Conrad and Darby were competitors in the business of dehairing raw cashmere, the fleece of…

Conrad and Darby were competitors in the business of dehairing raw cashmere, the fleece of certain Asiatic goats. Dehairing is the process of separating the commercially valuable soft down from the matted mass of raw fleece, which contains long coarse guard hairs and other impurities. Machinery for this process is not readily available on the open market. Each company in the business designed and built its own machinery and kept the nature of its process secret. Conrad contracted with Lawton, the owner of a small machine shop, to build and install new improved dehairing machinery of increased efficiency for which Conrad furnished designs, drawings, and instructions. Lawton, who knew that the machinery design was confidential, agreed that he would manufacture the machinery exclusively for Conrad and that he would not reproduce the machinery or any of its essential parts for anyone else. Darby purchased from Lawton a copy of the dehairing machinery that Conrad had specially designed. What are Conrad’s rights, if any, against (a) Darby and (b) Lawton? Explain.

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