Earlier this month, a group of former Taco Bell interns said they are the true creators of Taco Bell’s famous Doritos Locos Tacos and that they have never been recognized for the idea, let alone received any payment. A photo from 1995 shows a group of interns with a mock ad for the product that they submitted in a Taco Bell advertising competition. Back then, Taco Bell turned down the idea. However, in 2012, Taco Bell introduced its Doritos Locos Tacos line and has made over $1 billion since then.
Good ideas can come from anyone. Taco Bell interns in 1995 were first to suggest Doritos Tacos http://t.co/1zqAlTYUnj pic.twitter.com/VN3W8Df6wG
— Laura Fitzpatrick (@BitzOfFitz) April 8, 2014
This isn’t the first time the company has faced pushback regarding the rights to what is arguably their most successful product. In 2009, Air Force veteran Todd Mills set up a Facebook page to urge Frito-Lay to create a Doritos taco shell. He passed away later that year. When Taco Bell introduced the product, Mills’ family started an online petition accusing Taco Bell of taking the idea. In 2013, a federal inmate, Gary Cole, also tried to sue Taco Bell for “stealing his idea,” saying he sent a notarized document listing his inventions to his lawyer in 2006, which included a taco shell made from Doritos. He also claimed that another list he mailed through USPS was taken by postal workers and given to Frito-Lay and Taco Bell. The judge ultimately dismissed the case.
Companies constantly have to deal with claims of stolen intellectual property from employees, former employees and random people alike. While there is not much one can do to stop claims of idea theft from random people, companies can protect themselves from lawsuits from employees, former employees and interns with an Employee Inventions Agreement.
Typically, an agreement of this nature states that any and all rights to inventions, innovations, developments and designs related to the business and/or made, conceived or developed by the employee while working for the employer, belong to the employer. An agreement may also require employees to execute any necessary documents for the employer to perfect ownership interest while also allowing the employee to list, for exclusion, any patents or inventions held prior to employment. These kinds of agreements prevent arguments over who owns what.
Even without an express agreement, an employer may own the rights to an invention if it meets the requirements for owning the “shop rights” for a product. This entitles the company to use the invention without charge or liability for infringement. An employer will usually have shop rights for an invention where the employer has financed an invention with materials, tools, work place, materials and wages. Even when the employer has a shop right, the employee will retain ownership of the patent, allowing them to issue licenses for the invention or even sell it. When the patent is sold to a third-party, the (former) employer will still keep its shop rights in the patent.
When it comes to the relationship between businesses and their employees, patent law is complicated at best, and extremely messy at worst. These kinds of cases vary greatly depending on the judge and the exact circumstances, but it is very likely that we will see a lawsuit crop up between Taco Bell, Frito-Lay and the interns claiming to have invented the Doritos Locos Tacos back in 1995, though it is doubtful that the interns will win.