BUSINESS C12V BUSINESSC12V BUSINESS/C12V Assignment 4

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BUSINESS C12V BUSINESSC12V BUSINESS/C12V Assignment 4

1.A safely guarded recipe, which produced a distinctive and refreshing soft drink, turned Coca-Cola into a billion-dollar company.

The whole business of this company centered around its unique recipe. Thus the company gave tremendous effort in keeping this recipe a secret and till now it is one of the closely guarded and best kept secret in business world.Coca-Cola Company.

Instead of using patent legislation to protect its business interest, opted for trade secret protection and decided to keep the recipe of their product as a secret to safeguard its advantage over other competitors.

And this brilliant idea turned the fortunes of the company in a way that very few could have predicted at the time.The logic behind ignoring patent protection was that if patented, it would have got the protection for only 17 years under the Patent Act of 1836 (35 U.S. Code) which was only extended to 20 years in 1995 .

In addition, in case of patent protection a detailed description of the invention is mandatory under specifications. So the company would have been forced to reveal its secret recipe and after the expiry of the protection period any other company would have been able to use the formula to recreate the same drink and sell in the market.

Prefatory Note of Uniform Trade Secrets Act with 1985 Amendment by stating,

“A valid patent provides a legal monopoly for seventeen years in exchange for public disclosure of an invention. If, however, the courts ultimately decide that the Patent Office improperly issued a patent, an invention will have been disclosed to competitors with no corresponding benefit. In view of the substantial number of patents that are invalidated

BUSINESS C12V BUSINESSC12V BUSINESS/C12V Assignment 4

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BUSINESS C12V BUSINESSC12V BUSINESS/C12V Assignment 4

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