24 October 2024
From Coca-Cola to KFC: uncovering a spooky intellectual property secret
One type of IP is more unknown and mysterious than all the others. Its hiddenness makes it special and used in the right way can be just as powerful. It’s called a trade secret and is a type of IP protection that can be pure business alchemy.
Trade secrets are different from patents in many ways, although both need to be kept confidential (for patents until the patent application is eventually filed).
In the UK, trade secrets come under two types of law; the common law of confidentiality and information that by definition falls under the Trade Secrets (Enforcement, etc.) Regulations 2018.
Common law confidentiality arises when ‘information with the necessary quality of confidence is imparted in a situation imposing an obligation of confidence’.
You can see them both as mutually complementary with some overlap. Both aspects carry a strength, just like a two-headed hydra. Think of a witch’s brew, filled with spooky secrets and bubbling with powerful potential.
There are so many trade secrets concealed around the world, but some are more famous than others.
Does anyone really know the secret formula for Coca-Cola? Apparently not (although it hasn’t stopped other brands from trying to work it out). In the company’s own words, ‘the formula for making Coca-Cola is a trade secret. We have protected the special taste of Coca-Cola for more than 130 years. Only the Coca-Cola Company knows how to make Coca-Cola’.
The mystique behind the Coca-Cola formula is so famous, that the company has it locked away inside a vault on display in the Coca-Cola museum, Atlanta, USA.
However, what if your trade secret isn’t cooking, but computing? Yes, there are plenty of secrets in technology too, especially software. Search engines such as Google (parent company Alphabet) have built an entire business model on algorithms that effectively rank information for ease of finding.
The algorithm has been developed and refined over many years of testing and trading. Recent news of a leak of an AI related trade secret have sent the company into a tailspin resulting in a criminal case been filed. Part of a secret was out.
Any leak of a highly guarded secret can bring major consequences for any company and so protecting these secrets becomes paramount. Once the witch’s secret cat is out of the bag, it’s out. Therefore, businesses will do everything to protect their secrets with the legal equivalent of an ancient curse.
Woe will to any soul who breaks the secret seal on any trade secret! The curse will come through prosecution.
How to protect your trade secret
Which raises a pressing question, how does a company or individual protect themselves from having their secrets stolen?
The answer will depend on the circumstances, and professional legal help is always advisable. Generally the secret is best protected in-house by firstly limiting exposure to a set number of individual(s) on a need to know basis only. Therefore, every company should have a confidentiality process in place backed up in employment contracts.
Furthermore, before any sharing of a secret to a third party it is highly advisable to protect it with a non-disclosure agreement.
Trade secrets are unregistered intellectual property rights. This simply means there is no register of them or requirement for application. This is unlike patents, designs and trade marks. Controlling access to the secret is through contracts based on the law of confidentiality and specific regulations covering trade secrets.
This in some circumstances can be an advantage over patents. A patent, although initially secret will eventually be published before it can be granted to the inventor. The quid pro quo is then a monopoly on the technology or technique for twenty years. If you want to look at alternative ways to protect your process, then exploring trade secrets as a viable alternative could be the way to go.
If you’d like to find out more about the magic combination of all the different types of IP, then our Introduction to Intellectual Property workshops and webinars will do the trick.
Spook your competition and keep your trade secrets close
Your trade secret is truly a magical thing that spooks your competition. It has all the mystique you need to creates an aura of mystery in your business and spellbind your customers. They will want to keep coming back for more, hooked on the power of your hidden magic.
So this Halloween, do not be scared to find and use your business’s secret spell. The treat is always in a secret trick.
25 April 2022
Ten Things I wish I knew about Intellectual Property when I was younger
Every generation of young people wants to change the world. And they do, in some way.
Right now in someone’s studio flat, or halls of residence or on a gap year adventure is the next founder of a tech giant, a publishing phenomenon or an inventing genius. Of that, there is no doubt. But some may not get the success or recognition they deserve for their originality, creativity or inventiveness. The one thing that can often make or break an entrepreneur or business venture is getting their intellectual property right, first time.
This year’s theme for World Intellectual Property Day is IP and youth: innovating for a better future.
Here is a list of the most common mistakes that I’ve come across in helping thousands of entrepreneurs, creatives and inventors. I’m a little older now having helped so many but I hope what you read here will make all of us that much wiser not matter how young we are.
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Knowing how important Intellectual Property actually is.
You don’t know what you don’t know and that’s the point of our first tip. For any new business (or established) not understanding how IP can protect your creations and innovations is a fundamental mistake. There are two sides to IP; one is preventing unauthorised use of what you create and the other is maximising your existing IP as an asset that can acquire value. And if you come to sell your business, a lot of its value potentially resides in your IP. Understanding this and building it into your business strategy will maximise your IP, and therefore, your business impact. But how? That’s the next point.
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Getting to know the IP family
Want to patent your idea? Re brand your design? Copyright your invention? Mixing metaphors is one thing but not understanding the different forms of IP and what they do is like being stuck in a maze without an exit. What’s more, knowing a thing you create in your business or a creative pursuit can often be protected by more than one form of Intellectual Property is a great help. I like to call them the IP family. Knowing the difference between them and the job they do will provide clarity, and help you formulate your IP strategy clearly. So, for the record, you patent your invention, register your design and copyright your artistic expression. You trade mark your brand, keep quiet your trade secret and everything else is know-how known only to you. And as we’ll see, timing for all of this is key.
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Don’t be late to register or protect your Intellectual Property.
I’ve been an agony Uncle to many downhearted, once enthusiastic, start-ups. What has been the most common problem? ‘I started trading with this amazing brand only to find someone else was using it’. It’s a fundamental mistake. What you think is an amazing name for a product or business is probably so amazing that someone else has got there first. So do your research online but also for the register of existing trade marks in the UK here. Our team in the Business & IP Centre’s around the country can assist you with how to do a basic search. This of course as relevant to all the other forms of IP, so it’s always good to register or protect as soon as you can establish originality.
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Don’t overshare and the importance of confidentiality
We’ve all done it. It’s irresistible. We’re so excited and captured by our new business proposition or new gizmo that will change the world that we ‘overshare’. Pub environments are particularly risky. If you do have something of real potential, why tell the world, or just anyone else you know? The other thing I hear often is that ‘so and so stole my idea’. Unfortunately, the idea shouldn’t have been shared in the first place. Knowing what a non-disclosure agreement is and when to use them, is a good first step to securing your idea if you need to share it with interested parties. In fact, when it comes to inventions, anything already known in the world invalidates your application. So, as a rule of thumb, share nothing with no one, unless necessary, and with the right protection in place.
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Assuming a good idea is a commercial idea is the easiest mistake.
This is a big one but I have to say it. Lots of people have amazing ideas for inventions or services and create incredible things, but not all of these will be commercially successful. Why? Because there’s no market value to them. The thing you create doesn’t satisfy a big enough demand where people are prepared to pay for it. So a good exercise early on is to ask yourself three questions; what problem am I trying to solve? How big a problem is it really? And does my invention or business provide a good enough solution? Inventors very often fall into this trap. They discover a solution to something without considering the size, and therefore commercial value of the problem. History proves this, as there are piles and piles of granted patents which never made it to market. Anybody care for spray on hair? Electric shoe polishers? But at least we can be reassured that even the biggest and boldest companies can fall into the same trap. Anyone own a Betamax?
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Not market testing your new product or service.
With this in mind, it’s just good practice to do prepare a robust business plan that includes some evidence of potential demand for your innovative product or service. Market research and testing are fundamental steps to get right early before properly launching. This helps to safeguard any future investment, both time and resource and IP, that you subsequently put into the business. At the British Library’s Business & IP Centre you can do market research with some of the best researchers and publishers in any given industry. That will help to demonstrate that you’re on the right track (or not).
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Not setting an IP budget.
There is a cost to registering some forms of IP, those that are known as registered rights. Specifically, these are patents, trademarks and design. The most costly are patents but you should do all your IP research early and work out what the most cost effective options are balanced with maximum protection (supported by a sound business case). That way you’re on track to make judicious IP decisions that pay off. It’s also very helpful to list IP as a necessary cost alongside other costs such as marketing spend, operational and staffing. Ultimately, if your IP is effective, the asset should pay for itself.
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Not factoring in infringement costs
First, some bad news. There are no IP police. You will need to be alert to anyone else copying your invention, using your brand or selling a different version of the same product you created. And it’s up to you then to act. Sadly, as your brand grows with your product or service, you should expect copycats. Imitation, they say, is the sincerest form of flattery, except when it takes out your bottom line or ruins your hard earned reputation. Early and tough action on infringement is the best way to shut down any threats and that will almost always involve some legal expertise. So set aside a war chest in your IP defence but be reassured that there is professional help out there. And that’s when IP lawyers are there to fight for your interests. IP lawyers should be members of professional bodies such as CIPA or CITMA. Also be aware of trading standards for some circumstances of infringement.
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Not knowing what to ask an IP attorney
Ignorance is never a good thing, especially when trying to solve a complex problem like IP infringement or a new application for protection. That doesn’t mean you have to be an expert, by any stretch. But at least by having a good solid grounding and understanding of how IP works for you and your business means you can maximise the time and effort of any professional advice you seek. Knowing enough about something to ask really good questions and to evaluate the reply is more power to you and encouragement that your IP budget is paying back. Time is money (especially legal time) so cut out the IP small talk and get to the crux of the IP issue and its possible resolution.
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Not starting with your Business & IP Centre or Patlib!
How could I not conclude by inviting anyone with an IP issue or question to get in touch with their local Business & IP Centre or Patlib (patent library) network? You’ll be able to talk with staff who have experience and are able to be a sounding board for you to make informed decisions that support your business. No matter what your age (but especially if you’re young), you deserve to be rewarded for your new and innovative creations! And intellectual property is there to ensure you do just that.
16 June 2020
A week in the life of… Rachel Jones, founder of SnapDragon Monitoring
Rachel Jones is founder and Head Dragon at SnapDragon Monitoring in Edinburgh. SnapDragon delivers online brand protection, seller insights and market intelligence to brands around the world. Rachel founded SnapDragon based on her experiences of defending her first creation the Totseat – a washable squashable highchair for babies who lunch – from counterfeits. The British Library's Business & IP Centre played a significant role in the market research undertaken for both businesses. Most recently Rachel was the first Entrepreneur in Residence at BIPC Glasgow, based at the Mitchell Library. SnapDragon is the recent recipient of a Queen’s Award for Innovation 2020.
Groundhog Week
It’s the first week of May. My favourite month. Usually. Awoken by insistent birdsong at 4am after yet another sporadic night of what could only be defined as a snoozing. Might as well get up. Husband is dressing, in preparation for 5am call to Singapore. Dog peed, fed enough to tide her over till 6am, a mug of welcome tea and a couple of hours work before breakfast and a rigorous walk. My makeshift ‘office’ is a corner of our sitting room, sandwiched between well-thumbed texts and an ancient sofa of memories. My desk, an extended (vertically) dressing table inherited from my late mother, which previously housed small geological specimens, now with ergonomic investment to help 100+ hour weeks.
We’re in lockdown. The middle? Still the beginning? Either way, the hell persists. One day we were in the office, the next was a work from the home trial. Not one technical hiccup. So we didn’t go back. We’re incredibly lucky. We are healthy, there’s food in the fridge and there is work to do.
But I’m a lousy mother currently and this bothers me. Greatly.
A recent catch up call with a close friend, thankfully not on Zoom, has wrenched my jealous heart. Furloughed happily on a lovely salary, painting the house, gardening furiously, enjoying having University-aged offspring at home and imagining retirement. Other friends struggle valiantly on: juggling working and childcare, home schooling and life as single parents, life in a flat, responsibilities for the vulnerable, loathing their living companion/s, not enough money or patience to go round. And those in the middle, silently weeping with responsibility weighing heavily on hearts and mind. At the front line of caring, mending, selling, delivering, collecting, working to keep the economy going. Mouths to feed, and not just their own.
Livelihoods of many many families lying firmly in their laps.
I’m one of the latter. Not brave enough to be a front-line carer, but working day and night to keep a business afloat (and ignoring my family, I’m sorry to say, while I do so). I am horrible to live with. My team of 26, of whom I am inordinately proud, need their salaries, motivation, and sanity and our clients’ businesses need us to keep them profitable. I will not let the virus get the better of me.
SnapDragon Monitoring fights fakes online. We identify and remove infringing products from online marketplaces, social media sites, and websites. We use intellectual property (IP) to remove the fakes and fakers. Copyright – words and images – trade marks, design rights and patents. It’s cheap and efficient. Four minutes to remove a link from, say, Amazon, with the correct IP to prove originality. Why bother? At best, fake products cause disappointment. Less brilliantly, serious harm. Take brakes or beauty products and you can be scarred for life. Meanwhile those profiting from the sale, fund drugs rings, prostitution, drug trafficking and worse. And the brands being ripped off? All too often suffer in silence. As can their customers.
Fakes are no longer the domain of luxury goods. And with COVID-19, according to Europol, sales of online fakes are already up 400%. The uninitiated, forced into remote shopping, are being too easily scammed and need help. Week two of lockdown saw 50% of our much-loved client base, most of which are SMEs, pause their subscriptions. We couldn’t blame them. Supply chains were stuck in China. Shops were closed. Staff furloughed. Income non-existent. But sales of fakes proliferate, so there’s the moral dilemma of knowing our technology is much needed versus the financial dilemma that we all need to eat. It turns out, there’s really no choice. Half the team is furloughed to stretch the budget. Those part-time, juggling childcare and home schooling, the first to appreciate the option of being so. I vow (silently) to ensure a working from home allowance rewards the committed for future adventures (and paying the bills of course).
This morning, pre 6am, I meet yet another iteration of the weekly cash flow forecast. I hate Excel but thankfully our FC is amazing and he makes the spreadsheets sing. Today’s priorities are projections, our weekly leadership team meeting, one of the thrice weekly whole team updates (key points from which are circulated by email to everyone); understanding the new funding options being launched today and applying for whatever is appropriate, following up an enquiry about supplier validation for PPE (which has become a core competence suddenly); ensuring bright, sparking new inventors aiming for crowdfunding have considered what intellectual property they should register and recommending the British Library, the Intellectual Property Office and the European Intellectual Property Office as excellent resources.
An office visit is mandatory: to collect the mail and to run the taps (to avoid legionella and ensure compliance with our landlord’s edict). It’ll be nice to have an additional excuse to get out, other than the dog. Will check in with various mentees, not least those gathered as part of my Entrepreneur in Residence-ship at BIPC Glasgow last year. Life for some is not at all easy and it’s really important that entrepreneurs who live alone are not feeling even more isolated than usual. Then there are our Board papers to circulate, although I suspect the Board is rather tired of my updates, and others’ Board papers to digest for the voluntary boards of which I am part, for later in the week. Groundhog Day should still be only a film.
The highlight will be planning, at some point, deliveries to each and every one of the team to celebrate next week’s announcement that SnapDragon is to receive a Queen’s Award for Innovation. We plan a Zoom party with miniature bottles of fizz delivered to all. Tech businesses are very rarely awarded this accolade. The thought of being able to make this award public spurs me on.
The team celebrate a delighted email from an Australian client as to the efficient identification and removal of a frightening number of fakes professing to be his product. Someone has a birthday and is enjoying the cake I had dispatched from the local baker, who has pivoted from corporate to home deliveries. We discuss topics for the weekly Lunch and Learn, and issue covert instructions for an online gathering at 6pm the following week, eluding the rationale.
Somewhere there needs to be time to wave at the long-suffering family, eat, ignore eight feet of clean washing (I measure it vertically), drink tea, brush my teeth and send virtual hug texts to family and friends. I miss the hugs. Mustn’t forget the food run for isolating next door neighbour. Sanity, such that it is, is necessitated by the dog’s need for a vigorous stride up Arthur’s Seat (Edinburgh’s extinct volcano) after breakfast, or round the local golf course, thankfully currently free of calls of ‘fore’. The blossom, birdsong and oddly-coconut-smelling gorse provide all to brief opportunities for the odd deep breath. There isn’t an empty minute. At midnight, I stick a ‘thank you’ note on the dustbin for the refuse team, as no one felt up to drawing a rainbow.
Postscript Second week of June
SnapDragon Monitoring, the proud recipient of the Queen’s Award for Innovation, is on track. Most of the Dragons are back from furlough working, at least from their kitchens, and planning holidays – which lightens my heart.
The ergonomic investments in the sitting room have proved their weight in gold. The family has nearly forgiven me (the pile of washing has not).
The business is, almost, overwhelmed with work and positivity: those who paused their services came back much quicker than anticipated, so the counterfeiters are no longer winning; there is a stream of new clients to onboard; the team is happy and healthy; we are planning a socially distanced, super-safe and supportive working environment in the office; the tech sprint is ahead of target.
And my spreadsheet is singing. Onwards.
14 February 2019
Brexit resources available
Now that Brexit has taken place, we've updated the list of resources currently available to help you find the information you are looking for.
Actions you can take now that do not depend on negotiations
Use the information from the Government to understand how leaving the EU may affect your business and what you can do to get ready, including guides on employing EU citizens, importing and exporting, intellectual property and funding, amongst others.
Brexit Business Resource Hub
The London Growth Hub and the Mayor of London have launched this new Brexit Business Resource Hub, bringing together key resources from a range of partners to help with business planning, support for mapping business areas with potential exposure to Brexit.
Using personal data after Brexit
This page tells you what you'll need to do from 1 January 2021. It'll be updated if anything changes.
The Institute of Export and International Trade Customs Procedures and Documentation
A comprehensive look at the information that is required to be submitted to customs to enable goods to be imported and exported. It also looks at the differences between EU and non-EU trade.
IP and Brexit: the facts
Information on trade marks, designs, patents, copyright, and exhaustion of IP rights during the transition period.
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