Full opinion text
MEMORANDUM AND ORDER MacLAUGHLIN, District Judge. TABLE OF CONTENTS FACTS.................................................................. 668 The Intraocular Lens Industry............................................ 669 Surgidev................................................................. 672 Non-Disclosure Agreements............................................... 675 ETI ..................................................................... 676 DISCUSSION............................................................ 679 A. Choice of Laws...................................................... 679 B. Trade Secrets........................................................ 680 1. Customer Information............................................ 680 a. Hollingsworth analysis....................................... 681 b. Hospitals and/or Clinics...................................... 686 2. IOL and PMMA Monofilament “Know-How” and New Products..... 687 a. Trade Secret Ownership...................................... 687 (1) Not Generally Known or Easily Ascertainable.............. 688 (a) Not Generally Known — PMMA Monofilament........... 688 (b) Not Generally Known— IOL Manufacturing Know-How...................... 689 (c) Not Generally Known — New Products.................. 689 (d) Not Generally Known— Remaining Categories of Customer Information....... 690 (i) Influential Ophthalmologists....................... 690 (ii) Consultants & Non-Medical Consultants............ 691 (iii) Medical Monitor................................... 691 (2) Provide a Competitive Advantage.......................... 692 (3) Confidentiality............................................ 692 b. Disclosure, Legal Relationship, and Use....................... 694 c. Duration..................................................... 696 C. Breach of Contract................................................... 696 DISCUSSION D. Tortious Interference................................................. 699 CONCLUSION........................................................... 700 This matter is before the Court on plaintiffs motion for preliminary and permanent injunctive relief. Plaintiff’s motion will be granted in part and denied in part. FACTS Plaintiff Surgidev Corporation (Surgidev) is a California corporation with its principal place of business in Goleta, California, engaged in the manufacture and sale of intraocular lenses (IOLs). Defendant Eye Technology, Inc. (ETI), is a Delaware corporation headquartered in St. Paul, Minnesota, also engaged in the manufacture and sale of IOLs. Defendants Robert J. Fitzsimmons, Frederick G. Kalfon, James A. Greiling and Debra McCoy are former Surgidev officers and employees now associated with ETI. This is an action alleging unfair competition, misappropriation of trade secrets, breach of contract, breach of fiduciary duty, conversion, and tortious interference with contractual relations and prospective economic advantage. Jurisdiction lies under the Court’s diversity powers, 28 U.S.C. § 1332, and venue is proper by virtue of 28 U.S.C. § 1391. Plaintiff seeks preliminary and permanent injunctive relief, as well as compensatory and punitive damages. By stipulation and order dated February 12, 1986, and pursuant to Rule 65(a)(2) of the Federal Rules of Civil Procedure, plaintiff’s motion for preliminary injunctive relief was consolidated with plaintiff’s prayer for permanent injunctive relief. A consolidated hearing was conducted March 10-19, 1986. Additional arguments were heard and evidence taken April 15, 1986, and June 30, 1986. Plaintiff originally submitted to the Court a proposed form of injunction. The following is taken verbatim therefrom. Plaintiffs seek to enjoin defendants from: 1. Soliciting for employment or attempting to solicit for employment or hire any SURGIDEV employees for a period of two years from [the date of filing]; 2. Hiring any SURGIDEV employees for a period of six months after they have left the employment of SURGI-DEV; 3. Having Myron Lippman perform any services on behalf of [ETI] and/or its employees, agents, officers and all persons acting in concert with it with actual notice of this order until October, 1987; 4. Purchasing or obtaining PMMA monofilament from MYRON LIPPMAN, Lippman Engineering Co. (LENCO) and/or L.I.M.R. or their officers, agents, servants, employees and attorneys and any and all persons in active concert or participation with them; 5. Having MYRON LIPPMAN, Lippman Engineering Co. (LENCO) or L.I.M.R. and/or their officers, agents, servants, employees and attorneys and any and all persons in active concert or participation with them make and/or supply PMMA monofilament until 1992; 6. Having Myron Lippman, Lippman Engineering Co. (LENCO) or L.I.M.R. and/or any and all persons in active concert with them teach any of the defendants how to manufacture PMMA monofilament until 1992; 7. Soliciting or attempting to solicit any of the doctors listed on Appendix A hereto as customers and/or shareholders of [ETI] until 1988; 8. Soliciting or attempting to solicit any of the hospitals and/or clinics listed on Appendix B hereto as customers of [ETI] until 1988; 9. Soliciting or attempting to solicit any of the doctors and/or customers listed below from working or cooperating with [ETI] and its officers, directors, employees, agents and those acting in concert with them from designing, developing and/or manufacturing the products indicated below: Name Product Richard Lindstrom Surgical Viscous Adjunct Richard Lindstrom Super Balanced Salt Solution L.G. Leiske Posterior Chamber Lens Evan Jones In the Bag Lens 10. Designing, developing and/or manufacturing any Surgical Viscous Adjunct for a period of two years; and 11. Selling any IOLs made by any of the defendants for a period of nine months. Plaintiff subsequently amended its proposed form of injunctive relief in certain material respects, as discussed in this memorandum. By order dated May 22, 1986, the Court entered a partial injunction pending final judgment in the case. This memorandum and order incorporates findings of fact and conclusions of law as required by rule 65 of the Federal Rules of Civil Procedure. The Intraocular Lens Industry Both Surgidev and ETI are engaged in the manufacture and sale of IOLs — medical devices implanted by ophthalmologists in the human eye to correct vision loss resulting from removal of the eye’s natural crystalline lens during cataract surgery. A cataract is a progressive clouding or opacification of the eye’s natural lens which obstructs the passage of light and impairs vision. The lens is a transparent structure located behind the iris and the pupil. Together with the cornea, the outermost or external segment of the eye fronting the iris, the lens focuses images onto the retina, the light sensitive tissue that lines the inner rear portion of the eye. Opacification of the lens is an irreversible process occasioned by loss of the lens’ water content. There are three major classes of cataracts: those induced by the natural process of aging (approximately ninety percent of all cataracts), congenital cataracts, and cataracts induced by trauma. Since at least the mid-1950’s surgical removal of the opacified lens and implantation of an artificial lens has been an accepted technique for treatment of cataracts. The IOL implantation technique was pioneered by Dr. Harold Ridley, an English ophthalmologist. During World War II, Ridley treated British aviators who sustained injuries when fragments of cockpit canopies penetrated their eyes. These canopies were constructed of polymethylmethacrylate (PMMA). Ridley concluded that the PMMA was inert within body tissue. Thereafter, Ridley developed a method whereby an opacified lens may be surgically removed and replaced with an artificial lens composed of PMMA. Due to technical setbacks, the implantation technique did not immediately gain widespread acceptance, and until the mid-1970’s cataract spectacles and contact lenses were the preferred methods of treating cataracts. Since that time, however, medical acceptance of IOL implantation has increased steadily, due primarily to Food and Drug Administration (FDA) approval of new IOL designs, improved microsurgical techniques, and the fact that implantation represents a lesser intrusion on the patient’s lifestyle than do spectacles or contact lenses. Unlike spectacles and contact lenses, IOLs require no maintenance and do not magnify vision or obstruct peripheral vision. Today, ninety-four percent of all cataract patients are treated with IOL implantation. The most common technique for performing IOL implantation is known as extracapsular extraction, or ECCE. In an ECCE operation the surgeon removes the anterior or front portion of the lens capsule and lens cortex and nucleus while leaving the posterior or rear portion of the capsule intact. A less common technique is intracapsular extraction, or ICCE, whereby the entire lens, including its surrounding capsule or “bag” is removed. While ICCE surgery was the predominant procedure in the infancy of IOL implantation surgery, today in excess of seventy-five percent of all implants are accomplished by the ECCE method. IOL implantation may be either primary — simultaneous extraction of the opacified lens and implantation of an artificial lens — or secondary — implantation of an artificial lens in a patient whose natural lens has been removed on some prior occasion. In 1984, of the approximately 800,000 cataract operations performed nationwide, 100,-000 involved secondary implantation and the remainder were primary implants. All IOLs are composed of a central optic, the actual artificial lens through which light passes, and some variation of haptic, a support system which permits the optic to be securely fastened within the human eye. Lenses are manufactured by one of four methods: the lathe cut method, the injection molding method, the cast molding method, or the compression molding method. The central optic is typically composed of PMMA, although some manufacturers use other materials. The haptic may also be composed of PMMA or, more commonly, of polypropylene. Whether PMMA or polypropylene is preferable as haptic material is a debate which continues to rage among ophthalmologists and among IOL manufacturers. In any event, it is clear that several manufacturers, including Surgidev, market lenses with PMMA haptics. In order to manufacture an IOL with PMMA haptics the manufacturer must either purchase or extrude PMMA monofilament. PMMA monofilament is a very fine thread of the PMMA polymer, akin to a plastic fishing line, with a diameter of less than one ten-thousandths of an inch. The process for extruding PMMA monofilament was developed by Surgidev founder Myron Lippman. Prior to Lippman’s innovation, IOL haptics were made of platinum radium wire or titanium. The Lippman method for extrusion of PMMA monofilament is accomplished by first melting or dissolving PMMA pellets, then extruding the dissolved PMMA through a “spinnerette,” and finally stretching the PMMA at elevated temperatures and winding it on a spool. PMMA pellets are commercially available from at least two suppliers, Rohm and Haas and Imperial Chemical Company, and several manufacturers offer PMMA mono-filament for commercial sale, including Polyoptics and Reliable Engineering, a subsidiary of CooperVision. In addition, some IOL manufacturers, including Surgidev, make their own PMMA monofilament. A recent event in IOL manufacture is the development of blue-tinted PMMA haptics. A dye or pigment is introduced into the extruded PMMA to give it a blue tint, which has the salutary effect of making the haptic more easily visible to the surgeon during implantation. The blue PMMA haptic was first developed by IOL-ab, Inc., an IOL manufacturer, and subsequently has been copied by other manufacturers including Surgidev. The earliest mass-manufactured lenses were primarily anterior chamber lenses designed for implantation in the front or anterior segment of the eye. The advantages of anterior implantation included reduced likelihood of lens dislocation, a lesser chance of post-operative inflamation, and the fact that the anterior surgical technique is a simpler procedure than is posteri- or implantation. Generic anterior chamber lenses which enjoy widespread popularity include the Leiske lens, the Choyce Mark IX lens, the Simcoe C-loop lens, and the Shepard Universal lens. In recent years, however, the IOL industry has witnessed a dramatic shift away from anterior lens implantation in favor of posterior lens implantation, primarily due to the introduction of compressible posterior chamber IOLs which, although technically more difficult to implant, involve a lesser intrusion to the natural anatomy of the human eye. The shift toward posterior implantation has also been spurred by the present preference among ophthalmic surgeons for ECCE surgery, discussed above. Posterior chamber IOLs are typically implanted in those patients who have undergone ECCE surgery, whereas, for patients subjected to ICCE surgery, anterior implantation is the preferred method, although either anterior or posterior implantation is technically feasible in an ICCE procedure. In 1973 less than ten percent of all IOL implantations were posterior chamber implantations. By 1982 the number of posterior implantations nearly equalled the number of anterior implantations, and by 1985 nearly eighty-five percent of all implantation surgeries were posterior chamber implantations. Generic categories of posterior chamber IOLs which have gained a significant foothold in the industry include the Simcbe C-loop, the Sinsky/Kratz J-loop, the Lindstrom modified J-loop, and the modified Simcoe C-loop. Other recent innovations in the industry are the development of ultraviolet radiation absorbing lenses (UV-additive lenses) which prevent possible retinal damage due to solar exposure, and the development of monolithic or one-piece lenses formed on a panographic lathe. The market for artificial IOLs has experienced dramatic growth. In 1973 approximately 14,000 lenses were implanted at a dollar volume of $1.7 million. By 1979 the number of lens implantations in the United States had grown to nearly 200,000 at a dollar volume of $41.3 million, and in 1985 some 1.1 million lenses were implanted at a dollar volume in excess of $225 million. The vast majority of IOL implantations are performed on elderly patients suffering from opacification caused by aging. Ninety percent of all IOL implants are subject to Medicare reimbursement. The implementation of medical cost containment measures such as diagnostic related groups (DRGs) has exerted significant downward pressure on IOL prices. While in the past it was not untypical for a hospital or clinic to mark up IOLs for resale anywhere from fifty to three hundred percent, under the DRGs the maximum mark up is expected to be twenty percent or less. Accordingly, while at present IOLs are sold by manufacturers to hospitals or clinics in a price range of $100 to $300, due to increasing price competition in the industry these figures have experienced a steady decline. In addition, the explosive growth in the market has flattened to an annual rate of less than ten percent. One leading analyst has predicted that the rate of increase in the IOL market will decelerate from a 1985 rate of twelve percent per annum to a two percent rate by 1990, resulting in an overall stagnation of lens sales from the 1985 figure of 1.03 million to a projected 1990 figure of 1.15 million. Defendants’ Exh. 181 at 3. As noted above, the IOL market at present is marked by a significant trend away from anterior lens implantation and toward posterior lens implantation. The market for anterior chamber lenses has experienced a corresponding decline. The industry has also experienced a trend away from hospital implantation in favor of implantation in clinics or on an outpatient basis, due primarily to the cost pressure exerted by DRGs. Presently some sixty-five percent of all implants are performed in hospitals, twenty percent are performed on an outpatient basis, and fifteen percent are performed in clinics. The primary “customers” of IOL manufacturers are the implanting ophthalmologists, hospitals and/or clinics, and institutional “buying groups.” While in the past the implanting ophthalmologist typically made the lens-buying decision, the recent trend toward price competition in the industry has caused institutional purchasing agents and administrators to play a larger role in the lens-buying decision. In addition, many smaller hospitals/clinics have banded together into “buying groups” for the purpose of obtaining volume price discounts. Buying group purchasing agents and administrators are assuming an ever-increasing role in IOL purchase decisions. At present, some seventeen to twenty manufacturers vie for supremacy in the IOL marketplace, including: American Medical Optical (AMO), Cilco, Coburn, CooperVision, Copeland, Intermedies, IOLab, Ioptex, McGhan, Optical Radiation Corporation (ORC), Precision-Cosmet, Surgidev, Storz, and STAAR Surgical. In addition, a number of European competitors are active in the world market including Rayner (U.K.), Schmidt-Morcher (Germany), and Titmus (Switzerland). Of these, the six largest, IOLab, Cilco, Intermedies, Precision-Cosmet, AMO and ORC, occupy in excess of eighty percent of the United States market. The industry is not technology intensive and has been characterized by low barriers to entry, leading to a flood of new competitors in recent years. The industry has been extremely dynamic, with rapid shifts in market share among manufacturers based on such factors as new product innovation, sales and marketing expertise, and servicing capacity. Some 500 to 600 lens styles are offered in the marketplace. The rate of technical obsolescence in the industry is high, with the average lens enjoying a market life cycle of two to four years. In excess of 5,000 ophthalmologists are certified to do implantation surgery, at some 10,000 hospitals and clinics. Of the ophthalmologists certified to do implants, some ten percent of them, the “high volume” implanters, do sixty to seventy percent of all implantations. Surgidev Surgidev was founded by Myron Lippman in 1976. Lippman is an electrical engineer who corroborated with Dr. Dennis Shepard in the development of McGhan Medical, one of the first IOL manufacturers in the United States. Lippman developed the technology to manufacture IOLs based on his study of European manufacturing facilities. Lippman on behalf of McGhan purchased molding machines from Germany, modified the machines, created fixtures for attaching haptics to PMMA optics, and independently developed a process for the extrusion of PMMA monofilament. In 1976 Lippman left McGhan and founded Surgidev. From 1976 to 1979 Lippman was president, director, and majority shareholder of Surgidev. By 1979 Surgidev had annual IOL sales in excess of $1 million. In 1979 Lippman sold eighty percent of Surgidev stock to Dennis Grendahl. Grendahl had extensive experience in the medical products field, primarily as a sales representative. Grendahl was introduced to Lippman and Surgidev by Robert Fitzsimmons, with whom Grendahl had previously worked when both men were employed in the medical products division of Minnesota Mining and Manufacturing (3M). Fitzsimmons became familiar with the emerging IOL industry while serving as a manufacturer’s sales representative for IOLab, in connection with his work as the head of a manufacturer’s representative company called Midwest Medical Specialties. When Grendahl inquired of possible development ideas in the medical products field, Fitzsimmons introduced him to Lippman. Through his work in the field Fitzsimmons was aware that Lippman was looking for someone with sales and marketing expertise to purchase a controlling interest in Surgidev. Grendahl and Lippman were able to come to terms and in November, 1979, executed a contract for transfer of eighty percent of Surgidev stock at a price of $1.12 million. Fitzsimmons cosigned a promissory note on behalf of Grendahl. At a subsequent date Fitzsimmons acquired four percent of Surgidev’s stock at a price of $16,000. From the date of sale through October, 1982, Grendahl, Lippman and Fitzsimmons worked to transform Surgidev into a leading competitor in the IOL marketplace. Grendahl acted as chief executive officer of Surgidev based in the company’s Minneapolis, Minnesota sales and administrative headquarters. Fitzsimmons acted as vice president of marketing and sales, also based in Minneapolis. Lippman acted as president of the company with primary responsibility for Surgidev’s Santa Barbara, California manufacturing facility. Surgidev’s sales rose from just over $1 million in 1979 to $14 million in 1982. Surgidev was able to carve out a dominant position in the anterior lens market, primarily due to its development of the Leiske style 10 anterior chamber lens. In addition, Surgidev was first in the field with IOLs composed completely of PMMA. While most manufacturers had PMMA optics, Surgidev was the first to develop PMMA haptics, made of extruded PMMA monofilament. Surgidev’s rapid rise was blunted by many factors, among them the forced exodus of Lippman in October, 1982. In 1980, while acting as president of Surgidev, Lippman was instrumental in the formation of Americal, a California-based IOL manufacturer whose primary focus at the outset of its operation was international sales. When Americal entered the American market in 1982 at least some of Surgidev’s patrons switched their allegiance to Americal, with a corresponding decline in Surgidev sales. Grendahl formed the opinion that Lippman had betrayed Surgidev by forming a competitor corporation while still in Surgidev’s employ. In addition, Lippman pledged a $500,000 treasury bill belonging to Surgidev as collateral for a personal loan, without informing Grendahl of his intention to do so. When Grendahl became aware of this corporate misappropriation in October, 1982, he terminated Lippman as president of Surgidev, effective October 27, 1982. Two weeks prior to Lippman’s termination, on October 13, 1982, Lippman and Surgidev had entered into an agreement whereby Lippman transferred to Surgidev the process which he had pioneered for extrusion of PMMA monofilament. This manufacturing process had not been among the assets transferred in the 1979 sale of Surgidev stock to Grendahl. The Lippman-Surgidev “Deal Memo” (the name given to the October 13, 1982 agreement) became the subject of a lawsuit initiated by Surgidev against Lippman shortly following Lippman’s termination. The Lippman-Surgidev litigation took place in California courts and was concluded by the entry of a settlement agreement (hereinafter “Lippman settlement”) in February, 1986. Surgidev subsequently amended paragraphs 3-6 of its proposed preliminary injunction to correspond with the terms of the Lippman settlement, and defendants have expressed their intention to abide by the terms of the Lippman settlement. From 1982 through 1985 Surgidev experienced a gradual flattening of sales growth. As noted above, during this period the industry witnessed a dramatic shift from anterior to posterior implantation. While Surgidev had a strong array of anterior chamber lenses, it lagged behind its competitors in the development of posterior chamber lenses. In addition, due to the fact that many of Surgidev’s competitors were successful in replicating Surgidev’s popular Leiske style anterior chamber lens, the competition for anterior lens sales stiffened. As the trend toward posterior lenses accelerated, many hospitals with unused anterior lenses in inventory returned the lenses to Surgidev for a cash refund, thus occasioning cash flow difficulties for Surgidev. A flurry of accounting and billing errors followed, leading to customer dissatisfaction. Surgidev’s former vice president of finance, Daniel Binda, described the state of the company’s financial records when he arrived in 1984 as “a mess,” Binda Dep. at 51-53; 56-67, and during this period two reputable certified public accounting firms, Deloitte, Haskins & Sells and Ernst & Whinney, were unable to complete financial audits of Surgidev due to the disarrayed state of corporate financial records. Because Surgidev lacked a strong product in the growing posterior chamber field, Surgidev’s field sales representatives found it increasingly difficult to generate sales commissions, leading in turn to low morale among the sales force, substantial turnover, and a surplus of inexperienced field representatives. In addition, Surgidev found itself shut out of the expanding UV-additive lens market due to its inability to develop and market a UV-additive lens. Sales figures for the period 1982 to 1985 bespeak Surgidev’s steady decline. From a peak overall market share of 11.2 percent in 1982 Surgidev fell to a market share of less than six percent in 1985. Surgidev’s anterior lens sales declined twenty percent in 1983 and experienced a further decline in 1984 and 1985, leading to a plunge in anterior market share from a peak of 19.4 percent in 1982 to less than ten percent in 1985. Surgidev held a 2.9 percent share of the posterior lens market in 1982. By 1985 Surgidev’s market share in the posterior lens arena had shrunk to 2.3 percent. Defendants’ Exh. 181 at 19. Surgidev’s decline led to an exodus of key employees, beginning with the resignation of Robert Fitzsimmons in February, 1985. The precipitating event which triggered Fitzsimmons’ resignation was Grendahl’s implementation of the “Vanguard” marketing program in the latter months of 1984. Vanguard was the brainchild of Surgidev consultants Julian Moody and Gary Janka. Moody and Janka advised Grendahl to concentrate marketing and new product sales on the southern California region, an area where Surgidev traditionally had been weak, and which is perceived to be at the leading edge of new product innovation in the IOL industry. With this purpose in view, Grendahl appointed Fitzsimmons regional director of southern California sales, with a specific directive to increase Surgidev sales in the region from fifty sales per month to three hundred sales per month within a five-month period. While Fitzsimmons expressed initial approval of the Vanguard principle, he found himself unable to carry out the proposed directive, due primarily to a lack of sales representatives and the absence of competitive product in the posterior lens and UV-additive lens fields. When Fitzsimmons urged Grendahl to initiate product development in the posterior lens and UV-additive lens areas, Grendahl responded by saying: “Fitz, you’ve got a hundred thousand Leiske lenses on the shelf. Go sell them.” T. at 768. Frustrated by his inability to move the company forward, Fitzsimmons announced his resignation in February, 1985. Fitzsimmons also sold his four percent stock interest in Surgidev to Grendahl for $440,000 at that time. Thereafter several other key employees departed Surgidev. Each subsequently enlisted with ETI. Frederick G. Kalfon was director of marketing at Surgidev from August 1,1982 through March, 1985, when his title was changed ,to director of sales support and communication. Kalfon resigned from Surgidev effective June 7, 1985. Kalfon is currently vice president of marketing and sales for ETI. Debra J. McCoy was a Surgidev field sales representative from September 14, 1981 through May 31, 1983, and was Surgidev’s manager of manpower development from May 31, 1983 through April 1, 1985, when she was appointed southeastern regional sales manager. McCoy resigned from Surgidev effective May 31, 1985. McCoy is currently vice president of public relations and communications for ETI. James A. Greiling was a Surgidev field sales representative from January 2, 1980 through July 31, 1982, when he was appointed north central regional sales manager. Greiling held this position until his resignation August 2, 1985. Greiling is currently vice president of sales for ETI. William E. Fagan was northeastern regional sales manager for Surgidev from September 7, 1982 until his resignation on August 14, 1985. Fagan is currently vice president of sales for ETI. Fagan, a Rhode Island resident, is not a party to this litigation. In addition, on August 17, 1985 Myron Lippman, founder and former president of Surgidev, entered into a consulting agreement with ETI, pursuant to the terms of which Lippman agreed to: (a) prepare for ETI a proposed budget and time schedule for the establishment of an IOL manufacturing facility; (b) consult with ETI on a monthly basis with respect to establishment of an IOL manufacturing facility; (c) develop new products for ETI. In return, ETI pledged to compensate Lippman in the amount of $200,000 payable in four installments of $50,000 each, and to pay a royalty on all new products developed by Lippman for ETI. Non-Disclosure Agreements While employed at Surgidev, each of the individual defendants, as well as current ETI officers and/or employees Fagan and Lippman, signed non-disclosure agreements. The agreements signed by each of the individual defendants provide in relevant part: EMPLOYEE INVENTION AND NON-DISCLOSURE AGREEMENT This Employee Invention and Non-Disclosure Agreement (the “Agreement”) is entered into between SURGIDEV CORPORATION, a California corporation (“SURGIDEV”), and the undersigned EMPLOYEE. In consideration for the employment or continued employment of EMPLOYEE by SURGIDEV, EMPLOYEE agrees as follows: 1.2 Confidential Information and Trade Secrets. “Confidential Information and Trade Secrets” means all information, processes, process parameters, methods, practices, fabrication techniques, technical plans, algorithms, computer programs and related documentation, customer lists, price lists, supplier lists, marketing plans, financial information, and all other compilations of information which relate to the business of SURGIDEV and which have not been released by SURGIDEV to the general public. 2. Trade Secrets and Confidential Information. 2.1 Acknowledgement by EMPLOYEE. EMPLOYEE acknowledges that during the term of employment with SURGIDEV, EMPLOYEE will have access to and become acquainted with the Confidential Information and Trade Secrets of SURGIDEV. 2.2 No Use or Disclosure. EMPLOYEE agrees not to use or disclose (directly or indirectly) any Confidential Information and Trade Secrets of SURGIDEV at any time or in any manner, except as required in the course of employment with SURGIDEV. The obligations of this Paragraph are continuing and survive the termination of EMPLOYEE’S employment with SURGIDEV. 2.3. Restriction on Documents and Equipment. All documents and equipment relating to the business of SURGI-DEV, whether prepared by EMPLOYEE or otherwise coming into EMPLOYEE’S possession, are the exclusive property of SURGIDEV, and must not be removed from the premises of SURGIDEV except as required in the course of employment with SURGIDEV. All such documents and equipment must be returned to SURGIDEV when EMPLOYEE leaves the employment of SURGIDEV. 2.4 No Disclosure or Use from Others. EMPLOYEE agrees not to disclose to SURGIDEV or use on behalf of SURGIDEV any confidential information or trade secrets obtained from other companies or persons, and not to bring confidential information or trade secrets of others onto SURGIDEV’s premises. 5. Restrictions on EMPLOYEE. 5.1 No Competitive Planning. While employed by SURGIDEV, EMPLOYEE agrees not to undertake any planning for any outside business activity (i) competitive with the work that EMPLOYEE performs for SURGIDEV, or (ii) competitive with the profit unit of SURGIDEV for which EMPLOYEE works. 5.2 No Hiring of Other Employees. While employed by SURGIDEV and for five (5) years after that employment ends, EMPLOYEE agrees not to employ or attempt to employ, in competition with SURGIDEV, any of SURGIDEV’s other employees who work in any area in which EMPLOYEE has been significantly engaged on behalf of SURGIDEV. 5.3 No Use of Confidential Information and Trade Secrets. While employed by SURGIDEV and for ten (10) years after that employment ends, EMPLOYEE agrees not to enter into any employment competitive with SURGI-DEV in which the complete fulfillment of the duties of the competitive employment would inherently require EMPLOYEE to reveal or use any of the Confidential Information and Trade Secrets of SURGIDEV learned and obtained by EMPLOYEE while employed by SURGI-DEV. 5.4 No Solicitation of Customers. While employed by SURGIDEV and for five (5) years after that employment ends, EMPLOYEE agrees not to divert or attempt to divert (by solicitation or by any other means) the customers of SURGIDEV existing at the time EMPLOYEE’S employment ends. See Plaintiff’s Exhs. 5-11. The circumstances leading to execution of these non-disclosure agreements by the individual defendants is the subject of some dispute. Robert Fitzsimmons executed the agreement January 7, 1983. Frederick Kalfon, William Fagan, and James Greiling executed agreements on or about February 12, 1983 in connection with a meeting of Surgidev regional sales managers at the Sheraton Park Place Hotel in Minneapolis. Grendahl and Fitzsimmons were also in attendance at the February 12, 1983 meeting. Kalfon, Fagan, and Greiling testified that Hugh Jaeger, corporate counsel for Surgidev, distributed the form agreements at the meeting and instructed everyone in attendance to sign and date the forms and stated that copies would be provided to individual signatories at a later date. Fagan and Greiling also testified that when certain attendees expressed reservations about signing the agreements, Jaeger informed them that the agreements were designed primarily to protect inventions and patents developed at Surgidev's California manufacturing plant, that the agreements would not prevent Surgidev employees from leaving the company and taking work with a competitor, and that the agreements were unenforceable in any event. Others at the meeting, including certain parties unconnected to this litigation, dispute that such statements were made. Greiling testified that it was Steve Downing, a Surgidev regional manager unconnected to the instant litigation, who made a comment on the agreements' unenforceability, and that Jaeger did nothing more than fail to affirmatively disagree with Downing’s opinion. Fagan, meanwhile, testified that Jaeger affirmatively stated that the agreements were unenforceable, a contention which Jaeger hotly disputes. Greiling and Fagan executed the agreements on February 12, 1983. Kalfon executed the agreement a day later, February 13, 1983. Subsequently, each received a copy of the signed agreement. At the February 12 meeting, each of the regional managers was given blank nondisclosure agreements and instructed to obtain the signatures of each of their field sales representatives. On March 17, 1983 Greiling distributed a copy to Debra McCoy, with instructions to sign and date the form and to return it to him. McCoy at that time was a Surgidev field sales representative in Minnesota and reported to Greiling, regional sales manager for the north central region. McCoy testified that Greiling represented to her that the agreement was unenforceable and was designed primarily to protect inventions and patents developed at Surgidev’s California manufacturing plant. Based upon these representations, McCoy signed the agreement on that date. ETI Following his resignation from Surgidev, Fitzsimmons was contacted by Jonnie Williams, a venture capitalist who had played a role in the formation of several medical products start-up companies. At that time Fitzsimmons had plans to reactivate Midwest Medical Specialties (Midwest Medical), an independent distributor of medical products. Fitzsimmons had taken certain steps toward that end, including the acquisition of leased office space. Williams learned at a medical convention in Texas that Fitzsimmons was no longer with Surgidev. Aware of Fitzsimmons’ influential reputation in the IOL industry, Williams contacted Fitzsimmons and asked him to travel to Sarasota, Florida to discuss new product ideas and a possible joint venture. Fitzsimmons traveled to Florida in mid-March, 1985 and met with Williams and Dr. Francis O’Donnell, an ophthalmologist practicing in St. Louis, Missouri. Williams and O’Donnell had collaborated in the formation of CME-SAT, a video continuing medical education program with which Fitzsimmons had become familiar in connection with his work at Surgidev. At the March 17, 1985 meeting, Williams, O’Donnell, and Fitzsimmons discussed for the first time the possibility of beginning a new IOL manufacturing concern. The impetus for the proposed new IOL company came from O’Donnell and Williams, who were cognizant of the effect of proposed IOL-related DRGs on the IOL marketplace, and in particular, the transformation of the IOL market from one which was cost-insensitive to one which was highly cost sensitive. Williams and O’Donnell proposed to create a company which would manufacture and market mainstream lenses of proven design at significantly reduced prices, utilizing a nationwide direct field sales force. Fitzsimmons expressed interest in the proposed venture, but informed Williams and O’Donnell that due to the non-disclosure agreement which he had signed while at Surgidev, his availability was uncertain. At Williams’ suggestion, Fitzsimmons forwarded a copy of the non-disclosure agreement to CME-SAT’s corporate counsel, Sam Sears, an attorney with the Boston, Massachusetts law firm of Burns & Levinson. Sears advised Fitzsimmons that the agreement would not prevent him from taking employment with a competing IOL company. Thereafter Fitzsimmons vigorously pursued incorporation and capitalization of ETI. In pursuit of these objectives, the following steps were undertaken: (a) Raymond Reher, financial officer for CME-SAT, was retained to prepare financial projections for the proposed company, based upon figures and analysis provided to him by Fitzsimmons. Reher completed the projections in April, 1985, and thereafter took a position as vice president-finance of the fledgling concern. (b) In April, 1985 Fitzsimmons, Williams, and O’Donnell met at the Boston offices of Sam Sears to further discuss the proposed joint venture. The parties made a decision to go ahead with formation of a new IOL company. Sears was retained as corporate counsel and thereafter set about making legal preparations for a public offering of common stock. (c) On June 20, 1985 an organizational meeting was conducted in St. Paul, Minnesota at the offices of Midwest Medical. In attendance at the meeting were Fitzsimmons, Williams, O’Donnell, Sears, Joseph Schneider, Kalfon, McCoy, and Lippman. After leaving Surgidev Kalfon and McCoy worked as consultants for CME-SAT utilizing Midwest Medical office space leased to them by Fitzsimmons. When they learned of the proposed start-up company they asked to be affiliated with the venture. Lippman had contacted Fitzsimmons earlier in the year with a proposal for a new products joint venture. As plans for ETI were developed Fitzsimmons asked Lippman to consider taking a consulting position with the new company. Items of business discussed at the June 20 meeting included equity distribution, the size of the proposed public offering, employee stock options, the role of Lippman in the new company’s development, and a voting trust. A decision was made to forge ahead with incorporation of ETI. Fitzsimmons was appointed president of the company, and Fitzsimmons, O’Donnell, and Sears agreed to act as directors. (d) ETI was incorporated in Delaware on June 24, 1985. The original shareholders were Fitzsimmons, O’Donnell, and Williams. (e) ETI entered into employment agreements with Fitzsimmons, (president, CEO, treasurer), Schneider (vice president-operations), Reher (vice president-finance), Kalfon (vice president-marketing and sales), McCoy (vice president-public relations and communications), Fagan (vice president-sales), Greiling (vice president-sales), and Bradford C. Webb, a long-time consultant in the IOL field who accepted a position as ETI’s vice president-regulatory affairs. (f) On September 29, 1985 ETI filed with the Securities Exchange Commission (SEC) a preliminary prospectus for 2,415,000 shares of common stock at a proposed maximum offering price of $3.00 per share for a net offering of $7,245,000. (g) In September, 1985 ETI made a private placement of 200,000 shares of common stock at $1.00 per share for a net additional contribution to capital of $200,-000. In order to effectuate the private placement, Fitzsimmons and O’Donnell solicited ophthalmologists familiar with the IOL industry. Ten individuals made purchases of 20,000 shares each. All but one of the private placement investors are practicing ophthalmologists with extensive IOL implantation practices. (h) On October 30,1985 ETI filed amendment number one to its SEC registration statement, reducing the number of shares offered from 2,415,000 to 1,725,000, at a proposed maximum offering price of $3.00 per share. The effect of the amendment was to reduce the net offering from $7,245,000 to $5,175,000. (i) On December 10, 1985, ETI filed amendment number two to its SEC registration statement. Amendment number two changed the form of the offering to 750,000 units, each unit consisting of two shares of common stock, at a per unit price of $4.00 for a net offering of $3 million. (j) On February 3, 1986 ETI filed amendment number three to its SEC registration statement. Amendment number three changed the form of the offering to 1,000,-000 units, each unit consisting of three shares of common stock and a warrant to purchase an additional share of common stock at a price of $2.00 per share. The proposed offering of each unit was $3.00 for a total net offering of $3 million. (k) The preliminary prospectus filed by ETI included the following disclosure under the heading “Risk Factors”: Five of the seven executive officers of the Company, including Robert J. Fitzsimmons, President, Treasurer and Chief Executive Officer, are former employees of Surgidev Corporation (“Surgidev”), a manufacturer of IOLs. The Company expects to compete directly with Surgidev in the IOL market. While employed by Surgidev, each of these officers signed an “Employee Invention and NonDisclosure Agreement,” the terms of which include extensive prohibitions for lengthy periods of time against the disclosure of Surgidev’s “trade secrets,” the employment of Surgidev’s employees, the use of Surgidev’s “confidential information and trade secrets,” and the solicitation of Surgidev’s customers. Each of these five persons has stated to the Company that he/she does not have trade secrets or confidential information of Surgidev, or, if he/she does, that he/she will not use or disclose to the Company any of such secrets and information. The Company does not believe that any of such persons has violated such agreement as a result of his/her activities on behalf of the Company. Moreover, the Company does not believe that such agreements are enforceable, inasmuch as the provisions of such agreements are contrary to the laws of California which govern the agreements. The Company has agreed with these officers to indemnify and hold harmless each of them against any claim by Surgidev of breach of agreement in connection with his/her activities on behalf of the Company. While the Company is confident that it and such executive officers would prevail in any litigation with Surgidev, in the event Surgidev would be successful in obtaining restraining orders against any of such persons, the operation and management of the Company might be materially and adversely affected. Moreover, prolonged litigation with Surgidev would require executives of the Company to spend significant time in the litigation process, time which otherwise would be expended on behalf of the Company’s affairs. Myron E. Lippman, a former employee and existing stockholder of Surgidev, and who has entered into an independent contractor agreement with the Company to establish the Company’s manufacturing facilities, is presently named in a lawsuit filed by Surgidev. The dispute, however, is not related to Mr. Lippman’s proposed activities on behalf of the Company or to the disclosure of any confidential information. See “Management of the Company — Independent Contractor Agreement.” Defendants’ Exh. 108 at 6-7. (l) On February 12, 1986 ETI’s public offering “went effective.” Shortly thereafter ETI received $2.7 million in net proceeds. (m) On May 19, 1986 Fitzsimmons, on behalf of ETI, signed a letter of intent with Americal whereby ETI and Americal expressed their mutual intent to effectuate a combination of their businesses. Americal markets and sells in the United States IOLs manufactured in Mexicali, Mexico. DISCUSSION A. Choice of Laws The jurisdictional basis of the instant case is the diversity jurisdiction of the federal courts, 28 U.S.C. § 1332. In diversity cases the federal courts are bound to apply the choice of law principles of the forum state. Klaxon Co. v. Stentor Electric Manufacturing Co. Inc., 313 U.S. 487, 61 S.Ct. 1020, 85 L.Ed. 1477 (1941). Minnesota choice of law principles dictate that where the conflict is between substantive laws of the states, the better law methodology adopted by the Minnesota Supreme Court in Milkovich v. Saari, 295 Minn. 155, 203 N.W.2d 408 (1973) is determinative. However, where the parties by express contractual provisions have designated that the laws of a particular state shall govern disputes arising under the agreement, Minnesota courts have applied the substantive law of the designated state without reference to the Milkovich standards. Medtronic, Inc. v. Gibbons, 684 F.2d 565, 567-68 (8th Cir.1982), citing Milliken & Co. v. Eagle Packaging Co., 295 N.W.2d 377, 380 n. 1 (Minn.1980); Combined Insurance Co. of America v. Bode, 247 Minn. 458, 464, 77 N.W.2d 533, 536 (1956). See generally R. Leflar, American Conflicts Law § 147 (3d ed. 1977). Here, the non-disclosure agreements included an express California governing law proviso. The Court sees no federal constitutional obstacle to the choice of California law; California clearly has the requisite “significant contact or significant aggregation of contacts, creating state interests, such that choice of its law is neither arbitrary nor fundamentally unfair.” Medtronic, 684 F.2d at 568, citing Allstate Insurance Co. v. Hague, 449 U.S. 302, 313, 101 S.Ct. 633, 640, 66 L.Ed.2d 521 (1981). Accordingly, California law will govern interpretation of the non-disclosure agreements. As to plaintiff’s tort law claims, the trade secrets laws of California and Minnesota are substantially similar. Both states have adopted the Uniform Trade Secrets Act. See Minn. Stat. § 325C.01 et seq.; Cal.Civil Code § 3426 et seq. Before applying the forum state’s choice of law principles the Court must initially determine whether a conflict in fact exists, that is, whether the choice of one state’s law to the exclusion of another state’s law will be “outcome determinative.” Myers v. Government Employees Insurance Co., 225 N.W.2d 238, 241 (Minn.1974). Because California and Minnesota laws are not in conflict, plaintiff’s trade secret counts will be analyzed under both California and Minnesota law. B. Trade Secrets Surgidev claims trade secret protection for four categories of commercial information: (1) customer information; (2) IOL manufacturing “know how;” (3) PMMA monofilament manufacturing “know how;” and (4) new products. In order to make out its trade secret claims, plaintiff, by the preponderance of the evidence, must prove the following elements: (1) plaintiff is the owner of a trade secret; (2) plaintiff disclosed the trade secret to defendant; or defendant wrongfully took the trade secret from plaintiff without plaintiff’s authorization; (3) defendant was in a legal relation with reference to plaintiff as a result of which defendant’s use of disclosure of the trade secret to plaintiff’s detriment is wrongful; (4) defendant has used or disclosed (or will disclose) the trade secret to plaintiff’s detriment; or, defendant who knew or should have known of plaintiff’s rights in the trade secret, used such secret to plaintiff’s detriment. See 2 Milgrim on Trade Secrets § 7.07[1] at 7-126 through 7-136; Cal Francisco Investment Corp. v. Vrionis, 14 Cal. App.3d 318, 92 Cal.Rptr. 201, 204 (1st Dist.1971); Diodes, Inc. v. Franzen, 260 Cal.App.2d 244, 67 Cal.Rptr. 19, 22-23 (2d Dist.1968); Eutectic Welding Alloys Corp. v. West, 281 Minn. 13, 160 N.W.2d 566, 570 (1968). Plaintiff seeks preliminary and permanent injunctive relief. In order to justify issuance of injunctive relief plaintiff must demonstrate that absent such relief it will be irreparably harmed. 2 Milgrim § 7.08[1] at 7-183. Here, the irreparable harm alleged by plaintiff is loss of customer goodwill and injury to business reputation. 1. Customer Information Surgidev claims trade protection for the following categories of customer information: (i) the identity of ophthalmologists who implant Surgidev lenses, (ii) the identity of ophthalmologists who implant a high volume of Surgidev lenses, (iii) the lens style preferences of ophthalmologists who implant Surgidev lenses, (iv) the identity of ophthalmologists who have recently converted from another brand to Surgidev brand lenses, (v) the identity of ophthalmologists who do “core” implanting research on behalf of Surgidev, (vi) the identity of institutions which buy a large volume of Surgidev lenses, (vii) the identity of institutions which have recently converted from another brand to Surgidev brand lenses, and (viii) customer price discounting information. Surgidev seeks an order of the Court enjoining defendants from “soliciting or attempting to solicit any of the doctors listed on [plaintiff’s exhibit 53] as customers of EYE TECHNOLOGY until 1988.” Exhibit 53 is a compilation of the names of 235 practicing ophthalmologists and/or medical specialists, prepared by Surgidev for purposes of this litigation. These individuals were selected based on the following criteria: Category 1 — ophthalmologists who implanted sixty or more Surgidev lenses during the period 11/1/84 to 10/31/85 (high volume implanters); Category 2 — ophthalmologists who have recently converted to Surgidev lenses, based on a comparison of lens implants for the periods 6/1/84 to 11/30/84 (control period) and 6/1/85 to 11/30/85 (conversion period) (converting implanters); Category 3 — ophthalmologists who are influential in the profession (influential ophthalmologists); Category 4 — ophthalmologists who have entered into agreements to do “core” implantation research on behalf of Surgidev (core implanters); Category 5 — medical specialists and/or ophthalmologists who have entered into agreements to consult with Surgidev or to engage in new product design and development for Surgidev (consultants); Category 6 — non-medical consultants who have agreed to do research on optics or polymers on Surgidev’s behalf (non-medical consultants); Category 7 — Surgidev’s medical monitors (medical monitors). Plaintiff also seeks an order of the Court enjoining defendants from soliciting or attempting to solicit any of the hospitals and/or clinics listed on plaintiff’s exhibit 54. Exhibit 54 is a compilation of 173 hospitals and clinics each of which purchased sixty or more Surgidev lenses during the period 11/1/84 to 10/31/85. a. Hollingsworth Analysis Before proceeding to the four-part trade secret misappropriation test set forth above, the Court will analyze Surgidev’s claims for protection of “customer information” under the test set forth in Hollingsworth Solderless Terminal Co. v. Turley, 622 F.2d 1324 (9th Cir.1980). In Hollingsworth the United States Court of Appeals for the Ninth Circuit conducted an extensive analysis of California trade secret law in the context of customer information. The Hollingsworth court cited California Intelligence Bureau v. Cunningham, 83 Cal.App.2d 197, 188 P.2d 303 (1948) for the proposition that in an action by an employer against a former employee in which the employer seeks to prohibit customer solicitation by the former employee injunctive relief is appropriate where: (1) the former employee is in possession of trade or business secrets or confidential information, or the like, not readily accessible to others; (2) the former employee solicits the customers of his former employer in a competing business with intent to injure his former employer’s business; (3) the former employee solicits the customers of his former employer, who comprise a list of preferred customers whose trade is profitable to a supplier of a service, knowledge of whom is a trade secret and confidential; (4) one concern is usually patronized by a customer and the lists and names and addresses of the customers are considered secret and have the character of property; (5) there is an established business relationship between the customer and the former employer which, unless interfered with, normally continues. Hollingsworth, 622 F.2d at 1330, citing Cunningham, 188 P.2d at 306. In applying the five-part Hollingsworth test, the fundamental inquiry is “whether in a given case the knowledge gained by an employee is secret and confidential.” Hollingsworth, 622 F.2d at 1331, quoting Cunningham, 188 P.2d at 306. In applying the test, the following principles pertain: (1) although in most instances where customer information will be protectible as a trade secret all five of the circumstances described above will be present, California law is best viewed as not requiring a plaintiff to prove all five in order to prevail; (2) it is not essential for the employer to demonstrate that its efforts, as opposed to the employee’s independent efforts, were principally responsible for development of the customer information, although this is one factor to be considered; (3) a list of plaintiff’s customers may be a trade secret even where the general class of potential customers is obvious and readily accessible. See Hollingsworth, 622 F.2d at 1331-33. Of the seven categories of individuals included on plaintiff’s exhibit 53, only three are subject to Hollingsworth customer information analysis: category 1, high volume implanters; category 2, converting implanters; and category 4, core implanters. The remaining categories occupy a relationship with Surgidev other than a vendor-customer relationship and will be separately analyzed. The first and most significant consideration is whether the customer information is readily accessible to a reasonably diligent competitor. Hollingsworth, 622 F.2d at 1332. A finding that the information is readily accessible to competitors indicates that the plaintiff did not reasonably spend a great deal of time or effort compiling that information, and that the plaintiff suffers no injury when a former employee uses the information since he or his new employer could easily discover it from other sources. Hollingsworth, 622 F.2d at 1332. The Court finds that the identity of Surgidev’s high volume implanters is not readily accessible to others. James Shumate, former president of ORC, testified that the identity of high volume implanters is considered to be confidential in the industry, that while at ORC he did not know the identity of Surgidev’s high volume implanters, and that he would have considered such information to be a valuable asset in marking out competitive strategies. Gene Beckstein, a former executive at Intermedies and at Cobum, stated that while employed at those companies he did not know the identity of Surgidev’s high volume implanters. Bradford Webb, an ETI employee, acknowledged that the identity of high volume implanters would be considered proprietary information by most IOL manufacturers. That the identity of a particular manufacturer’s high volume customers is proprietary information is evidenced by the elaborate security procedures which many competitors in the industry observe, procedures designed to keep customer information confidential. At Intermedies sales employees are required to sign nondisclosure agreements and are precluded from working for competitors in the sales territory which they have developed while at Intermedies. At ORC all sales information is put on computerized discs and a limited number of persons are given access to those records. Further, at both ORC and Surgidev sales information is distributed on a need-to-know basis. Interestingly, employee agreements which Kalfon, Greiling, and Fagan signed with Surgidev include the following language: Proprietary Information includes, but is not limited to, information contained in or relating to the Company’s product designs, tolerances, manufacturing methods, processes, techniques, treatment or chemical composition of material, plant layout, tooling, marketing plans or proposals, and customer information. (b) For 360 days after termination of my employment with the Company, I will not attempt to divert any Company business by soliciting, contacting, or communicating with any customers for the Company’s products with whom I, or employees under my supervision, had contact during the year preceding termination of my employment. Plaintiff’s Exhs. 13, 14, and 15 (emphasis added). The fact that competitors in the industry safeguard the identities of high volume customers indicates inferentially that such information is not readily accessible, since quite obviously a company would not protect information which is freely obtainable by legitimate means. Defendants argue that the identity of high volume implanters is readily accessible and cite a vast array of industry sources which a diligent salesperson might consult in an attempt to ascertain this information, including: The Red Book of Ophthalmology, the Directory of the American Intraocular Lens Society, industry analysts’ reports such as the Health Products Research (HPR) Report and the Hambrecht & Quist Report, a biannual report produced by Dr. Walter Stark of Johns Hopkins University School of Medicine, various publications concerning the IOL industry, including Ophthalmology Times, the Implant and Refractive Society Journal, the American Journal of Ophthalmology, and lists of ophthalmologists supplied by commercial purveyors of mailing lists. Defendants also claim that a perspicacious industry salesperson could readily obtain this information by making calls on ophthalmologists listed in telephone directories and local yellow pages, by inquiring of hospital personnel including operating room nurses and operating room supervisors, by inquiring of hospital and/or clinic purchasing agents and administrators, and by attending various local, regional, and national medical conventions for the purpose of buttonholing prominent implanting ophthalmologists. While an industry salesperson might well obtain the identity of implanting physicians in such a manner, such techniques would not necessarily reveal which of these implanters are Surgidev customers. This is the crucial distinction. The identity of potential customers is undoubtedly readily available from public sources. However, parsing from such sources a list of potentially profitable high volume implanters who are known to use Surgidev products would be a costly and time-consuming endeavor. In Hollingsworth the following observations were made: Hollingsworth, 622 F.2d at 1333, quoting Reid v. Mass Co., 155 Cal.App.2d 293, 318 P.2d 54, 60 (1957). Even if the names of plaintiff’s cu