Protect Your Beer Recipes!

Business, Craft Beer, Intellectual Propertyon January 28th, 2014No Comments

A number of “inventions” are protected by patents, filed with the United States Patent and Trademark Office.  Could you obtain a patent for your fantastic milk stout craft beer recipe?  You could certainly be issued a trademark for the label placed on your beer bottle.  But would you want to patent the recipe for your various types of craft beer (assuming you could)?  The answer is probably not.  If you were able to get a patent, that patent becomes instantly available to the public– anyone can see the entire recipe, for free (and you will have a heck of a time trying to protect the patent)!  So, then, how can you protect your secret recipe for your most popular brew?

The best way to protect your brewery’s secret is by having a policy in place, which all of your employees are aware of, and through contractual agreements with your employees.  But, what is a trade secret?  A trade secret is any confidential business information which provides a business a competitive edge.  You should start planning to protect your beer recipes and other secret beer making processes (if any are special and unique) as soon as you start the business.  Create policy manuals for making sure there are no “leaks” to outside parties and so all of your employees know exactly how to handle your company’s trade secrets.  Have confidentiality and non-disclosure agreements, including non-competition provisions prepared for all employees to sign.  The key is to show that you tried to protect your trade secrets, in the event you ever have to litigate to protect your trade secret, and there are a number of different ways in which you can try to protect your trade secrets.

Whether you’re just starting your brewery, or have been open for some time, it is important to insure your trade secrets are adequately protected.  Coca-Cola has protected its recipe for its signature soda using these methods for decades!  Confidentiality and non-compete agreements have specific requirements and must be drafted carefully.  Consult your attorney to have an adequate agreement prepared to protect your brewery’s secret beer recipes!

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