The Secret Of Trade Secret Success

Coca-Cola 's recipe is one of the best kept secrets in the world. Developed by a pharmacist, it has been closely guarded and known to only a few privileged employees for more than 100 years. Coca-Cola built a successful global brand on it, and competitors have fiercely hunted it. Similarly Col. Sanders' secret recipe of 11 herbs and spices for KFC and the formula for WD-40 are also both closely kept secrets that have helped to build their companies' flagship products.

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Unfortunately many executives don't even know what trade secrets are, much less how to protect them and, as a result, use them. It's a term that's often thrown around in legal meetings, but the truth is trade secrets are complex and can have an extraordinary impact on a company's bottom line. They are extraordinarily valuable information for a company, yet often company employees, including officers, do not understand how best to keep them, well, secret.

If a trade secret is poorly managed a company can quickly lose its competitive advantage: What would happen to Coca-Cola if someone figured out a way to replicate its secret recipe and posted the formula on the Internet? So then, what can you do to effectively monitor your trade secrets? How do you ensure your company's secrets are kept safe?

First you need to understand what a trade secret is, since you can't protect something you don't know you have. For the C-suite, trade secrets include any privileged information that can provide your company with an advantage in the market. That may encompass customer identities and pricing information, current research projects and even failed projects. In the case of WD-40 , the product's name comes from the 40th try by scientists in 1953 to come up with a "water displacement" formula for a rust-prevention solvent and degreaser for the aerospace industry. Not only is that formula a trade secret, but so are the formulas and work that went into the preceding 39 attempts. If a competitor learned about those failed attempts alone, it might still save a lot of research and development time.

Next the C-suite needs to understand who has access to its trade secrets, particularly the difference between corporate insiders and outsiders.

Corporate insiders are people and organizations with a legal obligation to the company. Of course employees are legally obligated to hold a company's proprietary information in confidence and not to copy, disclose or use the information for their own benefit or the benefit of others. But insiders also include third parties such as contract employees, consultants, suppliers and customers.

Outsiders are everyone else. They have no legal obligation to hold a company's proprietary information in confidence. They are strangers who include the general public and also more sophisticated parties like competitive intelligence professionals, hackers, reporters and competitors.

Companies go to great lengths to protect their prized secrets. KFC recently built a brand new, high-tech home for the colonel's handwritten Original Recipe from 1940. The new FireKing digital safe weighs more than 770 pounds and is encased in two feet of concrete with a 24-hour video and motion-detection surveillance system. That kind of security wouldn't be needed if people didn't try to steal the recipe.

To be able to protect your secrets, you need to understand how people can get at them. Imagine a fence built around your office. The fence represents the company's security measures, and within it is where proprietary information is developed, used and stored. Insiders move freely in and out of the office, while outsider entry and exit is carefully controlled. It is easy to see how in such a situation insiders and outsiders alike can gain access to trade secrets. When insiders move in and out of the company, proprietary information moves with them--in their minds, in portable computers and in media such as drawings, CD-ROMs and USB flash drives. Outbound mail, courier and parcel shipments can also allow proprietary information to leave the office. Outsiders are often let in, usually with badge systems and escorts, and they may gain access to proprietary information while they're inside the company.

It would be easy to keep your information secure if you eliminated all avenues of information transfer, such as your Internet connection and mail services, and prohibited outsiders to visit the company. You wouldn't have security problems then, but you would destroy your ability to conduct business. Besides, you'd still have to let your employees go home at night, and they carry proprietary information in their heads.

Not every company can lock its trade secrets in a vault, as with WD-40 and KFC. There is no silver bullet for trade secret protection, no hardware widget or software program or canned process that you can buy to make you safe. But the basic solution is simple: You must use your employees to protect your secrets. And since you already pay them, that incurs no additional out-of-pocket cost. Employees are the foundation of an effective trade secret protection program.

A successful strategy requires that all employees participate and that management unambiguously and explicitly expound a trade secret culture. You can't just name a few employees as a trade secret protection group, or install some new security product, while the rest of your employees continue business as usual. You must enlist the support of every company employee to work toward a culture of full trade secret awareness.

Cultural awareness is much more effective than mere employee training, especially new-employee training, for a single learning experience fades from memory over time while a healthy trade secret culture reinforces itself. But if the C-Suite often doesn't understand trade secrets, employees are even more confused. For a trade secret culture to be effective, management must very effectively convey its goals to employees. This requires much more than "Here is the new proprietary information policy--read it, sign here and return it."

Senior managers need to work to make sure employees understand what the company's trade secrets are and what their responsibilities for them are. They need to know that risks to the company's secret information are risks to its revenues, earnings and share price, and ultimately to their own jobs. Management's efforts to protect the company's trade secrets are efforts to protect the employees' jobs, their stock options and their pensions. The employees have to know that.

They also need to be reminded that any type of company information can be a trade secret, including supplier identities, upcoming price changes, R&D activities and corporate policies--anything that can help a competitor compete against the company. In this era of high technology, employees also need to understand that any unsecured e-mails may be intercepted, any conversation may be overheard and any computer screen in a public place may be read. Diligence and common sense must be part of the trade secret culture. Once a secret is divulged, no matter the reason, it is lost forever.

If employees understand their part in an unambiguous and committed trade secret culture, company information security policies will more likely be accepted and followed. Without that understanding all the company policy manuals and policy communications in the world will be worthless. Embodiment of the culture at every level of management will help employees understand your expectations. Not every CEO needs to ride into Times Square on the back of a horse in a suit of armor with his trade secret formula safely in hand--as did Garry Ridge, president and CEO of WD-40, on his company's 50th birthday. But it sure doesn't hurt.

R. Mark Halligan, a partner with the law firm Nixon Peabody, has developed an extensive practice as an intellectual property litigator focused on protecting and enforcing trade secrets. David Haas is a senior managing director in FTI Consulting's forensic and litigation consulting segment and is based in Chicago. The views expressed in this article are those of the authors and not of FTI Consulting.

Source:https://www.forbes.com/2010/02/19/protecting-trade-secrets-leadership-managing-halligan-haas.html#1d93e78f1372

ANT Lawyers is a law firm in Vietnam, recognized by Legal500, IFLR1000. We are an exclusive Vietnam member of Prea Legal, the global law firm network covering more than 150 jurisdictions. The firm provides a range of legal services to multinational and domestic clients. 

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What are the disadvantages of getting a patent, if any?

There are many advantages to patenting your inventions. You are granted a monopoly on your invention by the government in your jurisdiction for a known period of time.

You can license it to others and collect licensing fees and royalties.

You may also use it as a trading card with a competitor, e.g., licensing your patent to a competitor, and in return, obtaining licensing rights to a patent that is owned by the competitor. It is a very common practice used by large companies to avoid expensive infringement lawsuits.

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You can use it in a public relations campaign to position your company as an innovator.

However A patent is published for everybody to see and learn how you have implemented your invention. This is the only disadvantage that I see. Anybody can implement your invention, after its publication, without telling you about it. Proving infringement is a very expensive and time consuming process.

If you wish to keep your invention confidential for ever, don’t file a patent. Treat it as a trade secret by making sure to take adequate steps to always keep it confidential like Coca-Cola keeps it formula secret. The Secret Of Trade Secret Success

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What is intellectual property act?

IPR stands for Intellectual Property Rights. To understand about Intellectual Property Rights, it is important to understand about the Intellectual Property (IP). Intellectual Property refers to the property which has both moral and commercial value and that comes out from the human intellect that may be a creation of human minds, inventions, copyrights on musical, literary, dramatic, artistic works and symbols, names, images used in commerce.

 

 

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Basically, Intellectual Property (IP) is divided into two categories:-

 One area can be Industrial Property:-

Industrial Property again can be divided into two areas;

distinctive signs for Trademarks (TM) that distinguish the goods or services of one enterprise or undertaking from those of other enterprises or undertakings. Geographical Indications (GI) that identify a good originating in a place where a given characteristics of the good is essentially attributable to its geographical origin.

Other areas include Patents, Industrial Designs (IDs), Trade Secrets (TS) for innovation, design and the creation of technology.

Copyrights and Rights related to Copyrights deals with;

Authors’ Literary works (e.g. novels, poems, plays, writings and books), Artistic works (e.g. paintings, sculptures, drawings and photographs), films, computer programs, musical compositions and architectural designs.

Neighboring Rights include rights of performers (e.g. actors, singers and musicians), broadcasting organizations in their radio and television programs, and producers of phonograms in their recordings.

Intellectual Property Rights (IPR)

Deals with the legal rights granted to protect the creation of the intellect. These rights are same as of other property right. Rights allow creator or owner to get benefits by exploiting their creation.

IPR provides an exclusive right for the limited period of time to the individuals, enterprises and other entities to exclude others from unauthorized use, copy, sell, distribution or license.

Further Intellectual Property Rights are outlined in Article 27 of the Universal Declaration of Human Rights, which talk about the right to benefit from the protection of moral and material interests resulting from authorship of scientific, literary or artistic productions.

The Importance of Intellectual Property (IP) was first recognized in the Paris Convention for the protection of Industrial Property in year 1883 and the Berne Convention for the protection of Literary and Artistic Works in year 1886. Both treaties are administered by World Intellectual Property Organization (WIPO). 

If you're looking for an affordable IP attorneys in Vietnam, check out ANT Lawyers.vn was established to meet these needs by providing fast, effective and economical solutions. Hope that clears things up a bit. Feel free to message me directly to chat further about any other IP questions that you face.

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Why does Coca Cola Company fail to protect their receipe with patents?

We shall remember that, at any time, choices of IP protection shall always rest on profitability. If the patent protection make people lose money, then people would choose to avoid that.

By patenting the receipe of coke, Coca Cola company have to DISCLOSE the receipe to the world. In return, the receipe MAY be protected for a max of 20 years. After the protecting period expires, Coca Cola receipe falls into public knowledge, and anyone may use it anywhere.

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It is not so easy to crack the coke receipe. Why would Coca Cola disclose their receipe to exchange for a short protection?

Surely, if the receipe is disclosed accidentally, anyone in the world may begin to use this receipe, and numberous competitors appear. In order to minimize the harm brought by the possible competitors, Coca Cola has invested a lot of money on their Trademarks and Scale of Production.

Now Coca Cola have a famous brand. Even two coke products taste the same, you would still choose Coca Cola.

By holding huge scale of production, Coca Cola is able to produce coke at a very very low cost. Even when another company begin to produce the same coke, they can never make coke this cheap.

Even when it is profitable to patent your product, you may still see no “patent” directly linked to a particular “product model”. See iPhone. Thousand of patents may be linked to the product, and there is no patent to protect “iPhone X”. We may need such strategies to mislead competitors, max the protection range, …

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Anti-dumping of Goods Imported to Vietnam

Recently, the Ministry of Industry and Trade of Vietnam has carried out investigations to apply anti-dumping measures against some commodities imported into Vietnam.

The law of Vietnam also has a number of law documents governing this matter in detail. Specifically, ordinance No. 20/2004/PL-UBTVQH11 issued on April 29^th, 2004 of the Standing Committee of the National Assembly and the Decree No. 90/2005/ND-CP issued on July 11^th, 2005 governs the anti-dumping matters and the regulations on the implementation of several articles of the ordinance on anti-dumping of goods imported to Vietnam.

In terms of content, ordinance 20/2004 regulating the anti-dumping measures; procedures, contents of investigation for application and the application of such measures against dumped goods imported into Vietnam. Decree 90/2005 regulating the implementation of some articles of the Ordinance 20/2004 on the anti-dumping investigation agency, the Council that handling anti-dumping cases; procedures, contents of investigation and the application of anti-dumping measures to goods imported into Vietnam.

On December 24th, 2015, Ministry of Industry and Trade of Vietnam has received written request from 4 Vietnam companies about applying anti-dumping measures to galvanized steel products imported into Vietnam from People’s Republic of China (including Hong Kong) and South Korea.

The requesting parties (4 Vietnam companies) believe that quantity and prices of the product under investigation and other factors have created negative impact their goods consumption, leaded to negative effects on production activities; for example, domestic goods’ market share has decreased, loss ratio has increased, price of domestic products has fell and inventory has risen… Moreover, increasing import products brings about damage to domestic industry. Hence, an investigation has been implemented by the investigation agency, which is the Vietnam Competition Authority (VCA), under the Ministry of Industry and Trade. The VCA will publicly hold a consultation with related parties before finishing the investigation stage. The Vietnam Ministry of Industry and Trade will apply anti-dumping tax which comes into effect retroactively in order to prevent the considerable increase of dumping goods in Vietnam that have caused damages to the domestic industry.

ANT Lawyers is a law firm in Vietnam having lawyers with specialization in international trade, and dispute especially WTO laws and anti-dumping laws to handle the anti-dumping matters on behalf of manufacturers and traders to achieve the best result.

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I have been selling books and realized one of them is a copyrighted. What should I do?

Almost any written work is copyrighted. Rights exist as soon as the proverbial pen leaves the page; i.e., there’s no “copyright application” process or anything like that. (There is a copyright registration process, in which an author deposits a work with the Library of Congress. But this registration process is optional. Moreover, you don’t have to have a copyright notice, i.e., a legend like “(c) 2018, Charles The Patent Lawyer” somewhere in the book. That’s also optional.

 

 Copyright in Vietnam 

In any case, don’t worry. Copyrights do prevent unauthorized reproduction and distribution. But copyrights do not prevent selling works you otherwise lawfully own.

There’s an idea called “exhaustion,” also called “the first sale doctrine.” Roughly speaking, it stands for the idea that a rights-holder exhausts some of the rights associated with a particular copy of their work when they sell the work. Among the exhausted rights are the right to sell that particular copy. 

In other words, if I buy a copy of Harry Potter, I am not authorized to reproduce the entire book word-for-word on my blog. I’m not authorized to make copies and give or sell them to my friends. But I am allowed to lend or sell my particular book to others.

If you are looking for an experienced IP services in Vietnam to help you with your IP application, you should visit ANTLawyers.vn. Our attorneys have experience with the IP process and will work closely with you as you apply for your IP.

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How do I make a secure copyright image?

I only can offer a perspective under US law. Three things you can do to help you enforce your copyright interest in a phone.

 

 

Copyright in Vietnam 

Register the photo with the US copyright office. You now can do it online.

Put a copyright notice on it. For example, (c) 2018 Your Name, or “Copyright 2018 Your Name.” You are not required to register with the US Copyright Office to use the notice.

Put a watermark on it. Best approach, a watermark with your copyright notice.

Keep in mind that these steps will not provide 100% full protection against infringement. But these steps will put others on notice that you assert a copyright interest in your photos, and you will be in a stronger position in the future to protect your rights.

If you are looking for an experienced IP services in Vietnam to help you with your IP application, you should visit ANTLawyers.vn. Our attorneys have experience with the IP process and will work closely with you as you apply for your IP. We routinely match inventors with experienced IP attorneys for a free consultation on our platform and offer a money back guarantee.

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When Can the Buyer Suspends the Payment of the Goods Under International Sale Contract?

In the execution of sales of goods contract, there are cases in international trade that allow buyer suspend the payment of the value of the goods to the seller.

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According to Article 51 Law on Commerce 2005, it is regulated that, unless otherwise agreed, the suspension of payment for goods is provided for as follows:

-The buyer that has proofs of deceit of the seller shall have the right to suspend the payment.

-The buyer that has proofs that the goods are subject to a dispute shall have the right to suspend the payment until the said dispute is settled.

-The buyer that has proofs that the seller has delivered goods which do not conform with the contract shall have the right to suspend the payment until the seller remedy such inconformity.

However, it is suggested that the buyer or the seller to consult with internationaltrade lawyers in Vietnam for specific situations in potential contract dispute to avoid breaching the agreements.

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When is Bank Guarantee Obligations Terminated?

According to Vietnam Law on Credit Institution, and Circular 07/2015/TT-NHNN on bank guarantee, bank guarantee refers to a type of credit whereby the guarantor undertakes to act on behalf of the obligor to fulfill their financial obligations to the obligee in the event the obligor fails to fulfill or insufficiently fulfill their agreed-upon obligations to the obligee; the obligor must take on their debt obligations and repay the guarantor.

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Bank guarantee obligations shall be terminated under the following circumstances:

a) The obligor’s obligations are discharged.

b) The guarantee obligations have been fulfilled in accordance with the guarantee commitment.

c) The guarantee is cancelled or replaced by other guarantee measures.

d) The guarantee commitment has ended its validity.

e) The obligee has been exempted from liability to fulfill guarantee obligations to the guarantor.

f) Parties agree to terminate.

g) The contract which obligations is guaranteed and that part or whole contract are not executed is invalid or void.

h) Guarantee obligations shall be terminated under other circumstances in accordance with legal regulations.

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Why aren't startup business models protected by copyrights?

There is no law that can automatically grant protection to a business idea or a business model.

Why? The Laws of Intellectual Property do not protect ideas, rather, they protect the individual expression of their ideas. Given the right to freedom of expression no law has the power to restrict or override such fundamental right. This means that someone can copy or make a variation of your original business idea.

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How can I protect my business idea?

One of the simplest ways of safeguarding your business model is to keep it private. You can simply sign a Non-disclosure Agreement ( NDA) with your business partner or investors to ensure that there is no information leak. Alternatively, you may sign a non-compete agreement with your co-founders or employees which will prevent them from operating in a competing manner or develop competing products upon termination of their employment with your business.

To make things clear. There are four main types of Intellectual Property that can be legally protected.

Copyrights : protect creative works where one can show sufficient individual input

Industrial Designs : protects the ornamental or aesthetic aspect of a physical item

Trademarks : protect commercial brand name logo, images, slogans that distinguish your business from other businesses

Patents : protect original inventions that are available for commercial use

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What Are Rights and Benefits of the Employee Suffering the Occupational Accident?

Accidents can happen at any time at work. Whether a workplace accident is the result of employee carelessness or employer negligence, employers must take responsibility for accidents to employee.

Labour Accident Lawyers in Vietnam

Vietnam Labor Code defines occupational accident is an accident that causes injury to any part and function of the body or death to employee occurring during the working process associated with the implementation of work and labor tasks (according to Article 142 of Labour Code).

The employee has following rights when they suffer accidents:

1. The employee is paid all the payment of the co-payment costs and the costs not included under the list paid by the health insurance for the employee participating in health insurance and making full payment of all medical expenses from the first aid, emergency to the stable treatment for the employees not participating in health insurance.

2. The employee is entitled to full payment of salary under the labor contract to the employee suffering the occupational accident and having to take leave during treatment.

3. The employee participating in compulsory social insurance is entitled to enjoy the regime of occupational accident in accordance with the Law on Social Insurance.

The conditional to enjoy the regime of occupational accident: were injured in workplace or during working hours; outside the place of work or during working hours when performing work at the duty of the employer; on the road from home to work place and vice versa.

4. The employee is entitled to the enjoy labor accident allowance as:

. The employee with occupational accidents reduces working capacity from 5% to 30% are paid once.
The employee with occupational accidents reduces working capacity 5% receive an allowance of an amount equal to 5 month’ salary under labor contract and then every 1% increase has an addition of 0.5 month’ salary.
.The employee with occupational accidents reduces working capacity 31% or more receive an allowance at rate: reduce working capacity 30% shall receive 30% month’ salary under labor contract and then every 1% increase has an addition of 2% month’ salary
This allowance is paid every month.

. The death of the employee’s relative from the occupational accidents receive at least 36 months’ salary under labor contract.

5. The employee with occupational accidents not due to the fault of employee and reduce working capacity from 5% or more shall be compensated by the employer at the following rate:
. At least equal to 1.5 month’ salary under the labor contract if the employee is reduced from 5.0% to 10% of his working capacity and then every 1.0% increase, an addition of 0.4 months of salary under the labor contract if reduced working capacity from 11% to 80%;
. At least 30 months’ salary under labor contract for the employee reduced his working capacity from 81% or more or for the death of the employee’s relative from the occupational accidents.

6.Where due to the fault of the employee, he/she also receives an allowance of an amount at least equal to 40% of the rate prescribed when fault not belong to the employee.

7. In case the employee reduces his/her working capacity in temporary, the employee receives100%-month salary under labor contract the first aid, emergency to the stable treatment or until a permanent injury certificate is issued.

8. In case the employee reduces his working capacity in permanent, beside allowance of accidents, the employee reduces his/her working capacity from 81% or more receive 100% month’ salary under labor contract every month.

9. In the case of death of a worker who has paid social insurance for 15 years, relatives will receive a funeral allowance and dependents will be entitled to a minimum of 50% of the basic salary for each person.

10. In case of the employee’s death and had participated in compulsory social insurance for less than 15 years, the burial attendants receive allowance at least 10 months’ salary under labor contract at once.

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What International Laws in International Trade Vietnam is a Signing Party to?

International trade is important for each country to grow economically and influence through exchanging products and services, utilizing resources that create competitive advantage over others.  In order to enable international trade, Vietnam has been a signing party to a number of international laws, international conventions, free trade agreements.

International Trade Lawyers in Vietnam

Up to present, Vietnam is a signing party to the:

·         UN Convention on Contracts for the International Sale of Goods 1980 (CISG);

·         The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP);

·         The Association of Southeast Asian Nations (ASEAN) 1967;

Vietnam is also the signing party to a number of the Free Trade Agreements:

·         ASEAN Free Trade Area 1992;

·         ASEAN Trade in Goods Agreement (ATIGA);

·         ASEAN Framework Agreement on Services (AFAS);

·         ASEAN Protocol on Enhanced Dispute Settlement Mechanism;

·         ASEAN-China Free Trade Area 2002;

·         ASEAN-India Free Trade Area 2003;

·         ASEAN-Japan Free Trade Area 2003;

·         ASEAN-Korea Free Trade Area 2005;

·         Vietnam – Japan economic Partnership Agreement 2008;

·         ASEAN-Australia-New Zealand Free Trade Agreement 2009;

·         Vietnam – Chile Free Trade Area 2011;

·         Vietnam – Korea Free Trade Area 2015;

·         Eurasian Economic Union 2015

·         ASEAN – Hong Kong free Trade Area 2017 (signed on 12/11/2017, Scheduled to be effective from 1 January 2019)

·         Agreements in WTO accession:

Annex 1A    Multilateral agreements on trade in goods

·         General Agreement on Tariffs and Trade 1994

·         Agreement on agriculture

·         Agreement on the application of sanitary and phytosanitary measures

·         Agreement on textiles and clothing

·         Agreement on technical barriers to trade

·         Agreement on trade-related investment measures

·         Agreement on implementation of Article VI of the General Agreement on Tariffs and Trade 1994

·         Agreement on implementation of Article VII of the General Agreement on Tariffs and Trade 1994

·         Agreement on pre-shipment inspection

·         Agreement on rules of origin

·         Agreement on import licensing procedures

·         Agreement on subsidies and countervailing measures

·         Agreement on safeguards

·         Trade Facilitation Agreement

Annex 1B   General Agreement on Trade in Services

Annex 1C   Agreement on trade-related aspects of intellectual property rights

Until Sep 2018, Vietnam has been accelerating preparations for meeting commitments in EU-Vietnam Free Trade Agreement (EVFTA).  It has been expected the EVFTA to be passed in the year of 2019, promoting Vietnam’s sustainable development through removing 99% of tariffs on goods traded between the two economies, expanding Vietnam’s textile, apparel export to the EU market.  In return, the EVFTA will open Vietnamese market for EU companies and strengthen the protection of its investment into Vietnam.

ANT Lawyers law firm is a member of legal secretary of EuroCham in Hanoi, Vietnam, and has been a contribution to the legal review that support the investment into Vietnam.  ANT Lawyers will be sending Mr Tuan Nguyen, the Managing Partner to take part in the EuroCham delegation visit in Brussels Mission in October 2018, with the main goal is to promote the fast conclusion of the EU-Vietnam Free Trade Agreement process, raise awareness as to the potential of Vietnam as a strategic partner for Europe, and deliver the views of the European business community in the country.

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