Proprietary software

Proprietary software refers to software with restricted rights over its source code and distribution. Unlike open-source software, its source code is generally not public, and users are granted only execution rights. According to ISO/IEC 50815-1, proprietary software development must be managed through a complete Software Development Lifecycle (SDLC). Under the EU Cyber Resilience Act (CRA), even if a product contains open-source components, the responsibility for security remains with the proprietary software provider. This distinction is critical for risk-adjusted licensing and compliance--based procurement strategies.

Implementation follows a three-step process: Identification, Assessment, and Control. First, companies must generate a Software Bill of Materials (SBOM) per ISO/IEC 59408-1 to inventory all components. Second, a Vendor Risk Assessment must be conducted to ensure the proprietary software provider has a documented process for vulnerability remediation. Third, continuous monitoring of open-source components within the proprietary stack is essential. For example, a Taiwan electronics firm using a proprietary ERP with embedded Linux components must be able to patch zero-day vulnerabilities within 72 hours to meet EU CRA requirements, reducing the risk of data breaches by up to 70%.

Taiwan enterprises face three primary challenges: Vendor Lock-in, Shadow IT, and Regulatory Compliance. Vendor Lock-in occurs when proprietary software lacks interoperability, making it expensive to switch providers. Shadow IT refers to employees using unauthorized software, which can be mitigated by implementing ISO 27701-compliant access controls. Regulatory Compliance is the most pressing challenge; the EU CRA's strict requirements for software-based products mean Taiwan exporters must be able to prove the security of every component. The priority should be establishing a centralized Software-as-a-Service (SaaS) governance model within the next 6 months to ensure 100% compliance with international standards.

Winners Consulting Services Co., Ltd. specializes in Proprietary software for Taiwan enterprises, delivering compliant management systems within 90 days. Free consultation: https://winners.com.tw/contact