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ITS 203 Lesson 6 7 Reviewer

1. The document discusses trade secrets and industrial design protection. Trade secrets can include formulas, processes, software, and customer lists, as long as reasonable efforts are taken to maintain secrecy. Industrial design refers to the ornamental aesthetic aspects of products. 2. To qualify for trade secret protection, information must provide commercial value from being secret and reasonable secrecy measures must be taken. Industrial designs must be new, original, and have individual character to be registered. 3. Both trade secrets and industrial designs provide IP protection, but trade secrets do not require registration and can last indefinitely if secrecy is maintained, while industrial design protection is for 10-15 years.
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0% found this document useful (0 votes)
47 views5 pages

ITS 203 Lesson 6 7 Reviewer

1. The document discusses trade secrets and industrial design protection. Trade secrets can include formulas, processes, software, and customer lists, as long as reasonable efforts are taken to maintain secrecy. Industrial design refers to the ornamental aesthetic aspects of products. 2. To qualify for trade secret protection, information must provide commercial value from being secret and reasonable secrecy measures must be taken. Industrial designs must be new, original, and have individual character to be registered. 3. Both trade secrets and industrial designs provide IP protection, but trade secrets do not require registration and can last indefinitely if secrecy is maintained, while industrial design protection is for 10-15 years.
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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ITS 203 Lesson 6 & 7 Reviewer (Trade Secret & Industrial Design)

Trade Secret – any business information that derives its value from its secrecy
- can be a method, a technique, a process, research and analysis data, a formula, a
recipe, a device, an instrument etc.
- may consist of information relating to a formula, pattern, device or other compilation
of information that is used for a considerable period of time in a business
- technical information used in the manufacturing process for production of goods
- may relate to marketing, export or sales strategies, or a method of bookkeeping or
other business management routines or procedures, including software used for
various business purposes
- 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

Qualifications for Trade Secret Protection


1. Secrecy – the information must not be generally known or readily accessible to the public or
competitors
2. Commercial Value – the information must provide a competitive advantage or economic
benefit to its owner, i.e., it derives value from its secrecy
3. Reasonable Efforts – the owner must take reasonable measures to maintain the secrecy of
the information

Trade Secrets Are Used To:


 Protect an invention through means other than patent protection or industrial design
 Protect valuable business information that is not formally protected through other IP
rights
 Protect business information indefinitely

Trade Secrets Encompass an Almost Infinite Spectrum of Information, such as:


 Customer Lists  Manufacturing Processes
 Supplies Lists  Marketing Strategies
 Financial Data  Computer Source Code
 Product Formulas  Pricing Information

Elements of Trade Secrets


 Originality
 Secrecy
 Economic Espionage Act (EEA of 1996)

5 Types of Trade Secrets


1. Processes – anything a company innovates to increase efficiency in manufacturing processes
can be a protected trade secret since this process, if not known to competitors or the general
public, gives the company a competitive advantage
2. Formulas – a protected trade secret might be a recipe for a food product or an item in the
chemistry or health care sector known only to one organization
3. Databases – corporations typically keep detailed customer lists with specific information about
buying habits. This information is often a protected trade secret, as it allows the company to
conduct business using valuable, hard-won information about the marketplace.
4. Programs – a proprietary software program that allows for greater information storage or
faster information retrieval is another example of a trade secret. The trade secret owner
benefits from this valuable information technology – so long as they are the only one in
possession of it.
5. Business Operations – trade secrets can be logistical practices or information about
marketing, external costs, pricing, and other accounting data. If this business information is not
publicly available, and steps are taken to keep it secret, it can be a protected trade secret.

To Qualify as a Trade Secret, the Information Must Be:


 commercially valuable because it is secret
 be known only to a limited group of persons
 be subject to reasonable steps taken by the rightful holder of the information to keep it secret,
including the use of confidentiality agreements for business partners and employees

Criteria/Factors for Trade Secret Protection


1. Novelty – the extent to which information is known outside of the business
2. Business Knowledge – the extent to which it is know by employees and other involved in the
business
3. Secrecy – the extent of measures taken to guard the secrecy of the information
4. Value – the value of the information to the business and to competitors
5. Development – the amount of effort and money expended in developing the information
6. Reverse Engineering – the ease or difficulty with which the information could be properly
acquired or duplicated by others

Trade secret protection applies to business information only if sufficient care is taken to
maintain its secrecy. Likewise, protection will be lost if sufficient care to maintain secrecy cannot be
demonstrated. You should consider different ways to keep your valuable business information
secret, including:
 Non-disclosure or confidentiality agreements
 Confidentiality clauses in employment agreements
 Encryption of information
 Password protection
 Lock and key
 Principle of least privilege (only those that must know will know the secret)

How can a business protect is trade secrets?


1. Documents holding trade secrets should be marked “Confidential”
2. Nondisclosure agreements (NDAs) are the most popular and effective method of protecting
trade secrets

Advantages of trade secret protection


1. Trade secrets involve no registration costs
2. Trade secret protection does not require disclosure or registration
3. Trade secret protection is not limited in time
4. Trade secrets have immediate effect
Additionally, trade secret protection is lost if a secret is disclosed publicly whether intentionally,
accidentally, or illicitly.
Trade secrets may not be the best IP protection choice if your competitors can easily reconstruct
your creation.
An invention protected as a trade secret may be conceived independently and then patented or
otherwise used by someone else without infringing on the trade secret.
As a result, you may want to consider other forms of IP protection, or a combination of IP
protections, if independent discovery is likely or your IP is hard to keep secret.

Industrial Design – refers to any ornamental or aesthetic aspect of a product


- refers only to the appearance of a product
- consist of
o 3D features, such as the shapes of a product
o 2D features, such as ornamentation, patterns, lines or color of a product
o A combination of one or more such features
- are those designs the give ornamental or aesthetic value to a product, which is then
manufactured industrially
- can be categorized as a combination of lines and colors or any three-dimensional
form with a unique impression

Peter Behrens – German architect and designer, became the architect advisor for Allgemeine
Elektricitäts Gesellschaft (AEG), a German electrical company, in 1907
- considered a pioneer in the field of industrial design

Relevance of ID
 Wide variety of products of industry, fashion, and handicrafts
 Design of
o Technical and medical instruments
o Watches, jewelries, and other luxury items
o Household products, toys, furniture, and electrical appliances
o Cars and architectural structures
o Textile design to support equipment
o Packaging and containers of the product

Eligibility of ID
The following industrial designs shall not be registrable:
 Industrial designs that are dictated essentially by technical or functional considerations to
obtain a technical result
 Industrial designs which are mere schemes of surface ornamentations existing separately from
the industrial product or handicraft
 Industrial designs which are contrary to public order, health, or morals.

Term of Protection ID
The registration for an industrial design is for a period of 10 years from the filing date of the
application. The registration of an industrial design may be renewed for not more than two (2)
consecutive periods of five (5) years each by paying a renewal fee. The fee should be paid with a
year of the expiration of the registration.
What rights are provided by the ID protection?
 Right to prevent unauthorized copying or imitation
 Right to exclude all others from making, offering, importing, exporting or selling any product in
which the design is incorporated or to which it is applied

What can be registered as an ID?


 The design must be “new” – not made available in the public
 The design must be “original” – independently created
 The design must have “individual character”

Utility Patent – covers feature & functionality


Industrial Design – covers aesthetics of a product

Trademark – covers mark for identifying a business


Industrial Design – covers diagrammatic representation related to aesthetics

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