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How to create your proprietary system

• July 9, 2012

As an entrepreneur, it’s important to assemble your knowledge into a content system that’s easy to follow – a proprietary system.

Clients frequently ask me how to put together their proprietary system and in what order the information should go. The confusion comes from the difference between working privately with clients versus group coaching or a home study program.

When you are coaching a client privately, you can start anywhere they want depending on the person’s specific needs. So you might start at step six because that is what they need in the moment and then circle back to step one at a later date. And the client won’t be confused by this out-of-order interaction because you are jumping in exactly where they are.

But, with a group or home study program, the experience for the client is very different. The content must be presented in a more orderly fashion. In other words, it should start from the beginning of what you do and go to the end in a chronological and logical manner.

So, for example, when I sat down to write my The Leveraged Business System (my proprietary system) I started by having my students make client attraction a priority, then figuring out what their position was in the marketplace. Once that was done, the logical next step was to determine where to find their ideal clients, and then the next step involved creating their compelling marketing message, followed by their materials, etc.

Most importantly, you want your proprietary system to make sense for marketing purposes.

You want to set it up so that communication about what’s included on your website and in your materials is clear and logical. Step by step. Visitors can see what the first step is and the second step, etc. Putting things in order this way will also work for a boot camp or other multi-session series.

Another way to think of organizing the information is as if you were writing a book. In fact, many of my clients turn their proprietary system into a book over time, as they gain more experience and client success stories.

Once you can put your system into chronological order, writing it and pulling all the pieces together will be so much simpler. And you’ll rest easy knowing people who use the system will benefit from the logical arrangement of the material.

Your The Leveraged Business Assignment

Have you created your proprietary system yet? If you haven’t done so, this is the perfect time to get started. Think about the program you want to offer and first map it out step by step. That will help you know what to write and include, and how it should be presented.

If you have already started or even completed your unique selling propositions , you may want to look them over to check they are in chronological order. Take a look at your marketing materials as well to make sure your communication of the system makes sense logically.

Now, if you’re just starting out and trying to fill your practice in the FIRST place, then follow a step-by-step system that feels easy and authentic to you. The Leveraged Business Program™ gives you the most important things to do to set up simple, solid systems, so that you consistently fill your pipeline and continually get new clients.  It’s all step-by-step, not a big mishmash of things . So, you do step one of the system, and when you’re done with that, you move on to step two, and so on. All the tools, scripts, templates, and examples are handed to you on a silver platter.  Easy . You can get it at  The Leveraged Business .

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The Impact of Proprietary Systems on Company Value: A Strategic Analysis

In the digital age, businesses are constantly seeking innovative solutions to gain a competitive edge in the market. Proprietary systems, which encompass software, technologies, and processes developed exclusively in-house, have emerged as a popular strategy for achieving differentiation and maintaining control over critical assets.

Proprietary systems offer numerous immediate benefits.

• Competitive Differentiation : Proprietary systems set companies apart from their competitors by offering unique features, functionalities, and solutions that are not readily available in the market. This can strengthen the company’s market share and its ability to command premium pricing.
• Enhanced Innovation : Developing proprietary systems encourages a culture of innovation within the company. Teams collaborate to create solutions that cater to specific needs, which can lead to the discovery of new technologies, methods, and processes.
• Intellectual Property and Barrier to Entry : Proprietary systems are often protected by intellectual property rights such as patents, copyrights, and trade secrets . These legal safeguards create substantial barriers to entry for competitors, as they are unable to replicate the exact functionalities without facing legal consequences. This protection bolsters the company’s market position and reduces the risk of commoditization.
• Control over Technology and Data : Developing proprietary systems allows a company to maintain control over its technology stack and data. This control minimizes reliance on external vendors and safeguards sensitive information from potential security breaches.
• Customization and Scalability : Off-the-shelf solutions may lack the flexibility to adapt to unique business requirements. Proprietary systems, on the other hand, can be customized to precisely fit the company’s workflows. Furthermore, as the company grows, these systems can be scaled to accommodate increased demand without incurring significant overhead.
• Long-Term Cost Savings : While developing proprietary systems requires initial investment, it often leads to long-term cost savings. Businesses can avoid recurring licensing fees associated with third-party software and instead allocate resources to ongoing development and enhancement. Over time, these savings can be substantial and contribute positively to the company’s bottom line.
• Data Monetization Opportunities : Proprietary systems generate a wealth of data that can be leveraged for strategic insights and potentially monetized. By analyzing user behavior, preferences, and trends, companies can make informed decisions, improve customer experiences, and even create additional revenue streams by selling anonymized data to interested parties.
• Agility and Rapid Iteration : Having in-house development capabilities allows companies to be agile and responsive to changing market dynamics. They can quickly iterate on their proprietary systems, releasing updates and new features in a timely manner. This agility enables businesses to seize emerging opportunities and address customer needs promptly.
• Attracting Top Talent : The reputation of developing cutting-edge proprietary systems can attract top-tier talent. Skilled professionals are often drawn to organizations that encourage innovation. This influx of talent can further enhance the company’s capabilities and value proposition.
• Leveraging for Strategic Partnerships : Well-developed proprietary systems can serve as valuable assets in forming strategic partnerships, collaborations, or joint ventures. Other businesses might seek access to the technology stack for integration or co-development, presenting opportunities for mutually beneficial alliances.

Short-Term Gains vs. Long-Term Considerations

While proprietary systems can bolster a company’s competitive position, the long-term implications must not be overlooked. One potential downside lies in the heavy investment required for ongoing development and maintenance. As technology evolves, companies must continually allocate resources to keep their systems up to date, diverting funds from other critical business activities. Moreover, proprietary systems can lead to isolation from industry standards and best practices, making it challenging to adapt to changing market dynamics.

Another significant concern is the potential for employee knowledge concentration. When key technical knowledge resides with a select few employees, the risk of disruption due to turnover or unforeseen events increases. This can hamper the company’s ability to innovate, respond to challenges, and maintain system reliability. The lack of external perspectives that comes with proprietary systems may also hinder the identification of opportunities for improvement.

Considering these challenges, partnering with a capital raise and M&A firm can provide a strategic pathway to mitigate the negative effects. NOW Capital Partners can offer valuable insights, diversification, risk mitigation, and growth opportunities. Ultimately, a balanced strategy that combines the benefits of proprietary systems with the expertise NOW Capital Partners consultants is more likely to result in sustained company value and success in the ever-evolving business landscape.

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Proprietary Technology: Overview, Types, Example

What Is Proprietary Technology?

Proprietary technology is any combination of processes, tools, or systems of interrelated connections that are the property of a business or individual. These combinations provide a benefit or competitive advantage to the owners of proprietary technologies.

Companies capable of developing useful proprietary technologies in-house are rewarded with a valuable asset and can either use it exclusively or profit from the sale of licensing their technology to other parties.

Access to valuable proprietary technologies can also be purchased. This option, however, is often costlier and comes with greater restrictions on the use of underlying technologies.

Understanding Proprietary Technology

Proprietary technology involves an application, tool, or system that belongs exclusively to an enterprise. These are generally developed and used by the owner internally in order to produce and sell products or services to the end user or customer. In other cases, they may be provided to an end-user or customer for a cost.

In some industries, proprietary technologies are a key determinant of success. As a result, they are confidential. Being carefully guarded within a corporation, they are protected legally by patents and copyrights . For many businesses, particularly in knowledge-based industries, intellectual property can make up a majority of assets on an entity’s balance sheet. For these businesses, investors and interested parties go to great lengths to assess and value proprietary technologies and their contribution to business results.

One of the first steps a business can take to protect its proprietary technology is to understand how valuable an asset it is.

Because research and development (R&D) expenses are something of a silent key to success, many businesses do not freely give away hints to what they’re working on behind the scenes. Analysts and investors try to uncover undisclosed breakthroughs in corporate proprietary technologies so they can take advantage of proprietary investment accounts as well.

Types of Proprietary Technology

Proprietary technology takes many forms and depends on the nature of the business that owns it. It can be both a physical and an intangible asset developed and used by the organization.

For example, a company may own its own data system. For example, financial institutions develop their own internal systems to collect and process data that is used internally. These systems can be found in a bank branch, where employees input information when customers come in to do routine banking at the teller line.

Companies may also develop their own software. Proprietary software is the opposite of free software, which has no limitations on who uses it. Its ownership is restricted to the publisher or distributor. Certain conditions must be met before the owner allows an end-user access to the software. For example, a tax preparation company may charge customers a fee to use their software to complete their tax returns.

Key Takeaways

• Proprietary technology is a series of processes, tools, or systems owned by business or individual, which provide the owner with a benefit or competitive advantage.
• Since proprietary technology is very valuable, it is carefully guarded.
• Owners can protect their interests with patents and copyrights by limiting information access to employees, and with non-disclosure agreements.
• Proprietary technology may be tangible or intangible assets and may include internal systems and software.

Examples of Proprietary Technology

While the advantages of some proprietary technologies are clear, others are not so evident. And it's only through recombination with other technologies where the true value is uncovered—an effort now simply known as innovation.

The story of Xerox and Apple’s Steve Jobs is a classic example. Not knowing what they had on their hands in the late 1970s, Xerox essentially gave away the idea behind a computer mouse to Jobs who went on to use the technology in Apple’s early computer designs.

Proprietary technology is also a big part of the biotech industry. Let's say a company in this industry successfully develops a new drug to treat a major disease. By patenting the process, method, and the end result of the drug, the company can reap substantial rewards from its efforts to develop its proprietary technology.

Protecting Proprietary Technology

Companies go to great lengths to keep their proprietary technology protected. After all, organizations spend a lot of time, effort, and money on developing the know-how for their products and services. Not taking the time to protect their interests could spell disaster for their operations.

Because it's so valuable, proprietary technology is always at risk. As mentioned above, companies can protect themselves by taking out patents and copyrights on their proprietary technology. These give the owner rights to the intellectual property and prevent others from copying the innovations.

Employees may leak or share it with others including the competition—accidentally or intentionally—or a data breach may occur, exposing trade secrets to hackers. So how do companies safeguard themselves from these unforeseeable actions?

Many corporations control and/or limit employee access to data. Employees may also be required to sign non-disclosure agreements (NDAs), a contract that gives the employer legal recourse if internal, confidential information is shared with outside parties. Companies may also need to continuously update their security systems to ensure there is no data breach, exposing their secrets to third parties.

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Proprietary Software: What It Is, Examples, & Licenses

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The world of software has evolved significantly in the last few decades. Tech companies and IT departments now have a wide range of options regarding the software they use. Proprietary software is one such option and an important one for companies to understand. This is because proprietary software restricts how users can use it and who owns the rights to the software. Therefore, to avoid legal issues, companies must understand the basics of proprietary software and know when, why, and how to use it.

History of Proprietary Software

Before we get into what proprietary software is, it's worth noting the history of this type of software. When computers were bulky and expensive, companies and individuals who needed them could only afford to lease them. These computers came with already installed software that was free to use.

In 1969, however, IBM started charging for its software. Nevertheless, it wasn't until 1983 in the court ruling of Apple Computer, Inc. v. Franklin Computer Corp that software became considered intellectual property and subject to copyright laws. This ruling changed how companies viewed software and laid the foundations for proprietary software.

What Is Proprietary Software?

Proprietary software, also called closed source, is a type of software owned by a single entity and licensed to other parties who wish to use it. This means this type of software doesn't allow users to access the source code. It typically restricts how users can use and modify it, differentiating it from open source software.

Once you purchase proprietary software, you receive a license to use it. This license limits how you can use it and restricts its further distribution. For instance, the owner may not allow you to make copies of the program or modify it in any way. This means the source code remains closed, and users can only access the compiled version of it.

In addition, proprietary software typically has a copy protection system that makes it hard to copy and distribute without permission. Proprietary software is usually licensed per user or on a subscription basis, which provides software owners with a steady and reliable source of income.

Proprietary software companies typically hold all rights and ownership over the software. The owner can, therefore, take legal action against anyone who violates the terms of their license. Companies and users are, therefore, advised to read and adhere to the license requirements of any proprietary software they purchase.

Examples of Proprietary Software

Various industries use proprietary software for different applications. This section will look at some of the most popular proprietary software categorized by use.

Proprietary Antivirus Software

With the rise of online threats, antivirus software has become a necessity for computers and other devices. Proprietary antivirus software is primarily designed to protect users from viruses, malware, and other cyber threats. Examples of proprietary antivirus software include:

• Norton Antivirus
• McAfee Antivirus
• G DATA Software
• Kaspersky Anti-Virus

Proprietary Operating Systems

These underlying software structures enable computers and other devices to function. Proprietary operating systems have been around for a long time, with most of them created by major computer manufacturers like Microsoft and Apple. Examples of proprietary database software include:

• Windows 10, 11

Proprietary Database Software

Database software is used to store, organize, and analyze data. Proprietary database software allows users to manipulate data and build reports without having access to the source code. Examples of proprietary database software include:

• Oracle Database
• SQL Anywhere
• SQL Server Express

Proprietary vs. Open Source Software

As mentioned earlier, proprietary software is different from open source software. Proprietary software is not open to the public, and users cannot access or modify the source code. Open source software, however, is publicly distributed and allows users to view, modify, and share its source code.

Open source software is usually free to use, while proprietary software typically has a license fee. Proprietary software companies can also charge for upgrades and support, while open source software companies may not. Proprietary software is often more user-friendly since it's designed for a specific purpose. Alternatively, open source software is customizable.

In some instances, open source software can become proprietary, known as a proprietary fork, which are versions of open source software that developers modify and copyright as their own.

Proprietary Software vs. Other Types of Software

Other than proprietary and open source software, there are other types of software. These include:

Freeware is software that users can download and use without restrictions or fees. Independent developers create freeware and typically don't provide support or take responsibility for any issues related to it. Users can share and modify freeware as long as they make the changes available to the public.

This type of software is initially free to use. However, users may need to pay a fee or register at some point if they want to continue using it or access additional features. Shareware is usually offered in trial versions, and users can decide whether or not to purchase the full version. Some popular examples of shareware include Adobe Photoshop, WinRAR and Skype.

Abandonware

As the name suggests, this is software that has been abandoned by its developer. It's the perfect solution for users who want to use software without paying a fee since it is no longer supported by its developer. However, due to the inherent security risks, users should steer clear of abandonware as it could contain unpatched vulnerabilities that can put your personal information and data at risk.

Advantages of Proprietary Software

Proprietary software has various advantages for its users. These include:

Many proprietary software companies invest heavily in quality assurance and testing. This ensures the software is bug free and provides users with reliable solutions for their needs. Proprietary software companies also provide free patches to fix any bugs that may arise. This makes this type of software more stable and reliable than its open source counterpart.

Easy to Use

Proprietary software companies design their software with the user in mind. These companies invest heavily in user interface design and ensure their software is easy to use, even for those with no technical background.

High Performance

Proprietary software companies typically invest heavily in research and development to ensure that their software offers high performance. Proprietary software is, therefore, often faster and more reliable than open source alternatives.

Better Support

Proprietary software companies often support users via helpdesks and online resources. This additional layer of security ensures that users can quickly and easily get help if they need it.

Clear Roadmap for Development

Unlike open source software, proprietary software companies usually provide users with a clear roadmap for development. Proprietary software companies typically have a team of developers working on the software, which helps them craft software upgrades. This ensures that users know the features to expect and can plan accordingly.

Disadvantages of Proprietary Software

Proprietary software also has some drawbacks, including:

Proprietary software companies often charge an initial (and sometimes) ongoing subscription fee for their software. This can be expensive for companies and result in a large upfront cost. Moreover, using proprietary software requires companies to hire proprietary developers to maintain and develop their software. Hiring and training these developers can be expensive and time-consuming.

Fewer Options

Proprietary software companies typically offer limited options and features. This means users may not find the exact solutions they need, and have to settle for something close enough. Proprietary software companies cannot always add custom features or modify the software to fit their specific needs.

Limited Freedom of Use

Proprietary software is often heavily restricted in terms of how users can use it and what changes users can make. Proprietary software companies often require users to sign a license agreement, which specifies how they can use their software. Proprietary software is also typically copy-protected, making it difficult to share or resell.

Restricted Customization

Proprietary software is usually designed for a specific purpose. Therefore, users often cannot customize it to their own needs. Proprietary software companies also don’t usually provide users with the ability to modify or tweak their software.

Lack of Transparency

Proprietary software companies often keep their source code private. This means that users may not be able to review the code to ensure that it’s secure and reliable.

Types of Proprietary Software Licenses

Software licensing is a legal agreement between the company that owns the software and its users. It is a way for companies to protect their intellectual property and ensure that users adhere to the terms of use. When you use proprietary software, you must adhere to its license terms.

A proprietary software license generally includes the following information:

• The proprietary software company’s name and contact details.
• What the user can do with the software.
• Ownership of the software and intellectual property rights.
• Prohibited uses of the software.
• License termination terms.
• Proprietary software company’s rights and responsibilities.
• Proprietary software company’s warranties and liabilities.
• Proprietary software company’s customer service policies.
• Proprietary software company’s refund policy.
• Proprietary software company’s support and maintenance.
• Proprietary software company’s liability for damages caused by the software.

Microsoft is a great example of a proprietary software company. The company offers several licenses for its software, such as the Microsoft End User License Agreement (EULA). This license includes the standard proprietary software license terms, such as prohibitions on reverse engineering and redistribution of the software.

The EULA also specifies the rights and responsibilities of users with respect to the software. It also outlines how users can terminate the license in certain circumstances, such as if they violate the terms of use.

Proprietary software licenses typically fall into two categories:

Perpetual Licenses

A perpetual license is a one-time fee for the right to use proprietary software indefinitely. The user does not need to pay ongoing fees and can use the software if they comply with the license terms. While this type of license may appear as a cost-saving option, you may end up paying more for extras, such as support and upgrades.

Subscription Licenses

A subscription license involves a recurring fee for access to the software. The user pays a fee each month or year to use the software and can cancel their subscription when they choose.

The Future of Proprietary Software

While open source software has become increasingly popular in recent years, proprietary software still plays an important role in businesses and organizations. Proprietary software companies often have the resources to develop more feature-rich and high-performance software compared to open source companies. Proprietary software companies can also provide better support and customer service than open source companies.

In the future, proprietary software will likely remain a key part of business and organizational functioning. As such, proprietary software companies will need to stay competitive by providing high-performance and reliable software. They'll need to offer flexible and cost-effective licensing options and provide better customer service and support. Proprietary software companies will also need to focus on developing innovative solutions to meet the changing needs of customers.

Nevertheless, some industry leaders have predicted that open source software will eventually replace proprietary software. Proprietary software companies must, therefore, stay abreast of the changing technological landscape and adapt accordingly to remain competitive.

Hire Proprietary Software Developers With Revelo

Now that you know what proprietary software is, the advantages and disadvantages of using it, and the types of licenses associated with it, you're ready to make an informed decision about what software to use. Proprietary software may be the right choice for your business, but it's important to understand what you're committing to before incorporating it. By familiarizing yourself with the basics of proprietary software, you can ensure that the solution you choose is the right fit for your needs.

If your business requires proprietary software development, you'll need to hire developers with the expertise and experience necessary to develop this type of software. At Revelo , we connect tech companies in the US with experienced remote software engineers in Latin America. Our proprietary software developers are pre-vetted and have the skills to help you build the solutions your business needs.

Contact us today to learn more about how we can help you find and hire the best proprietary software developers for your project.

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Your Organization Needs a Proprietary Data Strategy

• Thomas H. Davenport
• Thomas C. Redman

Protect your competitive advantage.

Companies need to be more focused on proprietary data — data that is unique to a company and can be used to create a sustainable competitive advantage. The need for proprietary data strategies is increasing with new data types and the growth of artificial intelligence (AI). Most commercial AI involves machine learning, and if your company has the same data as everyone else, it will have the same models informing these machines, and thus no competitive advantage. A company’s proprietary data strategy should address the full lifecycle of such data — from what might be done with it, to how to get it, to the ethical considerations that might result from it. Beyond simply appreciating the need for such data, a strategy effort can answer key questions about how proprietary data fits into the strategy and business models of an organization.

What’s the most overlooked piece of your company’s data strategy? If you’re like many companies, it’s probably proprietary data — data that is unique to a company and can be used to create a sustainable competitive advantage. This is not to mean trade secrets and intellectual property (which is often proprietary but seldom really data), but rather, data where the company is the only organization that has it, or it has added enough value to make it a unique business asset. Proprietary data can be big or small, structured or unstructured, raw or refined. What’s important is that it is not easily replicated by another entity. That’s what makes it a powerful means of achieving offensive value from data management.

• Thomas H. Davenport is the President’s Distinguished Professor of Information Technology and Management at Babson College, a visiting scholar at the MIT Initiative on the Digital Economy, and a senior adviser to Deloitte’s AI practice. He is a coauthor of All-in on AI: How Smart Companies Win Big with Artificial Intelligence (Harvard Business Review Press, 2023).
• Thomas C. Redman , “the Data Doc,” is President of Data Quality Solutions . He helps companies and people  chart their courses to data-driven futures with special emphasis on quality, analytics, and organizational capabilities. His latest book, People and Data: Uniting to Transform Your Organization (Kogan Page) was published Summer 2023.

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Advantages & Disadvantages of a Proprietary System vs. an Open Platform

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Wondering whether you should use proprietary software like Adobe Photoshop and Microsoft Windows or open-source platforms like GIMP and Linux? Deciding between the two isn't easy. Both proprietary platforms and open platform systems have their strengths and weaknesses. At the end of the day, it all comes down to your needs.

Why Use Proprietary Software?

Microsoft Office, Dropbox, AutoCAD and McAfee VirusScan are all examples of proprietary software . Most business owners and entrepreneurs use these programs on a regular basis. Some are free, while others require a monthly or yearly subscription. But are these tools really better than open source platforms? It depends.

Commercial, proprietary software typically has specific features and capabilities . It appeals to a specific audience and aims to provide a superior user experience. These programs usually include regular upgrades, technical support and a wide range of tools. They also tend to be easier to use and provide greater functionality than open platforms.

These products belong to the individuals or companies that developed them. Their source code is not available to the public. They're constantly updated to detect and remove bugs and vulnerabilities, but these updates often come at a price. Developers are aware of the latest industry standards and incorporate these concepts into their programs.

Are There Any Drawbacks?

With a few exceptions, most proprietary platforms require a license and maintenance fees , so the costs add up. Plus, users depend on developers for support, updates and upgrades. Some features are pretty much useless for the average person who may not have the skills and expertise to fully utilize them. This means you could up paying for things that you don’t really need or use.

Another drawback is that you cannot modify or customize the software . If you need additional features, you must upgrade to a more advanced version – and pay extra. Dropbox, for example, offers 2 GB of space for free. Users who need more storage space are required to upgrade to a Plus or Premium plan. The Plus version lacks many of the features associated with Premium plans, such as shared link controls, device approvals, smart sync and priority chat support.

Additionally, software programs come and go – just like the companies behind them. If the developer goes out of business or decides to stop production for a software package, your day-to-day operations suffer and switching to another program can be difficult and time-consuming.

Open Source Software Advantages

Unlike proprietary software, open-source software promotes creative work and gives users full access to the source code. If you want to customize a specific program, you can simply ask a developer to do it (assuming that you have a license, which is required in most cases). You can check the source code anytime and see exactly how the program was created. These products are typically free to use and distribute .

For every proprietary platform on the market, there’s a free open-source version. Ubuntu , for instance, is a viable alternative to Windows 10. It features an intuitive interface, thousands of apps, office software, photo editing tools and gaming capabilities. OpenOffice is an alternative to Microsoft Office, while Inkscape can easily replace Adobe Illustrator.

Open-source programs are backed by developers and users worldwide, featuring chat boards and support groups. If you have questions or need help, you can simply ask – it costs you nothing. Additionally, open-source communities are constantly updating these programs and removing bugs, leading to enhanced functionality and better security compared to proprietary software.

What Are the Downsides?

In general, this kind of software is not as easy to use as proprietary platforms. Most programs appeal to skilled users who know a thing or two about programming. Plus, they often provide poor support – you may need to post your questions on dozens of forums to get a straight answer and solve the problem.

Another disadvantage of open-source programs is that they often include intrusive ads , which can affect the user experience. Developers team up with advertising companies to raise funds for their projects. You'll most likely need to manually upgrade the program . Updates and upgrades are typically not included.

">The Choice Is Yours

Now that you know the difference between open-source and proprietary platforms, decide which one is best for you. Consider your budget and business needs, as well as your technical skills. An open platform provides greater flexibility, but it can be more difficult to operate and maintain. Proprietary software, on the other hand, is easier to use but limits your options and involves higher costs.

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Andra Picincu is a digital marketing consultant with over 10 years of experience. She works closely with small businesses and large organizations alike to help them grow and increase brand awareness. She holds a BA in Marketing and International Business and a BA in Psychology. Over the past decade, she has turned her passion for marketing and writing into a successful business with an international audience. Current and former clients include The HOTH, Bisnode Sverige, Nutracelle, CLICK - The Coffee Lover's Protein Drink, InstaCuppa, Marketgoo, GoHarvey, Internet Brands, and more. In her daily life, Ms. Picincu provides digital marketing consulting and copywriting services. Her goal is to help businesses understand and reach their target audience in new, creative ways.

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Protecting Your Proprietary Data: A Must for Business Security

Introduction to the importance of proprietary data protection

In today’s digital era, data is the lifeblood of businesses. From customer information to trade secrets, proprietary data forms the foundation upon which companies build their success. But with cyber threats becoming increasingly sophisticated and prevalent, protecting this valuable asset has never been more critical.

Imagine waking up one day only to discover that your company’s most confidential information has fallen into the wrong hands. The thought alone sends shivers down your spine, doesn’t it? Unfortunately, this nightmare scenario is all too real for many businesses that neglect to prioritize the protection of their proprietary data.

From malicious hackers to internal leaks and accidental breaches, there are countless risks and threats lurking in cyberspace waiting to undermine your business security. In this blog post, we will delve into these challenges head-on and provide you with practical steps on how you can safeguard your invaluable proprietary data from falling victim to such perils.

So fasten your seatbelts as we embark on a journey towards fortifying the fortress around your business’s most precious asset – its proprietary data!

Common risks and threats to business data

Common Risks and Threats to Business Data

In today’s digital age, businesses are increasingly reliant on technology for storing and managing their proprietary data. However, this convenience also comes with its fair share of risks and threats. It is crucial for businesses to be aware of these potential dangers in order to protect their valuable information.

One common risk is the threat of cyber attacks. Hackers are constantly devising new ways to breach security systems and gain unauthorized access to sensitive data. Phishing emails, malware, ransomware attacks – the list goes on. These malicious actors can wreak havoc on a business by stealing or deleting important data, causing financial loss and reputational damage.

Another risk is insider threats. Whether intentional or unintentional, employees can pose a significant danger to proprietary data. Careless handling of confidential information or deliberate sabotage by disgruntled employees can lead to devastating consequences for a business.

Physical theft or damage is yet another threat that businesses must contend with. Theft of laptops, mobile devices, or physical servers containing sensitive data can result in severe repercussions if the information falls into the wrong hands.

Additionally, natural disasters such as fires or floods can destroy physical infrastructure where data is stored if proper precautions are not taken.

Furthermore…

It’s worth mentioning that…

There are various legal compliance requirements surrounding data protection…

To mitigate these risks…

By implementing strong passwords policies…

Regularly updating software and operating systems…

Limiting employee access privileges based on their roles…

The impact of data breaches on businesses

Data breaches can have devastating consequences for businesses, both big and small. The impact of a data breach goes far beyond just the loss of sensitive information. It can result in financial losses, damage to reputation, and even legal repercussions.

One of the immediate effects of a data breach is the potential loss of customers. When customers’ personal or financial information is compromised, they may lose trust in the business and choose to take their business elsewhere. This loss of customer loyalty can be difficult to recover from.

In addition to losing customers, businesses may also face hefty fines and penalties as a result of a data breach. Data protection regulations such as GDPR have strict guidelines on how businesses handle customer data. Failure to comply with these regulations can lead to significant financial consequences.

Another consequence is reputational damage. News spreads fast in today’s digital age, and word of a data breach can quickly tarnish a company’s reputation. Customers may view the business as careless or negligent when it comes to protecting their personal information.

Moreover, there are often costs associated with investigating and remedying the aftermath of a data breach. Businesses may need to hire forensic experts or invest in new security measures to prevent future breaches. These expenses can add up quickly and place an additional strain on already tight budgets.

The impact of a data breach on businesses cannot be underestimated. It has far-reaching implications that go beyond just monetary losses; it affects customer trust, brand reputation, and long-term viability.

Steps to protect your business’s proprietary data

Steps to Protect Your Business’s Proprietary Data

When it comes to safeguarding your business’s proprietary data, taking proactive steps is crucial. Here are some essential measures you can implement to ensure the protection of your valuable information.

1. Identify and categorize your data: Begin by identifying the types of proprietary data your business possesses, such as trade secrets, customer information, or financial records. Categorize them based on their level of sensitivity and importance.

2. Implement access controls: Limit access to sensitive data by implementing robust authentication procedures. Enforce strong passwords and consider using multi-factor authentication for an added layer of security.

3. Encrypt your data: Encryption is a powerful tool in protecting confidential information from unauthorized access. Utilize encryption protocols to secure both stored and transmitted data within your organization.

4. Regularly update software and systems: Keep all software applications, operating systems, firewalls, and antivirus programs up-to-date with the latest patches and updates. This helps protect against known vulnerabilities that cybercriminals may exploit.

5. Conduct regular security audits: Perform routine assessments of your IT infrastructure to identify any potential weaknesses or vulnerabilities in your systems’ security architecture.

6. Train employees on cybersecurity best practices: Educate staff members about the importance of data security through comprehensive training programs. Teach them how to recognize phishing attempts, avoid suspicious links or downloads, and practice good password hygiene.

7. Implement a clear BYOD policy (Bring Your Own Device): If employees use personal devices for work-related tasks, establish guidelines that outline acceptable usage policies and enforce strict security measures on these devices before accessing company resources.

8. Backup regularly: Establish a regular backup schedule for all critical business data so that you can quickly recover files in case of accidental deletion or other emergencies like ransomware attacks.

Remember that protecting proprietary data requires ongoing diligence.

As technology evolves rapidly,and new threats emerge,following these steps will help fortifyyour defenses against potential data breaches. By prioritizing the security of your proprietary data, you

Best practices for creating a secure data storage plan

Best practices for creating a secure data storage plan are crucial to safeguard your business’s proprietary data. With the increasing frequency and sophistication of cyber threats, it is essential to have robust measures in place. Here are some key steps you can take:

1. Classify and categorize your data: Identify the different types of proprietary information your business possesses and assign varying levels of security based on their sensitivity.

2. Implement access controls: Restrict access to sensitive data by using strong passwords, multi-factor authentication, and role-based permissions. Regularly review user privileges to ensure they align with job responsibilities.

3. Encrypt your data: Encryption converts your valuable information into an unreadable format unless accessed with the correct encryption keys. Consider encrypting both stored and transmitted data for maximum protection.

4. Backup regularly: Establish a backup system that automatically creates copies of important files at regular intervals. Store backups securely off-site or in the cloud to mitigate risks such as physical damage or theft.

5. Develop incident response protocols: Prepare clear guidelines for responding to potential breaches or incidents promptly and effectively, minimizing damage and downtime.

6. Train employees on security awareness: Educate staff about phishing scams, social engineering tactics, password best practices, and other common security threats they may encounter online or through email communications.

7. Monitor network activity: Utilize intrusion detection systems (IDS) or security information event management (SIEM) tools to monitor network traffic for any suspicious activities or signs of unauthorized access attempts.

Update software regularly: Keep all software applications up-to-date with the latest patches and security updates from vendors to address vulnerabilities that could be exploited by hackers.

Remember that securing proprietary data is an ongoing process; staying vigilant against evolving threats requires constant monitoring, periodic risk assessments, regular employee training sessions on emerging trends in cybersecurity, maintaining strong passwords policies across all platforms used within your organization.

By implementing these best practices consistently throughout your organization’s operations, you can significantly reduce the risk of a data breach and protect your valuable proprietary information

Training employees on data security protocols

Training employees on data security protocols is crucial in protecting your business’s proprietary data. Without proper training, employees may unknowingly engage in risky practices that could lead to a data breach or compromise sensitive information.

To start, develop a comprehensive training program that covers various aspects of data security. This should include educating employees about the importance of safeguarding proprietary data, identifying potential threats and risks, and understanding best practices for securely handling and storing information.

Consider conducting regular training sessions or workshops to keep employees updated on the latest cybersecurity trends and techniques. These sessions can also serve as an opportunity to address any questions or concerns they may have regarding data security.

It’s important to emphasize the role each employee plays in maintaining a secure environment. Encourage them to create strong passwords, be cautious when opening suspicious emails or attachments, and report any unusual activities promptly.

Additionally, provide resources such as guidelines or manuals that outline specific protocols for handling different types of proprietary data. This will ensure consistency across departments and reduce the chances of errors or accidental breaches.

Remember that effective training is an ongoing process. As technology evolves and new threats emerge, it’s essential to regularly review and update your training materials accordingly. By keeping employees informed about the ever-changing landscape of cybersecurity, you empower them with the knowledge needed to protect your business’s valuable assets.

In conclusion: Properly trained employees are a vital component in safeguarding your business’s proprietary data from potential threats and breaches. Regular education sessions help instill good habits among staff members while ensuring everyone understands their responsibilities when it comes to protecting sensitive information. Ongoing monitoring and updates are necessary as technology advances so that your team remains equipped with relevant knowledge against emerging cyber risks.

Utilizing technology for added protection

Utilizing technology for added protection is crucial in safeguarding your business’s proprietary data. With the ever-evolving landscape of cybersecurity threats, relying solely on manual processes and outdated methods is no longer enough. Incorporating advanced technological solutions can significantly enhance your data security measures.

One effective way to utilize technology for data protection is by implementing robust encryption protocols. Encryption converts sensitive information into unreadable code, making it nearly impossible for unauthorized individuals to decipher. By encrypting your proprietary data both at rest and in transit, you add an extra layer of security that ensures only authorized users can access the information.

Another important aspect of utilizing technology for added protection is investing in a reliable firewall system. Firewalls act as a barrier between your internal network and external threats, monitoring incoming and outgoing traffic to identify and block any suspicious activity or potential breaches.

Implementing multi-factor authentication (MFA) can also greatly enhance the security of your business’s proprietary data. MFA requires users to provide multiple forms of identification before accessing sensitive information or systems, reducing the risk of unauthorized access even if passwords are compromised.

In addition to these measures, regularly updating software and operating systems across all devices within your organization helps protect against known vulnerabilities that hackers often exploit. Keeping up with patches and updates ensures that you have the latest security features available.

Furthermore, leveraging cloud-based storage services with strong encryption capabilities provides an additional level of protection for your proprietary data while allowing flexibility in accessing files from anywhere securely. Many cloud providers offer built-in backup options as well, ensuring that even if local copies are compromised or lost due to hardware failures or natural disasters, you still have a secure copy stored remotely.

By integrating various technologies tailored specifically to address the unique needs of your business and its proprietary data, you can establish a comprehensive defense against cyber threats while ensuring compliance with industry regulations regarding privacy and confidentiality.

Remember: protecting your proprietary data should be an ongoing effort that adapts to emerging threats and evolving technology. Stay proactive, stay informed, and prioritize the security of

Constant monitoring and updating of security measures

Constant monitoring and updating of security measures is an essential aspect of protecting your business’s proprietary data. In today’s digital landscape, new threats and vulnerabilities emerge regularly, making it crucial to stay vigilant and proactive in safeguarding sensitive information.

To ensure the ongoing security of your data, it is important to regularly assess and update your security protocols. This includes conducting regular vulnerability scans, penetration testing, and patch management to identify and resolve any weaknesses or potential entry points for hackers.

Additionally, staying informed about the latest trends in cybersecurity is vital. By keeping up-to-date with industry news and attending relevant conferences or webinars, you can gain valuable insights into emerging threats and best practices for mitigating them.

Implementing a robust incident response plan is also crucial. This involves having clear procedures in place for detecting breaches, containing them promptly, investigating their causes thoroughly, and implementing necessary remediation measures.

Furthermore, employee education plays a significant role in maintaining strong security measures. Regular training sessions on data protection best practices should be provided to all staff members to ensure they are aware of their roles and responsibilities in preserving the confidentiality of proprietary information.

Lastly but importantly,

By adopting these practices as part of your overall cybersecurity strategy,

In conclusion

Importance of having a backup plan in case of a breach

Having a backup plan in place is crucial when it comes to protecting your proprietary data. In today’s digital landscape, no business is immune to the threat of a data breach. Even with robust security measures in place, there is always a possibility that hackers or other malicious actors could find their way into your systems.

In the event of a breach, having backups ensures that you still have access to essential information and can quickly recover from any potential damage. It allows you to restore your systems and get back up and running as soon as possible, minimizing downtime and reducing the impact on your business.

But simply having backups isn’t enough; they must be regularly tested and updated to ensure their reliability. Regularly backing up your data helps safeguard against hardware failures, accidental deletions, or even natural disasters. By storing copies of important files offsite or in the cloud, you can protect yourself from physical damage or loss at your primary location.

Additionally, it’s vital to have multiple layers of backups for added security. This means not relying solely on one method but using different types of storage solutions such as external hard drives, network-attached storage devices (NAS), or cloud-based platforms.

Remember that regular maintenance and monitoring are key components of an effective backup plan. You should check that backups are being performed correctly and verify their integrity regularly. Also, consider conducting periodic disaster recovery drills to test how well you can recover from different scenarios.

Having a comprehensive backup plan offers peace of mind knowing that if the worst happens – whether it’s due to cyberattacks or unforeseen circumstances – you won’t lose all your valuable data permanently. So take action now: implement reliable backup strategies tailored to your specific needs.

Conclusion: Priorit

Conclusion: Prioritizing the Protection of Your Proprietary Data

Protecting your business’s proprietary data is not just an option; it is a necessity in today’s digital landscape. The risks and threats to your valuable information are ever-present, and the consequences of a data breach can be devastating. By taking proactive steps to safeguard your data, you can minimize these risks and ensure the security of your company.

To start, create a comprehensive plan that outlines how you will store and protect your proprietary data. Consider implementing best practices such as encryption, strong passwords, and regular backups. Train employees on data security protocols so that everyone understands their role in preserving confidentiality.

Leverage technology solutions like firewalls, antivirus software, and intrusion detection systems to add layers of protection against external threats. Regularly monitor and update these measures to stay ahead of evolving cybersecurity challenges.

While all precautions should be taken to prevent breaches from happening, it is crucial also to have a contingency plan if one does occur. Establish proper backup procedures so that you can quickly recover any lost or compromised data.

By prioritizing the protection of your proprietary data, you demonstrate commitment towards building trust with stakeholders including customers, partners, and investors. It shows that you take privacy seriously while positioning yourself as a leader in maintaining high standards for secure operations.

Remember that protecting proprietary data is an ongoing process – it requires constant vigilance and adaptation as new threats emerge in our increasingly interconnected world. Stay informed about current trends in cybersecurity through industry publications or by consulting with experts who specialize in this field.

In conclusion (oops!), safeguarding your business’s proprietary information cannot be overstated; it must remain at the forefront of your organization’s security strategy. By doing so, you empower both yourself and those connected with your company by ensuring the integrity of sensitive information remains intact throughout its lifecycle.

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3 Things To Do Before Deciding To Develop A Proprietary Business System

It is not uncommon for businesses to rely on IT-based solutions as a way to streamline their operations. Technology enables better operations and more control over the flow of information, both of which are beneficial to businesses. There are also a lot of solutions on the market, so finding one that matches the specific needs of your business should not be difficult.

For a lot of businesses – perhaps including yours – developing a proprietary or custom system is an alternative worth considering. However, a proprietary solution isn’t always the best alternative to use for several reasons.

Before you jump into developing a custom business system for your company, here are the three things to consider:

Think Long Term.

Developing a custom solution is just the beginning. While the development costs are still very manageable, keeping the system up to date and well-maintained may be too much for the company. It is often more efficient to use an existing solution rather than developing one yourself for the lower running and maintenance costs.

When you use a system built by a tech company, you have the power of that company helping you keep the system up to date. The developers will handle all the hard work of patching bugs, delivering timely updates, and keeping the system relevant to the latest market challenges. Systems that have a lot of users will do these tasks at a much faster pace.

You don’t have to worry about paying for updates or investing too much in maintenance either. Be sure to compare the costs of developing and maintaining your own system with the costs of using existing solutions before making your decision.

Customize and Integrate.

As mentioned before, there are a lot of business solutions already available on the market. A lot of those solutions are designed to fit most businesses nicely. Other solutions are geared towards specific industries or operations, offering features that perfectly match your requirements.

The brewery POS system from Lavu is a good example of a tailored solution. It is a point of sale system developed for breweries, with specific features such as bar tabs and happy hours added to the mix. The basic POS features remain the same, but Lavu’s brewery POS system is customized further for a specific industry.

Similar customized solutions are easy to find. Even when you cannot find a system that offers all the features you need, it is often possible to integrate multiple systems through APIs and other means. Don’t forget to explore your options to customize and integrate existing solutions before deciding to go proprietary.

Time to Deployment.

Last but not least, there is also the fact that you need to invest sufficient time to develop a reliable proprietary business solution. This isn’t the case with using existing systems. A lot of business solutions are offered as a service (SaaS), allowing the entire solution to be deployed in a matter of minutes.

There is also the initial setup cost. A proprietary software must be run on your own server or cloud ecosystem, which means you have to prepare the deployment environment yourself. Existing solutions, especially solutions designed to be marketed as services, eliminate the substantial initial investment almost entirely.

Considering you also save a lot of time during deployment, SaaS is certainly an efficient option to use. With the user accounts set up, the entire system can be integrated with your existing business workflows immediately.

When you consider these factors, developing a proprietary system becomes a last resort. You should always take the three things we covered in this article into account before deciding to start with your own development project.

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What Is Proprietary Software? 5 Advantages It Has Over Open-Source Software

by Andra Picincu

Published on 7 Feb 2020

Popular programs like Adobe Photoshop, Microsoft Windows and Apple iTunes have one thing in common: They are copyrighted and prohibit users from selling, distributing or modifying them. That's why you must sign a lengthy end-user license agreement when installing them on your computer. These programs and others are known as proprietary software, or closed-source software.

As a business owner, you can develop your own proprietary system to build new income streams, promote innovation and have more control over your data.

What Does Proprietary Software Mean?

A growing number of companies worldwide are developing their mobile apps and computer programs. Some do it to streamline communication and business operations. Others create apps and software systems that can be monetized. Almost all commercial software is proprietary , meaning that it's owned by the company that developed it .

Proprietary software can only be bought, obtained through a software license or leased from its publisher or developer. The company that owns it retains intellectual-property rights and may pose restrictions on its use and distribution. Its source code is usually handled as a trade secret and cannot be modified by its end users. The restrictions imposed by vendors are listed in the product's terms-of-service agreement or end-user license agreement.

Adobe, Oracle, IBM and Microsoft are popular developers of proprietary software. Although some of their products include free software, they still fall into this category.

Microsoft's Internet Explorer, for example, is a proprietary browser — it's free to use, but you cannot see or modify its source code. On one hand, this prevents Microsoft's competitors, such as Apple, from installing and using it on their computers.

On the other hand, it limits the company's reach and may hinder innovation. Open-source browsers such as Firefox and Chromium are compatible with most operating systems, including Mac, Windows and Linux, and can be modified by users, which allows for continuous improvements.

What Is Open-Source Software?

Think of open-source software as the opposite of proprietary software. It's free to use and can be studied, modified and distributed by its end users . Anyone is allowed to make changes to its source code and port it to new operating systems. This allows users to identify and fix security vulnerabilities and other bugs, integrate new features into the code and work together to create a better version.

About 53% of businesses use open-source software for IT infrastructure modernization. More than 43% rely on it for app development, and 42% use it for digital transformation. Software programs that fall into this category are free to install, but their users may need to pay for support and maintenance. Their license allows for modifications and derived works and poses no restrictions on how the program can be used.

Open-source systems offer greater flexibility and allow for quicker innovation than proprietary software. These programs are not dependent on the company that developed them. If the company goes out of business, the source code continues to exist and can be improved. The InterBase database, GNU/Linux, Mozilla Firefox, Open Office, Drupal, WordPress and GIMP are all examples of open-source software.

Open-Source vs. Proprietary Software

Both systems have advantages and drawbacks. Open-source software involves lower costs because it's developed and improved by a global community of developers. Sometimes, it can be more secure than proprietary software. Users can easily spot bugs and either fix them or report a workaround.

The security holes in proprietary software are not as easy to identify. If, say, you develop a proprietary system to manage customer data, it may have security bugs of which you're not aware. This may lead to data breaches and can harm your company's bottom line. Fixing the problem could take weeks or months, so the costs will add up.

This doesn't mean that open-source software (or open source code) is a better choice, though. It all comes down to how you're planning to use it. A software vendor, for example, may lose its competitive advantage and make less profit by developing products on open source.

Furthermore, closed-source software is more accessible and user-friendly. Your employees won't have to spend months to learn how to use the program and leverage its features. Additionally, companies capable of developing proprietary systems may find it easier to attract investors and build new streams of revenue. If you're not sure what to choose, check out the five advantages that proprietary software has over open-source technology.

1. Increased Functionality and Convenience

Proprietary systems are easier to use and learn , leading to faster work processes. Skype, for example, is used by organizations worldwide. It takes minutes to sign up for an account and make international phone calls or conduct video interviews online. On top of that, your customers, suppliers and employees may already have a Skype account, so they know how to use it.

Open-source programs are trickier to use and may lack user-friendly features, affecting productivity in the workplace. Unskilled end users may find it difficult to navigate them and take full advantage of what they have to offer. After all, there is a reason so few people use Linux.

Proprietary technology appeals to specific users and has a smaller number of features than open-source software. A product developed within open-source communities will appeal to more users and have lots of features. This isn't a bad thing as long as you have basic coding skills. However, not everyone in your organization possesses these skills, and therefore, they may end up feeling confused.

2. Superior Customer Support

Open-source software can be difficult to install and set up. Customizing it isn't easier either. Plus, your staff may not be familiar with the program and may need additional training .

The average employee lacks the expertise to use open-source programs. Therefore, your team members may need help with most tasks. They will spend hours trying to figure things out instead of focusing on the tasks at hand.

Proprietary software is more accessible and includes technical support . Most companies offering these programs provide dedicated sources, 24/7 assistance, live chat and user manuals. The antivirus program Bitdefender, for example, offers online resources, technical support around the clock and security-configuration services for enterprises. If your employees experience any issues, they can simply call or email the service provider.

3. Lower Maintenance Costs

As a small-business owner, you may prefer open-source software due to its low cost. Most programs are free or cost next to nothing. The downside is that you may end up paying a lot more for setup, maintenance and customization than you'd pay with proprietary software.

Some open-source programs are difficult to install and set up , so you may need to call an expert to do the job. In some cases, new hardware may be necessary to use the software. If your employees are not familiar with the program, they will need support and training, which may further increase the costs. Updating the software, testing new versions and applying patches isn't cheap either.

Proprietary software comes at a higher price, but you'll save money in the long run . Whether you develop the program in house or buy an existing system, expect to pay more up front. If you have an internal IT department, your staff members can create, update and configure the program. If you purchase proprietary software, its developer may assist with maintenance, configuration and technical issues at no extra charge.

4. Stronger Competitive Advantage

Proprietary technology enables organizations to be more profitable, productive and innovative . This is particularly true for software-development companies, which often use custom programs at the core of their business model.

By creating your own proprietary software, you can fill a gap in the market and provide customers with a valuable and unique offering. Over time, you may gain market share and build customer loyalty. Open-source software, on the other hand, may diminish your competitive advantage.

Even if you're not a software developer, you can still benefit from using proprietary systems. For example, you may hire a team to create software programs that integrate with your existing technology. This may improve work performance and productivity in your organization, streamline business processes and increase production. Furthermore, you may customize the program and add new features as your business changes.

This technology gives you the ability to create solutions that are tailored to your company’s needs and existing processes . You may even use it to expand and diversify your offerings. Apple, for instance, has developed a line of proprietary software diagnostic tools for the 2018 MacBook Pro and iMac Pro to block third-party repairs, and as a result, users can only reach out to Apple-authorized service providers when their computers crash. This gives the company a competitive advantage and increases its profits.

5. Secure Financing for Your Business

Nearly one-third of startups close their doors because they run out of capital. Developing proprietary technology doesn't guarantee success, but it could make it easier to secure financing for your small business. Plus, you will be able to charge higher prices because no other company offers the same product as you do.

As it turns out, big data investors prefer to put their money in companies selling proprietary software — or at least something other than open-source software, such as proprietary add-ons. This kind of technology isn't restricted by what already exists in the market.

Additionally, proprietary systems are often protected by copyrights and patents. Both are a form of intellectual property. In some industries, intellectual property makes up a majority of assets on a company's balance sheet. Therefore, it can increase the value of your business and enhance its appeal to investors.

Considerations for Developing Proprietary Software

As a small business, you can develop your own proprietary system and then monetize it or use it to streamline your operations . If you choose the first option, you can profit from the sale of licensing your software to individuals or companies. Either way, there are some things to consider before getting started.

First of all, decide whether you'll create the software program in house or outsource this project. Ask your team to sign a nondisclosure/noncompete agreement . If you're planning to distribute the software for profit, draft a licensing scheme for the end users. Consider reaching out to an attorney to assist you.

Make sure you register your software's copyright and apply for trademarks. Although your product is under copyright protection the moment it is created, you cannot sue those who use it without your permission unless you register for copyright. A trademark, on the other hand, will protect the name of your software program. These legal steps are complex and time consuming, so discuss your options with an intellectual-property lawyer.

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What Is Proprietary Technology?

In today’s fast-paced world, where technology evolves quicker than a blink, there’s a term that buzzes around the corridors of Silicon Valley to the sprawling tech hubs across the globe – proprietary technology. It’s a term that’s thrown around a lot, but what does it really mean? And more importantly, why should you, as an entrepreneur, a tech enthusiast, or simply a curious mind, care about it? Let’s dive into the world of proprietary technology, peel back its layers, and discover its impact on businesses and the tech landscape at large.

The Essence of Proprietary Technology

At its core , proprietary technology refers to any innovation, system, or specific tool that is owned exclusively by an organization or an individual. This ownership is not just about bragging rights; it’s about having a competitive edge, a secret sauce that sets a company apart from its rivals. Think of it as a recipe for a secret dish that only one restaurant can serve, making it a go-to destination for food lovers.

But proprietary technology goes beyond just being a unique product or service. It’s about having something so valuable that it catapults a company into a position of market dominance or, at the very least, gives it a significant advantage. It’s the technological equivalent of finding a treasure chest in a vast ocean that only you have the map to. This exclusivity is protected legally through patents, copyrights, and trademarks, ensuring that the innovation remains under the company’s control.

Why It Matters

In the digital age, where ideas can be replicated swiftly, and competition is fierce, having proprietary technology is akin to holding a golden ticket. It allows companies to offer something unique, attract a loyal customer base, and justify premium pricing. But it’s not just about the exclusivity; it’s about innovation. Proprietary technology drives companies to push the boundaries, to think differently, and to innovate continuously.

The Double-Edged Sword

However, proprietary technology is a double-edged sword. On one hand, it fosters innovation and competitive advantage. On the other, it can lead to monopolistic behaviors, stifle competition, and slow down industry-wide innovation. It’s a delicate balance between protecting one’s innovations and ensuring the market remains competitive and dynamic.

The Real-World Impact

To understand the real-world impact of proprietary technology, look no further than the tech giants of our times. Apple’s iOS, Amazon’s recommendation algorithm, Google’s search algorithms – these are all examples of proprietary technologies that have not only set these companies apart but also defined entire industries. They serve as a testament to how proprietary technology, when leveraged effectively, can lead to unparalleled success.

However, proprietary technology is not the sole domain of tech behemoths. Startups and small businesses around the globe leverage it to carve out niches for themselves in crowded markets. From innovative software solutions to groundbreaking product designs, proprietary technology enables these companies to punch above their weight and disrupt established markets.

The Human Element

At its heart, proprietary technology is about more than just algorithms, patents, or products. It’s about the human element – the creativity, ingenuity, and vision that drive individuals and teams to innovate. It’s a reminder that behind every technological breakthrough, there’s a team of people striving to make a difference, to push the envelope, and to create something truly unique.

This human element is what makes proprietary technology so fascinating. It’s a reflection of our innate desire to innovate, to improve, and to lead. It’s what drives companies to invest heavily in research and development, to foster a culture of innovation, and to protect their innovations zealously.

Protecting Proprietary Technology: The Strategic Shield

In the world of proprietary technology, protection is not just a legal requirement; it’s a strategic necessity. It’s about safeguarding the very essence of what makes a company unique and competitive. Let’s explore the mechanisms of protecting proprietary technology and why it’s a crucial aspect of a company’s strategy.

The Legal Armor

The first line of defense in protecting proprietary technology is legal protection through patents, copyrights, and trademarks. Each of these legal tools serves a specific purpose and offers a shield against intellectual property theft, imitation, and unauthorized use.

• Patents grant inventors exclusive rights to their inventions, preventing others from making, using, or selling the invention for a certain period, typically 20 years. For technology companies, patents are a critical tool for protecting innovative products, processes, or even algorithms.
• Copyrights protect original works of authorship, including software code, written content, and even some types of databases. They ensure that the creator has exclusive rights to use and distribute their work.
• Trademarks protect symbols, names, and slogans used to identify goods or services. They are crucial for maintaining a brand’s identity and ensuring that the market is not confused by similar names or logos.

Strategic Importance of Legal Protection

While the legal mechanisms for protecting proprietary technology are well-established, their strategic importance cannot be overstated. They serve as a deterrent against competitors who might seek to copy or imitate proprietary technology. Moreover, in a landscape where mergers and acquisitions are common, a robust portfolio of intellectual property can significantly enhance a company’s valuation.

However, legal protection is not just about defense. It’s also a strategic tool for offense. Patents, for example, can be licensed to others, creating a new revenue stream. They can also be used in cross-licensing agreements, allowing companies to access each other’s technologies without fear of litigation. This opens up avenues for collaboration and innovation that might not otherwise be possible.

Beyond Legal Mechanisms: Keeping the Secret Sauce Secret

While legal protectio ns are critical, they are not the only means of safeguarding proprietary technology. Companies also employ various non-legal strategies to protect their innovations. These include:

• Trade secrets : Some aspects of proprietary technology are best protected as trade secrets. Unlike patents, which require disclosing the invention, trade secrets are protected as long as they remain secret. This requires stringent internal controls, such as non-disclosure agreements (NDAs) with employees and partners, and secure information systems.
• Security measures : In the digital age, cybersecurity is a critical component of protecting proprietary technology. Companies invest heavily in securing their networks, databases, and communication channels to prevent data breaches and intellectual property theft.
• Innovation culture : Ultimately, the best defense against competition is continuous innovation. By fostering a culture that encourages creativity and rapid iteration, companies can stay ahead of the curve, making it difficult for competitors to catch up.

Understanding the Spectrum of Protection

The realm of protecting proprietary technology is vast and varied, encompassing more than just patents or copyrights. Founders must recognize the spectrum of protection available to them, which includes a blend of legal, technical, and strategic layers. This comprehensive approach not only secures the technology but also embeds protection into the fabric of the startup’s operations.

Embedding Protection into Company Culture

Cultivating a culture of confidentiality.

Startups thrive on creativity and collaboration, yet this open environment can pose risks to proprietary information. Founders should cultivate a culture of confidentiality from the outset. This involves educating the team on the importance of protecting intellectual property (IP) and ensuring that everyone understands what information is considered proprietary and how it should be handled. Regular training sessions and clear communication channels can reinforce this culture, making IP protection a collective responsibility.

Strategic Documentation and Control

Documenting the development process of proprietary technology is crucial. It provides a clear trail of invention and innovation, which is invaluable in legal protection and in demonstrating the uniqueness and ownership of the technology. Moreover, implementing strict access controls and data management policies ensures that sensitive information is only accessible to those who need it, reducing the risk of unintended leaks or theft.

Leveraging Legal Tools Proactively

Beyond the basic step of registering patents and trademarks, there are proactive legal strategies that startups can employ. Founders should consider the strategic use of provisional patents, which offer a faster, cost-effective way to secure a filing date, providing temporary protection while the full patent application is prepared. Additionally, understanding the international landscape of IP protection and filing patents in key markets can provide a competitive advantage in the global arena.

Strategic Partnerships and Non-Disclosure Agreements (NDAs)

When entering into partnerships, collaborations, or even discussions with potential investors, NDAs are a critical tool. These agreements should be tailored to the specific context of the discussion, clearly outlining what information is considered confidential and the obligations of both parties. This not only protects the startup’s proprietary technology but also signals to partners and investors the seriousness with which the startup approaches IP protection.

Innovation as a Continuous Shield

While protecting existing technology is crucial, continuous innovation ensures that a startup remains ahead of the curve, making it difficult for competitors to catch up. This requires a strategic approach to R&D, focusing on areas that offer the most significant competitive advantage and aligning innovation efforts with the startup’s long-term vision. Encouraging a culture of innovation, where team members are motivated to explore new ideas and improvements, can sustain the startup’s growth and relevance.

Navigating the IP Landscape with Expert Guidance

The complexity of the IP landscape can be daunting, especially for startups with limited resources. Engaging with IP experts, such as attorneys specialized in patent law, can provide valuable guidance. These experts can help navigate the filing process, advise on strategic IP management, and ensure that the startup’s proprietary technology is adequately protected. Additionally, leveraging resources from IP organizations and industry associations can provide insights and support in managing and protecting IP.

For startup founders, protecting proprietary technology is a strategic imperative that requires a comprehensive and proactive approach. By embedding protection into the company culture, leveraging legal tools strategically, managing partnerships carefully, fostering continuous innovation, and seeking expert guidance, startups can secure their technological assets and build a solid foundation for growth. In the dynamic landscape of innovation, this strategic shield is not just about defense but about enabling sustainable competitive advantage and long-term success.

The Global Chessboard

In a globalized economy, protecting proprietary technology also means navigating the complex web of international intellectual property laws. Companies must be strategic about where they file for patents, how they manage their intellectual property portfolio across different jurisdictions, and how they enforce their rights in a global market. This requires a deep understanding of international law, as well as a strategic approach to intellectual property management.

Protecting proprietary technology is a multifaceted challenge that requires a combination of legal savvy, strategic foresight, and operational excellence. It’s about creating a shield that not only defends against external threats but also enhances a company’s strategic position and fosters a culture of continuous innovation. As we move forward into an era of ever-accelerating technological change, understanding and implementing these protection strategies will be more crucial than ever.

Navigating the Challenges and Opportunities of Proprietary Technology

In the dynamic tapestry of the modern business landscape, proprietary technology serves as both a beacon of opportunity and a source of relentless challenges. As companies vie for supremacy in their respective domains, understanding these dual aspects becomes essential. Let’s explore how businesses can navigate these waters, turning potential pitfalls into stepping stones for growth and innovation.

The Innovation Race: Staying Ahead

One of the paramount challenges companies face is the sheer pace of technological advancement. In an era where yesterday’s innovation is today’s commodity, staying ahead requires a relentless commitment to research and development (R&D). However, this is not just about spending more money on R&D; it’s about being smarter, more agile, and more responsive to the changing market dynamics.

• Agility and Speed : In the race for innovation, speed is of the essence. Companies must streamline their product development processes, embrace agile methodologies, and foster a culture of rapid experimentation and iteration.
• Customer-Centric Innovation : Staying ahead also means staying closely aligned with customer needs and preferences. Proprietary technology should not be developed in a vacuum; it needs to solve real-world problems, enhance user experiences, and deliver tangible value.

Intellectual Property (IP) Management: A Strategic Pillar

Effective IP management is another critical challenge. As companies expand globally, managing a portfolio of patents, copyrights, and trademarks across different jurisdictions becomes increasingly complex. This requires a strategic approach to IP management that considers not just legal protection, but also business strategy and competitive positioning.

• Strategic IP Portfolio Management : Companies must prioritize their IP investments, focusing on technologies that offer the most significant competitive advantage or market potential. This involves regular audits of the IP portfolio, strategic patent filings, and sometimes, pruning of non-essential IP assets.
• Leveraging IP for Business Advantage : Beyond protection, IP can be a powerful tool for business growth. Licensing agreements, IP-based partnerships, and strategic IP acquisitions can open new revenue streams, expand market access, and enhance competitive positioning.

Collaboration vs. Competition: Finding the Right Balance

In the world of proprietary technology, finding the right balance between collaboration and competition is crucial. While protecting one’s innovations is essential, so too is leveraging external partnerships, alliances, and ecosystems to drive growth and innovation.

• Open Innovation : Embracing open innovation allows companies to tap into external ideas, technologies, and expertise, accelerating innovation and reducing time to market. This involves a strategic mix of collaboration with universities, research institutions, startups, and even competitors.
• Strategic Alliances and Partnerships : Forming strategic alliances and partnerships can provide access to complementary technologies, markets, and expertise. These collaborations can be particularly valuable in areas where the technology landscape is rapidly evolving or highly complex.

Ethical Considerations and Social Responsibility

Navigating the proprietary technology landscape also involves ethical considerations and social responsibility. As companies develop and deploy new technologies, they must consider the broader impact on society, privacy, and ethical norms.

• Privacy and Data Protection : In an age of big data and AI, protecting user privacy and ensuring ethical use of data is paramount. Companies must adhere to data protection regulations and ethical standards, building trust with users and society at large.
• Sustainable Innovation : As environmental concerns become increasingly pressing, companies are also tasked with ensuring that their technological innovations are sustainable. This involves considering the environmental impact of new products and technologies and striving for solutions that are not only innovative but also environmentally responsible.

Strategic Alignment of Proprietary Technology with Business Goals

Identifying core competencies.

For startups, the journey begins with a clear identification of their core competencies and understanding how proprietary technology can amplify these strengths. Founders should conduct a thorough analysis of their business model, market needs, and the competitive landscape to pinpoint exactly where proprietary technology can serve as a keystone for their value proposition. This strategic alignment ensures that technological developments are not pursued in isolation but are directly contributing to the company’s overarching goals.

Leveraging Technology for Scalability

One of the paramount opportunities proprietary technology offers is scalability. Founders need to envision how their technology can be scaled to meet growing market demands or adapt to new markets. This foresight involves planning for modular development, considering cloud-based solutions for flexibility, and anticipating the integration of new technologies. Scalability ensures that as the startup grows, its proprietary technology can evolve, maintaining its competitive edge without necessitating a complete overhaul.

Overcoming Resource Limitations

Smart resource allocation.

Startups often operate with limited resources, making it crucial to allocate these wisely. Founders should prioritize R&D investments that have the potential to yield the highest return in terms of market impact and revenue generation. This might mean focusing on developing a single core technology to perfection rather than spreading efforts too thinly across multiple projects.

Harnessing External Resources

To overcome internal resource limitations, startups can look towards external collaborations, grants, and innovation hubs. Engaging with academic institutions for research partnerships, leveraging government grants focused on technological innovation, and participating in incubator or accelerator programs can provide the necessary support to advance proprietary technology without overextending the startup’s resources.

Building a Defensible Market Position

Creating barriers to entry.

Proprietary technology can serve as a significant barrier to entry for competitors. Founders should strategize not only on developing the technology but also on creating an ecosystem around it that is difficult for others to replicate. This might involve building a robust community of users, developing proprietary datasets that improve with usage, or establishing key partnerships that secure the startup’s place in the value chain.

Continuous Market Validation

Even the most groundbreaking technology needs market validation to ensure it remains relevant and in demand. Startups should adopt a lean approach, continuously testing and validating their technology with real users. Feedback loops should be integrated into the development process, allowing for iterative improvements based on user insights. This ongoing engagement not only enhances the technology but also strengthens the startup’s market position by demonstrating a commitment to addressing genuine user needs.

Navigating Intellectual Property Challenges

Proactive ip strategy.

A proactive intellectual property (IP) strategy is essential for protecting proprietary technology. This involves more than just filing for patents; it includes monitoring the IP landscape for potential infringements, understanding global IP implications if planning for international expansion, and considering defensive publications to prevent competitors from patenting similar ideas.

Balancing Transparency and Secrecy

While protecting IP is crucial, startups also need to balance the need for secrecy with the benefits of transparency. Sharing enough information to attract investors and customers, while safeguarding the core secrets of the proprietary technology, requires a strategic approach to communication. Crafting compelling narratives around the technology’s benefits, without revealing the technical details, can help maintain this balance.

Navigating the challenges and opportunities of proprietary technology is a complex but rewarding journey for startup founders. By strategically aligning technology development with business goals, smartly overcoming resource limitations, building a defensible market position, and navigating the intellectual property landscape with foresight, startups can harness the full potential of their proprietary innovations. In doing so, they not only secure a competitive edge but also lay the foundation for sustainable growth and success in the tech-driven marketplace.

The Future of Proprietary Technology: Trends and Predictions

As we gaze into the crystal ball of the tech industry, it becomes evident that proprietary technology will continue to play a pivotal role in shaping the future. However, this future is not just about what technologies will emerge but also about how these technologies will be developed, managed, and utilized within the broader societal and economic context. Let’s explore some of the key trends and predictions that are likely to define the trajectory of proprietary technology in the years to come.

The Rise of AI and Machine Learning

Artificial intelligence (AI) and machine learning (ML) are set to redefine the landscape of proprietary technology. Companies are increasingly investing in AI and ML to create intelligent systems that can analyze data, learn from it, and make decisions or predictions with minimal human intervention. This trend is not just about automating tasks or improving efficiency; it’s about harnessing the power of AI to create entirely new products, services, and business models.

The proprietary aspect of AI and ML comes from the unique datasets, algorithms, and insights that companies develop. These proprietary assets become a critical source of competitive advantage, driving innovation and differentiation in the market. However, this also raises questions about data privacy, ethical AI use, and the potential for monopolistic control over critical technologies.

Blockchain and Decentralization

Another significant trend is the rise of blockchain technology and the move towards decentralization. Blockchain offers a way to create secure, transparent, and tamper-proof records of transactions, which has profound implications for everything from finance and supply chain management to intellectual property rights.

In the realm of proprietary technology, blockchain presents an interesting paradox. On one hand, it promotes transparency and open access to information. On the other, it can be used to create secure and unbreakable records of ownership and rights for proprietary technologies. This duality is likely to fuel innovative approaches to managing and protecting intellectual property in a decentralized digital economy.

Sustainability and Green Tech

Sustainability has emerged as a critical driver of innovation across industries, and the tech sector is no exception. There is a growing recognition that proprietary technology must not only drive economic growth but also contribute to environmental sustainability. This is giving rise to a new wave of green tech innovations, from renewable energy systems and sustainable materials to technologies that help reduce carbon footprints and environmental impact.

For companies, investing in sustainable proprietary technology is not just about fulfilling social responsibilities. It’s increasingly seen as a strategic imperative that can drive long-term growth, open up new markets, and build brand loyalty among environmentally conscious consumers.

Personalization and Consumer Empowerment

The future of proprietary technology is also deeply intertwined with the trends towards personalization and consumer empowerment. With the advent of AI, IoT, and big data analytics, companies can now offer highly personalized products and services, tailored to the individual preferences and needs of each customer.

This level of personalization is made possible by proprietary technologies that analyze vast amounts of data to understand consumer behaviors and preferences. However, this also raises important questions about privacy, data security, and the ethical use of consumer data. Companies will need to navigate these issues carefully, balancing the benefits of personalization with the need to protect consumer rights and privacy.

As we look towards the future, it’s clear that proprietary technology will continue to be at the forefront of innovation and economic growth. However, the path forward is not without its challenges. Companies will need to navigate a complex landscape of technological advancements, regulatory pressures, ethical considerations, and societal expectations.

The future of proprietary technology is not just about the technologies themselves but about how they are developed, protected, and deployed in a way that benefits society as a whole. As we embrace this future, the companies that succeed will be those that can innovate responsibly, protect their innovations smartly, and use their proprietary technologies to drive positive change in the world.

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What is Proprietary Business Information?

• Defining Proprietary Business Information
• Why Proprietary Business Information is Important
• How to Protect Proprietary Business Information

What would you say if a competitor came up to you in a coffee shop and asked for the names of your three biggest customers? You could say “Get lost,” “Take a hike,” or “Sorry, that’s proprietary information.” After all, there’s no reason to divulge that kind of hard-earned information about your business.

Today, almost every business relies on proprietary information to some degree, from Coca-Cola’s legendary secret beverage formula to your monthly sales reports or the wealth of data stored in your customer relationship management (CRM) system. So, take a moment to think about the most important information in your business – the “crown jewels” of your operations that you need to keep out of the hands of your competitors.

Your proprietary information could include trade secrets, production methods, marketing strategies, software applications and financial data. After all, you don’t want everyone knowing how your sales, profits or customer base change from year to year. Perhaps you’ve developed a proprietary machine tool, sealant or coating for a manufacturing operation, or a new algorithm for delivering targeted ads to your customers on social media. These are products and processes that belong to your business and need to be protected to maintain a competitive advantage .

Other types of proprietary information include product specifications, chemical formulas and cooking recipes . In many cases, these trade secrets provide the foundation for a startup business or an extension of a current product line. For example, the owners of a key lime pie company started as a roadside stand selling the tangy desserts made from local Florida limes. They opened a brick-and-mortar store but were unable to turn a profit.

When the owners turned to Marcus Lemonis for help, he realized that one of the factors holding the business back was using generic, pre-made ingredients to produce a larger volume of pies, rather than the original homemade process that attracted customers when they started out. Marcus helped the owners refine their processes for mass producing handmade crusts with fresh key lime filling, and they began selling their signature pies using a new proprietary recipe. Since then, the company’s sales have taken off, and the pies have won numerous culinary awards, including “Best Pie in Florida” from USA Today.

Why is Proprietary Information Important?

Proprietary information is a legal concept that refers to the rights you hold as a business owner or “proprietor.” It typically refers to confidential information that gives you a competitive advantage in regard to your people, processes and products .

As a general rule, proprietary information refers to material held within your organization that would not be readily available to the public.

For instance, if you used an online search engine to find 25 potential customers for your products or services, the resulting list would probably not be considered confidential. After all, anyone else could do the same thing, including your competitors. On the other hand, if you have taken the time to compile detailed notes about your 25 top customers and keep the data in your CRM, that material would almost certainly be considered proprietary.

There are many ways you can use proprietary information to attract new customers, increase revenue or grow your market share.

For instance, you could draw on your customer database to launch an advertising program targeted at similar prospects. You could adjust your product price points up or down depending on confidential information from your suppliers, or capitalize on social media feedback to improve your services.

Of course, if you have developed a secret sauce, a unique blend of beverage flavors or a new food preparation method, you could build an entire business around your trade secrets. For the co-owners of a BBQ restaurant in Kentucky, the creative use of proprietary information led to a wildly successful new product line. Several years ago, Marcus met with the owners to see how they could grow their small family business . He looked at the restaurant’s proprietary recipes for barbecue sauce and suggested selling bottled sauces online as well as in their store. The result was a new revenue stream from a relatively small investment.

There are plenty of other creative strategies you could consider to help grow your business . For example, you could offer a one-time use of your proprietary customer list to a charitable organization in your community in order to attract a larger audience to a local fundraising event. This can be a true win-win relationship that allows you to maintain control of information, while building a new partnership, meeting other business and civic leaders, and generating favorable publicity as a sponsor of a worthy cause.

Protecting Proprietary Information

Because your proprietary information has value, it needs to be protected from a variety of internal and external threats. That typically requires a multi-layered defense strategy tailored to your business’s specific operations. Today, threats can come from almost anywhere, so you need to pay attention to your people and processes and shore up any vulnerable areas.

The first step is to identify your trade secrets, as well as any other information you need to keep confidential. That will help you determine your security priorities. Depending on the nature of that proprietary information, you can then take appropriate measures, such as the following.

• Cybersecurity. You should invest in a strong cybersecurity program to protect the most valuable proprietary information from hackers. That might mean installing strong firewalls and authentication procedures, or relying on a cloud-services provider who can guard against the ever-changing cybersecurity threats. You should also be sure your employees understand and follow your security protocols. Few things are more damaging to a business than a criminal breaking into your system and stealing trade secrets, personal customer data or other proprietary information.

• Access control. Depending on your business, you may be able to limit physical access to your facility to employees and approved visitors. A data center or executive office suite may have even stricter access controls. Software applications, such as CRM programs, can also be adjusted to prevent employee access to confidential data. A salesperson, for example, might have full access to information about her own customers, but not to customers of other representatives.
• Internal security. Your laboratories, production areas, conference rooms and executive offices should be kept secure to guard against leaks of confidential information. That might mean automatic door locks when someone exits the area, putting tinted glass on windows, or adding security features to communications devices in these locations to prevent unauthorized recordings.

• Non-disclosure agreements. Many businesses use written non-disclosure agreements (NDAs) to keep employees from revealing proprietary information while working for the organization. Suppliers, outside sales representatives and other business partners can also be required to sign NDAs before accessing your business’s data.
• Non-compete clauses. An employment agreement can also contain a non-compete clause that prevents a former employee from using proprietary information in a competitive role. For instance, you wouldn’t want a sales manager to leave your company on a Friday, join your top competitor over the weekend, and start calling your best accounts on Monday.

You should be aware that many of these protective steps require specialized knowledge , such as expertise in network security tools or access control protocols. An experienced attorney should be engaged to help you draft NDAs and non-compete documents that comply with applicable state and federal regulations. After all, you don’t want to go into court expecting to be compensated for the loss of proprietary information only to find that your NDA or non-compete was invalid right from the start.

Don't Let Your Guard Down

It’s not enough to put a series of safeguards in place and get back to your daily business activities. That’s because your proprietary information is not a one-and-done bundle of secrets tucked away in a safe deposit box.

That confidential data is constantly changing with the acquisition of new customers, the launch of a new product or service line or an entry into new markets. Cybercriminals are constantly looking for new ways to attack your confidential database and extract your secrets. Meanwhile, the laws regarding NDAs and other confidential disclosures continue to evolve, and documents prepared in the past might need to be updated.

Therefore, you need to stay focused on securing your proprietary information and monitor potential threats to reduce the risk of a costly unexpected surprise.

• What proprietary information does your business currently have?
• How do you plan on protecting your proprietary information?

Nieds, M. (2015, October 21). 5 tips to protect your proprietary information. Retrieved from www.swflbusinessandipblog.com/2015/10/5-tips-to-protect-your-proprietary-information/

Upcounsel.com. (n.d.). What is proprietary: everything you need to know. Retrieved from https://www.upcounsel.com/what-is-proprietary#:~:text=Proprietary%20information%20is%20important%2C%20possibly,or%20maker%20may%20be%20proprietary

Featured Content

What Is Proprietary: Everything You Need to Know

What is proprietary relates to ownership and the rights an owner may exercise in regards to his or her property or information. 3 min read updated on February 01, 2023

What is proprietary relates to ownership and the rights an owner may exercise in regards to his or her property or information. A proprietor is one that possesses, owns, or holds exclusive right to something.

Legally, what is proprietary often refers to proprietary information. Proprietary information is important, possibly sensitive information that a company owns. This information usually gives the company competitive advantage(s) in its market.

Things that can be used, known, produced, manufactured and/or marketed under the exclusive legal right of the inventor or maker may be proprietary. For example, a patented medicine is protected by intellectual property law against free market competition in regards to name, product, composition, or process of manufacture. If a manufacturer uses a particular manufacturing process that others do not know about ( trade secret protection ) or are forbidden to use (patent protection) then that is a proprietary process. A proprietary trademark is a name or logo that only the owner of that trademark can use.

If a business was in fact owned by and managed by an intelligence organization as a front, that would be proprietary to the intelligence organization.

Intellectual Property Protection

Protection to these proprietary articles are through intellectual property law: copyright, patents, trademark, etc. Unfortunately, however, at some time down the line, proprietary items and processes will lose their legal protection. This is when the information becomes a part of the public domain. Once that happens, anyone can use the item, process, or trademark as they see fit.

Baseball fans have proprietary attitudes toward their favorite team. When their team wins they say “we won,” not “they won,” as if they own or are part of the team.

Municipal corporations must act in the best interests of the citizens. This is a proprietary function. This proprietary function is different than its governmental functions, which are duties drawn from being a political part of a state.

Proprietary information is very important for the success of most businesses. This property may not be valued, but it is very valuable. Especially due to the marketplace and its competitive nature. Intellectual assets are highly sought-after commodities.

Because of the value and importance of such property, companies often prohibit directors, employees, and agents from disclosing confidential or proprietary information without proper authority in non-disclosure agreements/clauses. Sometimes this prohibition extends to after the employment relationship has ended.

If a contractor is hired and received proprietary information in order to do his or her work, a company often requires him/her to give back the information or property and to keep the information confidential.

Proprietary Information Can Include:

• Trade secrets
• Production methods
• Marketing strategies
• Salary structure
• Consumer contact information
• Past and present contracts
• Computer software
• Technology/hardware
• Employee knowledge
• Employee skill
• Financial data
• Test results

For information to be considered proprietary by a court, a company must treat the information as confidential. Courts will not find readily available information or public information proprietary. The information must also give the company a competitive advantage to be considered proprietary.

If the information is known to others outside of the company, then it will not give the company advantage. In order to be granted protection by a court, a company must also prove that it has taken “reasonable steps” to keep the information secret.

Courts do not require that companies take all possible measures to keep the information private. Courts do not require the secret to be absolutely or completely private. Reasonable steps in order to keep the information confidential must be “reasonable under the circumstances.”

A company has different ways to keep its information proprietary:

• Confidentiality clauses in employee contracts
• Nondisclosure clauses
• Non-compete agreements
• Security systems
• Restricting employee access with codes
• Data protection codes and procedures
• Secure phone lines
• Secure conference rooms

Companies should make sure that their covenants are reasonable in both time and location. Otherwise a court will not enforce them and will not restrict the unreasonable restriction of the former employee’s right to find a new job. They should also ensure that the employees that they do reveal trade secrets to have signed a confidentiality agreement of some kind or a court may not protect a trade secret of that small business.

If you need help with what is proprietary, you can post your legal need on UpCounsel’s marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.

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Content Approved by UpCounsel

• What Is a Proprietary Patent?
• Proprietary Interest
• Proprietary Information Agreement
• Define Proprietary Company
• Proprietary Information and Inventions Agreement
• Who Owns Trade Secret
• Government Non-Disclosure Agreement
• Confidentiality Contracts
• Proprietary Software License
• Confidentiality Agreement

Intellectual Property Issues: Valuing Intellectual Property in Your Business

Most companies that are worthy of raising venture capital have proprietary Intellectual Property (IP). In fact, the quality of the IP and the management team are often the two most important aspects of a venture capitalist’s investment decision. The challenge that many ventures face, however, is that most investors will not sign non-disclosure agreements (NDAs), and NDAs are critical to maintaining the proprietary nature of the IP. This article details the appropriate strategy for addressing proprietary IP in your business plan template in order to attract investor attention while retaining the confidentiality of your inventions. Focus on the Benefits of and Applications of the IP: The business plan should not discuss the confidential aspects of the IP. Rather, the plan should discuss the benefits of the IP. Remember that even the most amazing of technologies will not excite investors unless it has tangible benefits to customers.

The business plan first needs to discuss the products and services into which the IP will be integrated. It then must detail the benefits that these products and services have to customers and differentiate them from competitive products. When applicable, it is helpful to include non-confidential drawings and backup materials of the products and services in the Appendix. Focus on Customer Needs and the Relevant Market Size: The business plan must also discuss how the benefits of the IP fulfill a large customer need. To accomplish this, the plan needs to detail customer wants and needs and prove that the company’s offerings specifically meet these needs.

Secondly, the plan needs to discuss the marketplace in which the IP is offered and the size of this marketplace. Critical to this analysis is determining the relevant market size. The relevant market size equals a company’s sales if it were to capture 100% of its specific niche of the market. For example, a medical device’s market size would not be the trillion dollar healthcare market, but rather the sales of all competing medical devices. Focus on Competition and Competitive Differentiation: Your business plan must also prove that your IP is better than competitive inventions. In identifying competitors, note that listing no or few competitors have a negative connotation. It implies that there may not be a large enough customer need to support the company’s products and/or services. On the other hand, should there be too many competitors, then the market may be too saturated to support the profitability of a new entrant. The answer — any company that also serves the customer needs that you serve should be considered a competitor.

The business plan should detail both the positive and negative aspects of competitors’ IP and products/services and validate that your offerings are either superior in general, or are superior in serving a specific customer niche.

Prove that you can Execute on the Opportunity: As importantly as proving the quality of the IP and that a vast market exists for its applications, the business plan most prove that the company can successfully execute on the opportunity.

The plan should detail the company’s past accomplishments, including descriptions and dates when prior funding rounds were received, products and services were launched, revenue milestones were reached, key partnerships were executed, etc.

When a company is a complete start-up, and no milestones have been accomplished, the plan should focus on past accomplishments of the management team as an indicator of the company’s ability to execute successfully.

Getting Investors to Sign the NDA: If you are able to convince the prospective investor that the IP is integrated into a product/service which yields real customer benefits in a large market, then the investor will take the quality of the invention for granted when reviewing the plan. Later, during the due diligence process, the investor will review the actual technology. At this point, a discussion regarding signing an NDA would be appropriate.

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Preparing a Proprietary Position Business Plan

When preparing a proprietary position business plan, you should include sufficient details on the product and the company. Your description should be enough to determine whether your product is viable and how far along it is in development. You should also discuss the scope of the invention and how much work is needed to commercialize it. Highlight the background of your key personnel, and explain how your product will be better than competing products and services. It is imperative to include a sustainable competitive advantage.

When writing a business plan, it is important to be as detailed and accurate as possible. Make sure that your information is factual and backed by facts and figures, which will make your plan more credible to lenders and investors. Your plan will not be as effective if it does not support the claims it makes. If you have made claims in the previous section, make sure that you back them up with facts and figures. This will help you avoid any misunderstandings later.

You should always include a table of contents in your business plan, which should be at the end of the document. You should also have a summary, which is the first section of your plan. This should tell the reader what the rest of the document is about. Moreover, the summary should be short and to the point. The executive summary should be no longer than a page and should focus on the most important aspects of your business.

If your business is not based on a patent, it might not be profitable. Therefore, it is important to ensure that you have a solid business plan. Even though your idea is unique, your idea will be less appealing if no one knows about it. A good business plan should be clear and concise, and should avoid using industry jargon. It should focus on the most important facts about your concept and why it is a viable business.

The executive summary is a key element of your plan. It is the first element to read, and it should be clearly written. It should be factually accurate, and it should include any supporting data you have. If you are selling a product or service, the executive summary should be short and to the point. Ultimately, you should be able to sell the product or service to your potential customers. Your plan must provide value to the market and profit your buyers.

An executive summary should be a major part of your business plan. An executive summary is typically placed at the front of your plan. It is usually the first element you read and is the last element you write. It should be between two and three pages and highlight the more extensive categories of the plan. It should also state the benefits your company will achieve by using your product or service. The financial forecast should be a comprehensive analysis of your market.

The executive summary should be one of the most important parts of your business plan. It should highlight the strengths and weaknesses of your management team, and should be short and to the point. It is also essential to include a section that contains the company’s management team. The executive summary should contain a brief biography of the owners and key employees. It is advisable to provide a resume for each of these individuals in the appendix.

The executive summary should be the last element of your plan. It should be the first element to be read and is the most important part of your plan. It should also be well-written. If you have any questions or concerns, the executive summary should be well-written. In addition to the executive summary, the other elements of your business plan should be included. There are several important sections of a proprietary position business plan. You can create a table of contents by following a simple format and organizing it the way you want.

The executive summary is the most important part of a business plan. It should be well-written and concise, and it should be as short as possible. Despite the importance of this element, the executive summary is the most important part of the plan, and should be written as a standalone document. It is not a replacement for the entire plan, but a useful supplement to your other elements. Once you have completed the other elements, you can then begin writing the executive summary.

Establishing a Proprietary Position in Your Business Plan

Your business plan should be focused on establishing a proprietary position. This type of business involves introducing a product to the market and selling it at a profit. The product description should be sufficient to demonstrate the viability of the idea and the stage of development. You should also discuss the extent of your invention and the necessary development to commercialize it. You should mention the key personnel that are responsible for developing the concept. Finally, explain why your product is better than competitors’ products. Your goal is to gain a sustainable competitive advantage.

Your business plan should also include an executive summary. This is the first element of the document and should be the last element to be written. This section is typically two pages long and highlights the more detailed categories of your plan. You will write this section after you’ve finished writing the rest of the plan. To make the most of it, write a brief biography of the owner or founder, as well as a summary of key employees.

The executive summary is a crucial part of your business plan. Investors and lenders will want to see the management team and the business model. The executive summary should include brief biographies of the company’s key employees, as well as their resumes. You should also summarize the experience and skills of these people, and highlight the relevant skills and experience. When writing your executive summary, you need to make sure that the details are correct and that you have backed your claims with facts.

Your business plan should also contain an executive summary. The Executive Summary is the first element of your plan that prospective investors and lenders will read. The Executive Summary should make the reader excited about the business idea and make them want to read the rest of the plan. It is also important to keep in mind that the Executive Summary is often the last part of your business. If you’re planning on writing a long business, it is important to include an executive summary.

The executive summary should be included in your business plan. It should include the company’s history and major goals. The company’s management team is essential to the success of the project, so a brief biography of the owners and key employees is essential. Your executive summary should be two to three pages long. This section should be an outline of the entire business. In addition, you should highlight the most important skills and experience of each key employee.

Your business plan should also contain a management team section. This is an important element for investors and lenders, and it is an important element of your business plan. The management team is crucial, as it is the backbone of your company. It is imperative that the management team has the experience and qualifications to run a successful business. The management team should be well-qualified and have a solid track record in the industry. This section should be a brief overview of the key employees.

Your management team section is important. Many investors and lenders will be interested in the management team of your business. The executives of your company should have experience in the same industry and be knowledgeable about their work. They should have knowledge of the current market, which is crucial for a successful startup. The executive summary should also include the company’s management team and the products and services they will offer. The management team should be an important part of your business plan.

Besides the executive summary, your business plan should also include the company description. Lenders and investors look for qualified management teams when they evaluate your company. Therefore, you should highlight the skills and experience of your management team. Your business plan should not only be about the product or service; it should also describe the company’s culture. The other elements of your business plan should include the people and the team. These components should not be neglected because they will help you in securing financing.

The executive summary is the first element of your business plan. It should be as short and as concise as possible, but it must include all of the important information and figures. In addition, the executive summary should also have a table of contents. This is an essential part of your business plan, as investors and lenders are likely to want to know who is behind the company. The executive summary should summarize key points and emphasize the skills and experience of the company’s management team.

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2023 strategic planning for proprietary systems.

As IT executives, it is important to stay informed about the latest technology trends and developments, particularly when it comes to development and database platforms.

Posted by Patrick Hamou on 2023:02:23 16:20:05

The IT industry continues to evolve rapidly, and organizations are increasingly turning to open source technologies to gain a competitive edge. Open-source development and database platforms offer several advantages over proprietary alternatives, particularly when it comes to cost, flexibility, and scalability.

One major benefit of open-source technologies is the ability to avoid vendor lock-ins. Proprietary software often comes with restrictive license agreements that limit the ways in which it can be used, making it difficult for organizations to switch to other technologies if they need to. In contrast, open-source software is free and open for anyone to use, modify, and distribute, giving organizations more control over their IT infrastructure.

Java and PostgreSQL are two open-source technologies that have gained widespread popularity in recent years. Java is a popular programming language that is widely used for developing web and mobile applications, while PostgreSQL is a powerful relational database management system that is well-suited for high-traffic, data-intensive applications.

Among other benefit of open-source technologies such as Java and PostgreSQL is their cost. Proprietary software often comes with high upfront costs and ongoing maintenance and upgrade fees, making it difficult for organizations to budget for. In contrast, open-source software is free to download and use, which can help organizations save significant amounts of money in the long run.

Open-source technologies are also more flexible and scalable than proprietary alternatives. With open-source software, organizations can easily customize and extend the functionality of the software to meet their specific needs. This flexibility allows organizations to adapt to changing business requirements and grow their IT infrastructure as their needs evolve.

Many organizations still use Oracle as their primary database management system. While Oracle is a powerful platform, it is also expensive and comes with restrictive license agreements. It is becoming more urgent for organizations to consider migrating to open-source alternatives such as PostgreSQL, which can provide similar capabilities at a fraction of the cost.

Migrating to an open-source database such as PostgreSQL or to development platforms such as Java can be a complex process, but it can be made easier with the use of automation tools. Automation tools can help organizations to plan and execute their migration in a more efficient and streamlined manner, minimizing the risk of disruption to their business operations.

In conclusion, open-source technologies like Java and PostgreSQL offer a number of benefits over proprietary alternatives, including cost savings, flexibility, and scalability. As organizations continue to face pressure to reduce costs and improve their IT infrastructure, it is important for IT executives to consider open-source technologies as a viable option.

RENAPS is a leader in Oracle to open-source migrations and can help you plan this transition with maximum efficiency and minimum disruption to your business operations. Let’s chat about your 5-year strategic plan and see if some of our solutions could fit in your future technological landscape!

Contact us at [email protected] for a quick chat about your IT objectives and strategic planning for 2023!

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Proprietary Technology: Overview, Types, Example

What is property our.

Proprietary technology be every combination of processes, instruments, or systems of related connections that are the real of a business or individual. These amalgams furnish ampere benefit press competitive advantage to the owners the proprietary technologies.

Company capable of create useful proprietary technologies in-house have awarded with a valuable plant and can either use it exclusively with profit from the sale of licensing their technology until other parties.

Access to worth proprietary engineering can also be purchased. Like option, however, is often costlier additionally comes with greater restrictions on the use of underlying technologies.

Understanding Proprietary Advanced

Proprietary technology involves an application, tools, or system that belongs exclusively to an enterprise. These are generally developed and used by the owner internally in order to produce and trade products other services till this end user or buyer. In other cases, they mayor be assuming to an end-user or customer for a cost.

In some industries, proprietary technologies are a principal determinant of success. As a result, they are confidential. Being carefully guarded within a public, they are protected legally due patents and copyrights . For many corporate, particularly in knowledge-based industries, intellectual eigentums ca make up a majority of assets on an entity’s balance sheet. For these businesses, investors and interested parties nach toward great lengths to assess also worth proprietary technologies additionally their contribution to business results.

One of the first steps a business can take the protect is proprietary our is to understand how values any asset it is.

Because research and development (R&D) expenses are something of a silent key to success, many businesses how not freeze give away hints to what they’re working on behind the scenes. Investment and investors try go uncover undisclosed break-throughs in incorporated propriety technologies as them can take advantage are custom investment accounts as now.

Types of Proprietary Technology

Manufacturer technology takes many form and depends on this natures of the business that owns it. Thereto can be both a physikal and an invangible asset developed and used by the organization. Electronic Visit Verification (EVV) Ownership Systems Approved by ...

For example, a company may own its own information system. To example, economic facilities evolve their own internal systems to collection and process data that is used intern. These systems can be found stylish a banker branch, where personnel input information when customers come in to do routine investment at who teller line. FAU Engineering Academics Win Business Plan Rivalry : Florida ...

Companies may also develop its proprietary software. Proprietary software shall the opposite of release software, which has no limitations the who uses it. You ownership is restricted to the publisher or distributor. Certain circumstances must be met before the owner allows an end-user access to the add-on. For example, a tax make company may charge customers a fee the use their software till complete their irs returns.

Key Takeaways

• Proprietary technology is a series of business, tools, or products possessed of business or individual, which provide to owner with a benefit or competitive choose. HHSC additionally TMHP want utilize the EVV Proprietor System Request Form to determine who business ... plan to onboard with an Approved Unique System ...
• Since protected technology is very valuable, it exists carefully guarded.
• Owners able protect their interests with patents and copyrights by limiting information access to employees, and about non-disclosure agreements.
• Proprietary technology may be tangible or intangible assets and may contains national business and software.

Examples is Proprietary Technologies

While the advantages out some proprietary technologies are clear, others are not so evident. And it's only through recombination with sundry technologies show the true worth is uncovered—an exertion available simply well-known as innovation.

The story of Xerox and Apple’s Steve Jobs is a classic example. Not knowing what they had at their hands in the late 1970s, Xerox essentially gave away the idea go a computer mouse to Jobs who went turn to use the technology in Apple’s early computer designs. Business Planning DEEPNESS DIVE (Pt. 2) — Gillian Percent

Proprietary tech is also a big part of one biotech industry. Let's says one company in this industry successfully develops ampere new drug to handling a major disease. Of patenting the processed, method, and the finish result of the drug, the company can reap substantial rewards after yours efforts toward develop its proprietary technology.

Protect Proprietary Technology

Companies go into great lengths to keep their proprietary technic secure. After all, organizations spend a lot of time, outlay, plus money on engineering this know-how for their products and services. Not taking the time to protect their interests could zauber natural for their operations. Why Having adenine Proprietary Alarm System is a Huge Downfall

Because it's that valuable, patented technology is always at risk. As above above, companies cannot protect myself by taking out patents and kopyrights on their proprietary advanced. These make the owner rights to the genius real and inhibit others by copying the innovations. Is you're on online business owner, it need a business draft. Keeps reading this blog to learn how to how business planning!

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Many corporations control and/or limit worker access to data. Employee may also be need to sign non-disclosure agreements (NDAs), a compact that provides the employer legal recourse wenn internal, confidential information is share with outside party. Companies may also need to continuously update their security systems to ensure there is no data breach, exposing their coverts to third parties.

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Cisco’s Plan for Keeping AI Systems Safe From Attack: Using AI

By Ian King

Cisco Systems Inc. is embracing a new approach to protecting artificial intelligence computing systems: using AI itself to keep them safe from attack.

The company, whose equipment serves as the backbone of computer networks, is introducing a service that relies on AI to automate security tasks, such as patching vulnerabilities, handling testing and deploying upgrades. It also can isolate an intrusion when it happens.

Beefing up cybersecurity is more important than ever as data centers refocus their computing power on developing and running AI models, according to Cisco Chief Executive Officer Chuck Robbins .

“The data centers that power ...

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Here's the new plan to boost background checks for guns bought at shows or online

Deepa Shivaram

People look at guns and ammunition at the Great American Outdoor Show on Feb. 9 in Harrisburg, Penn. Former President Donald Trump spoke at the event. Spencer Platt/Getty Images hide caption

People look at guns and ammunition at the Great American Outdoor Show on Feb. 9 in Harrisburg, Penn. Former President Donald Trump spoke at the event.

The Justice Department announced a new rule Thursday that will require anyone who sells guns to run federal background checks — a process that would cut down on what's been known as the 'gun show loophole.'

The rule expands the definition of what it means to be "engaged in the business" of selling firearms. The clarification means that background checks are required for the sale of guns not just at gun stores, but also for guns sold at flea markets, on social media and at gun shows.

Attorney General Merrick Garland said the new move will save lives.

Biden wants to boost background checks on gun buyers. But it's hard without Congress

"Under this regulation, it will not matter if guns are sold on the internet, at a gun show, or at a brick-and-mortar store: if you sell guns predominantly to earn a profit, you must be licensed, and you must conduct background checks," Garland told reporters.

The Justice Department said the new rule, which goes into effect 30 days after it is submitted, would affect roughly 23,000 unlicensed dealers. It has the potential to impact tens of thousands of gun sales each year. It also allows for better tracing of guns that are found at crime scenes, including mass shootings.

The new rule began as part of the Bipartisan Safer Communities Act

The clarification on the definition of what qualifies as engaging in the business of dealing firearms is a follow-up to part of the Bipartisan Safer Communities Act, which President Biden signed into law in 2022.

That law tweaked the definition of who is considered a gun dealer. As a follow-up to it, Biden signed an executive order last March, directing the Justice Department to take steps to close background check loopholes.

The rule clarifies some technical aspects of selling and owning firearms. For example, it adds a definition of "personal firearms collection" to allow firearms collectors to add or liquidate their collections without breaking the law. The rule also provides clarity on what those licensed to sell guns should do with their supply if they go out of business.

The White House says this rule will withstand challenges

It's difficult to estimate exactly how many gun sales and guns will be impacted by the new rule, but the Justice Department pointed to a 2017 study showing that about 22% of Americans said they acquired their most recent gun without a background check.

A senior White House official, who spoke to reporters on the condition of anonymity, said the administration has confidence the new ruling won't be stopped by legal challenges.

In Parkland, VP Harris urged greater use of red flag laws to prevent shootings

"We have confidence that this is legal. And strong regulations like this one are not in conflict with the Second Amendment" of the Constitution, the official said. "There's every reason that it should go forward."

Vice President Harris, who leads the White House Office of Gun Violence Prevention, said the change could prevent more gun sales to people who are domestic abusers, people convicted with violent felonies and children.

She cited the shooting at Columbine High School in 1999, which was carried out in part through weapons bought at gun shows without checks.

"This single gap in our background check system has caused unimaginable pain and suffering," Harris said.

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IR-2024-108, April 12, 2024

WASHINGTON — With the April tax deadline arriving next week, the Internal Revenue Service today reminded millions of last-minute tax filers that the agency has a variety of free tools and resources available on IRS.gov.

From tax preparation, answers to tax law questions, refund tracking, tax law research to business topics and more, IRS.gov has everything needed for taxpayers to file on time or get an easy, automatic six-month extension to file. The IRS also has special Saturday hours available at 70 Taxpayer Assistance Centers across the country to help taxpayers.

“Millions of taxpayers across the nation will be working on their tax returns during the final hours, and people should remember they have many ways to get last-minute help,” said IRS Commissioner Danny Werfel. “We have a variety of free tools on IRS.gov that can help with basic tax law questions, provide free filing options, update refund status and even provide ways to request an extension for more time to file. We’re continuing our expanded special assistance for taxpayers right through the final weekend of tax season with special Saturday hours at 70 locations.”

For most of the nation, the tax deadline is April 15. Taxpayers in Maine and Massachusetts have until April 17 to file and pay taxes due this year. This is because these states observe the Patriots’ Day holiday on April 15 this year and April 16 is the Emancipation Day holiday in the District of Columbia. Other taxpayers in disaster areas, certain active-duty military members and citizens living abroad automatically get more time to file; more details are below.

For taxpayers who need an extension of time to file their taxes, there are several options to get an automatic extension through Oct. 15. Although an extension grants extra time to file, it does not extend the obligation to pay taxes due on April 15, 2024. To avoid penalties and late fees, taxpayers who owe should pay either their full tax bill or at least what they can afford to pay by the April 15 deadline.

The IRS estimates 19 million taxpayers will file for an automatic extension.

The IRS has already received more than 100 million tax returns, with tens of millions more expected to be filed as the tax deadline approaches.

“Delivering tax season is a massive undertaking, and we greatly appreciate people in many different areas working long hours to serve taxpayers as the tax deadline approaches,” Werfel added. “This effort reaches far beyond the IRS and includes hard-working tax professionals, software providers, the payroll community as well as our colleagues in the state tax agencies. Their work helping taxpayers makes a difference.”

Get tax help, day or night

For those needing last-minute help, taxpayers will find filing information for individuals as well as businesses and self-employed on IRS.gov. For last-minute filers looking for free resources, IRS Direct File remains an option as does IRS Free File . Anyone can use IRS Free File to submit an extension of time to file regardless of their income.

IRS.gov is an important resource that can help in a number of areas:

• For answers to tax law questions, taxpayers will find tools like the Interactive Tax Assistant or they can use the Frequently Asked Questions tool to find answers to dozens of topics.
• To see federal tax information, taxpayers can use the Online Account . They'll find information such as a payoff amount, a balance owed, their payment history and key information from their current year tax return as originally filed. They can also get tax return transcripts.
• Use the Get Transcript tool to view, print or download their tax transcripts after the IRS has processed a return.
• Current and prior year forms , instructions and tax publications can be downloaded and printed anytime.
• Special information is available about tax credits and deductions , some of which can be overlooked. Available to individuals and businesses, credits can reduce the amount of tax due while deductions can reduce the amount of taxable income.
• Get the most up-to-date information about tax refunds using the Where's My Refund? tool and on the official IRS mobile app, IRS2Go .
• For payment information, Direct Pay is free and allows people to securely pay their taxes directly from their checking or savings account without any fees or registration. They can schedule payments up to 365 days in advance. After submitting a payment through Direct Pay, they’ll receive immediate confirmation. For more payment options, visit IRS.gov/payments .

Go paperless

The IRS encourages all taxpayers to file electronically and choose direct deposit to avoid refund delays. Filing on paper can significantly delay a refund. Tax software helps individuals steer clear of mistakes by doing the math. It also guides people through each section of their tax return using a question-and-answer format.

Some taxpayers get automatic extensions

Special rules offer some taxpayers more time without having to request an extension:

• U.S. citizens and resident aliens who live and work outside of the United States and Puerto Rico get an automatic two-month extension, until June 15, to file their tax returns. However, tax payments are still due April 15 or interest will accrue on the unpaid tax.
• Members of the military on duty outside the United States and Puerto Rico also receive an automatic two-month extension to file. Those serving in combat zones have up to 180 days after they leave the combat zone to file returns and pay any taxes due. Details are available in Publication 3, Armed Forces' Tax Guide .
• When the U.S. president makes a disaster area declaration, the IRS can postpone certain tax deadlines for taxpayers in affected areas. Taxpayers in qualified disaster areas do not need to submit an extension electronically or on paper. Information on the most recent tax relief for disaster situations can be found on the Extension of time to file your tax return page.

Find information on free local tax prep

The IRS' Volunteer Income Tax Assistance (VITA) program offers free basic tax return preparation to qualified individuals, including:

• People who generally make $64,000 or less.
• People with disabilities.
• Limited English-speaking taxpayers.

The Tax Counseling for the Elderly (TCE) program also offers free tax help for taxpayers, particularly those age 60 and older.

The VITA/TCE Site Locator can help eligible taxpayers find the nearest community-based site staffed by IRS-trained and certified volunteers. Demand is high for this service, so taxpayers may experience longer wait times for appointments. Taxpayers can use the locator tool to find an available site near them. It’s updated throughout the tax season, so individuals should check back or increase the distance from their location in their search if they don't see a nearby site listed.

MilTax , Military OneSource’s tax service, offers online software for eligible military members, veterans and their families to electronically file a federal return and up to three state returns for free.

Assistive technology options

At the online Alternative Media Center , taxpayers will find a variety of accessible products like screen reading software, refreshable Braille displays and screen magnifying software. These products include tax forms, instructions and publications. Many can be downloaded or viewed online as Section 508 compliant PDF, HTML, eBraille, text and large print.

Having trouble paying? IRS has options to help

For those who owe a payment with their tax return, the IRS has a number of payment options .

For taxpayers that are unable to pay in full by the tax deadline, the IRS recommends they should file their tax return and pay what they can, and apply for an online payment plan . By filing by the deadline, taxpayers will avoid failure to file penalties and interest – even if they’re unable to pay. Taxpayers can explore various payments options; they can receive an immediate response of payment plan acceptance or denial without calling or writing to the IRS. Online payment plan options include:

• Short-term payment plan – The total balance owed is less than $100,000 in combined tax, penalties and interest. Additional time of up to 180 days to pay the balance in full.
• Long-term payment plan – The total balance owed is less than $50,000 in combined tax, penalties and interest. Pay in monthly payments for up to 72 months. Payments may be set up using direct debit (automatic bank withdraw) which eliminates the need to send in a payment each month, saving postage costs and reducing the chance of default. For balances between $25,000 and $50,000, direct debit is required.

Though interest and late-payment penalties continue to accrue on any unpaid taxes after April 15, the failure to pay penalty is cut in half while an installment agreement is in effect. Find more information about the costs of payment plans on the IRS’ Additional information on payment plans webpage.

Adjust withholding to prevent tax "surprises"

Tax filing season is an excellent time for taxpayers to check their withholding to avoid a tax surprise when filing in 2025. Life events like marriage, divorce, having a child or an income change can all impact taxes.

The Tax Withholding Estimator helps people bring the tax they pay closer to what is owed. Employees can assess their income tax, credits, adjustments and deductions, and determine whether they need to change their withholding by submitting a new Form W-4, Employee's Withholding Allowance Certificate to their employer, not the IRS.

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America's facing a retirement disaster. There's a better way.

• Australia's superannuation system mandates employer-funded retirement contributions.
• US retirement plans, by contrast, depend on employee contributions to accounts like 401(k)s. 
• If the US adopted Australia's retirement model, it could impact wage levels.

For many around the world, retirement can be a mixed bag .

Australian retirees rate their retirement happiness at 70 out of 100, according to a survey of 1,000 Australians over 60 in February by the independent researcher YouGov and investment management company Challenger Limited. Money was ranked behind good physical health as the key to a happy retirement.

Meanwhile, the US retirement system has become anxiety-inducing for many, as older adults struggle to make ends meet . More than half of Americans over the age of 65 are earning under $30,000 a year, according to a report from Sen. Bernie Sanders published in March and based on National Retirement Risk Index data.

What's more, Pew Research Center data shows that Americans over 75 are the fastest-growing age group in the workforce, a demographic that could double in the next decade. That's because many can't afford to stop working.

In the US, retirement accounts are a company benefit that employees can choose to contribute some of their paychecks to throughout their careers. Companies are not federally required to offer any kind of retirement savings account for employees or provide any monetary support for retirees. And many Americans living paycheck to paycheck aren't able to save enough to stop working.

Australia , however, requires that employers make regular contributions to a retirement fund for each employee — a system called superannuation.

Catherine Reilly, a fellow at the financial research firm TIAA Institute and a non-resident scholar at Georgetown University's Center for Retirement Initiatives, said Australia's system makes sure all adults have a retirement fund.

"Everybody is put into a plan," she said. "Whereas in the US, you only get put into a plan if you'd work for an employer that offers it."

Seventy-one percent of nonretired Americans said they are at least moderately worried about being able to fund their retirement , according to a Gallup poll of 1,013 US adults in April 2023.

Reilly said there are structural differences in how America and Australia handle savings for older adults. And while it may be tough to implement Australia's system halfway around the world — but the US could get close, she said.

Australian retirement system puts saving responsibility on employers, not employees

America's current retirement infrastructure includes two major categories: defined contribution plans and Social Security .

Defined contribution plans , which include 401(k) and IRA accounts allow employees to save and invest money that they make throughout their career, usually by depositing a percentage of their regular paycheck directly into the accounts.

Companies might also contribute to an employee's 401(k), but they are under no federal requirement to do so. The retirement accounts an employee has access to and what benefits they retain after they stop work all depend on what retirement package an individual company offers.

In a 2024 letter to investors , BlackRock CEO Larry Fink said the US retirement system puts undue pressure on employees to decide how much money to save and invest. With the rising cost of living in many US cities, it can be difficult for Americans to predict how much money they are going to need, an issue Fink called an "impossible math problem."

Fink encouraged American policymakers to study Australian superannuation , saying the "benefits could be enormous for individual retirees." 

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Social Security also comes into play when Americans retire, providing monthly government income benefits based on an individual's reported earnings. The federal insurance program is funded by taxes and provides income to retirees and workers with disabilities. Many retirees collect Social Security checks in addition to living off their 401(k) savings.

However, the Social Security trust is expected to be depleted by the mid-2030s unless there's an invention.

Traditional fixed-income pensions are no longer a common company benefit in the US, but are still offered by select government and public service jobs .

In Australia, however, companies are legally required to contribute 11% of an employee's monthly paycheck into their retirement account. This money can go into stocks, property, cash, or bonds — the employee has a choice. Employees can also contribute money, but much of the savings responsibility falls on their employer.

The employer contribution amount is set to increase to 12% next year.

Once they reach retirement age, which is between 55 and 60, depending on birth year, Australians can access the fund with their savings and investment earnings.

"It does level the playing field because everybody is put into a plan," Reilly said, adding that Australians have more choice in where and how their retirement money is saved.

As Reilly explained, superannuation also allows retirees to access their money all in one place.

This differs from the American system, where retirees' money is often held between a 401(k), other accounts, and outside investments. If an American employee works at multiple different companies during their career, Reilly said it can also complicate their retirement funds.

Additionally, Australian government age pensions aren't the same as Social Security. Retirees must meet a low enough asset criteria to access the age pension. Reilly said the more limited pension might be a disadvantage of the Australian system because many people's retirement is almost entirely dependent on their superannuation funds.

If the US adopted superannuation, it could impact employee salaries

Although the Australian government sets the terms for superannuation, it is managed by the private sector. Employers manage the retirement funds for their employees without much political oversight.

If America adopted superannuation, Reilly expects the system would work similarly — the federal government could establish what percentage of an employee's income employers need to contribute, but then companies could organize the retirement funds on their own.

She pointed to pooled-employer plans , a retirement fund strategy that is already being tried in the US, allowing multiple companies to contribute to a single retirement fund for an employee if that person chooses to work at different companies throughout their career. Some individual states, such as California and Colorado, also require that employees are automatically enrolled in some kind of retirement plan.

"In the US, the infrastructure for having the private sector manage these funds — that all exists already," Reilly said. "And I think that would be a sensible way to do things."

Still, Reilly cautioned that applying Australia's retirement system to the US could negatively affect employee wages . Because, for companies, it would be "very unpopular," she said.

When a company hires someone new, she said they consider the total cost of employing that person. This includes salary, bonuses, and benefits . If US employers become legally required to contribute to retirement funds, Reilly said companies may lower their employees' salaries to offset this new cost.

Still, a system like superannuation could help ensure a retirement fund for the 56 million private sector employees who don't have retirement benefits through their employer, The Pew Charitable Trust reported in January.

Did you retire and later choose to return to work? Do you feel like you can't retire because of your financial situation? Reach out to this reporter at [email protected] .

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