12“(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 s 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, s 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 F.2d 324, 331 (9th Cir. 1961). The district court must balance the need for the trade secrets against the claim of injury resulting from disclosure.
Covey Oil Co., 340 F.2d at 999. If proof of relevancy or need is not established, discovery should be denied. See id. at 998-99; *326 Cleo Wrap Corp. v. Elsner Engineering Works, Inc., 59 F.R.D. 386, 388 (M.D.Pa.1973); Hartley Pen Co., 287 F.2d at 330-31. On the other hand, if relevancy and need are shown, the trade secrets should be disclosed, unless they are privileged or the subpoenas are unreasonable, oppressive, annoying, or embarrassing. Covey Oil Co., 340 F.2d at 997-98.