The document discusses trade secrets, defining them as confidential business information with commercial value that is kept secret through reasonable measures. It details types of trade secrets, protection methods, advantages and disadvantages of trade secret protection, and highlights a famous example involving Kentucky Fried Chicken's proprietary recipe. Additionally, it contrasts trade secrets with patents in terms of protection and enforcement.

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All Right Reserve © Faculty of Design Lect. Anil Kumar (Textile Design)
Trade Secret
(Not to disclose)
Anil Kumar , Lecturer (Textile Design)
Pandit Lakhmichand State University of Performing & Visual Arts , Rohtak
E-mail-anilvns143@gmail.com
Mobile no. +919729138649

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All Right Reserve © Faculty of Design Lect. Anil Kumar (Textile Design)
Trade Secrets?
These information may be consider as Trade Secret.
 Trade secrets are confidential information that has
commercial value by virtue of being kept secret
and reasonable steps have been taken to keep it
secret.
 Confidential Business Information is know as the
trade secret.
 Provides competitive edge for the organization.
 It is not generally known to others dealing with
that type of information.
 It has commercial value because it is secret .
 Reasonable steps have been taken by its owner to
keep it secret.

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All Right Reserve © Faculty of Design Lect. Anil Kumar (Textile Design)
Secret Recipes
 Kentucky fried chicken
 The secret recipe of “11 herbs and spices” lies in a
bank vault.
 Few people know it, and they are contractually
obligated to secrecy.
 The ingredients are mixed by two different
companies in two different locations and then
combined elsewhere in a third, separate location. To
mix the final formula, a computer processing system
is used to blend the mixtures together and ensure
that no one outside KFC has the complete recipe

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All Right Reserve © Faculty of Design Lect. Anil Kumar (Textile Design)
What are Trade Secret
Technical and Scientific Information
Financial Information
Commercial Information
Negative Information
in some laws

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All Right Reserve © Faculty of Design Lect. Anil Kumar (Textile Design)
Protection of Trade Secrets?
 Depending on the legal system of your
country, the protection of trade secrets
may be available under legislation
against unfair competition
◼ by specific provisions of one or more
laws
◼ by case law on the protection of
confidential information
◼ by contractual provisions in
agreements with employees,
consultants, customers, and business
partners
◼ a combination of the above.

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All Right Reserve © Faculty of Design Lect. Anil Kumar (Textile Design)
Contd ……….
❑First Step - identify potential trade secrets (Trade secret audit)
❑Second Step - Take measures to protect them
•By identifying and protecting prevent their loss.
•Difficult to prove to a court that the information is worthy of protection if
steps had not been taken to identify and protect them in the first place.
❑ Identify
•Prepare list of information that you think needs to be kept secret
•Technical and scientific information
•Financial, legal and HR information
•Commercial information
•Note date of creation, place of storage/use and other key information

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All Right Reserve © Faculty of Design Lect. Anil Kumar (Textile Design)
Technical and Scientific Information
 Product information
 technical composition of a product (medicine, paint, recipe for a sauce),
data about product performance, product design information
 Manufacture information
 manufacturing methods and processes (weaving technique, device
process), production costs, refinery processes, raw materials, machinery
 Know-how necessary to perform a particular operation
 Financial, Legal and HR Information
• Pricing information
• Salary and compensation plans
• Employee evaluation

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All Right Reserve © Faculty of Design Lect. Anil Kumar (Textile Design)
Advantages of TS Protection
 Trade secrets involve no registration costs
 Trade secret protection does not require disclosure or registration
with a government office
 The invention is not published
 Trade secret protection is not limited in time
 Trade secrets have immediate effect.

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All Right Reserve © Faculty of Design Lect. Anil Kumar (Textile Design)
Disadvantages of TS Protection
 If the secret is embodied in an innovative product, others may be able to
“reverse engineer” it, discover the secret and, thereafter, be entitled to
use it
 Trade secret protection is effective only against improper acquisition, use
or disclosure of the confidential information
 If a secret is publicly disclosed, then anyone who obtains access will be
free to use it.
 A trade secret is difficult to enforce, as the level of protection is
considerably weaker than for patents
 A trade secret may be patented by others who may independently
develop the same invention by legitimate means.

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All Right Reserve © Faculty of Design Lect. Anil Kumar (Textile Design)
Patent VS Trade Secret