Sunday, August 16, 2009

Sponge-Secret Trade-Pants?

OK, so aside from mangling the name of a popular children's television show, I thought that title was clever.

I only bring this up because the other day I was sitting in my apartment watching television when that show came on. Now, I personally enjoy watching the show, I know some of you may find it juvenile and I won't disagree.

There is, however, an interesting thought that popped into my head while I watched the show this time. For those of you who are unaware, Spongebob Squarepants involves a sea sponge who lives undersea and works at a diner known as the Krusty Krab. The sandwiches at the Krusty Krab, known as Krabby Patties, are apparently extremely delicious and the attempts of the diner's rival owner Plankton to secure the top-secret formula for the Krabby Patties are a recurring theme on the television show.

What does that have to do with this blog you may ask? Quite simple, the formula for a Krabby Patty is a trade secret.

Trade secrets, by definition are secrets used to gain an advantage over one's competitor's.1 They are only safe as long they are secret, once they've been placed in the public domain, there's no recovery of the "secret" status.2 So theoretically, the damages available are limited to the economic harm caused by the revalation of the secret. In this fashion, Mr. Krabs (proprietor of the Krusty Krab) certainly goes to an extreme effort to keep his sandwich formula safe.

I didn't have much on this one today but felt like sharing my observation.

1: See RESTATEMENT (SECOND) OF TORTS § 757; see also Ruckelshaus v. Monsanto Co., 467 U.S. 986, 1001-02 (1984).
2: Ruckelshaus, 467 U.S. at 1001-02.

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