The Most Valuable Trade Secret Ever—and How It Stayed That Way

laura-chouette-Q1zLEuJIp1Y-unsplashIf you’re guessing it’s the secret formula for the Krabby Patty sorry—though you have to give Mr. Krabs his due—he’s held Plankton at bay for more than fifteen years. So then, what is it? Think.

That’s right—it’s the formula for good ol’ Coca Cola®. It has been, continues to be, and probably always will be a trade secret. What’s important about the story is that Coke’s secret formula has only ever been protected as a trade secret. So how did they do it?

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IP Best Practices: Identifying Intellectual Property, Step 1

Previously in our Intellectual Property (IP) Best Practices series, we introduced 10 steps to maximizing your IP. Today’s blog is the second in this series, and the first to begin discussing each of those steps in sequence. Please check back every Monday for the next part in this series. Enjoy!

christin-hume-mfB1B1s4sMc-unsplash-1The big question that anyone running a business asks, or at least should be asking, is, “Do I have IP?” The first step (identifying intellectual property) may seem like the most obvious but not enough entrepreneurs and startups understand the importance and urgency of it. Before you can get legal protection for your IP, you have to find out what type of IP you posses.

Although easy to identify popularly understood intellectual property such as copyrightable materials, your company may possess a plethora of IP that you didn’t even know qualified as such. Take trade secrets for example: Many companies do not understand how much discretion to employ when conducting their affairs and what methods to use to protect a competitive method from being used by their competitor. All that to say, understanding your intellectual property is a prerequisite to identifying what type of IP you have created.

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Traklight Tech Talks: IP Vault Enhancements

Every month, Shay discusses some of the technical changes to our site in his Traklight Tech Talks blog. Last month saw the introduction of iframes. And today is an update on our most recent website enhancements. Be sure to stay updated with these updates by subscribing to our blog.


glenn-carstens-peters-npxXWgQ33ZQ-unsplash (1)Well, it’s that time again; time for me to quit procrastinating and attempt to write a blog post. We are continuing with enhancements to our web application. Some upcoming, noteworthy changes are:

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Webinar Recap: Nicole Druckrey on Trade Secrets

I am very happy to say that everything went very smoothly for my first webinar yesterday. I introduced our guest presenter Nicole Druckrey, Partner at Quarles & Brady LLP, a law firm that “provides broad-based, national-level legal services.” She provided lots of valuable information in this presentation, and also answered quite a few audience-based questions, as well as a couple of my own. We didn’t quite have enough time to review all those questions, so I have posted them below.

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Cloud DVR Provider Aereo Found Guilty of Copyright Infringement

Update: Aereo recently filed for bankruptcy protection to protect the value of its assets as it tries to find buyers for its intellectual property. The technology involved is revolutionary but the litigation around the product deterred a number of prospective buyers. This case illustrates the importance of intellectual property in today’s market. A company that was set to disrupt the cable industry, flying high with more than 90 million in funding, completely collapsed when its business model was found to be infringing intellectual property.

On April 30th, before the Supreme Court decided if Aereo was guilty of copyright infringement, Michael Witham shared a blog about this story with our readers.


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RightsCorp: A Possible Solution to Online Copyright Infringement

c-d-x-PDX_a_82obo-unsplashThe world of copyrights has been an endless well of information and complex issues that never stay out of the courts. And out of all business entities that take those issues to the courts, the entertainment industry has been there countless times. While that has never really ended, could there be a new watchdog group available to help keep institutions like the music industry from pursuing litigation?

That answer seems to be Rightscorp, currently one of the leading organizations helping provide compensation to the world of movies and music. They monitor a number of torrent sites to assure no copyright infringement of their clients is taking place. Right now, they are focused on protecting music more than anything after years of the music industry taking a beating online in the form of song piracy.

It was reported at the end of February that Rightscorp would begin protecting 13 top singles on the Hot 100 charts to ensure they are not downloaded illegally. But what is the future of this company and how are they becoming a major force for the entertainment industry? While ASCAP and BMI have been known to assure residuals to musical artists, will Rightscorp become the new copyright police for all entertainment-related intellectual property?

The Track Record of Rightscorp

Rightscorp’s revenue last year was around $320,000. Considering they take half of what they recuperate from infringers, they managed to collect around $640,000 in fines last year. Through their monitoring, they go through internet service providers (ISPs) to notify those illegally downloading music to pay $20 per song or risk having to pay up to $150,000 in civil penalties. This procedure seems to be working well rather than having to seek expensive litigation. Plus, it appears to be making back some of the money the music industry has lost since illegal downloading began.

Regardless, is it really going to help crack down on intellectual property (IP) theft in the entertainment world? The notices are sent via internet service providers that have to offer their clients the option to pay the fine or have their services terminated. Most ISPs would not want to lose clients who are paying good money on a subscription basis. Rightcorp claims that five out of the top 10 ISPs in the country are sending Rightcorp’s notices and they hope to get other ISPs onboard as well. Under the Digital Millennium Copyright Act (DMCA) an ISP loses its ‘safe harbor’ protection if it fails to cancel service to recurrent offenders. The settlement offers act as a deterrent without having to pursue more complicated legal moves or pay severe fines prescribed under the DMCA. It gives people illegally downloading music knowledge that they are being monitored not unlike the NSA.

While this monitoring might seem obtrusive, it may have to be necessary for more than just IP in the entertainment industry. Rightscorp hasn’t necessarily limited itself to entertainment and says they help monitor any type of intellectual property that is copyrighted. Perhaps they’ll eventually expand their reach and go within the realm of trade secrets where theft is a recurring problem.

No matter how far they go with their protections, your own business still has to take control of its intellectual property. You need other protections as well (and education) to know how to keep it safe and how to profit from what you have. For more information on intellectual property check out Traklight’s Resources.


 Get in touch so we can tell you more about our services and how you can protect your content online.

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Blogging + IKEA = Intellectual Property Infringement

michiel-annaert-5lLLAxNpAys-unsplashChances are you or someone you know has purchased and assembled furniture from IKEA. It’s a Herculean task to attempt solo, and if you undertake it with a friend or loved one, your relationship may not survive the strain. Those of us who have come out the other end of the building process sweaty and filled with impotent rage may wonder how anyone might have anything beyond a grudging respect for IKEA, to say nothing of love. But the company has more than its share of passionate fans in online communities, spreading their love of pre-packaged furniture across the internet. Unfortunately, one blogger who runs a site devoted to the Swedish furniture giants and their products may find herself in an intellectual property infringement legal bind that will take more than an allen wrench to solve.

IKEA sent a cease-and-desist letter to the founder of IKEAhackers.net, demanding she transfer the domain over to the company. The site shows users how to transform and repurpose furniture and other goods from the store into new and innovative products. IKEAhackers.net was started eight years ago by a Malaysian blogger using the pseudonym Jules Yap, and has cultivated a considerable following amongst fans looking to share their IKEA hacks with fellow enthusiasts. Traffic on the site grew to the point that Yap was able to sell advertising, allowing her to keep maintaining the site as a full time occupation. It was this commercialization of the site that seems to have finally placed the site in IKEA’s legal crosshairs, prompting the company to take action.

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Taking the Scary Out of Startup: Why Startups Succeed, Part 9

Previously on our Taking the Scary Out of Startup series, we discussed the importance of company formation.


Plan & focus

burst-kUqqaRjJuw0-unsplash-1Planning and focusing are two words that we try to use every day at Traklight. Not only in the big picture context of starting with the exit as the end goal and working backwards, but with our daily tasks. Each week we make a list of our top three priorities and check with the team to make sure we are aligned.

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Locate Copyrights For Media Found In Your Business

kobu-agency-7okkFhxrxNw-unsplashCopyrights can potentially become a concern if your business happens to have acquired a very old business dealing in media. Stored in your business might be creative works that have been sitting around gathering dust for a long time and with no identification as to who created them. These could be books, photographs, or even articles with no author designation. It’s all intellectual property (IP) you could potentially use in your business for profit. But should you go ahead and use them if you aren’t sure if they’re copyrighted? How do you locate copyrights on that IP?

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IP Best Practices: Protecting Intellectual Property, Step 2

Previously in our Intellectual Property (IP) Best Practices series, we introduced step one to maximizing your IP: Identify. Please check back every Monday for the next part in this series.


 

Once you are done identifying your intellectual property, the hard part begins. As much as we would all love a magical wand that, with a flick of the wrist, automatically protects all your IP against the world at large, none exists. Trust me, I have checked. But fear not, you can conquer this overwhelming task with some help and a deeper understanding of what you want from your IP.

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