reverse engineer
Definition
Reverse engineering means taking apart a finished product to figure out how it was made or how it works. Companies do this to understand a competitor's technology, recreate a product, or build something compatible with it. Laws and contracts often restrict or permit this practice depending on the industry and situation.
Example
A software company might reverse engineer a competitor's file format so their program can open and save files in that format, the same way Microsoft Word can open Google Docs files.
Watch Out
Many contracts you sign with software vendors or suppliers include clauses that specifically prohibit reverse engineering, and violating those clauses can expose your business to a lawsuit even if the reverse engineering would otherwise be legal.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.