Proprietary software issoftware that grants its creator, publisher, or other rightsholder or rightsholder partner a legal monopoly by moderncopyright andintellectual 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 andEULA-bound software—from making use of the software on their own, thereby restricting their freedoms.[1]
Proprietary software is asubset ofnon-free software, a term defined in contrast tofree and open-source software; non-commercial licenses such asCC BY-NC are not deemed proprietary, but are non-free. Proprietary software may either beclosed-source software orsource-available software.[1][2]
| Free/Open Licenses | Non-free Licenses | |||||
|---|---|---|---|---|---|---|
| Public domain &equivalents | Permissive license | Copyleft (protective license) | Noncommercial license | Proprietary license | Trade secret | |
| Software | PD,CC0 | BSD,MIT,Apache | GPL,AGPL | JRL,AFPL | proprietary software, no public license | private, internal software |
| Other creative works | PD,CC0 | CC BY | CC BY-SA | CC BY-NC | Copyright, no public license | unpublished |
Until the late 1960s, computers—especially large and expensivemainframe computers, machines in specially air-conditioned computer rooms—were usuallyleased to customers rather thansold.[3][4] Service and all software available were usually supplied by manufacturers without separate charge until 1969. Computer vendors usually provided the source code for installed software to customers.[citation needed] Customers who developed software often made it available to the public without charge.[5] 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 hadantitrust lawsuits pending against it, led an industry change bystarting to charge separately for mainframe software[6][7] and services, by unbundling hardware and software.[8]
Bill Gates' "Open Letter to Hobbyists" in 1976 decried computer hobbyists' rampantcopyright infringement of software, particularly Microsoft'sAltair BASIC interpreter, and asserted that their unauthorized use hindered his ability to produce quality software. But the legal status ofsoftware copyright, especially forobject code, was not clear until the 1983 appeals court ruling inApple Computer, Inc. v. Franklin Computer Corp.[9][10][11]
According toBrewster Kahle the legal characteristic of software changed also due to the U.S.Copyright Act of 1976.[12]
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,[13][14] even to licensees.
In 1983, binary software became copyrightable in theUnited States as well by theApple vs. Franklin law decision,[15] before which only source code was copyrightable.[16] 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.[16]
.jpg)
The tendency to license proprietary software, rather than sell it, dates from the time period before the existence, then the scope of software copyright protection wasclear. These licenses have continued in use after software copyright was recognized in the courts, and are considered to grant the company extra protection compared to copyright law.[17] According toUnited States federal law, a company can restrict the parties to which it sells but it cannot prevent a buyer from reselling the product. Software licensing agreements usually prohibit resale, enabling the company to maximize revenue.[18]
Traditionally, software was distributed in the form of binaryobject code that could not be understood or modified by the user,[19] but could be downloaded and run. The user bought a perpetual license to use a particular version of the software.[20]Software as service (SaaS) vendors—who have the majoritymarket share inapplication software as of 2023[update][21]—rarely offer perpetual licenses.[22] SaaS licenses are usually temporary and charged on a pay-per-usage or subscription basis,[23] although other revenue models such asfreemium are also used.[24] For customers, the advantages of temporary licenses include reduced upfront cost, increased flexibility, and lower overall cost compared to a perpetual license.[20] In some cases, the steep one-time cost demanded by sellers of traditional software were out of the reach ofsmaller businesses, but pay-per-use SaaS models makes the software affordable.[25]Software distributions considered as proprietary may in fact incorporate a "mixed source" model including both free and non-free software in the same distribution.[26] Most if not all so-called proprietaryUNIX distributions are mixed source software, bundling open-source components likeBIND,Sendmail,X Window System,DHCP, and others along with a purely proprietarykernel and system utilities.[27][28]
Some free software packages are also simultaneously available under proprietary terms. Examples includeMySQL,Sendmail and ssh. The original copyright holders for a work of free software, even copyleft free software, can usedual-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.[29][30] Free software that depends on proprietary software is considered "trapped" by the Free Software Foundation. This includes software written only for Microsoft Windows,[31] or software that could only run onJava, before it became free software.[32]
Most of the software is covered bycopyright which, along withcontract law,patents, andtrade secrets, provides legal basis for its owner to establish exclusive rights.[33]
A software vendor delineates the specific terms of use in anend-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 usuallynot negotiable.[34]Software patents grant exclusive rights to algorithms, software features, or otherpatentable subject matter, with coverage varying by jurisdiction. Vendors sometimes grant patent rights to the user in the license agreement.[35] Thesource code for a piece of proprietary software is routinely handled as atrade secret.[36] Software can be made available with fewer restrictions on licensing or source-code access; software that satisfies certain conditions of freedom and openness is known as "free" or "open-source."[37]
Since license agreements do not override applicablecopyright law orcontract law, provisions in conflict with applicable law are not enforceable.[38] Some software is specifically licensed and not sold, in order to avoid limitations of copyright such as thefirst-sale doctrine.[39]
The owner of proprietary software exercises certainexclusive rights over the software. The owner can restrict the use, inspection of source code, modification of source code, and redistribution.
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] Restricted use is sometimes enforced through a technical measure, such asproduct activation, aproduct key or serial number, ahardware key, orcopy 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:
Vendors typically distribute proprietary software incompiled form, usually themachine language understood by the computer'scentral processing unit. They typically retain thesource code, or human-readable version of the software, often written in ahigher level programming language.[43] This scheme is often referred to as closed source.[44]
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 softwarevBulletin 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 anon-disclosure agreement or a license that allows, for example, study and modification, but not redistribution.[45] The text-based email clientPine and certain implementations ofSecure Shell are distributed with proprietary licenses that make the source code available.[citation needed]Some licenses for proprietary software allow distributing changes to the source code, but only to others licensed for the product, and some[46] of those modifications are eventually picked up by the vendor.
Some governments fear that proprietary software may includedefects ormalicious 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 theChinese government was an early participant.[47][48] The program is part of Microsoft's broaderShared 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 ismade available.
Governments have also been accused of adding such malware to software themselves. According to documents released byEdward Snowden, theNSA has used covert partnerships with software companies to make commercial encryption software exploitable to eavesdropping, or to insertbackdoors.[49][50]
Software vendors sometimes useobfuscated code to impede users who wouldreverse engineer the software.[51] This is particularly common with certainprogramming languages.[citation needed] For example, thebytecode for programs written inJava can be easilydecompiled to somewhat usable code,[citation needed] and the source code for programs written inscripting languages such asPHP orJavaScript is available atrun time.[52]
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 calledcrippleware.
Proprietary software often[citation needed] stores some of its data in file formats that areincompatible with other software, and may also communicate usingprotocols which are incompatible. Such formats and protocols may be restricted astrade secrets or subject topatents.[citation needed]
A proprietaryapplication programming interface (API) is asoftware library interface "specific to one device or, more likely to a number of devices within a particular manufacturer's product range."[53] The motivation for using a proprietary API can bevendor lock-in or because standard APIs do not support the device's functionality.[53]
TheEuropean Commission, in its March 24, 2004, decision on Microsoft's business practices,[54] quotes, in paragraph 463, Microsoft general manager forC++ development Aaron Contorer as stating in a February 21, 1997, internal Microsoft memo drafted forBill Gates:
Early versions of theiPhone SDK were covered by anon-disclosure agreement. The agreement forbade independent developers from discussing the content of the interfaces. Apple discontinued the NDA in October 2008.[55]
Any dependency on the future versions and upgrades for a proprietary software package can createvendor lock-in, entrenching a monopoly position.[56]
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 formacOS, an operating system which is limited to Apple hardware, both by licensing and various design decisions. This licensing model has been affirmed by theUnited States Court of Appeals for the Ninth Circuit.[57]
Proprietary software which is no longer marketed, supported or sold by its owner is calledabandonware, the digital form oforphaned 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.[58] Support for older or existing versions of a software package may be ended to force users to upgrade and pay for newer versions[59](planned obsolescence). Sometimes another vendor or a software's community themselves canprovide support for the software, or the users can migrate to either competing systems with longer support life cycles or toFOSS-based systems.[60]
Some proprietary software is released by their owner atend-of-life as open-source orsource available software, often to prevent the software from becoming unsupported and unavailableabandonware.[61][62][63]3D Realms andid Software are famous for the practice of releasing closed source software into theopen source.[further explanation needed] Some of those kinds are free-of-charge downloads (freeware), some are still commercially sold (e.g.Arx Fatalis).[further explanation needed] More examples of formerly closed-source software in theList of commercial software with available source code andList of commercial video games with available source code.
Proprietary software is not synonymous withcommercial software,[64][65] although the two terms are sometimes used synonymously in articles about free software.[66][67] Proprietary software can be distributed at no cost or for a fee, andfree software can be distributed at no cost or for a fee.[68] The difference is that whether proprietary software can be distributed, and what the fee would be, is at the proprietor's discretion. With free software, anyone who has a copy can decide whether, and how much, to charge for a copy or related services.[69]
Proprietary software that comes for no cost is calledfreeware.
Proponents of commercial proprietary software argue that requiring users to pay for software as a product increases funding or time available for theresearch and development of software. For example,Microsoft says that per-copy fees maximize the profitability of software development.[70]
Proprietary software generally creates greater commercial activity over free software, especially in regard to market revenues.[71] Proprietary software is often sold with a license that gives the end user right to use the software.
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.
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.
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.
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
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
In connection with the software, an issued patent may prevent others from utilizing a certain algorithm (such as the GIF image compression algorithm) without permission, or may prevent others from creating software programs that perform a function in a certain way. In connection with computer software, copyright law can be used to prevent the total duplication of a software program, as well as the copying of a portion of software code.
Essentially there are only three ways to protect computer software under the law: patent it, register a copyright for it, or keep it as a trade secret.
Under US copyright law, which is the law under which most free software programs have historically been first published, [...] only the copyright holder or someone having assignment of the copyright can enforce the license.
You may install, use, access, display and run one copy of the Software on a single computer, such as a workstation, terminal or another device ("Workstation Computer"). The Software may not be used by more than two (2) processors at any one time on any single Workstation Computer. ... You may permit a maximum of ten (10) computers or other electronic devices (each a 'Device') to connect to the Workstation Computer to utilize one or more of the following services of the Software: File Services, Print Services, Internet Information Services, Internet Connection Sharing and telephony services.
Under the proprietary software model, most software developers withhold their source code from users.
While the Web promotes the sharing of such code, there are times when you or a client may not want to share their JavaScript code. This may be due to the sensitive nature of data within the code, proprietary calculations, or any other scenario.
Vendor lock-in, or just lock-in, is the situation in which customers are dependent on a single manufacturer or supplier for some product [...] This dependency is typically a result of standards that are controlled by the vendor [...] It can grant the vendor some extent of monopoly power [...] The best way for an organization to avoid becoming a victim of vendor lock-in is to use products that conform to free, industry-wide standards. Free standards are those that can be used by anyone and are not controlled by a single company. In the case of computers, this can usually be accomplished by using free software rather than proprietary software (i.e., commercial software).
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.
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.
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.
It is important to distinguish commercial software from proprietary software. Proprietary software is non-free software, while commercial software is software sold for money.
If you program for Linux, you do need to understand licensing, no matter if you are writing free software or commercial software.
Proprietary software should be distinguished from commercial software. It is possible for the software to be commercial [...] without being proprietary. The reverse is also possible, for example in binary-only freeware.
Media related toProprietary software at Wikimedia Commons| General | |||
|---|---|---|---|
| Software packages | |||
| Community | |||
| Organisations | |||
| Licenses |
| ||
| Challenges | |||
| Related topics | |||
