Andrx Pharmaceuticals, LLC v. GlaxoSmithKline, PLC

236 F.R.D. 583, 2006 U.S. Dist. LEXIS 50089, 2006 WL 2023540
CourtDistrict Court, S.D. Florida
DecidedJuly 7, 2006
DocketCIV. No. 05-23264
StatusPublished
Cited by4 cases

This text of 236 F.R.D. 583 (Andrx Pharmaceuticals, LLC v. GlaxoSmithKline, PLC) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Andrx Pharmaceuticals, LLC v. GlaxoSmithKline, PLC, 236 F.R.D. 583, 2006 U.S. Dist. LEXIS 50089, 2006 WL 2023540 (S.D. Fla. 2006).

Opinion

ORDER

O’SULLIVAN, United States Magistrate Judge.

THIS MATTER came before the Court on an informal discovery conference held on [584]*584June 1, 2006. As directed by the Court, the plaintiff filed a memorandum in favor of allowing outside counsel access to discovery under the terms of the protective order in the case and the defendant filed its memorandum in opposition. After hearing argument and reviewing the filings, it is

ORDERED AND ADJUDGED that the plaintiffs request to include its outside counsel, Martin P. Endres, in the parties’ stipulated protective order is DENIED based on the following findings and analysis.

Background

The plaintiff, the owner of the subject patent, brought this patent infringement action against the defendant alleging that the defendant’s drug, Wellbutrin XL®, infringes one or more claims of the subject patent.1 The parties are prepared to enter into a stipulated protective order and have agreed to all terms except for one. The plaintiff has requested that Martin P. Endres, a patent attorney and partner at Hedman & Costigan, P.C., be included in the stipulated protective order as an individual who can have access to the defendant’s confidential and highly confidential materials. Mr. Endres is willing to build a “Chinese Wall” between himself and the rest of his firm. Additionally, Mr. En-dres is willing to agree “not to personally prosecute any patents relating to buproprion hydrochloride for any client either during or for two years after this litigation, including appeals.” (Pl.’s Memo, at 2; Ex. A, Endres’ Declaration) in his Declaration, Mr. Endres states that “if allowed by this Court, [he] also agree[s] not to advise Andrx or any other client with respect to buproprian matters for the duration of this lawsuit and for two years after a final non-appealable order has been entered in this lawsuit.” (Ex. A., Endres’ Decl. It 9)

The defendant objects to Mr. Endres’ inclusion on the grounds that the law prohibits access to confidential scientific information by a competitor’s patent prosecution counsel. Neither Mr. Endres nor his partners are on the team of trial attorneys in this action. In support of its position that Mr. Endres should be excluded from the stipulated protected order, the defendant cites the following facts:

1. The Hedman & Costigan firm actually prosecuted the patent-in-suit;

2. Hedman & Costigan is involved in continuing prosecution for Andrx of applications directly related to the patent-in-suit as well as other applications that may also implicate confidential information they receive from the defendant.

3. The Hedman & Costigan firm consists in its entirety of four partners and six other lawyers.

4. Of the four partners, one prosecuted the patent-in-suit (Alan Clement) and another (Martin Endres) played a lesser role regarding the patent-in-suit. Both are involved in continuing prosecution efforts for Andrx going forward.

5. Mr. Clement, and possibly Mr. Endres, will be witnesses in this action.

6. Plaintiff is represented by two other highly competent patent litigation firms and independent technical experts are available to Andrx as well. (Def.’s Memo, at 3) Additionally, Mr. Endres has been “one of Andrx principal patent attorney’s for twelve years.” (ZdXquoting Pl.’s Memo, at 5); (Pl.’s Memo, at 2)

The defendant asserts that the conditions that Mr. Endres proposes constitute a “carefully worded promise that Mr. Endres will not prosecute ‘buproprion’ patents, without saying anything about delayed/sustained-release technology (a technology that is at the core of this case) or patents related to blood plasma drug levels and testing (another technology implicated by this case).” The defendant asserts that “[i]t would be difficult for Andrx’s outside patent prosecutor to avoid work on delayed/sustained-release patent applications as that technology is the core focus of Andrx’s business.” (Def.’s Memo, at 3-4, Ex. 1)

[585]*585 Analysis

The plaintiff concedes that this Court has broad discretion to prevent or limit the disclosure of confidential trade secrets. (Pl.’s Memo, at 3) Rule 26(c) of the Federal Rules of Civil Procedure provides in pertinent part that:

for good cause shown, ... the court ... may make any order which justice requires to protect a party or person from annoyance, embarrassment, oppression, or undue burden of expense, including ... that a trade secret or other confidential research, development, or commercial information not be revealed or be revealed only in a designated way____”

Fed.R.Civ.P. 26(e)(7). The party requesting the protective order has the burden to demonstrate good cause. Mikohn Gaming Corp. v. Acres Gaming Inc., 50 U.S.P.Q.2d 1783, 1998 WL 1059557 (D.Nev.1998) (citing Jepson, Inc. v. Makita Elec. Works, Ltd., 30 F.3d 854, 858 (1994)). The defendant has shown good cause. The defendant has spent millions of dollars of investment regarding the innovation of Wellbulrin XL®, an antidepressant sold by the defendant. The plaintiff is a competitor that is in the business of bringing “eontrolled-release and specialty generic drugs into the marketplace.” (Def.’s Memo, at 4; Ex. 1) According to the defendant, delayed/sustained-release technology patents and patents related to blood plasma drug levels and testing are implicated in this action.

The plaintiff relies heavily on two unpublished decisions of the Federal Circuit In re Sibia Neurosciences, Inc., 1997 WL 688174 (Fed.Cir.1997), and In re Meta Systems, 1996 WL 755699 (Fed.Cir.1996). In Sibia Neurosciences, the court determined that

denying access to [the party’s] outside counsel would pose a serious and unnecessary hardship, especially because [outside counsel] had been [the party’s] patent counsel for more than one year prior to the commencement of the patent action and because the testimony at the hearing before the magistrate judge reflected [outside counsel’s] crucial role in the patent litigation.

Id. at *3. The plaintiff asserts that “[b]ecause of Mr.. Endres’s extensive knowledge and background in the area [of pharmaceutical patents], his involvement as a consulting attorney for the plaintiff in this case is critical.” (Pl.’s Memo, at 2) Unlike the party in Sibia Neurosciences, the plaintiff has not demonstrated why Martin Endres is so critical to its case and that another independent expert lacks the knowledge and expertise to assist the two law firms that represent plaintiff in this action. Moreover, the plaintiff has two law firms to adequately represent it in this matter.

In Mikohn Gaming Corp., the court explained that

Where parties to a lawsuit are commercial competitors, and one of them moves for protection against misuse of its confidential technical information, the court must balance the risk to the moving party of inadvertent disclosure against the risk that the protective order will impair the prosecution or defense of the other party’s claims.

Id. (citing Brown Bag Software v. Symantec Corp.,

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236 F.R.D. 583, 2006 U.S. Dist. LEXIS 50089, 2006 WL 2023540, Counsel Stack Legal Research, https://law.counselstack.com/opinion/andrx-pharmaceuticals-llc-v-glaxosmithkline-plc-flsd-2006.