Department of Computer Sc.

& Eng
Seminar on IPR Acts
Trade Secrets

1
Submitted To:Mr. Loveleen Tak

Presented By:
Name: - Lokesh Kumar
Roll No: - 27
IV-C

Table of Contents
This Presentation will Include following Points.

What is trade secret?

Comparison with patents

Examples

Trade Secret Misappropriation

Case Study

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.

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

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 ones business;
The extent to which it is known by employees and
others involved in ones business;
The extent of measures taken by one to guard the
secrecy of the information;
The value of the information to one and ones
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.

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

information.

Have the people who know the trade secret agree in

writing not to disclose the information (sign nondisclosure 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.

of

people

who

know

the

Comparision with Patents

Comparision
Criteria

Patents

Trade Secret

Cost

It Requires money It
does
not
to get Patent of requires
any
the Technology
money for trade
Secret.

Secrecy

It is a public It is kept as secret

information.
.

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

Most Famous Trade Secrets

of the world.
1. Google Search Algorithm

3. KFC Chicken Recipe

2. Coca Cola Recipe

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

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

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Claim for misappropriation

of Trade Secret
Following 6 Steps must be used
misappropriation of trade secret:

Existence

Ownership

Access

Notice

Use

Damages

for

claim

for

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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.

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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

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References

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

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

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

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Queries?

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