Travis Roy mentions how trade secrets are used to protect the formula for Coca-Cola (the beverage that until 1914, or therabouts, actually contained coca extract, more commonly known as cocaine). Quick summary: If you invent something similar on your own, the Coca-Cola company can't do much. However, if (as is more likely) you "acquired" the formula for Coca-Cola from a Coca-Cola employee or some other surreptitious means and used it to make a competing product, then they could sue the pants off of you.

A rather illustrative situation came up in Kentucky recently (in the last five years). A couple bought a house that had been owned by the Sanders family whose modern patriarch started Kentucky Fried Chicken with the secret recipe of eleven herbs and spices.

Well, the folks who had lived there last didn't clean out all the junk, and the new owners found some papers in a trunk that contained Sanders' original recipe for his pressure-cooker fried chicken, including the eleven herbs and spices. Realizing that they had struck gold the new owners of the house attempted to sell the recipe to the highest bidder.

The management company that franchises KFC (Jerrico, IIRC) could not allow the secret recipe to get out so they cited trade secret protections in a civil lawsuit to get the folks to hand over the papers and to promise that they'd never reveal what they had learned under penalty of law (i.e. NDA).

Entirely OT, I want to add that if you've never had real, southern fried chicken or ckicken fried in a pressure cooker, then you haven't had fried chicken. It's best, of course, if the bird was raised free range. The industrial stuff that you generally find in your supermarket has no flavor. Fried turkey is pretty gol'danged good, too. :-)

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