Ameranth, Inc. v. ChowNow, Inc.

CourtDistrict Court, S.D. California
DecidedAugust 18, 2021
Docket3:20-cv-02167
StatusUnknown

This text of Ameranth, Inc. v. ChowNow, Inc. (Ameranth, Inc. v. ChowNow, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ameranth, Inc. v. ChowNow, Inc., (S.D. Cal. 2021).

Opinion

1 2

8 UNITED STATES DISTRICT COURT

9 SOUTHERN DISTRICT OF CALIFORNIA

11 AMERANTH, INC., a Delaware ) Case No.: 3:20-cv-02167-BEN-BLM 12 corporation, ) ) ORDER GRANTING-IN-PART: Plaintiff, 13 ) v. 14 ) ) (1) P DL OA CI UN MTI EF NF T’S S M UNO DT EIO RN SS E T AO L F anIL dE 15 CHOWNOW, INC., a Delaware ) corporation, (2) DEFENDANTS’ MOTIONS TO 16 ) FILE DOCUMENTS UNDER SEAL Defendant. ) 17 ) [ECF Nos. 13, 14, 15, 16, 20, 21] 18 CHOWNOW, INC., a Delaware ) corporation, ) 19 Counterclaimants, ) 20 v. ) ) AMERANTH, INC., a Delaware 21 ) corporation; 22 ) ) 23 Counterdefendants. )

24 ) 25 I. INTRODUCTION 26 Plaintiff/Counter-Defendant Ameranth, Inc., a Delaware corporation (“Plaintiff”) 27 brings this action for breach of a patent licensing agreement against Defendant/Cross- 28 Complainant ChowNow, Inc., a Delaware corporation (“Defendant”). ECF No. 1; see 1 also ECF No. 12-1 at 6:3-4. Before the Court are the following Motions: (1) Plaintiff’s 2 Motion to File Documents Under Seal, ECF No. 13, and (2) Defendant’s Motions to File 3 Documents Under Seal, ECF Nos. 15, 20. 4 “Open, public courts stand as a pillar of American democracy, to which motions to 5 seal stand in derogation.” Kivett v. Neolpharma, Inc., No. 2:20-00664-JDW, 2021 WL 6 1209844, at *1 (E.D. Pa. Mar. 31, 2021). However, “all too often, parties pay little 7 attention to a motion to seal that accompanies a complicated filing.” Id. Instead, sealing 8 motions often include “only generalized recitations of the factors that a court must consider 9 before placing material under seal.” Id. Alternatively, the redactions made may be overly 10 broad, thereby limiting information appropriate for public record in a case. “Given the 11 important public interest at stake,” courts should neither permit parties seal dockets without 12 an adequate showing of injury, id., nor prevent information from being disclosed to the 13 public where the parties did not narrowly tailor their request. Thus, the Court GRANTS- 14 IN-PART both motions according to the terms set forth in the conclusion of this order. 15 II. BACKGROUND 16 This matter arises from Plaintiff’s ownership of several patents, which Plaintiff 17 licensed to Defendant. See generally ECF No. 1. Defendant eventually ceased paying 18 royalties to Plaintiff on the basis that the patents underlying the licensing agreement had 19 been declared invalid, and as such, Defendant no longer owed royalties. Id. Plaintiff 20 contends that Defendant’s failure to continue paying royalties constitutes a breach of the 21 agreements between the parties. Id. 22 On November 19, 2020, Plaintiff timely filed a Motion to (1) Dismiss Defendant’s 23 Counterclaims for (a) Failure to State a Claim for Relief and (b) Lack of Subject Matter 24 Jurisdiction and (2) Remand to State Court. Mot., ECF No. 12. That same day, Plaintiff 25 also filed a Motion to File Documents Under Seal in support of the Motion, ECF No. 13, 26 lodging the documents it sought to seal as ECF No. 14. On November 20, 2020, 27 Defendant filed a Motion to Seal, seeking to seal portions of its exhibits to the Notice of 28 Removal, ECF No. 15, lodging the documents it sought to seal as ECF No. 16. 1 On December 7, 2020, Defendant filed amended counterclaims, containing the 2 same claims for relief as its cross-complaint filed in the superior court but adding eight 3 additional claims for relief for (1) declaration of invalidity as to the 9,747,651 Patent (the 4 “651 Patent”); (2) unenforceability of the 8,146,077 Patent (the “077 Patent”); (3) 5 declaration of unenforceability of the 9,009,060 Patent (the “060 Patent”); (4) declaration 6 of unenforceability of the 9,747,651 Patent (the “651 Patent”); (5) bad faith enforcement 7 of patents, 15 U.S.C. § 2; (6) bad faith enforcement of patents through a pattern of sham 8 litigation, 15 U.S.C. § 2; (7) violation of California’s Unfair Competition Law, Cal. Bus. 9 & Prof. Code § 17200; and (8) unjust enrichment. ECF No. 18. 10 That same day, Defendant also filed its opposition to Plaintiff’s Motion, ECF No. 11 19, along with a Motion to File Documents Under Seal in support of the Opposition as 12 well as documents related to its Amended Counterclaims, ECF No. 20, lodging the 13 documents it sought to seal as ECF No. 21. On December 11, 2020, Plaintiff filed its 14 reply to Defendant’s opposition. ECF No. 24. 15 Due to the number of motions to seal and exhibits thereto, they are summarized as 16 follows: Sealed Request to Seal Portions of: 17 ECF Doc. Filing Party 18 No. ECF Ex. Description No. 19 Original License Agreement entered into between 20 1 Ameranth and ChowNow on June 22, 2012 21 First Amended License Agreement entered into 2 between Ameranth and ChowNow on December 20, 22 13 Plaintiff 14 2013 23 First Amended License Agreement entered into 5 between Ameranth and Splick-It on November 19, 24 2013 25 First Amended License Agreement entered into 1 between Ameranth and ChowNow on December 20, 26 15 Defendant 16 2013 27 Original License Agreement entered into between 12 Ameranth and ChowNow on June 22, 2012 28 1 EA-mmearialn ctohr reexsepcountidveensc aen bde tthweeier nr eCspheocwtiNveo wle gaanld 17 2 counsel, dated October 11, 2018 through July 31, 2020 3 N/a Cross-Complaint 4 First Amended License Agreement entered into 5 1 between Ameranth and ChowNow on December 20, 2013 6 20 Defendant 21 Original License Agreement entered into between 12 7 Ameranth and ChowNow on June 22, 2012 N/a Amended Counterclaims 8 N/a Opposition Brief 9 III. LEGAL STANDARD 10 Except for certain documents “traditionally kept secret,” federal courts begin a 11 sealing analysis with “a strong presumption in favor of access to court records.” Foltz v. 12 State Farm Mut. Auto. Ins. Co., 331 F.3d 1122, 1135 (9th Cir. 2003). A party seeking to 13 seal a judicial record then must “articulate [] compelling reasons supported by specific 14 factual findings,” id., that outweigh the general history of access and the public policies 15 favoring disclosure, such as the “public interest in understanding the judicial process,” 16 Hagestad v. Tragesser, 49 F.3d 1430, 1434 (9th Cir. 1995). The Court “conscientiously 17 balance[s] . . . the competing interests” of the public and the party who seeks to keep certain 18 judicial records secret. Foltz, 331 F.3d at 1135. After considering these interests, if the 19 Court decides to seal certain judicial records, it “base[s] its decision on a compelling reason 20 and articulate[s] the factual basis for its ruling, without relying on hypothesis or 21 conjecture.” Hagestad, 49 F.3d at 1434; see also Kamakana v. City & Cty. of Honolulu, 22 447 F.3d 1172, 1179 (9th Cir. 2006) (applying compelling reasons standard to dispositive 23 motions). 24 A party must satisfy the compelling reasons standard even if the motion, or its 25 attachments, were previously filed under seal or protective order. Foltz, 331 F.3d at 1136 26 (“[T]he presumption of access is not rebutted where . . . documents subject to a protective 27 order are filed under seal as attachments to a dispositive motion.”). A party’s failure to 28 1 meet the burden of articulating specific facts showing a “compelling reason” means that 2 the “default posture of public access prevails.” Kamakana, 447 F.3d at 1182. In ruling on 3 motions to seal, the Ninth Circuit has recognized that “compelling reasons sufficient to 4 outweigh the public’s interest in disclosure and justify sealing court records exist when 5 such court files might . . .

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Apple Inc. v. Samsung Electronics Co., Ltd.
727 F.3d 1214 (Federal Circuit, 2013)
Center for Auto Safety v. Chrysler Group, LLC
809 F.3d 1092 (Ninth Circuit, 2016)
Ervine v. Warden, San Quentin State Prison
214 F. Supp. 3d 917 (E.D. California, 2016)
Renner v. President of the Bank of Columbia
9 U.S. 581 (Supreme Court, 1824)
Electronic Arts, Inc. v. United States District Court
298 F. App'x 568 (Ninth Circuit, 2008)

Cite This Page — Counsel Stack

Bluebook (online)
Ameranth, Inc. v. ChowNow, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/ameranth-inc-v-chownow-inc-casd-2021.