Question

An employee has a small online business selling a sauce made from the employer's copyrighted recipe. The company handbook forbids any employee from disclosing the employer's proprietary information. What can the employer do?

Do nothing because the employee is covered by a collective bargaining agreement.
Demand the employee cease the activity and terminate employment.
Request that the employee credit the company's original recipe.
Ignore the activity because its very small scale makes a legal response impractical.

Answer 1

The employer can demand the employee to stop using the copyrighted recipe and might have grounds for termination since employees are prohibited from disclosing proprietary information and trade secrets.

If an employee is using an employer's copyrighted recipe for personal gain and in violation of company policies regarding proprietary information, the employer may lawfully demand the employee to cease the activity and could potentially terminate their employment.

This is because trade secrets, such as secret recipes or methods not covered by patent law, are protected under the broader sphere of intellectual property rights and must not be disclosed or used without authorization. The size of the employee's business or the existence of a collective bargaining agreement does not necessarily protect against violation of trade secret laws.