1. Why did the court find that SDG did not have a protectable trade secret?

2. Why did the court find that Bristol-Myers had not engaged in misappropriation?

3. If SDG did not have a valid trade secret here, why did Bristol-Myers enter into a contract to pay SDG $275,000 for these questions?

SDG is a marketing research company owned and operated by Carol and Doran Levy. Bristol-Myers is a pharmaceutical company which manufactures Pravachol, a drug designed to reduce cholesterol. In 1996, a Bristol-Myers’ marketing manager read the Levys’ 1993 book, Segmenting the Mature Market, which dealt with marketing strategies for targeting consumers over 50 years old. One chapter of the book dealt with health issues. Based on survey responses to 50 classification questions, the book divided the market into four different kinds of customers, or segments. The classifications questions were statements to which the respondents were asked to agree or disagree, such as “I am careful to eat a balanced diet” and “I believe in getting a yearly physical from my doctor.”