Coca-Cola's Secret Formula: its Brand

When an entrepreneur starts a new company, one of the first things he(*) worries about is how to protect his new idea. And usually the choices are two: file a patent, or keep it under lock-and-key as a trade secret.

(*-or she, but we'll keep the masculine only here)

The trade-off for patents is clear: in exchange for a 17-year monopoly, the inventor has to disclose his methodology (or other invention) to the world, so that others can build off his patent. Indeed, the entire patent regime is is like a giant Jenga puzzle, with almost each patent "built" in effect upon previously-issued patents.

Trade secrets are the opposite: the inventor makes a decision that protection of the idea would be better served by keeping it private. Although there are some legal protections for stolen trade secrets (for instance, claims for misappropriation or theft, or unfair competition law), but even if an inventor insists on a non-dislosure agreement, if the secret is valuable enough, he may not be able to recover full damages from a breaching party.(*)

(*-The breaching party, even if insured, may not have assets large enough to make the inventor whole, for instance.)

For years the gold standard in trade secrets was the formula for Coca-cola. Urban legend has claimed that the only copy was held in the vault at the SunTrust bank in Atlanta, and that only two Coke executives (at any one time) had access to the document.

But in 1979, a columnist for The Atlanta Journal and Constitution ran an article that identified a ledger book with a formula for "Merchandise 7x"; over the weekend, the popular NPR radio show "This American Life" re-awakened interest in the 1979 story -- and the formula that goes with it. It is currently a viral sensation on the web -- this year's Susan Boyle.

The reality is that the formula -- or something very much like it -- has been "out" in the public domain for years. Type in "coca-cola formula" into a search engine and you'll find a number of recipes that will probably come very close to the taste.

But after a century of making the soda, Coca-cola now relies on a different intellecual property tool to protect itself: its trademarked brand. And trademarks don't expire (if subject to continuous use).

A lot of drinks may taste like Coke.

But only one can call itself (legally) the "Real Thing."

Cong. Lewis Makes the "Right Thing" Official

Although predicted here close to a month ago, and rumored (although not confirmed) here a few weeks ago, Congressman John Lewis, confirmed the inevitable by formally confirming his endorsement of Senator Barack Obama yesterday.

'Something's happening in America, something some of us did not see coming,' Lewis said. 'Barack Obama has tapped into something that is extraordinary.'

Lewis, a hero of the civil rights movement, conceded that his district's decision to overwhelmingly support Obama led to his decision.

No word on whether Congresswoman Stephanie Tubbs Jones (D-OH), last seen on "Morning Joe" defending the 'native garb' photo leaked over the weekend, is also re-considering her endorsement; she remains one of Hillary's most vocal -- and vociferous -- surrogates, despite the likely outcome of the primary in the 11th District.

The Next (Disappearing) Soda Counter

Over time, as the US economy changes, businesses go in and out of style. With those changes, individual landmark shops give way to new entities, and within a few years, it's hard to even remember where the old Woolworth's (in downtown Princeton, NJ), or Bailey's (in Harvard Square), or even the Tasty (also in Harvard Square, and immortalized -- along with the late Bow & Arrow Pub -- in Good Will Hunting)




But one element of the cityscape for the last hundred years -- the independent photo shop -- is disappearing before our eyes. Moreover, while undoubtedly it will be replaced by an iPod repair shop, or a printer-cartridge refurbishing store, in the meantime a bunch of photo shops around Boston sit empty and 'for lease'.

Here's one on the corner of Washington and State Streets in Boston:














Here's one on Bromfield Street, just off Washington:
















And here's one from a recent trip to Atlanta, on Ponce de Leon, across the street from the original Krispie Kreme in Atlanta: