, Additionally, the growing availability of millions of computers based on the same microprocessor architecture created for the first time an unfragmented and big enough market for binary distributed software.

Licenses

{{Excerpt|Software license#Proprietary software licenses}}

Mixed-source software

Software distributions considered as proprietary may in fact incorporate a "mixed source" model including both free and non-free software in the same distribution.JOURNAL

Multi-licensing

Some free software packages are also simultaneously available under proprietary terms. Examples include MySQL, Sendmail and ssh. The original copyright holders for a work of free software, even copyleft free software, can use dual-licensing to allow themselves or others to redistribute proprietary versions. Non-copyleft free software (i.e. software distributed under a permissive free software license or released to the public domain) allows anyone to make proprietary redistributions.BOOK

Legal basis

{{Further|Software law|Software copyright|Software patent|End-user license agreement}}Most of the software is covered by copyright which, along with contract law, patents, and trade secrets, provides legal basis for its owner to establish exclusive rights.JOURNAL, Liberman, Michael, Overreaching Provisions in Software License Agreements, Richmond Journal of Law and Technology, 1, 1995, 4,weblink November 29, 2011, A software vendor delineates the specific terms of use in an end-user license agreement (EULA). The user may agree to this contract in writing, interactively on screen (clickwrap), or by opening the box containing the software (shrink wrap licensing). License agreements are usually not negotiable.Limitations and Exceptions to Copyright and Neighbouring Rights in the Digital Environment: An International Library Perspective (2004). IFLA (2013-01-22). Retrieved on 2013-06-16. Software patents grant exclusive rights to algorithms, software features, or other patentable subject matter, with coverage varying by jurisdiction. Vendors sometimes grant patent rights to the user in the license agreement.WEB

Limitations

Since license agreements do not override applicable copyright law or contract law, provisions in conflict with applicable law are not enforceable.NEWS,weblink Bloomberg, Aoife, White, Oracle Can't Stop Software License Resales, EU Court Says, 2012-07-03, Some software is specifically licensed and not sold, in order to avoid limitations of copyright such as the first-sale doctrine.WEB

Exclusive rights

The owner of proprietary software exercises certain exclusive rights over the software. The owner can restrict the use, inspection of source code, modification of source code, and redistribution.

Use of the software

{{Further|Copy protection|Crippleware|Price discrimination}}Vendors typically limit the number of computers on which software can be used, and prohibit the user from installing the software on extra computers.{{Citation needed|date=March 2012}} Restricted use is sometimes enforced through a technical measure, such as product activation, a product key or serial number, a hardware key, or copy protection.Vendors may also distribute versions that remove particular features, or versions which allow only certain fields of endeavor, such as non-commercial, educational, or non-profit use.Use restrictions vary by license:

• Windows Vista Starter is restricted to running a maximum of three concurrent applications.
• The retail edition of Microsoft Office Home and Student 2007 is limited to non-commercial use on up to three devices in one household.
• Windows XP can be installed on one computer, and limits the number of network file sharing connections to 10.WEB

• Traditionally, Adobe licenses are limited to one user, but allow the user to install a second copy on a home computer or laptop.{{citation

• iWork '09, Apple's productivity suite, is available in a five-user family pack, for use on up to five computers in a household.WEB, Parker, Jason, Apple iWork '09 review: Apple iWork '09,weblink CNET, May 2, 2022, January 27, 2009,

Inspection and modification of source code

{{see also|Open-source software|Crippleware}}Vendors typically distribute proprietary software in compiled form, usually the machine language understood by the computer's central processing unit. They typically retain the source code, or human-readable version of the software, often written in a higher level programming language.JOURNAL While most proprietary software is distributed without the source code, some vendors distribute the source code or otherwise make it available to customers. For example, users who have purchased a license for the Internet forum software vBulletin can modify the source for their own site but cannot redistribute it. This is true for many web applications, which must be in source code form when being run by a web server. The source code is covered by a non-disclosure agreement or a license that allows, for example, study and modification, but not redistribution.WEB Some governments fear that proprietary software may include defects or malicious features which would compromise sensitive information. In 2003 Microsoft established a Government Security Program (GSP) to allow governments to view source code and Microsoft security documentation, of which the Chinese government was an early participant.WEB, Shankland, Stephen, Governments to see Windows code,weblink CNET, January 30, 2003, May 2, 2022, WEB, Gao, Ken, China to view Windows code,weblink February 28, 2003, CNET, May 2, 2022, The program is part of Microsoft's broader Shared Source Initiative which provides source code access for some products. The Reference Source License (Ms-RSL) and Limited Public License (Ms-LPL) are proprietary software licenses where the source code is made available.Governments have also been accused of adding such malware to software themselves. According to documents released by Edward Snowden, the NSA has used covert partnerships with software companies to make commercial encryption software exploitable to eavesdropping, or to insert backdoors.NEWS, US and UK spy agencies defeat privacy and security on the internet, James Ball (journalist), James Ball, Julian Borger and Glenn Greenwald, 2013-09-06, The Guardian,weblink NEWS, How to remain secure against NSA surveillance, Bruce Schneier, 2013-09-06,weblink The Guardian, Software vendors sometimes use obfuscated code to impede users who would reverse engineer the software.CONFERENCE, Feigenbaum, Joan, Joan Feigenbaum, Attacking an Obfuscated Cipher by Injecting Faults, Digital Rights Management: ACM CCS-9 Workshop, DRM 2002, Washington, DC, USA, November 18, 2002, Revised Papers, Second International Workshop on Digital Rights Management, 30 October 2003, Lecture Notes in Computer Science, 2696, Springer Berlin Heidelberg, 978-3-540-44993-5, 17,weblinkweblink en, Internet Archive, 12 January 2024, This is particularly common with certain programming languages.{{Citation needed|date=March 2012}} For example, the bytecode for programs written in Java can be easily decompiled to somewhat usable code,{{citation needed|date=November 2010}} and the source code for programs written in scripting languages such as PHP or JavaScript is available at run time.WEB

Redistribution

{{Further|Shareware}}{{See also|Freely redistributable software}}Proprietary software vendors can prohibit the users from sharing the software with others. Another unique license is required for another party to use the software.In the case of proprietary software with source code available, the vendor may also prohibit customers from distributing their modifications to the source code.Shareware is closed-source software whose owner encourages redistribution at no cost, but which the user sometimes must pay to use after a trial period. The fee usually allows use by a single user or computer. In some cases, software features are restricted during or after the trial period, a practice sometimes called crippleware.

Interoperability with software and hardware

{{further|Interoperability#Software}}

Proprietary file formats and protocols

{{Further|Proprietary format|Proprietary protocol}}Proprietary software often{{Citation needed|date=March 2012}} stores some of its data in file formats that are incompatible with other software, and may also communicate using protocols which are incompatible. Such formats and protocols may be restricted as trade secrets or subject to patents.{{Citation needed|date=March 2012}}

Proprietary APIs

A proprietary application programming interface (API) is a software library interface "specific to one device or, more likely to a number of devices within a particular manufacturer's product range."WEB, Orenstein, David, Application Programming Interface,weblink Computerworld, May 2, 2022, January 10, 2000, The motivation for using a proprietary API can be vendor lock-in or because standard APIs do not support the device's functionality.The European Commission, in its March 24, 2004, decision on Microsoft's business practices,WEB,weblink Commission Decision of 24.03.2004 relating to a proceeding under Article 82 of the EC Treaty (Case COMP/C-3/37.792 Microsoft), March 24, 2004, European Commission, June 17, 2009, dead,weblink" title="web.archive.org/web/20081028213407weblink">weblink October 28, 2008, quotes, in paragraph 463, Microsoft general manager for C++ development Aaron Contorer as stating in a February 21, 1997, internal Microsoft memo drafted for Bill Gates: Early versions of the iPhone SDK were covered by a non-disclosure agreement. The agreement forbade independent developers from discussing the content of the interfaces. Apple discontinued the NDA in October 2008.WEB, Wilson, Ben, Apple Drops NDA for Released iPhone Software, CNET,weblink 2008-10-01, 2022-05-02,weblink" title="web.archive.org/web/20130308181607weblink">weblink 2013-03-08,

Vendor lock-in

{{Further|Vendor lock-in}}Any dependency on the future versions and upgrades for a proprietary software package can create vendor lock-in, entrenching a monopoly position.WEB

Software limited to certain hardware configurations

Proprietary software may also have licensing terms that limit the usage of that software to a specific set of hardware. Apple has such a licensing model for macOS, an operating system which is limited to Apple hardware, both by licensing and various design decisions. This licensing model has been affirmed by the United States Court of Appeals for the Ninth Circuit.WEB

Abandonment by proprietors

Proprietary software which is no longer marketed, supported or sold by its owner is called abandonware, the digital form of orphaned works. If the proprietor of a software package should cease to exist, or decide to cease or limit production or support for a proprietary software package, recipients and users of the package may have no recourse if problems are found with the software. Proprietors can fail to improve and support software because of business problems.WEB,weblink What happens when a proprietary software company dies?, October 24, 2003, Linux, May 2, 2022, Support for older or existing versions of a software package may be ended to force users to upgrade and pay for newer versionsWEB, Livingston, Brian, Microsoft Turns Up The Heat On Windows 2000 Users,weblink CRN, May 2, 2022, December 15, 2006, (planned obsolescence). Sometimes another vendor or a software's community themselves can provide support for the software, or the users can migrate to either competing systems with longer support life cycles or to FOSS-based systems.WEB, Cassia, Fernando, Open Source, the only weapon against 'planned obsolescence', March 28, 2007, The Inquirer, Linux Today,weblinkweblink" title="web.archive.org/web/20110120192512weblink">weblink January 20, 2011, August 2, 2012, Some proprietary software is released by their owner at end-of-life as open-source or source available software, often to prevent the software from becoming unsupported and unavailable abandonware.WEB,weblink Opening the Source of Art, October 1, 2009, John, Bell, that no further patches to the title would be forthcoming. The community was predictably upset. Instead of giving up on the game, users decided that if Activision wasn't going to fix the bugs, they would. They wanted to save the game by getting Activision to open the source so it could be kept alive beyond the point where Activision lost interest. With some help from members of the development team that were active on fan forums, they were eventually able to convince Activision to release Call to Power II's source code in October of 2003., Technology Innovation Management Review, May 2, 2022,weblink" title="web.archive.org/web/20140330084636weblink">weblink March 30, 2014, WEB,weblink Keeping the Myths Alive, Howard, Wen, June 10, 2004, December 22, 2012, Linux Dev Center, fans of the Myth trilogy have taken this idea a step further: they have official access to the source code for the Myth games. Organized under the name MythDevelopers, this all-volunteer group of programmers, artists, and other talented people devote their time to improving and supporting further development of the Myth game series.,weblink" title="web.archive.org/web/20130406161344weblink">weblink April 6, 2013, WEB,weblink Homeworld Source Code Released, October 8, 2003, Andy, Largent, Inside Mac Games, November 24, 2012, With the release of Homeworld 2 for the PC, Relic Entertainment has decided to give back to their impressive fan community by releasing the source code to the original Homeworld.,weblink" title="web.archive.org/web/20131012012745weblink">weblink October 12, 2013, 3D Realms and id Software are famous for the practice of releasing closed source software into the open source.{{Explain|date=January 2018|reason=What does it mean to release into the open-source?}} Some of those kinds are free-of-charge downloads (freeware), some are still commercially sold (e.g. Arx Fatalis).{{Explain|date=January 2018|reason=Not clear where *Some of those kinds* refers to.}} More examples of formerly closed-source software in the List of commercial software with available source code and List of commercial video games with available source code.

Pricing and economics

{{See also|Commercial software}}Proprietary software is not synonymous with commercial software,BOOK Proprietary software that comes for no cost is called freeware.Proponents of commercial proprietary software argue that requiring users to pay for software as a product increases funding or time available for the research and development of software. For example, Microsoft says that per-copy fees maximize the profitability of software development.WEB,weblink The Commercial Software Model, May 2001, Microsoft,weblink" title="web.archive.org/web/20070305010226weblink">weblink 2007-03-05, Proprietary software generally creates greater commercial activity over free software, especially in regard to market revenues.BOOK,weblink Open Source Versus Commercial Software: Why Proprietary Software is Here to Stay, October 2005, Sams Publishing, 2022-05-02, Proprietary software is often sold with a license that gives the end user right to use the software.

See also

{hide}columns-list|colwidth=30em|

• Business software
• Commercial off-the-shelf
• Comparison of open-source and closed-source software
• Proprietary hardware
• Retail software

{edih}

References

{{Reflist}}

External links

• {{Commons category-inline}}

{{Software distribution}}{{FOSS}}