Intellectual Property and Trade Secrets - Essay Example

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Vanderbilt University
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Research paper
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Deer Park spring water Inc. operates on the intellectual property rights and the trade secrets of its parent company the Nestle Waters North America inclusive (Howitt and Hansen, 2005). These rights and trade secrets include different patents, copyrights, trademarks and the trade secrets. It also has licenses that protect most of its operations.

Nestle Waters North America, as an umbrella firm, has established trademarks and copyrights that protect all the entire business and those of affiliate organizations. The trademarks touch on the logos, images, videos, audios and the graphics, software, data compilations, digital downloads, marks and texts contained on the website of the company (Deer, 2017). The rights are in agreement and are protected by the united stated and the international laws on copyright. They state that the trademarks contained in the products or on the website of the company are the property of the Nestle Waters North America and other affiliate parties alone and should not be copied or reproduced by any other individual or business. Though some of the properties may be accorded to other business partners and suppliers, the company reserves all the rights to the use of such privileges and may recall them as they deem necessary.

The company has the absolute rights to determine the access and use of such properties. The company can decide whether to allow access to third parties or not. On the other hand, the company has limited access to access the rights and trade secrets of others since they must comply with the provisions of the laws on such acts (Clarke, 2007). The company must seek legal redress or the company to access any outside intellectual property or trade secret of others

The intellectual property rights and trade secrets are protected by both the American and the international laws on such properties. The company has licensed all its properties to ensure that they can seek legal actions against any violations of this protection. They also restrict the use of their websites and monitor any action done on the company internet page (Clarke, 2007). They grant visitors to the website a limited access on the items they can access on the site and prohibit any downloads of vital items (FAD, 2015). They license users of the site who include business partners and allow them to access other in-depth information. They monitor the use of these licenses and can terminate the licenses in case of question on its use.

The company understands that it faces a number of risks pertaining to its intellectual property rights and other trade secrets due to its success that others want to copy (Vogt, Schobinger, Diglas, Trott and Noble, 2003). Nestle Waters North America faces the challenge of duplication of its rights and even the physical properties. This includes copying of its trademark, patent and the reproduction of the company logo and website. A company may also operate in the name of Nestle Waters North America or its affiliates to venture into new markets.

Nestle Waters, North America has faced some legal issues pertaining to these properties. In some cases, competitors have tried to market its products in the name of Deer springs or other close names. This poses a threat to the market of the products of the company as they confuse consumers (Bureau of National Affairs, 2009). It is recommended that the company should seek to further protect their intellectual properties and trade secrets by having a company property right risk assessment team that coordinates all the units of the business. This can seek to also protect the affiliates of the company. The firm can also consider taking an insurance for its intellectual properties and trade secrets.

Criminal Law

Most companies in this industry face criminal cases relating to product and business liability. In the process of production, there may be a defect which is likely to get away undetected. Fraud is also another issue. Often customers of other partners can claim to have been a fraud by a business (Bureau of National Affairs, 2009). The company also faces legal suits of marketing and advertising. This is common where receivers of the advertisement may feel offended and take some legal action against the company. Nestle Waters North America has also faced criminal cases on labor and employment (FAD, 2015). In some instances, the employee terminated feel that the processes were illegal and press charges against the company.

Nestle Waters, North America has faced criminal charges on product liability, fraud and marketing and advertising. In an advertisement, the company indicated that all its packed water are drawn from the spring (Vogt, Schobinger, Diglas, Trott and Noble, 2003). Part of the customers found that this is not the case and some water is actually gotten from the taps. They raised legal charges against the company for failure to fully disclose all the relevant information on sources of the water. Faucet Shoppe lawsuit also claimed the company had misled its customers in the advertisement that stated that the source of some of its water was the Maine forest which was not the case.

In this instances Nestle Waters North America has managed to get out of the legal suits. It has managed to justify the advertisements in the court and avoided paying any charges (Deer, 2017). In the future, the company should make legal its advertisements and ensure that they comply with all the laws on advertising. They should also disclose all relevant information pertaining to an advertisement.


Bureau of National Affairs (2009). The United States patents quarterly. Washington: Associated Industry Publications.

Clarke, T., (2007). Nestles Water Wars: The Experience of North America Notes for presentation by. Director, Polaris Institute, Canada. Accessed at;

Deer, C., (2017). Dear Park natural spring Water Company: private company information Bloomberg. retrieved on 11 October 2017, from

FAD, (2015). FDA Bottled water regulations. IBWA. Bottled Water. retrieved on 11th October 2017. From

Howitt, R. & Hansen, K., (2005). The Evolving Western Water Markets. Choices. 20:1 (1st Quarter), pp. 59-63. Retrieved June 29, 2007, from

Vogt, C., Schobinger, M., Diglas, A., Trott, G., & Noble, C. (2003). Nestle and Water Sustainability, Protection, Stewardship: Good Food, Good Life. Genoud, Entreprise darts graphiques S.A.,Le Mont-sur-Lausanne, Switzerland. Accessed at;


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