Business secrets and why should business secrets be protected?

1. Definition of trade secret

For an existing business or a new business to survive, develop and stand firm in this environment, it is necessary to have the capacity to create or receive useful information necessary to create its own business. Produce and deliver new or improved goods and services to the market. Such useful information is "business secrets" (also known as "trade secrets"). Competitors often find ways to access this information in easy ways, such as bribing or simply hiring your key employees who created or have access to this information. Confidential and useful information that is giving your business a competitive advantage. To prevent the deterioration or loss of competitive advantage that this information provides, a successful company must protect its assets or confidential information.

2. A trade secret is defined as any information that:

- Generally unknown within the relevant business community or to the general public.

- Creates economic benefits for its owner. This benefit must arise from the fact that the information is generally unknown, not just from its value; and

- Necessary efforts are required to maintain this secrecy.

A trade secret continues to be maintained as long as the information continues to be kept confidential. Information that is easily and completely disclosed through simple research of goods on the market cannot be a trade secret.

3. Why should trade secrets be protected?

- Trade secret law seeks to maintain and promote ethical standards and fairness in commerce.

- The main purpose of trade secret law is to create incentives for innovative businesses by protecting the significant time and capital invested in developing innovations that provide competitive advantage. , both technically and commercially, especially innovations that are not patented or not yet eligible for patenting.

- If not protected by trade secret laws, competitors of that business can use these innovations without having to bear any costs and risks during the research process. and develop these innovations.

4. Learn more about Coca-Cola's business secrets:

The process for defending the Coca-Cola formula (also known as “7X Commodities”) as told by a Senior Vice President and General Counsel for Coca-Cola at a trial, is as follows:

The paper documents describing the secret formula were kept in a secured vault at the Trust Bank in Atlanta, which could only be opened by a Resolution of the Company's Board of Directors. It is the Company's policy that at any time only two persons within the Company are aware of the formula, and only those persons may supervise the actual preparation of 7X Commodities.

The company also refused to reveal the identities of these people and did not allow these people to fly on the same flight. Similar precautions apply to the secret formulas of the Company's other Cola beverages such as: Diet Coke, Caffeine Diet Coke, TAB, TAB does not contain caffeine and Coca-Cola does not contain caffeine.