1

Seminar on IPR Acts

Presented By:Name: - Lokesh KumarRoll No: - 27IV-C

Submitted To:-Mr. Loveleen Tak

Trade Secrets

Department of Computer Sc. & Eng.

2 Table of Contents

This Presentation will Include following Points.

What is trade secret?

Comparison with patents

Examples

Trade Secret Misappropriation

Case Study

3 What is Trade Secret

A trade secret is a formula, pattern, physical device, idea, process, or compilation of information which is not generally known or reasonably ascertainable, by which a business can obtain an economic advantage over competitors or customers.

4 Examples of Potential Trade Secrets

a formula for a sports drink

survey methods used by professional pollsters

recipes

a new invention for which a patent application has not yet been filed

marketing strategies

manufacturing techniques

computer algorithms

5 Determinant of Trade Secret

Some factors to be considered in determining whether given information is one's trade secret are: The extent to which the information is known

outside of one’s business; The extent to which it is known by employees and

others involved in one’s business; The extent of measures taken by one to guard the

secrecy of the information; The value of the information to one and one’s

competitors; the amount of effort or money expended in developing the information;

The ease or difficulty with which the information could be properly acquired or duplicated by others.

6 Ways To Protect Trade Secret

Some of the ways to protect a trade secret are as follows:

Restrict access to the information (lock it away in a secure place, such as a bank vault).

Limit the number of people who know the information.

Have the people who know the trade secret agree in writing not to disclose the information (sign non-disclosure agreements).

Have anyone that comes in contact with the trade secret, directly or indirectly, sign non-disclosure agreements.

Mark any written material pertaining to the trade secret as proprietary.

7 Comparision with Patents

Comparision Criteria

Patents Trade Secret

Cost It Requires money to get Patent of the Technology

It does not requires any money for trade Secret.

Secrecy It is a public information.

It is kept as secret .

Time It is valid for only 20 Years after which it is made as public information.

It can be held for as long as the information is not disclosed.

Enforcement It is easier to enforce as rules exist to regulate patent.

No rules exist to enforce trade secrets hence no legal action may be taken.

8 Most Famous Trade Secrets of the world.

1. Google Search Algorithm 2. Coca Cola Recipe

3. KFC Chicken Recipe

9 Advantages of Trade Secret Protection

Unlimited duration -trade secrets could potentially last longer than patents (20 years) and copyrights

Your protection is theoretically worldwide

No application required

No registration costs

No public disclosure or registration with government agency

Effective immediately

10 Trade Secret Misappropriation

This occurs where someone acquires, uses and/or discloses your trade secrets without your permission and in an improper manner

11 Claim for misappropriation of Trade Secret

Following 6 Steps must be used for claim for misappropriation of trade secret:

Existence

Ownership

Access

Notice

Use

Damages

12 Coca Cola Vs. Williams, Dimson, Duhaney

A federal grand jury indicted three people on Tuesday July 11, 2006 on a misappropriation of trade secrets conspiracy charge alleging they tried to sell Coca-Cola trade secrets to Pepsi and were willing to give the information to the “highest bidder,” as new details emerged about the scheme and the suspects.

The alleged plans were foiled after Pepsi, based in Purchase, N.Y., warned Coca-Cola.

Former Coca-Cola administrative assistant Joya Williams and ex-cons Ibrahim Dimson and Edmund Duhaney pleaded not guilty at their arraignment.

13 Coca Cola Vs. Williams, Dimson, Duhaney

The three were arrested on a criminal complaint that included charges of wire fraud and unlawfully stealing and selling Coke trade secrets. The indictment for a single count of conspiracy sets the case on course for trial.

Joya Williams, 42, of Norcross, Ga., received an eight-year prison term, while Ibrahim Dimson, 31, got a five-year term

14 References

http://money.cnn.com/2007/05/23/news/newsmakers/coke/

http://www.mondaq.com/india/x/204598/Trade+Secrets/Trade+Secrets+In+Indian+Courts

http://money.howstuffworks.com/10-trade-secrets.htm#page=10

15 Queries?

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