Anthony Mongiello’s Stolen Dough

Today, The Two Mikes spoke with Mr. Anthony Mongiello, who owns the
Formaggio Cheese Company located in Hurlyville in Sullivan County
upstate New York.

Mr. Mongiello’s company produces Italian specialty cheeses that are
available everywhere. In 1982, when he was beginning to build a
pizzeria business in New York City he experienced a baking mix-up
and ended up making the world’s first stuffed-crust pizza.

Mr. Mongiello then built a device for producing that kind of pizza
– he had learned such skills working in his father’s business,
which made machines for the Italian cheese industry -- and then, in
1987, secured a U.S. patent for his invention. Afterwards, he began
to try and get one of the biz pizza chains interested in his
device. He chose to approach “Pizza Hut”. He contacted that company
and after a period was told the company was interested.

Mr. Mongiello was asked to send the device to the company’s R&D
Division. He did so. Many months later he was told that Pizza Hut
was not interested in the device, Then, in 1994, he read in the
newspapers that Pizza Hut was launching a $45 million advertising
campaign for its new “Stuff Crust Pizza” – which was, as Mr.
Mongiello discovered, made with a device that was very much like
his. Mr. Mongiello took the company to court, and was “battered” by
the company’s lawyers. The Pizza Hut lawyers also appealed for a
summary judgment, which the judge granted and so made sure there
would be no jury trial. In making his summary judgment, the judge
ruled in favor of Pizza Hut, and Mr. Mongiello lacked the money to
pursue an appeal.

When asked how much money he had lost because of this outcome, Mr.
Mongiello estimated $23 million at the low end and a billion
dollars or more at the high end. Currently he is running his own
business and working on a documentary called “Stolen Dough” which
will expose how he got slicked by Pizza Hut and the judge.

We must say, that Mr. Mongiello was one of the best guests we have
had in nearly 400 programs. He was calm, well spoken, and
non-vindictive. He simply presents his experience with precision,
fact by fact, and without anger. He was a pleasure to talk to.
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