CENTURION INDUSTRIES, INC. V. WARREN STEURER AND ASSOCIATES
665 F.2d 323 (1981)
NATURE OF THE CASE: Cybernetic, a non-party witness appealed an order, which granted
Centurion's (P) motion, under Rules 26(b)(1), 26(c)(7), to compel disclosure of certain
trade secrets to P.
FACTS: Cybernetic (C) is a manufacturer of electronic 'teaching machines' used in
arithmetic instruction. C products randomly generate two numbers which are displayed along
with instructions as to how the numbers are to be added, subtracted, multiplied or divided.
The student mentally computes an answer to the displayed problem and inserts his answer
through the machine's keyboard. The teaching machine compares the student's answer with the
correct answer computed by the machine, and then advises the student whether his answer is
correct. C created the software or program used in its miniature computers, and claims that
the software constitutes a trade secret. P owns a patent, which it claims is infringed by
the C teaching machines. C is not a party to that action. Notice required production of
certain documents from C's files. C filed a Notice of Objection to Subpoena under Rule.
45(d)(1). P filed a motion to compel production of the software information the district
court affirmed the magistrate's order to produce the information. C appealed. Rule 26(b)(1)
allows a party to examine a deponent concerning 'any matter, not privileged, which is
relevant to the subject matter involved in the pending action.' Rule 26(c)(7) allows the
court 'for good cause shown (4) & make any order which justice requires to protect a party
or person from annoyance, embarrassment, oppression, or undue burden & including & that a
trade secret & not be disclosed or be disclosed only in a designated way.' Rule 45(b)(1)
authorizes the court to 'quash or modify the subpoena if it is unreasonable and oppressive.
&.'
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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