What Does “Proprietary” Mean in a Contract?
Owned by and exclusive to one party; property rights that prevent others from using without permission.
Detailed Explanation
"Proprietary" indicates ownership and exclusivity. Proprietary information is owned by one party and not available to others without permission. Proprietary technology belongs exclusively to its owner.
In contracts, "proprietary" often appears in confidentiality and IP sections, describing things that must be protected because they represent valuable, owned assets.
Example in a Contract
“Contractor acknowledges that all specifications, designs, and methodologies provided by Company are proprietary information of Company and shall be maintained in strict confidence.”
Why It Matters
When something is labeled "proprietary," it means you don't own it and must treat it carefully. Using someone's proprietary information or technology without permission can lead to serious legal consequences.
Related Terms
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