Proprietary products litter the technological landscape that we live in. It is those products that can only work with a specific device. countless people use the products and never think why this disc only works with this media player, or why this film only works in this specific video camera? This article will analyze and compare the advantages many companies gain with the use of proprietary products.



The definition of a proprietary product is defined as an idea or object that is owned entirely by the owner. Proprietary products, ideas and objects are the property of the owner and cannot be recreated without the consent of the owner. Patents are usually involved covering the idea, object and product.

The biggest advantage companies get by using proprietary formats is quality control. Many companies are able to control their products if they are the ones responsible for making it. This is extremely important if a company has associated itself with good quality. Releasing control of their products means a company that does not pride itself on quality could end up making an inferior product. Case in point is the Memory Stick Duo produced by Sony. Sony chooses which companies are allowed to create these cards, and they more than likely have strict control practices. Sony also has become associated with quality, so their goods will be held to the highest of standards, especially if they are the ones controlling it.

The creation of proprietary products by companies leads to the big advantage that cannot be ignored, that of large profits. Olympus as the leader in digital cameras is the perfect example of a company who benefits tremendously from the revenue generated by proprietary products. They have a hand in almost every section of the popular digital camera market. This is a very big advantage to keep profits within the company by having their devices work with only their products. Benefits of proprietary products are also seen in the revenue aspect of business. If a company owns the exclusive right to something, then they have the advantage of receiving all the sales for that specific product. Camera manufacturers such as Olympus have struck gold with the creation of their xD Picture Card. With thousands of digital cameras sold daily and added way to earn more revenue is allowing those same cameras to only work with the xD picture card. This guarantees a solid stream of income for those same camera manufacturers.

The advantages of proprietary products are two fold for manufacturers. The benefits of revenue and quality control are something that the use of proprietary products offer. With control over quality, manufactures that they are getting the best product possible. The use of proprietary products can open up revenue streams for companies that make their devices useable with their own proprietary products.