Home Insights  > Intellectual Property rights in Foods and Beverages

Introduction

The food industry holds a significant position in the global economy, contributing nearly 10% to the total employment and generates a substantial USD 1.4 trillion in sales. Within this expansive sector, numerous brands thrive through distinctive products, flavors, packaging innovations, and effective marketing approaches.

For any intellectual property to be protected from public use, it has to be registered. The most common example of a protected IPR in the food industry is that of Coca-Cola company, the most valuable asset of the company is its trademark. The company has also kept its recipe trade secret for over past 100 years and the recipe is known only to a limited number of people of the company. The food and beverages sector heavily relies on the brand’s worth and necessitates the safeguarding of the created intellectual property. This protection enables consumers to make informed choices while selecting their preferred beverages or foods.

The innovation in packaging significantly influences consumer purchasing behavior, leading individuals to buy specific products solely due to the packaging’s color, shape, or markings.

Rights available for protection in this industry

An intellectual property right is an intangible asset of the creator. A person holding an IPR has bundle of rights over that property including right to use, right to dispose, etc. In the industry of foods and beverages, a person can opt amongst the following options-

a. Patent the product

In the food industry, patents can be secured for innovative and non-obvious recipes, cooking techniques, as well as novel food processing strategies. Although recipes can theoretically be patented, in practice, it can be challenging to overcome the hurdles of proving both novelty and inventiveness during the application process. The applicant must demonstrate that the recipe has not been employed by anyone else. If novelty is confirmed, the subsequent challenge is to illustrate that the recipe would not have been apparent to a skilled individual in the field of food creation.  Patent rights can be used to protect new ideas, which arise from the Research and Development departments in the food industry. A California-based company, Impossible Foods has several European Patents for its plant-based food products, which includes a plant-based cheese. The food and beverage sector is one of the biggest manufacturing sectors, and the industry invests deeply in R&D.

b. Trademark the logo of the food or beverage company

A brand is the prime component of a food company.  A trademark is a legally protected word, name, design, logo, or any other symbol of a product or business. In the food industry, ‘Oreo’ has been registered as a trademark. Nusret Gökçe (popularly known as ‘Salt Bae’) has registered a motion trademark of his video of sprinkling salt. In India, a trademark registration is valid for 10 years.

A trademark is a unique and nonfunctional symbol employed by a company to distinguish its products from those of competitors. Typically, a trademark can be in the form of a word (such as “Cheerios”), a stylized word or letter (like McDonald’s distinctive M logo), a visual symbol (for instance, Nestlé’s depiction of birds’ nest), or a memorable tagline (such as “Life tastes better with KFC”).

c. Copyright on the recipes or recipe books

A copyright is an exclusive and assignable legal right given to the creator of original, artistic work for the use and distribution of the artistic work for a limited period (in India, life of the creator + 60 years). Copyright protects original works of the author, which is fixed in tangible form. To obtain protection, the author must show a certain threshold of originality.

d. Trade secrets of the recipes

Trade secrets safeguard information that gains economic value by not being widely known to others. Unlike registered forms of protection, trade secrets don’t involve formal registration but necessitate a series of precautions to maintain their confidentiality.

Trade secrets, such as recipes, possess considerable value and maintain protection as long as they remain confidential. Nonetheless, enforcing trade secrets can be challenging, resource-intensive, and expensive, and their safeguarding is precarious, as revealing the secret terminates the desired monopoly. Moreover, in a context where there is heightened concern about food safety and transparency, trade secrets are less effective in addressing these issues.

Conclusion

In the food industry, securing intellectual property (IP) protection poses distinct challenges, but it has become increasingly pivotal for businesses seeking a competitive advantage. With the growing influence of social media, influencers, and marketing on consumer choices, food enterprises are in a race to stand out by introducing innovations in the form, material, color, taste, texture, or production methods of their food and packaging.

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