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Exemplary Cases Prove The Compatibility of Patents and Trade Secrets -- No. 22

The industrial diamond process technology of General Electric Corporation (GE) and the Wyeth v. Natural Biologics and C&F Packing v. IBP and Pizza Hut decisions are excellent illustrations of the synergistic integration of patents and trade secrets for securing invulnerable exclusivity.

The artificial manufacture of diamonds for industrial uses was a very lucrative business for GE.  GE also had the best proprietary technology for making such diamonds.  GE patented much of its technology and some of the patents had already expired, so that much of the technology was in the technical literature and in the public domain.  However, GE also kept certain distinct inventions and developments secret.  American and foreign companies were very interested in obtaining licenses to this technology but GE refused to license anyone.  Unable to make progress with GE, certain foreign interests resorted to industrial espionage.  A trusted fast track star performer at GE, a national of the foreign country in question, who was above suspicion, was enticed with million dollar payments to spirit away GE's crown jewels.  Eventually, GE discovered the employee's deception, and the authorities caught, tried, and jailed him.

Full post as published by Jorda on Trade Secrets on October 02, 2008 (boomark / email).