Proprietary products are owned by one company and protected from imitation. They include pharmaceuticals, software, patents, and trademarks. Revenue is the main benefit, as owners control the market and set prices. Patents and trademarks require permission for use, while competition needs time to create similar products.
Proprietary products are specifically licensed and owned solely by one company or person. There are specific rights associated with proprietary ownership that protect the owner from creating imitation products that possess the same features and functions. There are four types of proprietary products: pharmaceuticals, software, patents, and trademarks.
The main benefit of having proprietary products is related to the revenue received from the sale or use of the products. All potential customers are forced to conduct business with the owners. This allows the owners of a proprietary product to control the market and set the price for that product.
While there are specific restrictions on creating imitation products, there is nothing to stop the competition from making a similar product. Most companies realize that the benefit of a proprietary product is one of the tenses. The competition will need time to research, design, test and then create a similar product. During this period, the owners of the proprietary products are the sole suppliers, allowing them to focus on generating the maximum possible sales.
Pharmaceuticals are always proprietary when first released. This is due to the level of testing and approvals from various levels of government that are required before the product can be marketed and sold. In many situations, product development is tightly controlled throughout all stages of research and testing.
The vast majority of commercially sold computer programs are proprietary products. The code is hidden, so programmers and developers can’t analyze how functions are provided and copy the work into their own projects. While key functions can be duplicated, this takes time, effort and skill to complete. During this period, the company that with the proprietary product has an advantage in the market.
Products that have been issued a patent number are protected and may only be used by others with the permission of the patent holder. This permission is usually granted only after payment is received. In many circumstances, patents are issued for parts of a larger device. While the whole device may not be useful for other purposes, a small aspect can have applications in other areas.
The products or registered trademark names are the exclusive property of the trademark holder and may not be used by another company without permission. There are entire companies dedicated to tracking the usage of branded products and demanding payment from various companies and media outlets. Larger organizations make a list of branded products they intend to use and get permission beforehand.
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