Alivecor, Inc. v. Apple, Inc.

District Court, N.D. California·Decided June 2, 2023·No. 4:21-cv-03958·Unknown

Opinion

4C9Y2N08T9H; IpAro E h. aRcI CviHceM) AN (D.C. Bar No. crichman@gibsondunn.com GIBSON, DUNN & CRUTCHER LLP 1050 Connecticut Avenue, N.W. Washington, DC 20036-5306 Telephone: 202.955.8500 Facsimile: 202.467.0539 JASON C. LO (SBN 219030) jlo@gibsondunn.com JENNIFER J. RHO (SBN 254312) jrho@gibsondunn.com GIBSON, DUNN & CRUTCHER LLP 333 South Grand Avenue Los Angeles, CA 90071 Telephone: 213.229.7000 Facsimile: 213.229.7520 CAELI A. HIGNEY (SBN 268644) CHigney@gibsondunn.com JULIAN W. KLEINBRODT (SBN 302085) JKleinbrodt@gibsondunn.com GIBSON, DUNN & CRUTCHER LLP 555 Mission Street, Suite 3000 San Francisco, CA 94105-0921 Telephone: (415) 393-8200 Facsimile: (415) 393-8306 CASE NO. 4:21-CV-03958-JSW-SK AliveCor, Inc.,

Plaintiff, JOINT CONSOLIDATED [PROPOSED] ORDER REGARDING SEALING v. DOCUMENTS

Apple Inc.,

Defendant.

A. AliveCor Administrative Motions To Consider Sealing AliveCor has filed several administrative motions to consider whether Apple’s confidential business material should be sealed. (Dkt. Nos. 153, 161, 163, 169). Apple filed declarations in support of sealing (see Dkt. Nos. 155, 165, 166, 175). The Court concludes Apple has demonstrated that portions of the filings and exhibits should be maintained under seal, as reflected in the table below. B. Apple Administrative Motions To Consider Sealing Apple has filed several administrative motions to consider whether AliveCor’s confidential business material should be sealed. (Dkt. Nos. 158, 159). AliveCor filed a declaration in support of the motions. (Dkt. No. 160). The Court concludes that AliveCor has demonstrated that portions of certain exhibits should be maintained under seal, as reflected in the table below. C. The Court’s Sealed Order Denying Motion For An Adverse Jury Instruction The parties have conferred and jointly agree that certain portions of the Court’s Order Denying Motion For An Adverse Jury Instruction, (Dkt. No. 178), filed conditionally under seal, should remain sealed. In determining whether to permit documents to be filed under seal, courts in the Ninth Circuit apply two separate standards: (1) the “compelling reason” test for sealing information in connection with motions for a determination on the merits of a claim or defense; and (2) the less-restrictive “good cause” test for sealing information in connection with non-dispositive filings. Kamakana v. City and County of Honolulu, 447 F.3d 1172, 1178-79 (9th Cir. 2006); Center for Auto Safety v. Chrysler Grp., LLC, 809 F.3d 1092 (9th Cir. 2016). Here, the less-restrictive good cause test applies because the underlying dispute is non-dispositive; AliveCor’s motion does not determine the ultimate merits of any claims in this case. The Court has “broad latitude” “to prevent disclosure of materials for many types of information, including, but not limited to, trade secrets or other confidential research, development, or commercial information.” Phillips v. Gen. Motors Corp., 307 F.3d 1206, 1211 (9th Cir. 2002) (emphasis in original); see also Kamakana, 447 F.3d at 1179 (“[C]ompelling reasons sufficient to outweigh the public’s interest in disclosure and justify sealing court records exist when such court files might have become a vehicle for improper purposes, such as the use of records to gratify private spite, promote public scandal, circulate libelous statements, or release trade secrets.”) (quoting Nixon v. Warner Commc’ns, Inc., 435 U.S. 589, 598 (1978)) (internal quotation marks omitted)). As the Supreme Court has recognized, sealing is appropriate to prevent judicial documents from being used “as sources of business information that might harm a litigant’s competitive standing.” Nixon, 435 U.S. at 598. Accordingly, courts routinely seal information where disclosure could harm a litigant’s competitive standing. See, e.g., Philips v. Ford Motor Co., No. 14- CV-02989, 2016 WL 7374214, at *6 (N.D. Cal. Dec. 20, 2016) (concluding that the “need to avoid competitive disadvantage in contract negotiations and undercutting by competitors is a compelling reason that justifies sealing”); Vigdor v. Super Lucky Casino, Inc., No. 16-CV-05326, 2018 WL 4510734, at *2 (N.D. Cal. Sept. 18, 2018) (sealing “business and financial information relating to the operations of Defendants”); Lathrop v. Uber Techs., Inc., No. 14-cv-05678-JST, 2016 WL 9185002, at *2 (N.D. Cal. Jun. 17, 2016) (“[U]nder Ninth Circuit law . . . internal reports are appropriately sealable under the ‘compelling reasons’ standard where that information could be used to the company’s competitive disadvantage.”). The parties indicated that limited portions of this Court’s Order Denying Motion For An Adverse Jury Instruction should remain sealed. The language the parties indicate should be sealed includes information that Apple has determined to be highly confidential. This includes Apple’s competitively sensitive business strategy information and non-public information about Apple’s data management practices, including its practices regarding document management and storage, which, if revealed, could cause Apple economic harm and put it at a competitive disadvantage or reveal to bad actors insights into how Apple maintains and processes its confidential information. See, e.g., Lathrop, 2016 WL 9185002, at *2. The narrow material that Apple seeks to maintain under seal is not public and would be harmful to Apple if publicly disclosed. The information that Apple seeks to protect is important to its business and its internal processes. Public disclosure of this information would risk competitors gaining an unfair business advantage by gaining insight into its internal processes and data management systems. Apple takes many steps, and undertakes substantial efforts, to safeguard such information, and keeping that information confidential is important to its effectiveness. Apple operates in an intensely competitive environment. Given the confidential and non-public information reflected in the portions of the document that Apple seeks to seal, Apple has serious and legitimate concerns that competitors will exploit any release of Apple’s highly sensitive, proprietary information in order to gain competitive advantage. The Court concludes Apple has demonstrated that portions of the Court’s Order Denying Motion For Adverse Jury Instruction should remain sealed, as reflected in the table below. D. Table Summarizing Portions Of Documents To Remain Sealed For good cause shown, the Court Orders that the portions of the documents identified below, by page and line number, should remain under seal. Document Name Dkt. No. Page & Lines Exhibit N to the Declaration 158-5 Entire document of Jason Lo in Support of Apple’s Opposition to AliveCor’s Motion for An Adverse Jury Instruction Exhibit O to the Declaration 159-1 Entire document of Jason Lo in Support of Apple’s Opposition to AliveCor’s Motion for An Adverse Jury Instruction Plaintiff AliveCor, Inc.’s 153-1 Page 1:8-12 (ending at “Watch”); Motion for An Adverse Jury Page 3:10-11 (starting at “Ex. P”; Instruction Page 3:13-23 (starting at how”); Page 3:n2; Page 4:1-4 (ending at “market”); Page 4:8-10 (ending at “2021”);Page 5:13 (starting at “on”); Page 8:20-28 (starting at “Mr. Cha”); Page 9:2-5 (starting at “Apple”); Page 11:14 (starting at word after “ESI” and ending at word before “thus”) Declaration of Adam 153-2 Page 1:26 (starting at “how to”); Wolfson in Support of Page 3:16 (starting at the word after “ESI”); Plaintiff AliveCor, Inc.’s Page 4:3-4 Motion for An Adverse Jury Instruction AliveCor Reply in Support of 162, 161-1, Page 3:15-16 (from word after “to any” to “Apple Motion for an Adverse Jury 163-5 Watch”); Instr

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Alivecor, Inc. v. Apple, Inc., (N.D. Cal. 2023).

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Related

Nixon v. Warner Communications, Inc.
435 U.S. 589 (Supreme Court, 1978)
Kamakana v. City and County of Honolulu
447 F.3d 1172 (Ninth Circuit, 2006)
Center for Auto Safety v. Chrysler Group, LLC
809 F.3d 1092 (Ninth Circuit, 2016)