Legal Definitions - proprietary power

Proprietary power refers to a type of authority or control that is intrinsically linked to an individual's ownership, legal right, or significant personal stake in a particular property, asset, or enterprise. It is often described as "power coupled with an interest," meaning the power holder possesses not just a temporary or revocable permission, but a vested right that gives them the authority to act. This kind of power is typically irrevocable by the grantor and can often be transferred along with the underlying interest.

Here are some examples illustrating proprietary power:

• Business Partnership: Imagine two individuals who are equal partners in a small manufacturing company. As partners, they each own 50% of the business's assets and profits. Because of their ownership stake (their "interest"), each partner also has the inherent authority (the "power") to make significant decisions regarding the company's operations, enter into contracts on its behalf, or even vote on its dissolution. This power is proprietary because it stems directly from their ownership interest in the business, rather than being merely a delegated task that could be revoked at will by the other partner.

• Mortgage Lender's Rights: Consider a bank that provides a mortgage loan to a homeowner. The bank doesn't own the home outright, but it holds a lien (a legal claim) on the property as security for the loan. This lien represents the bank's significant financial "interest" in the property. If the homeowner defaults on their payments, the bank has the legal "power" to initiate foreclosure proceedings, take possession of the property, and sell it to recover the outstanding debt. This power is proprietary because it is directly tied to the bank's secured financial interest in the property itself.

• Copyright Holder's Authority: An author who writes and publishes a novel automatically acquires a copyright to their work. This copyright grants the author an exclusive ownership "interest" in the intellectual property. As the copyright holder, the author possesses the sole "power" to reproduce the book, distribute copies, create derivative works (like a movie adaptation), or license these rights to others. This power is proprietary because it arises directly from their legal ownership of the copyrighted material, allowing them to control its use and exploitation.