SOUTHWIRE VS. ESSEX Case:

Southwire Company and Essex Group, Inc. are direct competitors in the cable and wireindustry. Southwire's logistics system is a warehouse organizational system withcomponents extending from architectural layout features to customized equipment andmodified computer software. Southwire's logistics system was primarily designed over athree-year period, with a development cost exceeding $2 million, by a project team headedby Richard McMichael. In addition to self-testing and a trial-and-error learning process,development of Southwire's logistics system also included modifications based onobservation of logistics systems in other industries and the adaptation of commercially availablecomponents. The selection and arrangement of components and equipment in thenew logistics system is unique to the Southwire logistics system. The new logistics systemhas resulted in substantial efficiencies to Southwire, with annual savings of $12 million.Because Southwire and its competitors produce basically identical goods for sale, themarketing advantage gained by the important efficiencies that have resulted from the newlogistics system has proved especially valuable for Southwire. Essex hired McMichael, andSouthwire 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.

Questions:

1.What are the arguments in favour of the court notissuing the injunction?

2. What are the arguments in favour of the courtissuing the injunction?

3. Explain whether the court should issue theinjunction.