Trade Secrets And Competitive Advantage In The Global Food Industry: Lessons For India

Varsha Shree A.I & Sidharth T, SASTRA University

ABSTRACT

Trade secrets are a subset of intellectual property that comprises procedures, practices, designs, instruments, patterns, compilations of information and processes that have intrinsic economic value because their owner takes reasonable precautions to keep them hidden and they are not widely known or easily ascertained by others. In today’s business, trade secret plays a pivotal role on ascertaining the economic success or failure. Food products and recipes are tended to be preserved from the outside world and remain as a secret, so various companies like KFC, Coco Cola formulae and recipes are not disclosed to the outside world other than few people. The main aim of having trade secret laws to protect and safeguard the unique flavors, texture and preparation methods that distinguished their product from other products in the marketplace. It is the duty of the companies to take measures on protecting their methods by enforcing a non-disclosure agreement, limiting access of information and using compartmentalized production processes. The marketing and branding strategies, design concepts behind packaging, innovative food technologies, manufacturing processes, information regarding the source of raw materials also comes under the ambit of trade secrets on food products. Food labelling requirements that mandate important information about some goods, including ingredients, be disclosed on packaging makes it more challenging to protect a recipe or technique. In this article, we focus on the threat of trade secrets being leaked on the public domain and stake of the secret being protected on the eye of law.