The Difference Between Trade Secrets And Trademarks

Some people get confused between trade secrets and trademarks. A trademark is something that is publicly recognized and known as being officially associated with a particular company. In contrast a trade secret can be a much more broad definition and by its very name is not made public.

According to the laws in most states, any device, pattern, formula, idea, or collection of information that gives the owner an advantage in the marketplace and is protected by the owner in a way that shows that it can be reasonably expected to keep their competitors or the public from finding out about it without stealing it is considered a trade secret.

There are many examples I can give of trade secrets. In an actual product, a trade secret could be the way certain ingredients are combined in the formulation of a nutritional supplement. Recipes, in particular those employed at commercial restaurants, are considered to be trade secrets.

One very famous one that I can think of right off is Colonel Sander's recipe for his Kentucky Fried Chicken. An idea for an invention that one has that they have not filed for a patent on yet would also be considered a trade secret, as are the complex algorithms that search engines like Google use to give us search results online.

Trade secrets are the opposite of other types of protecting of intellectual property such as trademarks and patents. The whole idea of a trade secret is to keep it from public knowledge and it is basically something that a person or company does themselves. Your trade secret will be given protection under law until you make the information public.

Companies and individuals protect information that they are unable to guard with other legal means such as patents and trademarks. There are numerous things that can be considered trade secrets. An idea that will give you a big jump over your competition in a particular market or even an idea for a piece of software or a website would also be a trade secret. Business information that you keep secret and only allow access to by employees such as marketing plans, costs, and pricing would be protected under law.

According to the law, the owner of a trade secret can legally prevent employees from using trade secret information or disclosing it by binding them with confidentiality or non-disclosure agreements. They also have legal protection from people who get the information by stealing it or through industrial espionage as well as people who get the information knowing that it is a protected trade secret.

The best way for a company to protect itself legally is to have employees sign a non-disclosure agreement, also known as an NDA. You should also have them signed by anyone that you do business with such as lenders and investors. An intellectual property attorney can help you with drafting this important document.

Gregg Hall is an author living in Navarre Beach, Florida. Find more about this as well as trademark lawyers at http://www.focusonip.com

 

PPC Ads Face A New Trademark Limitation

A federal court ruled last week that it is not only a trademark violation any longer to use another company?s trademark to deceive search engine users in the paid ad headline. The court has further ruled, that you can not purchase a trademark as a keyword to bring up your paid listing on Google, Yahoo, MSN and other search engines. This decision stemmed from a national jewelry company, who bid on the term, ?dating ring? to bring up their ad for the sale of the companies own diamond rings. The problem was that another company already had the trademark to the term ?The Dating Ring?. When this term was entered by users of the search engines, the national company?s ad came up for the sale of rings.

The defendant argued it never placed the trademarked term on any of its products or used the term ?dating ring? on its Web site. Unfortunitly for the company, they did use the term in the content of their ad.

This ruling makes the practice of going after your competitors name very costly now. The issues as I see it may become the inability to use common terms that the causal user may search by, where they do not even know it is a trademark. In this case illustrated, the term, ?dating ring? seems rather innocent to me. I had no idea there was even a company with that name. The law provides protection for companies name as it is used in commerce. However, when a company chooses such a general term for a name and does not have a large presence in the economy or even in the specific industry it conducts business, and then it seems unfair to require every company bidding on key words to conduct a trademark search for each and every term they will purchase. This type of investigation can prove to be most costly, where it is a standard practice in the P.P.C (pay per click) world to buy upwards of two to three thousand terms know as long tail terms, to bring in as many visitors as possible. The goal is of course to make a sale, collect information or what ever the desired conversion for the site may be. However, just because someone uses their web site in commerce and has purchased a term, that has a very plain or simple meaning, is not evidence that such a person or company intended to violate a small unknown companies trademark.

This article was written by Michael Goldstein for the Law Office of Goldstein and Clegg, a writters of the E-legal Lawyer Blog.

How To Avoid Legal Trouble From Trademark Infringement When You Buy A Domain Name

So you have a hot idea for a website, or maybe you want to capitalize on a hot new product that has just been released. There are some things that you will want to know first before you get yourself in a lot of hot water.

Choosing a domain name isn't really rocket science but it is very important. You want to choose something that is as short as possible, easy to pronounce and remember for marketing purposes, and if at all possible you want to get your main keywords in the domain name. All that aside, you also have to be careful that you don't step on the toes of a person or company who may be inclined to sue you.

For example, judges have ruled against domain name squatters in every case where they registered a celebrity's name. They will also rule against companies that infringe upon other companies. A good case in point would be the case a couple of years ago between the World Wrestling Federation and the World Wildlife Foundation. The World Wrestling Federation called itself the "WWF", put up a website at wwf.com, and the World Wildlife Foundation filed a trademark infringement suit against them. The Wildlife Foundation won because they had been in existence for many years before the wrestling firm and therefore the World Wrestling Federation had to change its name to World Wrestling Entertainment. Obviously this cost them a great some of money to change their name that appeared on millions of marketing products all over the world as well as the expense they had put up on their website and online marketing.

Another more recent issue that is still ongoing is the battle between Apple and the V.O.I.P. product "iphone" from Cisco. Apple announced they would be bringing a product to market called the Apple iPhone to go along with their other products that start with an "I". Cisco promptly filed for injunctive relief and as of this writing the issue is unresolved.

There are a few basic guidelines that will help keep you out of trouble when you are choosing a domain name so you don't run into legal trouble from violating someone?s trademark. Let's take a look at them.

First off you need to realize that a name that is used to identify a particular service or product is a recognized trademark. Trademarks that are deemed to be suggestive and memorable are granted protection by both state and federal law.

A confliction of trademarks occurs when one trademark is in conflict with another and the deployment of both is probably going to be confusing to customers or would be customers concerning the company's products or services. As I illustrated above, when the legal issue is with a later user of a trademark, the law rules that the first commercial user of the trademark is the legal owner and is therefore given protection. The loser will be forced to cease using the trademark and may even be compelled to pay damages to the original owner, particularly if it is determined that they were malicious in their intent.

The smart thing to do is to consult a trademark lawyer and have them check out your idea for a domain name before you invest too much in developing and marketing it.

Gregg Hall is an author living in Navarre Beach, Florida. Find more about this as well as intellectual property attorneys at http://www.focusonip.com