Posted tagged ‘Confidential Information’

Let’s keep it hush hush!

May 13, 2010

I’m absolutely hundred percent certain that all of you know Coca-Cola the word’s most popular soft drink! It’s been more than a decade that Coca-Cola has been protecting its exact formula of natural flavourings which has stated a popular myth that only its two executives have access to the formula, with each executive having only half the formula. 

What I’m trying to say is that the formula for Coca-Cola is the most famous trade secret. Let me get into detail, trade secrets are any confidential information that companies keep secret to give them a competitive edge. The subject matter of trade secrets is explained in a range of terms like knowledge, idea, managerial capabilities, sales methods, advertising strategies, manufacturing process and lists of suppliers and clients. 

But a final determination of what information comprises a trade secret will depend on how companies prove that it adds value to their businesses. In addition it has to be non-disclosed or in one word it must be secret, Otherwise can’t be claimed as a trade secret! Some of the pros of trade secret are, it’s not limited to time, I mean, you can continue indefinitely as long as your secret is not revealed to the public. You don’t need to pay any registration fees although you may incur high costs related to keeping your information confidential! It has an immediate effect and also it doesn’t require compliance with formalities such as disclosure of the information to a government authority. 

On the other hand, there are some cons. For instance, if the secret results in an innovative product, others may analyze it and find the secret, therefore they can use it as well. Once the secret is revealed to the public anyone can have access to it. In comparison with patent, it’s considered weak because it is difficult to enforce. And finally a trade secret may be patented by someone else who expanded the related information through legal means.   

Let me know what you think. 

Sourc:  World Intellectual Property Orgnization (wipo)