Basic procedural knowledge

Know-how is different from other kinds of knowledge such as propositional knowledge in that it can be directly applied to a task. Procedural knowledge about solving problems differs from propositional knowledge about problem solving. For example, in some legal systems, this knowledge or know-how has been considered the intellectual property of a company, and can be transferred when that company is purchased.

One limitation of procedural knowledge is its job-dependence; thus it tends to be less general than propositional knowledge. For example, a computer expert might have knowledge about a computer algorithm in multiple languages, or in pseudo-code, whereas a Visual Basic programmer might only know about a specific implementation of that algorithm, written in Visual Basic. Thus the 'hands-on' expertise and experience of the Visual Basic programmer might be of commercial value only to Microsoft job-shops, for example.

One advantage of procedural knowledge is that it can involve more senses, such as hands-on experience, practice at solving problems, understanding of the limitations of a specific solution, etc. Thus know-how can frequently eclipse theory.

In intellectual property law, the know-how is a parcel of closely-held information relating to industrial technology, sometimes also referred to as a trade secret which enables its user to derive commercial benefit from it. It is a component of the intellectual property rights on its own merits in most legislations but most often accompanies the license to the right-of-use of patents or trademarks owned by the party releasing it for circumscribed use. Knowhow does not however solely comprise of secret information that is not in the public domain; it is a "bundled" parcel of secret and related non-secret information which would be novel to an expert in the field of its usage.