What's a Trade Secret? (And What Would Happen if You Stole The Colonel's?)

iStock
iStock

Earlier this week, KFC removed Colonel Harland Sanders' original handwritten recipe of 11 herbs and spices that go into the company's signature fried chicken from its safe storage place. The 68-year-old recipe had been resting in a locked filing cabinet inside a vault at the company's Louisville headquarters, and it was only removed under the watchful eyes of many guards so the company could upgrade the security around the piece of paper. Why all the fuss? Are these measures just publicity-seeking theatrics for KFC? Why does KFC need to keep the recipe under lock and key anyway?

The KFC recipe is part of a larger class of corporate knowledge known as trade secrets. Broadly defined, a trade secret is a process (think of things like Web search algorithms), formula, practice, design, or other secret information to which the public doesn't have access that allows a company to gain a competitive advantage over the rest of its industry. In this case, KFC feels that its spice blend enables the company to make particularly delicious chicken that's differentiated from the rest of the fried-chicken market. The public seems to agree; KFC raked in over $5 billion in domestic sales last year. If another chicken company got their hands on this spice blend, they could conceivably replicate the delicious fried poultry and effectively eat away at KFC's market share. As such, KFC maintains its recipe as a trade secret to keep competitors at bay.

If KFC wants to protect its recipe, why doesn't it just get a patent?

Because then the cat would be out of the bag on what the 11 spices are. In order to acquire a patent, a company has to give pretty exhaustive information on what it's patenting to the United States Patent and Trademark Office. If the office granted a patent, the information would then become public. Although KFC would have a temporary monopoly (usually for 20 years) on that particular recipe, every chicken shack owner in the country could start toying with the recipe, making little tweaks to it, and potentially coming up with something even better. None of that would be good for the Colonel. But by keeping the recipe a closely guarded secret, the company can theoretically keep its advantage forever. Since apparently no one has the first clue what the 11 spices are, much less the proportions in which they're mixed, the company can feel safe as long as it guards the recipe.

Companies with these sorts of trade secrets generally make employees sign non-disclosure and confidentiality agreements, so the select few who get to see the recipe don't run off and start their own chicken businesses. Anyone who tries to swipe a trade secret through espionage should be ready for a lot of legal liability and potential jail time. Just ask Kate Hudson, who came under fire last month for allegedly pilfering a trade secret in the formulation of her new hair-care products.

Does that mean there's no way we'll ever see another company selling KFC's chicken?
Not quite. One downside of a trade secret is that it's perfectly legal for competitors to try to reverse engineer someone else's product. You want to make KFC chicken legally? Get in the kitchen and tinker with spice blends until you figure out the one that tastes just like it. Alternatively, if a chef serendipitously came up with the spice blend independently without sneaking a peak at KFC's recipe, she could start legally trafficking in the bird.

The KFC spice blend is just one example of a jealously guarded trade secret, though. Here are a few other notable ones:

The Coca-Cola Formula
The Coca-Cola formula, which is known by the code name "Merchandise 7X," is possibly the best-known trade secret in the world. The formula, which dates back to the drink's 1886 invention by Joseph S. Pemberton, is written on a piece of paper that resides in an Atlanta bank. Despite decades of attempts to figure out the formula, no one has succeeded yet; these failures are why the knock-off store brand sodas you buy never taste quite like the real thing. Coke is not afraid to go to great lengths to maintain the secrecy of the formula. In 1977 the Indian government demanded that the company reveal the recipe to keep its ability to sell the beverage in India. Coke decided it would rather leave the market altogether rather than give up its secret; you couldn't buy a Coca-Cola in India until the government relented in 1993.

McDonald's "Special Sauce"
We all know the Big Mac jingle. What we don't know is exactly how to make the sauce. The burger itself was originally conceived in Pittsburgh to compete with Big Boy's signature burger, but it was so popular it had to get a national audience. The sauce is pretty analogous to Thousand Island dressing, but the actual formulation remains a secret sought by beef aficionados everywhere.

The Krispy Kreme Recipe
Krispy Kreme opened in Winston-Salem, NC, in 1937 after founder Vernon Rudolph bought a secret recipe for yeast donuts from a New Orleans chef. Despite the company's meteoric rise over the last seven decades, the recipe remains locked in a vault in Winston-Salem and is known by only a select few. (As someone who went to college in Winston-Salem and ate way too many Krispy Kremes, my educated guess is that the secret ingredient is either awesomeness or love. Possibly both.)

Google AdWords
AdWords is Google's advertising product that places pay-per-click banner and text ads throughout the Web and provides site-targeted ads. The system is certainly successful; it pulled in over $16 billion last year. How do the ads get placed on individual pages, though? Good question, but it's one that will remain a mystery since the algorithm is a trade secret.

Gillette Razor Designs
Here's an example of why you don't want to steal a trade secret. In 1997, Wright Industries was helping Gillette design a new razor that was extremely confidential and potentially valuable. Wright Industries employee Steven L. Davis worried that his job was in jeopardy and had a grudge against his supervisor, so he swiped a bunch of trade secrets, including drawings of razor designs and data and sent them to Bic, Warner-Lambert, and other competitors. Bad move. The 1996 Congressional passing of the Economic Espionage Act made stealing trade secrets a federal crime. Davis pled guilty to five counts of theft of trade secrets and received a sentence of 27 months in jail and over a million dollars in fines.

Ethan Trex co-writes Straight Cash, Homey, the Internet's undisputed top source for pictures of people in Ryan Leaf jerseys.
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10 Rad Gifts for Hikers

Greg Rosenke/Unsplash
Greg Rosenke/Unsplash

The popularity of bird-watching, camping, and hiking has skyrocketed this year. Whether your gift recipients are weekend warriors or seasoned dirtbags, they'll appreciate these tools and gear for getting most out of their hiking experience.

1. Stanley Nesting Two-Cup Cookset; $14

Amazon

Stanley’s compact and lightweight cookset includes a 20-ounce stainless steel pot with a locking handle, a vented lid, and two insulated 10-ounce tumblers. It’s the perfect size for brewing hot coffee, rehydrating soup, or boiling water while out on the trail with a buddy. And as some hardcore backpackers note in their Amazon reviews, your favorite hiker can take the tumblers out and stuff the pot with a camp stove, matches, and other necessities to make good use of space in their pack.

Buy it: Amazon

2. Osprey Sirrus and Stratos 24-Liter Hiking Packs; $140

Amazon

Osprey’s packs are designed with trail-tested details to maximize comfort and ease of use. The Sirrus pack (pictured) is sized for women, while the Stratos fits men’s proportions. Both include an internal sleeve for a hydration reservoir, exterior mesh and hipbelt pockets, an attachment for carrying trekking poles, and a built-in rain cover.

Buy them: Amazon, Amazon

3. Yeti Rambler 18-Ounce Bottle; $48

Amazon

Nothing beats ice-cold water after a summer hike or a sip of hot tea during a winter walk. The Yeti Rambler can serve up both: Beverages can stay hot or cold for hours thanks to its insulated construction, and its steel body (in a variety of colors) is basically indestructible. It will add weight to your hiker's pack, though—for a lighter-weight, non-insulated option, the tried-and-true Camelbak Chute water bottle is incredibly sturdy and leakproof.

Buy it: Amazon

4. Mappinners Greatest 100 Hikes of the National Parks Scratch-Off Poster; $30

Amazon

The perfect gift for park baggers in your life (or yourself), this 16-inch-by-20-inch poster features epic hikes like Angel’s Landing in Zion National Park and Half Dome in Yosemite National Park. Once the hike is complete, you can scratch off the gold foil to reveal an illustration of the park.

Buy it: Amazon

5. National Geographic Adventure Edition Road Atlas; $19

Amazon

Hikers can use this brand-new, updated road atlas to plan their next adventure. In addition to comprehensive maps of all 50 states, Puerto Rico, Canada, and Mexico, they'll get National Geographic’s top 100 outdoor destinations, useful details about the most popular national parks, and points on the maps noting off-the-beaten-path places to explore.  

Buy it: Amazon

6. Adventure Medical Kits Hiker First-Aid Kit; $25

Amazon

This handy 67-piece kit is stuffed with all the things you hope your hiker will never need in the wilderness. Not only does it contain supplies for pain, cuts and scrapes, burns, and blisters (every hiker’s nemesis!), the items are organized clearly in the bag to make it easy to find tweezers or an alcohol wipe in an emergency.

Buy it: Amazon

7. Hiker Hunger Ultralight Trekking Poles; $70

Amazon

Trekking poles will help increase your hiker's balance and stability and reduce strain on their lower body by distributing it to their arms and shoulders. This pair is made of carbon fiber, a super-strong and lightweight material. From the sweat-absorbing cork handles to the selection of pole tips for different terrain, these poles answer every need on the trail. 

Buy it: Amazon

8. Leatherman Signal Camping Multitool; $120

Amazon

What can’t this multitool do? This gadget contains 19 hiking-friendly tools in a 4.5-inch package, including pliers, screwdrivers, bottle opener, saw, knife, hammer, wire cutter, and even an emergency whistle.

Buy it: Amazon

9. RAVPower Power Bank; $24

Amazon

Don’t let your hiker get caught off the grid with a dead phone. They can charge RAVPower’s compact power bank before they head out on the trail, and then use it to quickly juice up a phone or tablet when the batteries get low. Its 3-inch-by-5-inch profile won’t take up much room in a pack or purse.

Buy it: Amazon

10. Pack of Four Indestructible Field Books; $14

Amazon

Neither rain, nor snow, nor hail will be a match for these waterproof, tearproof 3.5-inch-by-5.5-inch notebooks. Your hiker can stick one in their pocket along with a regular pen or pencil to record details of their hike or brainstorm their next viral Tweet.

Buy it: Amazon

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Coca-Cola Is Discontinuing TaB After Almost 60 Years

Stock up while you can.
Stock up while you can.
lokate366, Flickr // CC BY-SA 2.0

In 1963, Coca-Cola debuted TaB, a one-calorie diet soda that came in a pink can and promised women the chance to “have a shape he can’t forget.” The beverage was intended, as the commercial’s catchy jingle was quick to remind you, “for beautiful people,” with the sunny implication that sipping it could make you one of them.

TaB began to lose popularity after Diet Coke was launched in 1982, but a small crop of devotees still prefer it today. There’s even a website called ilovetab.com that keeps tabs on where the beverage is sold and which celebrities are spotted with a can in hand.

Unfortunately for fans, the Coca-Cola Company has finally decided to discontinue the drink just a few years short of its 60th anniversary. It’s not the only casualty: ZICO coconut water, Odwalla juices, Diet Coke Feisty Cherry, and Coca-Cola Life (a reduced-sugar version of Coke with stevia leaf extract) are also being retired, along with a few regional and international products.

Though plenty of businesses have scaled back their offerings—or gone bankrupt—due to the coronavirus pandemic, the company maintains that these changes were in the works long before then. That said, “the ongoing COVID-19 supply chain challenges and shifting shopping behaviors prompted the company to fast-track its plan,” Coca-Cola explained in a press release.

TaB is now more of a nostalgic cult classic than a lucrative asset. According to The New York Times, Coca-Cola circulated about 3 million cases of TaB in 2011—not even half a percent of the number of Diet Coke cases produced in the same year. But that’s not to say people won’t be sad to see it go.

“We’re forever grateful to TaB for paving the way for the diets and lights category, and to the legion of TaB lovers who have embraced the brand for nearly six decades,” Kerri Kopp, Diet Coke’s group director for North America, said in a press release. “If not for TaB, we wouldn’t have Diet Coke or Coke Zero Sugar. TaB did its job.”

[h/t The New York Times]