Also known as:closed-source · proprietary software · proprietary
Written by attorneys · grounded in primary & secondary sources — see below
Software whose source code is withheld from users and cannot be inspected or altered without damaging the program or infringing the developer's ownership rights. Proprietary software is ordinarily closed source.
Sources & Authorities
How it applies
Common Examples
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Statement Against Interest in Code
Claire Campbell, a former engineer at Cobalt Energy, told a colleague that the firm's closed source energy-management software contained a flaw she had concealed. The statement exposed her to liability for the defect. At trial the colleague's testimony is offered against Claire under the hearsay exception for statements against proprietary interest.
Lawyer Acquiring Interest in Code
Connor Clark represented Crystal Dynamics in litigation over its closed source game engine. Without client consent Clark took an ownership stake in the engine's licensing revenue. The acquisition violated the prohibition on obtaining a proprietary interest in the subject of the representation.
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Cases
Statutes
Federal Rules
Uniform Acts
Model Codes
Restatements
Dictionaries
Control Over Prior Code Suit
Cobalt Energy financed and directed a competitor's earlier suit challenging the validity of a closed source software licensing agreement. After the court upheld the agreement, Cobalt sought to bind the competitor in a later action involving the same license. The prior determination precluded relitigation because Cobalt had assumed control over litigation in which it held a direct proprietary interest.
Originality of Closed Source Listing
Cardinal Insurance compiled a closed source database-management program by selecting and arranging data already in the public domain. A rival copied the selection and arrangement routines. The program received no copyright protection because the selection and arrangement lacked the minimal originality required for protection.
Feist Publications, Inc. v. Rural Telephone Service Co.499 U.S. 340, 349-350 (1991)
Fair Use of Closed Source Manuscript
Compass Logistics published excerpts from a closed source corporate software manual in a news article about industry practices. The manual's owner sued for infringement. The use was not fair because the article took the heart of the work and harmed the market for the original closed source publication.
Harper & Row Publishers, Inc. v. Nation Enterprises471 U.S. 539, 566 (1985)
Right of Publicity in Closed Source Performance
Caitlin Crowley performed a closed source virtual-reality stunt routine coded into proprietary software that a broadcaster recorded and aired without consent. She sued for misappropriation of her performance. The right of publicity protected her proprietary interest in the closed source act even though the broadcast occurred in a public venue.
Zacchini v. Scripps-Howard Broadcasting Co.433 U.S. 562 (1977)
Common questions
Frequently Asked
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How does closed source software differ from open source software in terms of user rights?+
Closed source software withholds the source code, preventing users from inspecting or modifying it without violating ownership rights. Open source software makes the code available for inspection and modification under license terms that typically permit such activity.
Supporting sources
Can a statement about a flaw in closed source software qualify as a statement against proprietary interest?+
Yes. A declarant's admission that concealed a defect in closed source software can be against the declarant's pecuniary or proprietary interest and therefore admissible under the hearsay exception when the declarant is unavailable.
Does a lawyer violate professional conduct rules by acquiring an ownership stake in a client's closed source technology?+
Yes. Acquiring a proprietary interest in the subject matter of litigation or representation, such as revenue from a client's closed source code, is prohibited unless an exception such as a court-authorized lien or contingent fee applies.
17 U.S. (4 Wheat.) 316 (1819)Business Associations
…by the real property of the Bank of the United States in common with other real property in a State, nor to a tax imposed on the proprietary interest which the citizens of that State may hold in this institution in common with other property of the same description throughout the State. Opinion of Chief Justice…