ActiveVideo Networks, Inc. v. Verizon Communications, Inc.

274 F.R.D. 576, 2010 U.S. Dist. LEXIS 143256, 2010 WL 6812320
CourtDistrict Court, E.D. Virginia
DecidedNovember 3, 2010
DocketAction No. 2:10cv248
StatusPublished
Cited by6 cases

This text of 274 F.R.D. 576 (ActiveVideo Networks, Inc. v. Verizon Communications, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
ActiveVideo Networks, Inc. v. Verizon Communications, Inc., 274 F.R.D. 576, 2010 U.S. Dist. LEXIS 143256, 2010 WL 6812320 (E.D. Va. 2010).

Opinion

ORDER

F. BRADFORD STILLMAN, United States Magistrate Judge.

On October 6, 2010, defendants Verizon Communications, Inc., Verizon Services Corp., Verizon Virginia Inc., and Verizon South Inc. (collectively, “Verizon”) filed an Expedited Motion for Entry of Protective Order (ECF No. 52) and supporting brief (ECF No. 53). The plaintiff, ActiveVideo Networks, Inc. (“ActiveVideo”) filed its opposition (ECF No. 84) and a supporting declaration (ECF No. 85) on October 20, 2010. Verizon filed a reply brief (ECF No. 91) on October 21, 2010.

I. BACKGROUND

This is a patent infringement case, in which ActiveVideo alleges infringement by Verizon of certain of ActiveVideo’s patents related to interactive cable television services, Verizon alleges infringement by ActiveVideo of certain of Verizon’s own patents related to interactive cable television services, and both parties seek declarations of non-infringement or invalidity as to the other side’s patents. {See ActiveVideo’s 1st Am. Compl., ECF No. 28; Verizon’s Answer to 1st Am. Compl. & Countercls., ECF No. 29; ActiveVideo’s Answer to Countercls. & Countered., ECF No. 38.) A Markman claim construction hearing is scheduled to take place on January 4, 2011.

Discovery in this case will necessarily involve the disclosure of trade secrets or other confidential research, development, or commercial information, subject to an appropriate protective order. The parties have agreed to a comprehensive protective order, with one unresolved issue in dispute: Verizon desires that certain of its in-house counsel have access to protected confidential information, while ActiveVideo objects to disclosure of protected confidential information to any of Verizon’s in-house counsel, both generally and as to specific attorneys.

Verizon has identified four in-house attorneys whom it would like to have access to protected confidential information: (1) John Thorne, Senior Vice President and General Counsel at Verizon, who is responsible for litigation of antitrust, intellectual property, and telecommunications cases; (2) Leonard Charles Suchyta, Vice President and Associate General Counsel at Verizon, who is responsible for all intellectual property matters involving Verizon and its affiliates, excluding certain trademarks and copyrights owned by Verizon Wireless; (3) John P. Frantz, Vice President and Associate General Counsel, who is responsible for complex litigation, including matters in the areas of antitrust, insurance, tax, and intellectual property, and for Verizon’s electronic discovery group; and (4) Caren K. Khoo, Assistant General Counsel at Verizon, who is responsible for conducting and managing intellectual property litigation matters.

II. DISCUSSION

This dispute pits ActiveVideo’s interest in maintaining the confidentiality of certain proprietary information against Verizon’s right to its choice of trial counsel. The specific question presented is whether a corporate party’s in-house counsel should be denied access to confidential information produced by a party-opponent pursuant to a [579]*579protective order issued under Rule 26(c) of the Federal Rules of Civil Procedure.1

The leading case on point in this district is Volvo Penta of the Americas, Inc. v. Brunswick Corp., 187 F.R.D. 240 (E.D.Va. 1999), in which this Court addressed a very similar dispute in the context of antitrust litigation. Volvo Penta in turn relied on a test first formulated by the Federal Circuit in U.S. Steel Corp. v. United States. 730 F.2d 1465 (Fed.Cir.1984), and later refined in several subsequent decisions by that court. See Matsushita Elec. Indus. Co. v. United States, 929 F.2d 1577 (Fed.Cir.1991); In re Sibia Neurosciences, Inc., 132 F.3d 50, 1997 WL 688174 (Fed.Cir.1997) (unpublished table opinion); In re Deutsche Bank Trust Co. Ams., 605 F.3d 1373 (Fed.Cir.2010) (applying U.S. Steel in patent litigation). Because this case concerns patent claims, any appeal would lie to the Federal Circuit. See 28 U.S.C. §§ 1292(c), 1295(a)(1). The Court therefore considers U.S. Steel and its Federal Circuit progeny to be binding precedent in this case.2

ActiveVideo seeks the categorical exclusion of Verizon’s in-house counsel from accessing confidential information produced in discovery by ActiveVideo.

Denial or grant of access [to confidential information], however, cannot rest on a general assumption that one group of lawyers are more likely or less likely inadvertently to breach their duty under a protective order____ Like retained counsel, ... in-house counsel are officers of the court, are bound by the same Code of Professional Responsibility, and are subject to the same sanctions. In-house counsel provide the same services and are subject to the same types of pressures as retained counsel. The problem and importance of avoiding inadvertent disclosure is the same for both.

U.S. Steel, 730 F.2d at 1468. Instead, the question of access to confidential information must be resolved “‘on a counsel-by-counsel basis,’ by assessing ‘each individual counsel’s actual activity and relationship with the party represented, without regard to whether a particular counsel is in-house or retained.’ ” Volvo Penta, 187 F.R.D. at 243 (quoting U.S. Steel, 730 F.2d at 1468-69). Ultimately, “the counsel-by-counsel determination should turn on the extent to which counsel is involved in ‘competitive decisionmaking’ with its client.” Deutsche Bank, 605 F.3d at 1378 (citing U.S. Steel, 730 F.2d at 1468).3

“Competitive decisionmaking” is “shorthand for a counsel’s activities, association, and relationship with a client that are such as to involve counsel’s advice and participation in any or all of the client’s decisions (pricing, product design, etc.) made in light of similar or corresponding information about a competitor.” U.S. Steel, 730 F.2d at 1468 n. 3.4

[580]*580A. ActiveVideo’s Objections to Specific Attorneys

ActiveVideo asserts specific reasons why-each of the four in-house attorneys identified by Verizon are involved in competitive decisionmaking and therefore should be barred from accessing protected confidential information.

1. John Thorne

According to his sworn declaration, Mr. Thorne, a Senior Vice President and Deputy General Counsel at Verizon, is responsible for litigation of antitrust, intellectual property, and telecommunications cases. He is also an officer and director of two Verizon affiliates: Bell Atlantic Entertainment and Information Services Group, Inc. and Bell Atlantic Global Wireless, Inc. (collectively, the “Bell Atlantic affiliates”), neither of which is involved in this litigation, and neither of which offers any products or services for sale. Mr.

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Cite This Page — Counsel Stack

Bluebook (online)
274 F.R.D. 576, 2010 U.S. Dist. LEXIS 143256, 2010 WL 6812320, Counsel Stack Legal Research, https://law.counselstack.com/opinion/activevideo-networks-inc-v-verizon-communications-inc-vaed-2010.