Applied Materials, Inc. v. Demaray LLC

District Court, N.D. California·Decided July 7, 2023·No. 5:20-cv-09341·Unknown

Opinion

APPLIED MATERIALS, INC., Case No. 5:20-cv-09341-EJD Plaintiff, ORDER GRANTING IN PART AND v. DENYING IN PART MOTIONS TO DEMARAY LLC, Re: ECF Nos. 205, 206, 207, 208, 209, 210, Defendant. 223, 256, 257, 275, 276, 288

Presently before the Court are Plaintiff Applied Materials, Inc.’s (“Applied”) and Defendant Demaray LLC’s (“Demaray”) administrative motions to file under seal documents in connection with briefing on Applied’s motion for summary judgment and claim construction. ECF Nos. 205–10, 223, 256–57, 275–76, 288. For the reasons that follow, the Court GRANTS IN PART and DENIES IN PART the motions. A party seeking to seal judicial records related to a dispositive motion, such as a motion for summary judgment, must demonstrate that “compelling reasons” support its request. Uniloc USA, Inc. v. Apple Inc., 25 F.4th 1018, 1022 (Fed. Cir. 2022) (citing Kamakana v. City & Cnty. of Honolulu, 447 F.3d 1172, 1179 (9th Cir. 2006)). Compelling reasons include preventing the release of trade secrets, id. (citing Kamakana, 447 F.3d at 1179), and keeping as private “sources of business information that might harm a litigant’s competitive standing.” Nixon v. Warner Commc’ns, Inc., 435 U.S. 589, 598 (1978). However, “[t]he mere fact that the production of records may lead to a litigant’s embarrassment, incrimination, or exposure to further litigation will not, without more, compel the court to seal its records.” Kamakana, 447 F.3d at 1179. Courts in this District are split on whether the “compelling reasons” standard also applies to requests to seal materials related to claim construction. Some apply the “compelling reasons” standard because “the court’s construction of the terms of the patent claim is often critical to the outcome of such a suit.” Synchronoss Techs., Inc. v. Dropbox Inc., No. 16-CV-00119-HSG, 2017 WL 11527607, at *2 (N.D. Cal. Dec. 27, 2017) (quoting Miotox LLC v. Allergan, Inc., No. 214CV08723ODWPJWX, 2016 WL 3176557, at *1 (C.D. Cal. June 2, 2016)). Others have applied the lower “good cause” standard because claim construction is non-dispositive. Symantec Corp. v. Acronis, Inc., No. 12-CV-05331-JST, 2013 WL 5913756, at *2 (N.D. Cal. Oct. 31, 2013). However, subsequent to Symantec’s decision to apply the “good cause” standard, the Ninth Circuit clarified that the choice of standard “does not merely depend on whether the motion is technically ‘dispositive.’” Ctr. for Auto Safety v. Chrysler Grp., LLC, 809 F.3d 1092, 1101 (9th Cir. 2016). Rather, the choice “will turn on whether the motion is more than tangentially related to the merits of a case.” Id. As claim construction is “often critical to the outcome” of a patent suit, Synchronoss, 2017 WL 11527607, at *2 (citation omitted), the Court will apply the “compelling reasons” standard. II. MOTIONS TO SEAL MATERIAL RELATED TO APPLIED’S MOTION FOR SUMMARY JUDGMENT (ECF NOS. 205–10) The Court finds that much of the information sought to be sealed consists of confidential product information or constitutes sensitive information about customer relationships. There are compelling reasons to seal such information because its public release may harm the competitive standing of the parties and third parties who provided the information. However, three categories of information sought to be sealed do not meet the high bar of “compelling reasons.” First, the parties and non-parties who initially designated as confidential certain information in the Joint Statement of Undisputed Facts as well as Exhibits 12, 15, 16, 25, 26, 31, and 39 to Applied’s motion for summary judgment do not seek to maintain that information under seal. Second, Applied proposes certain redactions to its motion for summary judgment and Exhibit 31 to that motion—namely, portions of those documents describing the extent of discovery taken to date, and stale information regarding prior exposure to the patents-in- suit—solely because that information “may be interpreted to accuse Applied of wrongdoing that is not only untrue, but also may mislead the public . . . to believe that Applied has committed the alleged wrongdoing.” Pl.’s Admin. Mot. to Seal, ECF No. 210, at 1, 6. In other words, Applied seeks to seal this information to avoid embarrassment, a justification that does not clear the bar for sealing. See Kamakana, 447 F.3d at 1179. Finally, Applied seeks to apply redactions to Exhibit 39 to its motion for summary judgment, a transcript of proceedings in open court. Such proceedings are public, so sealing is not warranted. Motion Document or Portion of Documents Supporting Order (ECF No.) Sought to be Sealed Evidence

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Applied Materials, Inc. v. Demaray LLC, (N.D. Cal. 2023).

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Related

Nixon v. Warner Communications, Inc.
435 U.S. 589 (Supreme Court, 1978)
Center for Auto Safety v. Chrysler Group, LLC
809 F.3d 1092 (Ninth Circuit, 2016)