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Protecting your proprietary formula?
Just asking from a general perspective since there are so many seasoned professionals, what is the best way to protect your proprietary formula?
Just asking opinions from your experiences, not necessarily legal advice, thanks. -
6 Replies
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Maybe an NDA or a contract, but the real answer is…you can’t. With an ingredient list & a sample of the product a good cosmetic chemist can emulate pretty much anything on the market.
But on the plus side, the formula rarely makes much difference in terms of having a successful product. Certainly there are some minimal hurdles you have to meet or exceed but successful beauty brands depend on great marketing and good formulas. There are plenty of great formula failures on the market and also lots of highly successful poor formula products.
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Thanks Perry. So in your opinion, is it even worth having my manufacturer sign an NDA since they will have the full formula and percentages? I’d rather not have to compete with the people making my products. Thanks again.
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Sure, if it will make you feel better. Better yet have them sign some contract that gives you exclusive rights to the formula so they can’t use it with another client.
However, an NDA or contract is really only worth anything if you’re willing to spend the legal fees it would cost to pursue a claim against the party that you think wronged you. And this might be hard to prove. For example they could make some minor formula change (e.g. swap out preservative systems) and call it a different formula. It would be hard to prove that the formula was still the same as yours, especially without patent protection.
But like I said, even if someone had your same formula it is your marketing that will matter in terms of success, not the formula.
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Give me your Ingredient declaration and a sample of your product. I will reproduce it closely or improve upon it. It isn’t anything special on my part, but a skill you need in Formulating. HOWEVER, I can’t duplicate your marketing. That is where you will stand apart.We routinely have our clients get NDA’s from the manufacturers. While it is almost impossible to enforce, it is a great litmus test of the company. We also have our clients proactively discuss and get in the contract absolute ownership of the Formulation. -
Thank you Perry and Mark. I appreciate your real world experience and knowledge. Cheers, Mark
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I would try to pick a manufacturer that doesn’t have their own line too. Someone who does strictly contract manufacturing and has been in business a long time
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