Week 5

Chapter 12 question 5

Patents and Trade Secrets

A patent is a title given by the government to inventors in exchange for public revelation of how to use and make their invention. Inventors are entitled to the patent, protection for their ideas under federal law. Your idea needs four basic requirements in order to get a patent.

1. The idea must be subject matter that Congress has defined to be patentable. Machines, processes/methods, and composition of matter are example of patentable subject matter. Algorithms and laws of nature are examples of subject matter that cannot be patented.

2. Must be new

3. Must be useful

4. Must non-obvious

Trade secrets have struggled with simply developing a particularized definition of what is and what type of intellectual property it protects. The Uniform Trade Secrets Act defines trade secrets as information, formula, pattern, compilation program, device, methods and techniques. That is based primarily on state law.

The holder of a patent is authorized to a limited time to take out any person or entity from using, making, selling, or offering to sell the patented invention. In contrast, the cycle of life of a trade secret depends upon secrecy. Insight of the trade secret to the public vitiates.

There is no subject matter restriction imposed on trade secrets protection so long as the information provides a competitive advantage derived from secrecy of the information. The gamma of trade secret protection extends from formulas, processes, research and development, methods, and quality control to financial and strategic information including pricing and customer information.

Patent and Trade Secret Comparison Chart, http://www.erikjheels.com

| |Patents |Trade Secrets |

|Who uses this strategy? |• Gillette |• Kodak...