Southwire Company and Essex Group, Inc. are direct competitors in the cable and wire industry. Southwire’s logistics system is a warehouse organizational system with components extending from architectural layout features to customized equipment and modified computer software. Southwire’s logistics system was primarily designed over a three-year period, with a development cost exceeding $2 million, by a project team headed by Richard McMichael. In addition to self-testing and a trial-and-error learning process, development of Southwire’s logistics system also included modifications based on observation of logistics systems in other industries and the adaptation of commercially available components. The selection and arrangement of components and equipment in the new logistics system is unique to the Southwire logistics system. The new logistics system has resulted in substantial efficiencies to Southwire, with annual savings of $12 million. Because Southwire and its competitors produce basically identical goods for sale, the marketing advantage gained by the important efficiencies that have resulted from the new logistics system has proved especially valuable for Southwire. Essex hired McMichael, and Southwire brought suit against its former employee, McMichael, and his new employer, Essex, to enjoin McMichael from disclosing to Essex any Southwire trade secrets, particularly, trade secrets involving Southwire’s logistics system. Required:
a. What are the arguments in favor of the court not issuing the injunction?
b. What are the arguments in favor of the court issuing the injunction?
c. Explain whether the court should issue the injunction.