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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.' '(T)here is no absolute privilege for trade secrets and similar confidential information.' Federal Open Market Committee v. Merrill, 443 U.S. 340, 362, 99 S. Ct. 2800, 2813, 61 L. Ed. 2d 587 (1979) (quoting 8 C. Wright & A. Miller, Federal Practice and Procedure § 2043 at 300 (1970)); Covey Oil Co., 340 F.2d at 999; 4 J. Moore, Federal Practice P 26.60(4) at 26-242 (1970)).
To resist discovery under Rule 26(c)(7), a person must first establish that the information sought is a trade secret and then demonstrate that its disclosure might be harmful. 8 C. Wright, supra, § 2043 at 301. If these requirements are met, the burden shifts to the party seeking discovery to establish that the disclosure of trade secrets is relevant and necessary to the action. Id. at 301-02; Hartley Pen Co. v. United States District Court, 287 ...
