Business World

With recipes, the key to making millions is not about the food

- By Kate Krader Bloomberg

IN 2017, the team from Sir Kensington’s made an estimated $140 million for their ketchup recipe when they sold it to Unilever.

The same year, Nathan Myhrvold, a technology expertturn­edexperime­ntal chef, released the five-volume Modernist Bread ( Cooking Lab, $ 560), coauthored by Francisco Migoya. It’s Myhrvold’s latest juggernaut; he co-authored the best-selling Modernist Cuisine: The Art and Science of Cooking (Cooking Lab, $625) in 2011. Before that, he was the chief technology officer at Microsoft.

That was a good year for bigticket food projects. But it came when recipes are being continuall­y devalued as they flood the internet, free of charge. Social media has made it ever easier for people to copy the dishes of others. It makes me wonder: How can someone monetize a recipe?

Myhrvold, who is starting work on his next opus, Modernist Pizza, has strong feelings about recipe ownership and the money it represents. If music and poetry can be copyrighte­d and monetized, he thinks singular recipes should be, too.

“There is certainly a comparison between recipes and computer code,” he tells me over the phone. “A recipe for a distinctiv­e product is like code, which is protected by copyright.”

There’s one problem: In the US, most recipes aren’t legally protected by copyright. That’s because they essentiall­y contain only ingredient names and proportion­s.

“Copyright law does not protect merely utilitaria­n articles, ideas, facts, or formulas. Since food is a useful article, copyright law will apply only if the food incorporat­es highly creative features that are separable (either physically or conceptual­ly) from the food’s utilitaria­n features,” says Natasha Reed, copyright expert at New York’s Foley Hoag LLP law firm, at Fine Dining Lovers.

Abroad, it’s generally not much different: “Such an instructio­n is neither original nor individual and does not qualify as a work of art,” explains Martin Berger of the Swedish Patent and Registrati­on Office.

So is there a case for the monetizing of recipes? Myhrvold draws analogies from his former technology job — and decries the blatant plagiarizi­ng of dishes.

RECIPES AS COMPUTER CODE

Myhrvold tells the story of putting fonts into the Windows program when he was at Microsoft decades ago.

“There are thousands of different font designs. They are a collection of numbers that plot the design. According to a court ruling, they’re not protected, though the font names are,” says Myhrvold. “The coordinate­s of the points, which you’d put into a computer program like proportion­s in a recipe, are not protected. It’s messed up, but it’s the law.”

Similarly, consider the Cronut. The technique and recipe for frying up a donut with croissant-like layers aren’t protected, but pastry chef Dominique Ansel did trademark the name and has aggressive­ly pursued knockoffs. Pepperidge Farm took Trader Joe’s to court over alleged infringeme­nt of its Milano cookies. And Magnolia Bakery, famous for its cupcakes, was able to trademark the jaunty swirl of its frosting.

Trademarks, though, are about protecting a brand, not actively bringing in money (unless you consider litigation and damages an active revenue source). Myhrvold points to patents as a potential way to monetize a recipe — although, for most chefs, that’s impractica­l. Patenting a recipe costs thousands of dollars, and it must qualify as unique and useful. For example, tofu has a lot of patents because the process of coagulatin­g it is unusual. There are also many yogurt patents. “If you’re Chobani, you want to protect your formulatio­ns,” he says.

“If I say, ‘I’m going to patent my carrot cake recipe, and it’s special because I add mace and red pepper,’ it’s unlikely to get that patent,” says Myhrvold. “It’s in the realm of what cooks do. But a novel chemical compound that no one’s used before, or in this way — you could get a patent.”

In other words, chefs are powerless when it comes to protecting their creations, says

Myhrvold.

He points to a case a dozen years back, when an Australian cook worked around the world in top kitchens. He then opened a restaurant in Melbourne, where he served exact replicas of such dishes as Wylie Dufresne’s “shrimp noodles.” The food world erupted, but there was no legal recourse: The dishes weren’t copyrighte­d.

As Exhibit A for what happens when you can’t copyright recipes, Myhrvold cites Jean- Georges Vongericht­en’s legendary molten chocolate cake, first made in 1986 by accident and now served around the world. ( While making individual chocolate cakes for a party of 500, Vongericht­en neglected to check the oven settings. He thought the mistake had ruined his restaurant; instead he got a standing ovation.)

“Jean- Georges’s recipe dominated because it redefined chocolate cakes, and all you have to do is under-bake it. If he had [ been able to copyright] that recipe, and got a nickel for every 100 of those served, he would own all the buildings where his restaurant­s are,” says Myhrvold.

MULTIMILLI­ON-DOLLAR RECIPES

The key to raking in millions on a recipe, I come to realize, is that it’s invariably not about the recipe.

“From the beginning, we password- protected our original recipes in text files,” says Sir Kensington’s Scott Norton, who started making ketchup with Mark Ramadan as a college project. “We absolutely saw them as our own, original work.”

Still, he admits, “Had we not started the company and proved the value in them, no one would have come along, looked at the recipes alone, and seen them as anything of tremendous value without traction in the market. Sir Kensington’s team and reputation has brought us to where we are far more than our ever-evolving recipes have.”

Take Singapore’s $ 3- a- plate chicken- and- rice dish that has been valued at $2 million. Liao Fan Hong Kong Soya Sauce Chicken Rice & Noodle has a Michelin star, but the true value of its renowned recipe is more than what’s in hawker Chan Hon Meng’s head.

“A street hawker recipe is dependent on the reputation it comes with, not just the sauce and techniques,” says KF Seetoh, an Asian-food tour expert who has taken Anthony Bourdain through Singapore’s markets. “Although many look simple, there are many little touches an iconic hawker puts in their dishes that more than meets the eye. It’s techniques, not just recipes, like mass production methodolog­y in a tiny kitchen.”

Seetoh estimates that hawkers recipes can command from $250,000 to many millions, provided they can carry the popular luster to whomever might buy it. The most expensive hawker recipe known today in Singapore is Kay Lee Roast Meats, whose honey pork and roast duck recipes sold for more than $5 million. “A few hundred portions a day at a humble $4 to $6 price, in a low- rent space with minimum manpower, is very sexy for investors,” Seetoh says.

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