In the success of a business, trade secrets play a crucial role. It is said to be a private piece of information essential in giving the company a competitive edge over its rivals. It also gets the companies more profit and attention when they are hidden. Sometimes, they even get mentioned in the advertising of the company products.
For many companies, they are the lifeblood. Notably, these resonate in the food, technology,
and manufacturing industries because they need to be easily duplicated by their competitors. Due to their importance, businesses protect them in many ways, including non-disclosure agreements, patent protection, trademark registration, and other legal measures.
Coca Cola
Any good company with a trade secret to protect needs a good copyright lawyer. One of these companies with trade secrets is the Coca-Cola Company. Anyone would be familiar with Coca-Cola because of its iconic, nostalgic advertising and red and white imagery, paired with the product’s caffeine and trademark sweet taste.
The recipe for the iconic caffeine drink has been filed as a trade secret. One rationale for such a decision was that the recipe would be disclosed if they opted to patent.
Rumors say that cocaine is part of the recipe ingredients or contains bugs or insects. The defamation rumors, which encompass these, are reasons why Coca-Cola opted to keep the recipe elusive.
Funnily enough, in 2006, three (3) people stole the recipe for the formula and sold it to Pepsi. One was an employee. The rest was two (2) companions. Pepsi had them arrested instead.
Google Algorithm
Who invented surfing on the Internet? Of course, it is Google! When stuck, we turn to Google. When we’re lost, we turn to Google. Without Google products, what are we?
Google is convenient. Its search engine works with the help of a secret search algorithm that continues development and refinement. However, the algorithm behind it has never been revealed. Therefore, it is Google’s trade secret.
The New York Times Bestseller List
The New York Times is the book list with the most influence in the country. However, there is no formula for what constitutes a best seller. The criteria are tricky to figure out however, the Times does get information about sales figures from chain stores, independent bookstores, and wholesalers.
The Times does not disclose its system as it might be manipulated. As a result, when employees are asked about it, they provide non-answers. There are official books on the list and unofficial ones.
Listerine
Another one is Listerine. Whenever trade secrets are taught in law schools, Listerine is used as a famous example. The inventor of Listerine had a secret formula, and they licensed it. The formula then was given and licensed to Lambert Pharmaceuticals, which would later become Pfizer. Pfizer eventually paid royalties to the inventor’s family for over 70 years.
Pfizer tried to put a stop to paying. This occurred after paying over $22 million for a no longer secret formula. It sued. The court then noted that the contract did not consider that payments could be stopped if the trade secret was legitimately discovered by others, mainly since Pfizer had acquired the formula when it was still secret and had benefited from it.
Wrapping Up
A company’s success is also derived from trade secrets, as these help cement its marketing position. As such, small things can carry weight.
