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A noob question: how can a small business get to keep the secret ingredient of their success if employees are allowed to jump ship as they wish? From the emplo

A noob question: how can a small business get to keep the secret ingredient of their success if employees are allowed to jump ship as they wish? From the employee perspective banning non-competes are ofc the best thing. But this feels terrible if it means that secret sauces of small startups will get copied easily (potentially by bigger players).

j4yav 5y ago
Patents if they are really secret sauce. If your startup fails because someone finds out what you are working on then you are already doomed.
- josaka 5y ago
  This is the right answer, and it has implications for the development of patent law: folks cheering the restrictions on NDAs should anticipate that doing so will tend to increase pressure on lawmakers to strengthen patent rights, as those investing in R&D lobby for other ways to protect their investments. Not saying we shouldn't weaken NDAs, though. The amazing last century of technical innovation emanating from California, which has relatively strong limits on NDAs, would suggest it's a good idea.
- tracyhenry 5y ago
  I don't feel this is the right answer. Patents are very time-consuming. Lawsuits (esp against big players) are something most startups can't afford.
ivanbakel 5y ago
The fact is that "secret sauces" are basically worthless. Every successful business is 99% execution (& luck). A startup, especially in tech, will never be able to base its value on something simple enough for an employee to smuggle out legally (i.e. in their brain).
- tracyhenry 5y ago
  This is a very biased view IMO. Plenty of businesses are based on patented secret sauces. Even for the type of companies that rely on execution, there will be important lessons learned, which ultimately become the "secret sauces". And you don't fear a random employee who might fit your secrets in their brain. You fear a set of experienced employees who can replicate your businesses somewhere else if they want to.
  - ivanbakel 5y ago
    >Plenty of businesses are based on patented secret sauces. Secret sauces are, by definition, unpatented - if a business has patented an idea, it is no longer secret, and the success of that company is then partially enforced by the exclusivity of the patent. You don't need a non-compete if your employees have access to patented content, because they aren't legally allowed to reproduce it anyways. >Even for the type of companies that rely on execution, there will be important lessons learned, which ultimately become the "secret sauces" Can you give an example of this? I think it's unlikely that specific "lessons learned" could be so valuable. Sure, companies are afraid of losing their experienced employees - but all companies are afraid of that anyways. It has little to do with the idea of a "secret sauce", and everything to do with simple experience.

j4yav 5y ago

Patents if they are really secret sauce. If your startup fails because someone finds out what you are working on then you are already doomed.

josaka 5y ago
This is the right answer, and it has implications for the development of patent law: folks cheering the restrictions on NDAs should anticipate that doing so will tend to increase pressure on lawmakers to strengthen patent rights, as those investing in R&D lobby for other ways to protect their investments. Not saying we shouldn't weaken NDAs, though. The amazing last century of technical innovation emanating from California, which has relatively strong limits on NDAs, would suggest it's a good idea.
tracyhenry 5y ago
I don't feel this is the right answer. Patents are very time-consuming. Lawsuits (esp against big players) are something most startups can't afford.

ivanbakel 5y ago

The fact is that "secret sauces" are basically worthless. Every successful business is 99% execution (& luck). A startup, especially in tech, will never be able to base its value on something simple enough for an employee to smuggle out legally (i.e. in their brain).

tracyhenry 5y ago
This is a very biased view IMO. Plenty of businesses are based on patented secret sauces. Even for the type of companies that rely on execution, there will be important lessons learned, which ultimately become the "secret sauces". And you don't fear a random employee who might fit your secrets in their brain. You fear a set of experienced employees who can replicate your businesses somewhere else if they want to.
- ivanbakel 5y ago
  >Plenty of businesses are based on patented secret sauces. Secret sauces are, by definition, unpatented - if a business has patented an idea, it is no longer secret, and the success of that company is then partially enforced by the exclusivity of the patent. You don't need a non-compete if your employees have access to patented content, because they aren't legally allowed to reproduce it anyways. >Even for the type of companies that rely on execution, there will be important lessons learned, which ultimately become the "secret sauces" Can you give an example of this? I think it's unlikely that specific "lessons learned" could be so valuable. Sure, companies are afraid of losing their experienced employees - but all companies are afraid of that anyways. It has little to do with the idea of a "secret sauce", and everything to do with simple experience.