The strength and the weakness of secrecy

A recent spat between UK and Chinese companies highlights both the strength and the weakness of secrecy as a mechanism for protecting engineering intellectual property.

The intellectual property in question relates to a secret method of making acrylonitrile, a key ingredient in carbon fibre.  Originally developed in the 1950’s, the method has been developed by UK company Ineos and licensed under secrecy to companies across the globe, including Chinese company Sinopec.

Unlike patent protection, protection by secrecy does not expire (as long as secrecy is maintained).  This has allowed Ineos to continue to earn royalties from its licensees’ use of the method long after the typical twenty-year lifetime of a patent.

However, unlike patent protection, protection by secrecy does not prevent others from using the method if they develop it independently.  This is what Sinopec claims to have done and, as a result, has stopped paying royalties for acrylonitrile manufactured in its new plant.  Ineos is contesting this claim in the courts.

This is but one of many ways of using intellectual property in engineering business.  You should of course seek professional advice on your own particular circumstances.