Coca Cola Company and its Trade Secrets

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nPart A

nCoca Cola Company and its Trade Secrets

nCoca Cola Company has its headquarters in Atlanta Georgia. The company was established in the late 19th century and has grown to become the leading manufacturer and seller of soft drinks across the globe (Bouchoux, 2012). Currently, it is the fourth most valued brand worldwide. John Pemberton is credited for establishing the Coca Cola formula in 19th century. His initial intention was to develop a patent medicine. Nonetheless, Asa Griggs Candler acquired the firm and employed marketing strategies that facilitated its dominance in soft-drink market in 20th century (Levine, 2011). The name is derived from two of its initial ingredients: coca leaves and kola nuts – which is a caffeine source. However, the formula for Coca cola beverages has remained a top trade secret.

nCoca Cola Company has made significant efforts to maintain its trade secrets. Reports suggest that only two individuals in the firms top executives have the secret formula for beverages at a particular moment but each one understand only half and they are not permitted to move in the same plane (Bouchoux, 2012). Nonetheless, the company have not disclosed the number of persons that have their trade secret formula but bearing in mind the degree of production they conduct across the world, it is less likely that only two individuals keep this secret at a particular moment (Dreyfuss & Strandburg, (Eds.). 2011).

nFor a long time, a small group people mutually kept the formula, but it they never wrote it down. In 1919, when Ernest Woodruff bought the firm from Candler, he demanded that the formula be written down so that he could use it to obtain a loan (Dreyfuss & Strandburg, (Eds.). 2011). The written formula was kept in a vault of Guaranty Bank in New York until the full repayment of loan was completed. Additionally, in 1925, the company used SunTrusts vault to store its trade secret formula. Similarly, at its 125th anniversary in 2011, the company moved its vault to Atlanta at World of Coca-Cola where the public viewed it in an exhibition (Bouchoux, 2012).

nCoca-Cola Company opted to use trade secret instead of patent legislation in order to sustain its business interests. In addition, its trade secrets have enabled the firm to safeguard its competitive advantage over its business rivals. Similarly, this excellent idea turned the treasures of the firm in a manner that few could have anticipated at the time (Levine, 2011). At inception, the firm embraced the use of trade secrets as opposed to patents because it would have benefitted for only seventeen years pursuant to US Patent Act 1836. Nevertheless, patency was increased to 20 years under TRIPS agreement and Uruguay Round Agreement Act in 1995. Fortunately, trade secrets can be kept for unlimited period (Levine, 2011). Furthermore, patents require mandatory and comprehensive description of the invention hence firms are compelled to disclose its trade secrets. In so doing, following the expiry of patent protection, any other firm has the right to use the formula to reproduce the same kind of soft drink (Dreyfuss & Strandburg, (Eds.). 2011). Therefore, the use of trade secrets instead of patents has helped to eliminate competitors who can produce similar and competitive products.

nAs compared to patency, trade secrets offer a wider scope. There is a qualitative experiment for patent safeguard by any details, which are not known to the public and are of business value, can be safeguarded as trade secrets. Trade secrets do not compel the holder to apply to the government for legal protection (Dreyfuss & Strandburg, (Eds.). 2011). Therefore, they need less legal procedures as compared to patents. However, although the TRIPS agreement 1995 under Article 39 clearly established global standards for safeguarding trade secrets, patents have more authorised protection (Levine, 2011).

nCoca-Cola Company has also experienced challenges in its bind to safeguard its trade secrets. For instance, the company was forced to close its business in 1977 in India due to regulations that forced disclosure of trade secrets. Legislations such as the Indian Foreign exchange Regulation Act (IFERA) demanded that all companies must reveal their trade secret formula and work in partnership with a local company. However, the firm resumed its operations in India after 17 years following the change of policy (Bouchoux, 2012).

nThe biggest challenges occurred in 2006 when some its workers colluded to sell its trade secrets its business competitor, Pepsi Company. However, Pepsi Company quickly informed coca cola about the breach and later notified the FBI. During this incident, Pepsi had received a letter from a person known as “Drik” in a formal envelop of Coca-Cola where he had comprehensively provided information about a new Coca Cola product (Dreyfuss & Strandburg, (Eds.). 2011). Moreover, the individual was willing to do business for it. Following investigations conducted by the FBI, three persons were arrested since they were linked to the disclosure of coca cola company trade secrets. Williams Joya, Duhaney Edmund, and Ibrahim Dimson were detained and charged for this event (Levine, 2011).

nVideo surveillance captured William looking for confidential details and caught hiding a new sample produced by coca cola into her bag. The company management later noted that the product was a real sample invention under development (Dreyfuss & Strandburg, (Eds.). 2011). William was sentenced to eight years in prison while Duhaney Edmund and Dimsom Ibrahim received two and five-year jail term respectively for colluding to steal coca cola company trade secrets and trade them to its competitors such as PepsiCo (Levine, 2011).

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nPart B

nAmerican with Disabilities Act (ADA)

nAmericans with Disabilities Act (ADA) outlaws discrimination of individuals based on their disabilities in various crucial areas. A person has a disability in case he/she suffers from a mental or physical impairment that significantly hampers one or more activities in life. Individuals with mental and physical impairments are covered under the ADA (Illinois Legal Aid, 2017). Nonetheless, not all impairments that limit an individuals activities are covered under the ADA.

nBased on ADA definition, a physical impairment refers to any medical loss, disfigurement, condition and disorder that affect the body systems of an individual such as sense organs, musculoskeletal, neurological, respiratory, digestive, reproductive, cardiovascular, endocrine, skin, lymphatic, hemic, circulatory, immune and genitourinary (Illinois Legal Aid, 2017). On the other hand, mental impairment refers to any psychological or mental disorder including particular learning disabilities, mental or emotional illness, organic brain syndrome and mental retardation.

nExamples of physical and mental problems covered by the American with Disabilities Act include Depression, Blindness and Muscular dystrophy. Depression is a severe mood disorder that leads to serious symptoms, which affect the working ability, eating, sleeping, thinking and feeling. A person is diagnosed with depression if the symptoms persist for more than two weeks (Illinois Legal Aid, 2017). Some of the most common types of depression include seasonal affective disorder, psychotic depression, bipolar disorder, perinatal depression, and dysthymia (persistent depressive disorder). Symptoms and signs of depression include tenacious anxious or sad mood, irritability, feeling of pessimism or hopelessness, fatigue and challenges in making decisions, remembering and concentrating among others (Illinois Legal Aid, 2017).

nBlindness is the incapacity to see. Persons with limited vision have partial blindness. In this regard, they are unable to differentiate shapes of items because of blurry vision. Furthermore, muscular dystrophies include a group of genetic disorders that slowly lead to weakening of muscles hence causing disability (Illinois Legal Aid, 2017). Some instances of muscular dystrophies negatively affect cardiac muscles and respiratory muscles, which cause life-threating conditions.

nHowever, the ADA does not cover certain physical and mental conditions. For instance, conditions such as psychoactive substance disorders due to drug addiction are not covered under the ADA. Moreover, sexual disorders such as pedophilia (sexual feelings towards children), transsexualism (sexual feeling towards opposite sex), and exhibitionism (public display of sexual organs) are not covered since they are not impairments (Illinois Legal Aid, 2017). Similarly, behavioural disorders such as pyromania (excessive desire to burn things), kleptomania (extreme desire to steal), and compulsive gambling are not covered under the ADA.

nArgument on Interpretation and application of ADA by the Courts

nThe American Disabilities Act (ADA) has been appropriately interpreted and applied by the courts in terms of the types of disability covered. The legislation has played a key part in raising the number of persons with disabilities who benefit from various government programs such as health insurance (Henderson & Bryan, 2011). Approximately 54 million (one in every five) people in the US have some form of disability. Therefore, they are at risk of discrimination in employment, transportation, and public service. The interpretation by the courts to include different kinds of disabilities in ADA has enabled elimination of this kind of discrimination. More importantly, the court interpretations facilitated economic independency, self-sufficient living, full engagement and provision of equal opportunities to persons with disabilities (Henderson & Bryan, 2011).

nFurthermore, the courts has appropriately interpreted and applied the ADA because it has enabled more disabled people to have efficient access to buildings, transportation and better engagement in the society. Through this interpretation, many persons with disabilities benefit from employment opportunities. The US Census Bureau noted that more than 25 percent of persons with disabilities aged between 16-74 years were employed since enactment of the ADA (Henderson & Bryan, 2011). Similarly, the number of persons with physical and mental impairment benefiting from sufficient health insurance and health care has as increased. Initially, private insurance companies classified these persons as high-risk groups hence they could not get health coverage.

nMoreover, private health insurance companies do not have long-term plans and services to meet the health needs of physically and mentally impaired persons (Henderson & Bryan, 2011). Consequently, persons with disability have several barriers when attempting to acquire private health insurance than ordinary persons. In this regard, they are more likely to use government provided medical cover. Research has more recently noted that among disabled persons aged 22-64 years, 7 per cent had only government medical coverage. Surprisingly, the impacts of a disability prevented these persons from accessing private insurance. Statistics confirm that persons with disabilities face numerous restrictions in private insurers (Henderson & Bryan, 2011).

nThe interpretation of ADA has helped to expand the Medicare and Medicaid programs that provide health assistance to persons with disabilities. The restrictions imposed on private companies against the disabled groups have pushed them into public health programs. The incapacity to acquire private health cover and work limitations on benefits is unfavourable to persons with disability and acts as a hindrance to job (Illinois Legal Aid, 2017). Finally, these factors weaken the rate of employment of persons with disabilities. Therefore, the courts interpretations have helped to meet the health needs of these people.

nThe ADA has been appropriately interpreted hence it has helped to improve equity in employment practices in both government and private businesses. In so doing the legislation, ensure that all people in the US have full access to all forms of employment in the country. More importantly, the ADA has played a significant part in elimination of exclusion against qualified persons with disability especially in employment opportunities(Henderson & Bryan, 2011). Individuals with disabilities are protected from discrimination in corporate policies and activities governing the hiring, recruitment, social programs, benefits, leaves of absence, job assignment, pay, promotion and training (Illinois Legal Aid, 2017).

nFinally, the interpretation of American Disability Act has helped to deal with communication, transportation, and architectural accessibility challenges among persons with disability. It has also promoted equality, inclusion, participation and independence for Americans with physical and mental impairment (Henderson & Bryan, 2011).

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nReferences

nBouchoux, D. E. (2012). Intellectual property: The law of trademarks, copyrights, patents, and trade secrets. Cengage Learning.

nDreyfuss, R. C., & Strandburg, K. J. (Eds.). (2011). The law and theory of trade secrecy: a handbook of contemporary research. Edward Elgar Publishing.

nHenderson, G., & Bryan, W. V. (2011). Psychosocial aspects of disability. Charles C Thomas Publisher.

nIllinois Legal Aid (ILA). (2017). Who has a disability under the ADA?. Illinoislegalaid.org. Retrieved 3 May 2017, from https://www.illinoislegalaid.org/legal-information/who-has-disability-under-ada

nLevine, D. S. (2011). The People’s Trade Secrets. Mich. Telecomm. & Tech. L. Rev., 18, 61.