Harvey Barnett, Inc. is a company that developed a method for surviving in the water that is designed to be taught to infants. The company developed a course in this technique, called swim-float-swim, and generates revenue by training and certifying instructors, who then teach the technique to the public at large for a fee. The instructors are trained extensively on the nearly 2,000 procedures necessary to accomplish the technique. All instructors sign a nondisclosure form and an agreement not to compete. When several of the instructors resigned and formed a venture called Aquatic Survival, Barnett filed suit claiming, among other allegations, misappropriation of the swim-float-swim system.

CASE QUESTIONS

1. Does the swim-float-swim technique qualify as a trade secret?

Why or why not?

2. What factors would the court use to assess whether the technique is a trade secret? Discuss.