Friday, May 10, 2019

Even Popcorn Has Trade Secrets

Caramel Crisp LLC, the owner of Garrett Popcorn Shops (“Garrett”), the renowned Chicago-based purveyor of deliciously flavored popcorn, recently filed suit in federal court in Chicago against its former director of research and development, Aisha Putnam, alleging that she misappropriated the company’s trade secrets, including its recipes for Garret’s famous popcorn...

Garrett alleges that when she learned about the termination, Putnam began downloading “virtually all of [Garrett’s] trade secrets and confidential information in her possession to a personal USB drive, which she took home.”...

This case offers two helpful reminders to employers that seek to protect their valuable trade secrets.  

First, in determining whether something qualifies as a “trade secret,” one factor considered by courts are the reasonableness of the efforts to maintain the confidentiality of the trade secrets...

Second, whenever an employee with access to trade secrets leaves their employment (either voluntarily or involuntarily), employers should consider whether to conduct a forensic review of their computers and other storage devices to determine whether the employee took any confidential information on his or her way out the door. more