Patenting at Coca-Cola

The Coca-Cola Company owns what is perhaps the world´s most famously secret commercial trade secret. Yet, even at Coca-Cola, patenting and intellectual property management go on.

Frank Landgraff is Senior Patent Counsel for The Coca-Cola Company. Mr. Landgraff has been employed by Coca-Cola for approximately seven years. Prior to joining Coca-Cola, Mr. Landgraff was in private practice with the Atlanta, Georgia law firm of Jones & Askew. Mr. Landgraff received his B.S.E.E. from Clemson University in 1985 and his J.D. from the University of Florida in 1988.

Frank A. Landgraff,
The Coca-Cola Company

Coca-Cola´s Frank A. Landgraff

Q. With respect to its intellectual property portfolio, Coca-Cola is perhaps most well recognized for its trademarks -- the brand names and images for a variety of drinks. At least externally, Coca-Cola´s technology assets are often unrecognized. Please briefly describe the composition of Coca-Cola´s technology portfolio and the areas where it has particular technical expertise.

A. Coca-Cola has a patent portfolio that consists of approximately 800 US patents and 1800 patents outside of the US. Coca-Cola´s portfolio includes patents relating to several different beverage related technologies. Because we tend to keep most of our product formulations as trade secrets, a large portion of our patent portfolio relates to technologies that are complementary to the beverage itself. The technology areas, in addition to product formulation, where we have particular expertise are: 1. Packaging; 2. Vending Equipment; 3. Fountain Equipment; and 4. Water Treatment.

Coca-Cola has a patent portfolio of 800 US patents and 1800 patents outside of the US.

Q. Could you comment on Coca-Cola´s commitment to research and development?

A. Coca-Cola is committed to maintaining its leadership position in R&D for the beverage industry. I think that Coca-Cola will continue to focus its R&D strategy on maintaining its industry leadership position and continuing to deliver value to the consumers of our products. The value proposition to our consumers is the key driver of Coca-Cola´s R&D strategy because it is also the fundamental goal of the entire organization.

Q. Has the character of Coca-Cola´s research and development changed at all? Has the company begun to outsource R&D or engage in joint development efforts?

A. The core R&D has not changed significantly at Coca-Cola over the past few years. It continues to be driven by the consumer value proposition. The implementation of the strategy has been modified recently to allow more freedom to our local operating divisions. Therefore, there is now more R&D work being performed in the local markets to address consumer needs in each individual market where Coca-Cola products are available -- currently over 200 countries worldwide.

Coca-Cola licenses technology both in and out.

Coca-Cola does not outsource R&D, but it does work jointly with development partners in many technology areas. We believe joint developments allow Coca-Cola to leverage its beverage expertise in connection with certain technology areas key to our business, such as packaging and vending equipment. Historically, these joint developments have led to the development and commercialization of breakthrough technologies for the beverage industry. We view the advantages to a joint technology development similar to how we view our marketing partnerships, such as those with Disney and Harry Potter. The overall result is that the joint development is something that is greater than the sum of its parts.

Q. Discuss Coca-Cola´s licensing practice. Do you both in-license and out-license technology? Describe some of the factors that have driven Coca-Cola to pursue licensing.

A. Coca-Cola licenses technology both in and out. The overall licensing strategy is in line with Coca-Cola´s business strategy. I think the main factor that drives the licensing that we do is the simple fact that it has made good business sense for us to do so. It does not make much sense for us to try to "re-invent the wheel." Therefore, if there is a technology available that provides us with an opportunity to improve our products or service, we will certainly examine the "license in" possibilities, either through a direct license or through some different type of arrangement, such as a partnership. This strategy allows us to truly focus on the development of breakthrough technology for the beverage industry.

Coca-Cola also "licenses out" some of its technologies. The "license out" opportunities are also due to a variety of factors. For instance, there are technologies developed by Coca-Cola that are more suited to be used by suppliers to the beverage industry. There are also technologies developed by Coca-Cola which have applicability outside of the non-alcoholic beverage market segment. We try to take advantage of these opportunities as well.

Q. If you´re able to share this information, we´d like to learn a little bit more about Coca-Cola´s specific licensing practices. Do you engage in licensing primarily with other companies in the beverage industry or with companies from other industries? If you license outside of your industry, what are some of the industries that you´ve dealt with? How have you been able to locate technology from other industries?

A. Historically, we have engaged in licensing with companies that are affiliated with the food or beverage industry but not with companies that compete with Coca-Cola in the non-alcoholic beverage market segment. We do some licensing with suppliers to the beverage industry. Examples of these types of companies are various packaging and equipment suppliers to the beverage industry. We have also licensed with universities around the world where there is a particular expertise with an individual or group of professors or researchers.

We have also licensed both in and out with companies outside of the beverage industry. Coca-Cola has "licensed out" technology to food companies as an example. From the "licensing in" standpoint, there are numerous examples. Many of the technological hurdles facing the beverage industry are ones that have been overcome in other industries. With the Internet, it is now much easier than ever before to uncover information on already existing technologies. Recently, we have conducted a significant joint development, which includes a licensing piece, with a supplier to the electronics industry. Literature searching and technology mining were key to identifying this company and its capabilities. As the capabilities of the Internet expand, I think you will begin to see many more licensing deals between parties operating in completely different business sectors.

Many of the technological hurdles facing the beverage industry are ones that have been overcome in other industries.

Q. Has the management of Coca-Cola´s patent portfolio changed recently?

A. Yes. We are becoming more focused on the key technologies that will drive our industry. We are directing our portfolio towards these key technologies. We also are treating patents as business assets and asking, "What is the value proposition for each filing." If there is little or no value to filing or maintaining a patent we are re-directing those resources back towards the key technologies mentioned above.

Q. How do you view the prevalence of the Internet changing Coca-Cola´s technology management?

A. It already does provide several advantages. First, the information mining capabilities are extremely helpful in identifying industry trends and companies that are on the front-end of the trends. It is also a good tool to prevent us from "re-inventing the wheel." Overall, the most significant advantage to the Internet is that it allows us to make more informed portfolio management decisions. As the Internet continues to evolve, I believe that it will become the key tool for practitioners in technology and patent management field.

Q. So, just between you, me, and the thousands of yet2.com users, what´s that secret formula, anyway?

A. As soon as I find out, I´ll let you know.