I read an interesting story from the CBS affiliate in NYC about rival pizzerias. Prince Street Pizza contends that an 8-year employee left and took a secret recipe to Made in New York Pizza. The former employee claims that he did not steal anything. However, his new boss said, “It’s not the same recipe. It’s upgraded.”
How could he upgrade it if he did not have the recipe?
In California trade secrets are protected against misappropriation. Trade secrets include a formula (including a recipe), pattern, compilation, program, device, method, technique or process. However, for something to be a trade secret it must (1) derive economic value from its secrecy and (2) be subject to efforts that are reasonable under the circumstances to maintain its secrecy.
An unsuspecting business can lose its trade secret status by failing to take steps to protect its information from misappropriation. If a business doesn’t protect its secrets, courts won’t either.
Prince Street Pizza, or any other business should consider how to protect valuable information. Here are some ideas to protect trade secrets:
· Distribute a memorandum to employees regarding valuable information and their obligation to safekeep it;
· Require employees to sign a Non-Disclosure Agreement;
· Keep physical information under lock and key;
· Create barriers for access to electronically-stored information;
· Disclose information to only those with a need to know; and
· Take action against persons who unlawfully obtain your trade secrets.
Read about the pizzeria battle here: https://newyork.cbslocal.com/2019/01/09/pizza-shop-rivals-lawsuit/