Wednesday, July 16, 2025

When your top talent drops the leg on your trade secrets…


Carma HoldCo—the company behind the Real American Beer concept—is laying the legal smackdown on two of its former execs, Chad Bronstein and Nicole Cosby.

Real American Beer is the light lager co-founded by wrestling legend Hulk Hogan. It's got a red-white-and-blue brand identity, a distribution deal with Walmart, and is being billed as the "official beer of WWE." It's a high-profile brand with big backing and even bigger stakes.

Carma alleges Bronstein and Cosby developed branding and business plans for the beer while still on the payroll, then body-slammed their confidentiality obligations by launching the same beer under their own company, RAHM (d/b/a Real American Beer), after getting the boot.

The result is a $10 million lawsuit with a crystal clear business lesson for employers: your IP is only as protected as your policies and practices make it.

So how do you avoid being blindsided by a chair shot to your trade secrets? Here are 8 preventative measures to help you stay out of the courtroom and in control:

1.) Limit access to trade secrets on a need-to-know basis.

2.) Restrict cloud access—no personal cloud use for company data.

3.) Train employees on confidentiality and cloud usage protocols.

4.) Monitor file activity to catch suspicious downloads or transfers.

5.) Use NDAs—every employee, every time.

6.) Conduct exit interviews—remind departing employees of their obligations.

7.) Secure company devices used by terminated employees.

8.) Label key files and documents as "Confidential" or "Trade Secret."

Can a rogue employee still hit you with a surprise heel turn? Sure. But these 8 steps put you in the best position to hold the line—and hold them accountable.

Because in the IP ring, you don't want to be caught off guard when someone starts cutting promos with your playbook.