Trade Secret Law

1
Trade Secret Law

• Jody Blanke, Professor
• Computer Information Systems and Law
• Mercer University, Atlanta

2
The Coke Formula
This Coca-Cola formula appears to be the
original formula to Coca-Cola. An author named
Mark Pendergrast wrote a book about Coca-Cola
entitled For God, Country and Coca-Cola. In
writing this book he was able to interview just
about anybody he wanted within Coca-Cola, and was
also granted access to the vast archives of
Coca-Cola. http//www.sodamuseum.bigstep.com/gene
ric.jhtml?pid10
3
Restatement (First) of Torts 757

• A trade secret may consist of any formula,
  pattern, device or compilation of information
  which is used in one's business, and which gives
  him an opportunity to obtain an advantage over
  competitors who do not know or use it. It may be
  a formula for a chemical compound, a process of
  manufacturing, treating or preserving material, a
  pattern for a machine or other device, or a list
  of customers.

4
Factors Used to Determine Whether There is a
Trade Secret

• The extent to which the information is known
  outside of its owner's business
• The extent to which it is known by employees and
  others involved in its owner's business
• The extent of measures taken by the owner to
  guard the secrecy of the information
• The value of the information to its owner and to
  its competitors
• The amount of effort or money expended by its
  owner in developing the information
• The ease or difficulty with which the information
  could be properly acquired or duplicated by
  others.

5
Uniform Trade Secrets Act

• "Trade secret" means information, including a
  formula, pattern, compilation, program, device,
  method, technique, or process, that
• (i) derives independent economic value, actual
  or potential, from not being generally known to,
  and not being readily ascertainable by proper
  means by, other persons who can obtain economic
  value from its disclosure or use, and(ii) is the
  subject of efforts that are reasonable under the
  circumstances to maintain its secrecy.

6
Georgia UTSA

• "Trade secret" means information, without regard
  to form, including, but not limited to, technical
  or nontechnical data, a formula, a pattern, a
  compilation, a program, a device, a method, a
  technique, a drawing, a process, financial data,
  financial plans, product plans, or a list of
  actual or potential customers or suppliers which
  is not commonly known by or available to the
  public and which information

7
U.S. v. Joya Williams

• Administrative assistant at Coca-Cola convicted
  of theft of trade secrets and sentenced to 8
  years
• http//news.corporate.findlaw.com/ap/f/66/05-23-20
  07/b874000bc0ef22ff.html