If you run an R&D-centric business or a business that has developed a well-crafted approaching to servicing and selling to customers, you know that trade secrets are an essential example of IP protection. Their value stems from the fact that they remain a secret, allowing organizations to monopolize the trade secret protection for their own benefit. By declaring something a trade secret, you ensure that no competitor can copy your process, formula, program, or technology.
Another key benefit of trade secret protection is that it has no time limit, as long as you take the appropriate steps to protect your rights. There are also no maintenance fees or registration costs to protect trade secrets. Finally, trade secrets can also be marketed, increasing curiosity around your brand and garnering the interest of more consumers.
Not sure how to leverage trade secrets for your business? Read on for four famous examples of trade secrets from different industries and how they impacted their organizations!
- Coca-Cola
In 1981, Coca-Cola chose to keep its Coke syrup recipe a trade secret instead of patenting it, which would have disclosed the ingredients. This secret led to the creation of many rumors, like the one that two employees each know only half of the recipe. In 2006, a Coke employee tried selling the formula to Pepsi, but Pepsi blew the whistle, and the employee was arrested.
- WD-40
Originally, WD-40 was designed to prevent corrosion. The chemist who designed it kept the formula secret, which allowed him to sell it later. The company hasn’t patented it, but it did reveal that it contains agents that did not cause cancer. The only time the formula has been out of a bank vault is when the company’s CEO carried it (clad in armor) to celebrate his birthday.
- Kentucky Fried Chicken
KFC’s “secret recipe of 11 herbs and spices” is almost as famous as their “finger lickin’ good” company slogan. The recipe is always under lock and key in a Louisville safe, and nobody has the full list of ingredients. The famous fried chicken is made by two separate companies, with one of them blending part of the spice recipe and the other company mixing the rest.
- Bush’s Baked Beans
After hitting the market back in 1969, it didn’t take long for Bush’s to become a top-selling brand of canned beans. One reason for that lies in the flavorings, which were the subject of a popular 1990s ad campaign touting the “secret family recipe.” The ads starred the grandson of founder A.J. Bush and his talking golden retriever, who was always ready to “spill the beans.”