Applied Materials, Inc. v. Demaray LLC

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

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 SAN JOSE DIVISION 7 APPLIED MATERIALS, INC., 8 Case No. 5:20-cv-09341-EJD Plaintiff, 9 ORDER GRANTING IN PART AND v. DENYING IN PART MOTIONS TO 10 SEAL DEMARAY LLC, 11 Re: ECF Nos. 205, 206, 207, 208, 209, 210, Defendant. 223, 256, 257, 275, 276, 288 12

13 Presently before the Court are Plaintiff Applied Materials, Inc.’s (“Applied”) and 14 Defendant Demaray LLC’s (“Demaray”) administrative motions to file under seal documents in 15 connection with briefing on Applied’s motion for summary judgment and claim construction. 16 ECF Nos. 205–10, 223, 256–57, 275–76, 288. For the reasons that follow, the Court GRANTS IN 17 PART and DENIES IN PART the motions. 18 I. LEGAL STANDARD 19 A party seeking to seal judicial records related to a dispositive motion, such as a motion for 20 summary judgment, must demonstrate that “compelling reasons” support its request. Uniloc USA, 21 Inc. v. Apple Inc., 25 F.4th 1018, 1022 (Fed. Cir. 2022) (citing Kamakana v. City & Cnty. of 22 Honolulu, 447 F.3d 1172, 1179 (9th Cir. 2006)). Compelling reasons include preventing the 23 release of trade secrets, id. (citing Kamakana, 447 F.3d at 1179), and keeping as private “sources 24 of business information that might harm a litigant’s competitive standing.” Nixon v. Warner 25 Commc’ns, Inc., 435 U.S. 589, 598 (1978). However, “[t]he mere fact that the production of 26 records may lead to a litigant’s embarrassment, incrimination, or exposure to further litigation will 27 not, without more, compel the court to seal its records.” Kamakana, 447 F.3d at 1179. 1 Courts in this District are split on whether the “compelling reasons” standard also applies 2 to requests to seal materials related to claim construction. Some apply the “compelling reasons” 3 standard because “the court’s construction of the terms of the patent claim is often critical to the 4 outcome of such a suit.” Synchronoss Techs., Inc. v. Dropbox Inc., No. 16-CV-00119-HSG, 2017 5 WL 11527607, at *2 (N.D. Cal. Dec. 27, 2017) (quoting Miotox LLC v. Allergan, Inc., No. 6 214CV08723ODWPJWX, 2016 WL 3176557, at *1 (C.D. Cal. June 2, 2016)). Others have 7 applied the lower “good cause” standard because claim construction is non-dispositive. Symantec 8 Corp. v. Acronis, Inc., No. 12-CV-05331-JST, 2013 WL 5913756, at *2 (N.D. Cal. Oct. 31, 2013). 9 However, subsequent to Symantec’s decision to apply the “good cause” standard, the Ninth Circuit 10 clarified that the choice of standard “does not merely depend on whether the motion is technically 11 ‘dispositive.’” Ctr. for Auto Safety v. Chrysler Grp., LLC, 809 F.3d 1092, 1101 (9th Cir. 2016). 12 Rather, the choice “will turn on whether the motion is more than tangentially related to the merits 13 of a case.” Id. As claim construction is “often critical to the outcome” of a patent suit, 14 Synchronoss, 2017 WL 11527607, at *2 (citation omitted), the Court will apply the “compelling 15 reasons” standard. 16 II. MOTIONS TO SEAL MATERIAL RELATED TO APPLIED’S MOTION FOR 17 SUMMARY JUDGMENT (ECF NOS. 205–10) 18 The Court finds that much of the information sought to be sealed consists of confidential 19 product information or constitutes sensitive information about customer relationships. There are 20 compelling reasons to seal such information because its public release may harm the competitive 21 standing of the parties and third parties who provided the information. 22 However, three categories of information sought to be sealed do not meet the high bar of 23 “compelling reasons.” First, the parties and non-parties who initially designated as confidential 24 certain information in the Joint Statement of Undisputed Facts as well as Exhibits 12, 15, 16, 25, 25 26, 31, and 39 to Applied’s motion for summary judgment do not seek to maintain that 26 information under seal. Second, Applied proposes certain redactions to its motion for summary 27 judgment and Exhibit 31 to that motion—namely, portions of those documents describing the 1 extent of discovery taken to date, and stale information regarding prior exposure to the patents-in- 2 suit—solely because that information “may be interpreted to accuse Applied of wrongdoing that is 3 not only untrue, but also may mislead the public . . . to believe that Applied has committed the 4 alleged wrongdoing.” Pl.’s Admin. Mot. to Seal, ECF No. 210, at 1, 6. In other words, Applied 5 seeks to seal this information to avoid embarrassment, a justification that does not clear the bar for 6 sealing. See Kamakana, 447 F.3d at 1179. Finally, Applied seeks to apply redactions to Exhibit 7 39 to its motion for summary judgment, a transcript of proceedings in open court. Such 8 proceedings are public, so sealing is not warranted. 9 Motion Document or Portion of Documents Supporting Order (ECF No.) Sought to be Sealed Evidence 10

11 210 Applied’s Motion for Summary ECF No. 210-1 DENIED as to Judgment 2:9, 15:5, 23:25– 12 26 because the Proposed redactions covering Applied’s proposed 13 confidential information at: 2:9; 2:11– redactions cover 12; 2:14–15; 6:9; 6:11–7:1; 7:7–8; 7:10– legal arguments 14 15; 7:17–28; 8:8–10; 8:13; 8:24–26; and do not include 9:12–13; 9:22–28; 10:4–7; 13:3–8; proprietary details 15 13:12–15; 13:23–25; 14:5–8; 14:12; of Applied’s 14:17–20; 15:5–11; 15:14–17; 15:20– chambers. 16 22; 16:5; 16:7–17:1; 17:10; 17:12–15; 17:23–25; 18:1–2; 18:15–16; 18:22; DENIED as to 17 19:5–12; 19:14–15; 19:17–20; 19:22– 13:3–8, 13:12–13, 23; 19:25–28; 20:2–3; 20:12–14; 20:23– 14:17–18 because 18 25; 21:2–3; 23:19–21; 23:25–26, Fns. 1, there are no 5, 11–12. compelling 19 reasons to seal general 20 descriptions of discovery 21 produced during litigation. 22 Otherwise 23 GRANTED. 207 Applied’s Motion for Summary ECF No. 231-1 GRANTED. 24 Judgment 25 Proposed redactions covering Advanced 26 Energy Industries, Inc’s (“AEI”) 27 Motion Document or Portion of Documents Supporting Order 1 (ECF No.) Sought to be Sealed Evidence 2 confidential information at: 3 Pages 7–10, 15, 16–22. 4 210 Joint Statement of Undisputed Facts ECF No. 210-1 GRANTED. 5 Proposed redactions covering Applied’s confidential information at: ¶¶ 12–15, 6 17–22 7 207 Joint Statement of Undisputed Facts ECF No. 231-1 DENIED as to ¶¶ 14, 15, 17, 18, 8 Proposed redactions covering AEI’s and the portion of ¶ 22 citing to confidential information at: ¶¶ 14–18, 9 22 Exhibit 12 because AEI does 10 not seek to seal this material. 11 Otherwise 12 GRANTED, including the 13 portion of ¶ 22 citing to Exhibit 14 11. 210 Exhibit 1 to Applied’s Motion for ECF No. 210-1 GRANTED. 15 Summary Judgment (10/28/2022 Claim 16 Chart for U.S. Patent No. 7,544,276 excerpt) 17 Proposed redactions covering Applied’s 18 confidential information at: Pages 1, 4, 23–25, 27–31. 19 210 Exhibit 2 to Applied’s Motion for ECF No. 210-1 GRANTED. 20 Summary Judgment (10/28/2022 Claim Chart for U.S. Patent No. 7,381,657 21 excerpt) 22 Proposed redactions covering Applied’s confidential information at: 1, 4, 20–23 23 207 Exhibit 11 to Applied’s Motion for ECF No. 231-1 GRANTED. 24 Summary Judgment (12/15/2022 Josh 25 Pankratz deposition transcript excerpt) 26 27 Motion Document or Portion of Documents Supporting Order 1 (ECF No.) Sought to be Sealed Evidence 2 207 Exhibit 12 to Applied’s Motion for N/A DENIED because 3 Summary Judgment (AMAT- AEI does not seek to seal this DEM_0000431) 4 material. 210 Exhibit 13 to Applied’s Motion for ECF No. 210-1 GRANTED.

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

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