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

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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
Coke_Bottle.jpgThe 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.jpgKrispy 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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Supermarket Introduces 'Quiet Hour' to Help Customers With Autism Feel at Ease
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For some people on the autism spectrum, a routine trip to the supermarket can quickly morph into a nightmare. It’s not just the crowds and commotion that trigger feelings of panic—sounds that many shoppers have learned to tune out, like intercom announcements or beeps from the checkout scanner, can all add up to cause sensory overload. But grocery stores don’t have to be a source of dread for people with such sensitivities. By turning down the volume for one hour each day, one supermarket is making itself more inclusive to a greater number of customers.

As Mashable reports, Australian grocery store chain Coles is partnering with the Autism Spectrum Australia (Aspect) organization to roll out "quiet hour" in two of its stores. From 10:30 to 11:30 a.m., the lights will be dimmed by 50 percent, the radio and register sounds will be turned down to their lowest volumes, and cart collection and non-emergency PA announcements will be put on hold. The changes are meant to accommodate shoppers with autism and their families, but all shoppers are welcome.

The initiative is based on research conducted by Aspect on people on the autism spectrum and those who care for them. In addition to modifying the atmosphere, Coles has taken steps to educate its staff. If someone does start to feel overwhelmed in a Coles stores, employees trained in understanding and dealing with autism symptoms will be on hand to assist them.

Coles is following the lead of several chains that have made themselves more inviting to shoppers on the spectrum. Last year, British supermarket chain Asda introduced its own quiet hour, and Toys "R" US implemented something similar in its UK stores for the holiday season.

The Coles initiative is just a trial run for now, but if the customer reaction is positive enough it may be here to stay. Visitors to their Ringwood and Balwyn East stores in Victoria will have a chance to experience it now through the end of October.

[h/t Mashable]

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10 of the Worst Jobs in the Victorian Era
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Next time you complain about your boring desk job, think back to Victorian times—an era before the concept of occupational health and safety rules—and count yourself lucky. Back then, people were forced to think of some imaginative ways to earn a living, from seeking out treasure in the sewers to literally selling excrement.

1. LEECH COLLECTOR

Leeches were once a useful commodity, with both doctors and quacks using the blood-sucking creatures to treat a number of ailments, ranging from headaches to "hysteria." But pity the poor leech collector who had to use themselves as a human trap. The job usually fell to poor country women, who would wade into dirty ponds in the hope of attracting a host of leeches. Once the critters attached to the leech collector’s legs, the individual would prise them off and collect them in a box or pot. Leeches can survive for up to a year with no food, so they could be stored at the pharmacy to be dished out as required. Unsurprisingly, leech collectors were in danger of suffering from excess blood loss and infectious diseases.

2. PURE FINDER

Despite the clean-sounding name, this job actually involved collecting dog feces from the streets of London to sell to tanners, who used it in the leather-making process. Dog poop was known as "pure" because it was used to purify the leather and make it more flexible [PDF]. Leather was in great demand in Victorian times, as it was used not only as tack for horses but for shoes, boots, bags, and in bookbinding. Pure collectors haunted the streets where stray dogs amassed, scooping up the poop and keeping it in a covered bucket before selling it on to the tanners. Some collectors wore a black glove to protect their scooping hand, but others considered it harder to keep a glove clean than a hand and eschewed the protection altogether.

3. TOSHER

A Victorian illustration of a tosher, or sewer collector
An 1851 illustration of a sewer-hunter or "tosher."
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Victorian London had a huge network of over-worked sewers under the city, washing away the effluence of the crowded metropolis. Toshers made their living down in the dark sewers, sifting through raw sewage to find any valuables that had fallen down the drain. It was extremely dangerous work: Noxious fumes formed deadly pockets, the tunnels frequently crumbled, there were swarms of rats, and at any moment the sluices might be opened and a tide of filthy water might wash the toshers away. As a result of these dangers, toshers generally worked in groups, instantly recognizable in their canvas trousers, aprons with many large pockets (in which to stash their booty), and lanterns strapped to their chests. Most toshers also carried a long pole with a hoe at the end to investigate piles of human waste for dropped treasures, or with which to steady themselves if they stumbled in the gloom. After 1840 it became illegal to enter the sewers without permission and so toshers began working late at night or early in the morning to avoid detection. Despite the stinking and dangerous conditions, it was a lucrative business for the working classes, with many a coin or silver spoon sloshing about in the quagmire.

4. MATCHSTICK MAKERS

Matchsticks are made by cutting wood into thin sticks and then dipping the ends into white phosphorus—a highly toxic chemical. In the Victorian era, this work was mainly performed by teenage girls who worked in terrible conditions, often for between 12 and 16 hours a day with few breaks. The girls were forced to eat at their work stations, meaning the toxic phosphorus got into their food, leading to some developing the dreadful condition known as “phossy jaw”—whereby the jawbone becomes infected, leading to severe disfigurement.

5. MUDLARK

Like the toshers, these workers made their meagre money from dredging through the gloop looking for items of value to sell, although in this case they were plying their messy trade on the shores of the Thames instead of mostly in the sewers. Seen as a step down from a tosher, the mudlarks were usually children, who collected anything that could be sold, including rags (for making paper), driftwood (dried out for firewood) and any coins or treasure that might find its way into the river. Not only was it a filthy job, but it was also very dangerous, since the tidal nature of the Thames meant it was easy for children to be washed away or become stuck in the soft mud.

6. CHIMNEY SWEEP

A photograph of a very happy chimney sweep
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Tiny children as young as four years old were employed as chimney sweeps, their small stature making them the perfect size to scale up the brick chimneys. All the climbing in the claustrophobic space of a chimney meant many sweeps’ elbows and knees were scraped raw, until repeated climbing covered them with calluses. Inhaling the dust and smoke from chimneys meant many chimney sweeps suffered irreversible lung damage. Smaller sweeps were the most sought-after, so many were deliberately underfed to stunt their growth and most had outgrown the profession by the age of 10. Some poor children became stuck in the chimneys or were unwilling to make the climb, and anecdotal evidence suggests their bosses might light a fire underneath to inspire the poor mite to find their way out at the top of the chimney. Fortunately, an 1840 law made it illegal for anyone under the age of 21 to climb and clean a chimney, though some unscrupulous fellows still continued the practice.

7. FUNERAL MUTE

Anyone familiar with Charles Dickens’s Oliver Twist will remember that one of the orphan’s hated early jobs was as a mute for undertaker Mr. Sowerberry. A component of the extremely complex (and lucrative) Victorian funeral practices, mutes were required to dress all in black with a sash (usually also black, but white for children), while carrying a long cloth-covered stick and standing mournfully and silently at the door of the deceased’s house before leading the coffin on its processional route to the graveyard.

8. RAT CATCHER

An illustration of a group of Victorian men watching rat-baiting.
Getty Images/Rischgitz

Rat catchers usually employed a small dog or ferret to search out the rats that infested the streets and houses of Victorian Britain. They frequently caught the rats alive, as they could sell the animal to “ratters,” who put the rats into a pit and set a terrier loose upon them while onlookers made bets about how long it would take for the dog to kill them all. Catching rats was a dangerous business—not only did the vermin harbor disease, but their bites could cause terrible infections. One of the most famous Victorian rat catchers was Jack Black, who worked for Queen Victoria herself. Black was interviewed for Henry Mayhew’s seminal tome on Britain’s working classes, London Labour and the London Poor (1851) in which he revealed that he used a cage which could store up to 1000 live rats at a time. The rats could be stored like this for days as long as Black fed them—if he forgot, the rats would begin fighting and eating each other, ruining his spoils.

9. CROSSING SWEEPER

The “job” of crossing sweeper reveals the entrepreneurial spirit of the Victorian poor. These children would claim an area of the street as their patch, and when a rich man or woman wished to exit their carriage and walk across the filth-strewn street, the sweeper would walk before them clearing the detritus from their path, ensuring their patron’s clothes and shoes stayed clean. Crossing sweepers were regarded as just a step up from beggars, and worked in the hopes of receiving a tip. Their services were no doubt sometimes appreciated: The streets during this period were mud-soaked and piled with horse manure. The poor sweepers not only had to endure the dismal conditions whatever the weather, but were also constantly dodging speeding horse-drawn cabs and omnibuses.

10. RESURRECTIONISTS

An 1840 drawing of a group of resurrectionists at work
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In the early 19th century the only cadavers available to medical schools and anatomists were those of criminals who had been sentenced to death, leading to a severe shortage of bodies to dissect. Medical schools paid a handsome fee to those delivering a body in good condition, and as a result many wily Victorians saw an opportunity to make some money by robbing recently dug graves. The problem became so severe that family members took to guarding the graves of the recently deceased to prevent the resurrectionists sneaking in and unearthing their dearly departed.

The "profession" was taken to an extreme by William Burke and William Hare who were thought to have murdered 16 unfortunates between 1827 and 1828. The pair enticed victims to their boarding house, plied them with alcohol and then suffocated them, ensuring the body stayed in good enough condition to earn the fee paid by Edinburgh University medical school for corpses. After the crimes of Burke and Hare were discovered, the Anatomy Act of 1832 finally helped bring an end to the grisly resurrectionist trade by giving doctors and anatomists greater access to cadavers and allowing people to leave their bodies to medical science.

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