Protecting brands

220 Laboratories Inc., a manufacturer of skin and body products, has sued actress Kate Hudson and celebrity hairdresser David Babaii for theft of trade secrets, fraud and breach of contract.

220 Laboratories says that it it developed 10 products for the pair and the “marketing idea, based on volcanic ash.” It also provided them with a video of a trip to Vanuatu showing the collection of volcanic ash, confidential lists of ingredients and product samples. It alleges that Hudson and Babaii then took the ingredient lists to a competitor, Universal Packaging Systems Inc.

The David Babaii for WildAid products were released in June 2008.

Hudson says she is “only just learning of the complaint” and “does not know the plaintiffs and has never met with them or spoken with them.”

Lawyers know that such a difference in stories suggests only one thing – there was no contract, or it probably was not signed. It’s very important to be crystal clear about each party’s expectations before giving away too much. Ideally only disclose after getting the other party to sign a confidentiality agreement.