Brew Inc. is a corporation that makes specialty coffee machines. Most of their machines were made...

 

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Brew Inc. is a corporation that makes specialty coffee machines. Most of their machines were made for use in restaurants, but they recently invented a small machine for home use that makes specialty coffees such as lattes and cappuccinos. It is called Home Caf and sells for $70. No other company makes a machine this small and this cheap. The sales for Home Caf had been great for 2 years. Recently though, a new product made by HC Inc., hit the market called Home Coffee. It is also a home specialty coffee machine priced at $40. The Home Coffee machine looks different on the outside, but when Brew Inc. bought one and took it apart, it is the exact same inside as their Home Caf. Brew is furious and says that HC has stolen their idea and name and it plans legal action. Brew also just discovered that one of their former employees, Ken, a top designer, who had quit 6 months earlier, had accepted $25,000 to work for HC. Ken's contract had 9 months left on it when he quit and it had a clause that said Ken could not work for a competitor for 1 year after leaving Brew. Ken and HC say they have done nothing wrong, but Brew disagrees. Both sides have contacted their lawyers. Discuss all legal issues pertaining to this case. Brew Inc. is a corporation that makes specialty coffee machines. Most of their machines were made for use in restaurants, but they recently invented a small machine for home use that makes specialty coffees such as lattes and cappuccinos. It is called Home Caf and sells for $70. No other company makes a machine this small and this cheap. The sales for Home Caf had been great for 2 years. Recently though, a new product made by HC Inc., hit the market called Home Coffee. It is also a home specialty coffee machine priced at $40. The Home Coffee machine looks different on the outside, but when Brew Inc. bought one and took it apart, it is the exact same inside as their Home Caf. Brew is furious and says that HC has stolen their idea and name and it plans legal action. Brew also just discovered that one of their former employees, Ken, a top designer, who had quit 6 months earlier, had accepted $25,000 to work for HC. Ken's contract had 9 months left on it when he quit and it had a clause that said Ken could not work for a competitor for 1 year after leaving Brew. Ken and HC say they have done nothing wrong, but Brew disagrees. Both sides have contacted their lawyers. Discuss all legal issues pertaining to this case.

Answer rating: 100% (QA)

In this scenario there are several legal issues pertaining to the case of Brew Inc and HC Inc which need to be examined 1 Intellectual Property and Trade Secrets Brew Inc claims that HC Inc has stolen ... View the full answer