Question

Greenberg worked for Buckingham Wax as its chief chemist, developing chemical formulas for products by testing other companies’ formulas and modifying them. Brite Products bought Buckingham’s goods and resold them under its own name. Greenberg went to work for Brite, where he helped Brite make chemicals substantially similar to the ones it had been buying from Buckingham. Greenberg had never made any written or oral commitment to Buckingham restricting his use of the chemical formulas he developed. May Buckingham stop Greenberg from working for Brite? May it stop him from working on formulas learned while working at Buckingham? Why?

Answer 1

Greenberg cannot be stopped from working at Brite by Buckingham. Every person has a right to make a living and work where they want to work. Buckingham cannot stop Greenberg from using the knowledge he gained by working at their facility from helping Brite company. Greenberg never signed a contract, Buckingham’s formulas were note protected and known to be a trade secret. Formulas may be trade secrets but a company must take steps to actively protect their trade secrets to be able to enforce their protection via the course of the law.