Pandit Jawaharlal Nehru College of Agriculture and Research Institute –

Karaikal 609603

COURCE TITLE: PGS 503 Intellectual property and its management in

agriculture
COURCE TEACHER: Dr. N. Swaminathan, Dr.V. Krishnan

TOPIC: Trade secrets and traditional knowledge

BY,
R.VIMALRAJ
What is trade secret?

A trade secret is a formula, pattern, physical

device, idea, process, or compilation of information
which is not generally known or reasonably
ascertainable, by which a business can obtain an
economic advantage over competitors or customers.
Example of potential trade secrets

- A formula for a sports drink

- Survey methods used by professional pollsters, and Recipes
(food)
- A new invention for which a patent application has not yet
been filed
- Marketing strategies
- Manufacturing techniques
- Computer algorithms
What is required to maintain trade secrets?

Secrecy
Ways to protects trade secrets?
• Restrict access to the information (lock it away in a
secure place, such as a bank vault)
• Limit the number of people who know the information
• Have the people who know the trade secret agree in
writing not to disclose the information (sign non-
disclosure agreements)
• Have anyone that comes in contact with the trade
secret, directly or indirectly, sign non-disclosure
agreements
• Mark any written material pertaining to the trade
secret as proprietary.
Advantages of trade secrets

• Unlimited duration -trade secrets could potentially

last longer than patents (20 years) and copyrights
• Your protection is theoretically worldwide
• No application required
• No registration costs
• No public disclosure or registration with
government agency
• Effective immediately
 Famous trade secrets

Formula for Coca-Cola The Big Mac Special Sauce

KFC Chicken Recipe WD-40 Formula

Secrets 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
Innovative ideas
Trade secrets litigation

• Trade secret litigation comprises of two aspects.

1. violation of trade secret law takes place, when the

confidential information is obtained through
misappropriation
2. violation of nondisclosure agreement takes place
when a party in the contract breached the
agreement
How are trade secrets lost or stolen?

A growing problems
 A growing problem
why does it occur?

* Departing or disgruntled employees

* Intentional (malicious)
* Inevitable (knowledge acquired)
* By ignorance
 A growing problem
why does it occur?
• The Way we do business today (increased use of
contractors, temporary workers, out-sourcing)
• Declining employee loyalty: more job changes
• Organized crime : discovered the money to be
made in stealing high tech IP
• Storage facilities (DVD, external memories, keys)
• Expanding use of wireless technology
Trade secret complaint

• Complaint is a first document which is brought into

the notice of the court by the plaintiff and asks for
the corrective measures.
• The defendant is required to give response to such
complaint after receiving the summons from the
court with in stipulated time period mentioned by
the relevant court .
• All the case data will be kept in Civil Cover Sheet
Traditional Knowledge (TK)

• Traditional knowledge (TK), indigenous knowledge (IK), and

local knowledge: matured long-standing traditions and
practices of certain regional, indigenous or local
communities.
• Tk encompasses the wisdom, knowledge and teachings of
these communities.
• Tk has been orally passed for generations from person to
persons. Some forms of TK are expressed through stories,
legends, folklore, rituals, songs and even laws. Other forms
of TK are often expressed through different.
TK Vs local knowledge

• Cosmological connections and differences in

worldview distinguish "TK" from "local knowledge"
• Length of time they have existed decades to
centuries (local knowledge) versus millennia (TK)
• TK reflect power struggles and relationships for
land, resources and social control than adherence
to a claimed ancestry or heritage
Reasons for protection of TK
• Unauthorized use by third parties
• Tool to preserve TK from uses that may erode it or negatively
affect the life or culture of the communities that have
developed and applied it
1. equity considerations
2. conservation concerns
3. the preservation of traditional practices and culture
4. the prevention of appropriation by unauthorized parties of
components of TK and
5. promotion of its use and its importance in development
What is Biodiversity

• Biological diversity comprises all species of plants,

animals and microorganisms and the variation
between them, and the ecosystems of which they
form a part.
Biopiracy

 Misappropriation of TK for the purpose of seeking exclusive patent ownership

over that knowledge.
 The process through which the rights to genetic resources and knowledge are
"erased and assumed by those who have exploited indigenous knowledge and
biodiversity.
Key Issues Surrounding Biopiracy

 Understanding the precise legal status of genetic resources and traditional

knowledge,
 Understanding the exact boundaries of biopiracy in order to ensure more
effective measures to confront this phenomenon,
At present, bioinformatics, proteomics, genetic engineering and synthetic
biology, among others, promote more subtle ways of misappropriation and illegal
access to and use of genetic resources and traditional knowledge.
 Some Examples of Biopiracy of Traditional Knowledge

Colgate Case
 Colgate, the world's largest producer of toothpaste, patented a tooth
cleaning powder.
 American household goods giant was granted the patent in the U.S.
in June for what it claimed was a groundbreaking "red herbal
dentifrice".
 Indian activists claim that the patent is bogus because the ingredients
including clove oil, camphor, black pepper and spearmint have been
used for the same purpose for hundreds, "if not thousands," of years
on the subcontinent.
 However, its patent filing argues that the use of red iron
oxide, which is less abrasive than ingredients in traditional
toothpaste, is new.
 According to Colgate the old recipe has become new, and
through this "legal contraption", the American company
intends not to pay royalties.
 India is in the process of creating 34 million web pages to
help prevent the "biopiracy" of its ancient folk remedies
that document the techniques and claim them as Indian
property.
Turmeric Case

 In 1995, two Indian nationals at the University of Mississippi

Medical Centre were granted US patent no. 5,401,504 on "use
of turmeric in wound healing".
 The Indian Council of Scientific and Industrial Research (CSIR)
requested the US Patent and Trademark Office (USPTO) to re-
examine the patent.
 CSIR argued that turmeric has been used for thousands of
years for healing wounds and rashes and therefore its
medicinal use was not novel.
 Their claim was supported by documentary evidence of
traditional knowledge, including an ancient Sanskrit text
and a paper published in 1953 in the Journal of the Indian
Medical Association.
 Despite arguments by the patentees, the USPTO upheld
the CSIR objections and revoked the patent.
Basmati Rice Case

 In late 1997, an American company RiceTec Inc, was granted

a patent by the US patent office to call the aromatic rice grown
outside India 'Basmati'. RiceTec Inc, had been trying to enter
the International Basmati market with brands like 'Kasmati'
and 'Texmati' described as Basmati-type rice with minimal
success.
 CSIR challenged the rice patent.
 After reexamination, the USPTO disallowed all the physical
characteristic claims.
 The Indian Government, a strong advocate of geographical
indications for food products, claimed victory when the
USPTO limited the number of claims granted to Rice Tec.
 RiceTec still has a patent and can still call its rice Basmati.