What is proprietary data?

The term proprietary data is used to describe data that belongs to an individual or organization that is considered important enough to give that individual or organization a competitive advantage. This data may be protected by copyright or patent laws. In the world of espionage and trade secrets, it is important for organizations to manage their data in this legal way.

man holding computer

To stay competitive, organizations take serious steps to protect their sensitive data. Organizations typically require anyone who works with them to sign a contract that includes a confidentiality agreement. This agreement obliges third parties not to share any proprietary data they obtain by analyzing and discussing the confidential data in question.

With the expansion of software development across the global economy, proprietary data plays an important role in software licensing. The term proprietary software is used to describe the proprietary data contained in an application’s software code. This proprietary software is normally protected by copyright laws, which limit re-use of the software without purchasing additional licenses.

Interactions with financial institutions also involve issues of personal proprietary data. As the global market has expanded, consumers have made personal financial information available to organizations. This data is considered private and must be kept confidential between the consumer and the organization. It is the responsibility of the financial institution or other organization to control and ensure the security of this data.

Data security experts are the guardians and shepherds of proprietary data for organizations. These security experts focus on protecting sensitive information in an attempt to reduce the unauthorized release of proprietary data that can affect an organization’s profits and performance. Data security teams routinely look for malicious software that can penetrate an organization to steal confidential information.

See also  Which email service providers have a bounce receipt option?

Video piracy of motion picture products has consistently plagued the theater industry for many decades. This violation of copyright law is a prime example of why it is important to maintain control over products. With the continuous deployment of illegal copies of movies and software, organizations are losing large sums of revenue, which in turn increases the cost of consumer products.

In an effort to reduce the exposure of proprietary data, many software companies continually develop new processes to make copying information difficult, if not impossible. These protections are the first step towards reducing piracy of music, movies and software. With each new set of safeguards, however, pirates quickly develop methods to circumvent the measures, forcing companies to develop even newer safeguards.

Leave a Comment