As a former associate general counsel for a public company and a current angel investor in startups, I see the importance of proprietary technology in a company’s life. Proprietary technology is a great way for businesses to stand out from their competition and help them gain an advantage over other companies. Proprietary technology comes in many different forms; it can be something as simple as your company’s website flow to help servicing customers or something more complex like a new product or service offering to customers.
Proprietary technology is technology that gives a business a competitive edge unique to that business
Proprietary technology refers to any technology or innovation that is owned by a company or individual and is protected by legal means, such as patents, trademarks, or copyrights. It is technology that gives a company a competitive advantage over its competitors and sets it apart in the market. Proprietary technology can include a wide range of innovations, such as new products, processes, software, designs, and materials.
Examples of proprietary technology can include:
- A manufacturing process that allows a company to produce a product more efficiently or at a lower cost than its competitors.
- A unique design for a product that sets it apart from others in the market.
- A software application that provides a unique benefit or solves a specific problem.
- A new material that is stronger, lighter, or more durable than existing materials.
Proprietary technology can be a key factor in a company’s success as it can help to differentiate its products and services, increase its profitability, and establish it as a leader in its industry. Companies often invest in research and development to create proprietary technology, and will use legal means to protect it from being copied or used by others without permission.
Proprietary technology gives a business a competitive edge because it’s unique to that business. In other words, it’s what makes your company distinct from the competition. Proprietary technologies are proprietary because you’ve developed them on your own, and no one else has access to or knowledge of them.
You can think of proprietary technology as being equivalent to the secret sauces in the fast food world: McDonald’s Big Mac sauce, Heinz ketchup, and Coca-Cola syrup are all proprietary recipes that give those companies an advantage over their peers when it comes to producing those products faster and with better quality control.
proprietary technology Defines the Company’s Unique Selling Proposition (USP)
Proprietary technology is something that’s been created exclusively for an organization. The term proprietary technology can mean several things, but it usually refers to a product or service that’s unique to one company.
This can include anything from new products, processes, software, designs, and materials that are created in-house by the organization’s employees or developed by external partners or vendors under an exclusive agreement. The organization owns the rights to the technology and can use it to gain a competitive advantage in the market.
Proprietary technology can also include technology that has been acquired by the organization through purchase, merger, or licensing agreement. For example, a company may acquire the rights to a new technology through a merger or purchase of another company, or it may license technology from another company under an exclusive agreement.
In any case, proprietary technology is considered a valuable asset for the organization as it can help to differentiate its products and services, increase its profitability, and establish it as a leader in its industry. Companies often use legal means to protect proprietary technology from being copied or used by others without permission, such as patents, trademarks, or copyrights.
For example: A company has created a new way of harnessing solar energy and plans to sell it as a product. That would be proprietary technology—something not available anywhere else on the market yet.
Proprietary products may also be referred to as “private label” goods or services because they are often sold under the name of another brand (such as Walmart selling its own line of generic kitchen supplies). A similar phrase used in business is “white label,” which describes private labeling done by another company on behalf of another brand owner who doesn’t want customers knowing about their involvement with this particular offering—which could hurt their reputation if word got out about how much cheaper those items were being sold for than other comparable products at other retailers nearby!
proprietary technology doesn’t have to be something new and revolutionary
To understand what proprietary technology is, it’s important to note that it doesn’t have to be something new and revolutionary. Proprietary technology just has to be something that can give the company an advantage over its competitors.
Proprietary technology can be a tool, system or application that is unique to an organization. This means that while other businesses may use similar products or services, no one else possesses the same specific brand of these things as your company does; they’re proprietary (i.e., belonging only) in nature because they’re not commonly available outside of your business’ reach.
Proprietary technology doesn’t have to be something new and revolutionary, it just has to be something that can give the company an advantage over its competitors. It can be an improvement or a unique application of an existing technology, or a new way of using existing materials. As long as it is not obvious and not previously disclosed, it can be eligible for patent protection.
Proprietary technology can take many forms, from new manufacturing processes to unique designs, and can be used to create a competitive advantage in a variety of industries. For example, a company that develops a new way to manufacture a product more efficiently or at a lower cost than its competitors can gain a significant advantage. Similarly, a company that develops a unique design for a product that sets it apart from others in the market can gain an advantage through proprietary technology.
In many cases, proprietary technology is an important factor in a company’s success, as it can help it to differentiate its products, improve its manufacturing processes, and increase its profitability. In order to protect proprietary technology, companies will often seek patents, trademarks, and copyrights which will give them legal protection and exclusivity over their technology.
Proprietary technologies are often created by inventors who want their ideas protected from being copied by others—it’s no accident that many patents have “proprietary” printed on them!
successful companies tend to Have more proprietary Advantages
It is true that successful companies tend to have more proprietary technology. Proprietary technology can give companies a competitive advantage by providing unique features, benefits, or processes that set their products or services apart from those of their competitors. This advantage can lead to increased sales and profitability, and can help companies to establish themselves as leaders in their industry.
Furthermore, companies with proprietary technology can use it as a barrier to entry for potential competitors, making it more difficult for new companies to enter the market and compete. Additionally, proprietary technology can also be licensed to generate additional revenue streams.
Companies that invest in research and development to create proprietary technology often have a long-term vision and are focused on innovation and growth. They are more likely to be successful in the long run as they are continually improving their products and services and staying ahead of their competitors.
It’s important to note that proprietary technology is not the only factor that determines a company’s success, but it can be an important one. Other factors such as effective marketing, strong leadership, and a well-executed business strategy also play a significant role in a company’s success.
The more successful a company is, the more likely it is to have some kind of proprietary technology. Proprietary technology is a competitive advantage because it gives businesses an edge over their competitors. It’s something that has been created exclusively for an organization, and no one else has access to it.
When you think about what makes a company successful, there are several factors at play: its location in the market; its product or service offerings; its pricing strategies; how well-known it is among consumers in different regions; etc. All of these elements contribute towards making your business thrive or struggle in any given marketplace.
Proprietary technology plays an important role here as well—usually when we talk about “propriety” or “proprietorship” we don’t mean anything illegal (like stealing someone else’s idea), but rather something unique to our own organization (like coming up with something original).
let’s look at an example of proprietary technology in action.
Let’s take a look at an example of proprietary technology in action. Imagine you have a pair of shoes made by the brand Nike. These shoes were fabricated using proprietary technology, meaning that the process involved to make them is exclusive to Nike. The technology gives Nike a competitive advantage over other shoe companies because it allows them to produce more shoes faster, more efficiently, and with higher quality than they could otherwise do without this unique method of manufacturing.
One example of shoe proprietary technology is the Nike Flywire technology. Flywire is a proprietary technology used in the construction of many of Nike’s athletic shoes, including running, basketball, and football shoes. The technology is designed to provide a lightweight and supportive fit for the foot by using thin, strong cables that are woven into the shoe’s upper.
The Flywire cables are integrated into the shoe’s lacing system, and they are tensioned to provide a secure and customized fit around the foot. This technology helps to reduce the weight of the shoe, while still providing support and stability. The Flywire technology was first used in the design of the Nike Zoom Victory Elite running shoe in 2008, and has since been incorporated into many other Nike shoe models.
Another example is the Adidas Boost technology, which is a cushioning system used in many of Adidas’ athletic shoes. It is made from a thermoplastic polyurethane (TPU) material that is compressed to create small energy-returning pellets. These pellets are then used as the sole of the shoe to provide a more responsive and comfortable ride. The technology was first introduced in 2013 and has been used in many Adidas shoes since then.
These examples illustrate how proprietary technology can give a brand an edge in the market, and can make the products more appealing to customers by providing additional benefits such as support, stability, and responsiveness.
How to protect your Proprietary technology and sustain your competitive advantage
Proprietary technology is a key aspect of competitive advantage for businesses. Proprietary technology is created exclusively for an organization and gives it a competitive advantage over other companies in the same field. It can be something new or something old, but the more successful a company is, the more likely it is to have some kind of proprietary technology.
There are several ways to protect proprietary business advantages, including:
- Patent: A patent is a legal monopoly granted by the government that gives an inventor the right to exclude others from making, using, and selling an invention for a certain period of time. Patents can be obtained for a wide range of inventions, including products, processes, and software.
- Trademark: A trademark is a symbol, word, or phrase that is used to identify and distinguish a company’s products or services from those of others. Trademarks can be registered with the government and can be used to protect company logos, slogans, and product names.
- Copyright: A copyright gives the owner the exclusive right to reproduce, distribute, and display an original work of authorship, such as a software program, literature, music, or artwork.
- Trade Secret: A trade secret is any information that is not generally known or reasonably ascertainable by others, that is used in the business, and that gives the company an advantage over its competitors. The company can protect its trade secret by having employees sign non-disclosure agreements and by implementing security measures to keep the information confidential.
- Nondisclosure Agreements (NDA): A Nondisclosure Agreement (NDA) is a legal agreement between two parties where one party agrees to keep the other’s information confidential. NDAs can be used to protect business strategies, financial information, product designs, or other sensitive information.
- Licensing agreements: A licensing agreement is a contract between a company and another party that allows the other party to use the company’s proprietary technology or intellectual property in exchange for some form of compensation.
It’s important to remember that protecting proprietary business advantages requires a multifaceted approach, as different types of advantages may require different types of protection. It’s highly recommended to consult with legal professionals to help you evaluate your options and guide you through the process of protecting your proprietary business advantages.
Conclusion
So, what is proprietary technology? It’s the kind of digital innovation that gives businesses an edge over their competitors. It can be anything from a new app to a new way of organizing your workflow. The important thing is that it gives you an advantage over the competition in some way—whether this means providing better service or keeping prices lower than everybody else’s.