Cisco Systems, Inc. v. Chung

District Court, N.D. California·Decided December 21, 2020·No. 4:19-cv-07562·Unknown

Opinion

CISCO SYSTEMS, INC., et al., Case No. 19-cv-07562-PJH Plaintiffs, ORDER GRANTING IN PART AND v. DENYING IN PART MOTION TO STRIKE PORTIONS OF TRADE WILSON CHUNG, et al., SECRET DISCLOSURE, DENYING MOTION FOR A PROTECTIVE Defendants. ORDER, AND GRANTING IN PART AND DENYING IN PART MOTIONS TO

Re: Dkt. Nos. 136, 137, 141, 149, 154, 156, 158, 160

Before the court are defendants Plantronics Inc.’s (“Plantronics”) and Thomas Puorro’s (“Puorro”) motion to strike and challenge the sufficiency of plaintiff Cisco Systems, Inc.’s California Code of Civil Procedure § 2019.210 trade secret designation. Dkt. 136 (the “motion to strike”).1 Also before the court is Plantronics’ motion for a protective order from pending discovery served by plaintiff. Dkt. 137 (the “motion for a protective order”). Defendants James He (“He”) filed a joinder to both motions. Dkt. 146. Lastly, also before the court are various requests by plaintiff to seal portions of its trade secrets designation, the parties’ briefing in connection with the motion to strike, and numerous exhibits filed with such briefs. Dkts. 141, 149, 160. Having read the parties’ papers and carefully considered their argument and the relevant legal authority, and good cause appearing, the court hereby GRANTS IN PART and DENIES IN PART the motion to strike, DENIES the motion for a protective order, and GRANTS IN PART and DENIES IN PART the requests to seal. Plaintiff sued defendants for purportedly misappropriating its trade secrets. On May 26, 2020 and August 5, 2020, the court issued two orders deciding numerous motions, including two motions to dismiss the then-operative pleading in this action. Dkt. 97 (the “May 26 order”); Dkt. 126 (the “August 5 order”). The court’s decision on the instant motion to strike depends in part on the holdings in both those orders. The court will detail its prior orders as necessary in its analysis. Now for the events giving rise to the parties’ most recent dispute. On August 11, 2020, plaintiff served Plantronics with its initial trade secrets disclosure pursuant to California Code of Civil Procedure § 2019.210. The next day, after correcting for an apparent numbering mistake, plaintiff re-served that same disclosure, recaptioned as plaintiff’s “First Amended Trade Secret Identification Pursuant to CCP § 2019.210.” This version of the disclosure is at the heart of Plantronics’ motion to strike. In this order, the court will refer to it as the “disclosure” and cite to its pages and lines directly rather than its ECF docket number.2 The disclosure comprises seven different sections discussing the purported trade secrets allegedly taken by defendants. The sections at issue include the following: • The Project Sunkist Trade Secrets (Section II, Discl. 3-22). • The Project Polaris Trade Secrets (Section III, Discl. 22-49). • The Project Vecchio Trade Secrets (Section V, Discl. 60-65). • The EA Document (Section VI, Discl. 68). • The Project Rialto Trade Secrets (Sections VII, Discl. 68-69). • The Business Information Trade Secrets (Section VIII, Discl. 69-76). 2 To further complicate matters, Plantronics refiled the disclosure under seal in a declaration at both Docket 136-5 and Docket 138. It appears that Plantronics did so because of a corrupted PDF file affecting the declaration itself filed at Docket 136-5. Based on the court’s review, the disclosure contained at Docket 138 (pages 5-83) is Project Sunkist is plaintiff’s codename for one of its headsets. Project Polaris and Vecchio are plaintiffs’ codenames for its video-conferencing devices. The EA Document, previously discussed in this court’s prior order, is a particular document purportedly misappropriated by defendant Wilson Chung (“Chung”). It supposedly contains an amalgamation of information for various plaintiff devices. Project Rialto is plaintiff’s codename for a next generation device that the court need not detail. The Business Information refers to various sorts of plaintiff’s business strategies and plans that prior employee, defendant Jed Williams (“Williams”), and Puorro purportedly misappropriated. In its motion to strike, Plantronics contends that 23 trade secrets designated in the above sections of the disclosure fall outside the scope of this court’s prior orders, which determined the purported trade secret information that plaintiff both sufficiently described in its pleadings and adequately alleged to maintain independent economic value. As part of that motion, Plantronics adds an ancillary attack about the lack of particularity in detail of various other designated trade secrets. On August 11, 2020, the same day that plaintiff served the first version of its disclosure, plaintiff served defendants with various written discovery requests. Dkt. 137-2 at 4. These requests were the exact same requests served on or around April 15, 2020, i.e., before the court issued its prior orders. Dkt. 137-2 at 5 (plaintiff’s counsel’s email stating “In addition, please find attached the discovery requests that have already been served in this matter”); Dkt. 137-3 (April 15, 2020 signature date); Dkt. 137-4 (April 15, 2020 signature date). Several weeks later, on September 4, 2020, Plantronics emailed plaintiff seeking to meet and confer about these requests and challenging plaintiff’s “Highly Confidential – Attorneys’ Eyes Only” confidentiality designation in the disclosure. Id. at 3. Days later, on September 8, 2020, plaintiff responded stating that it would be “happy to schedule a meet and confer” provided that Plantronics inform plaintiff of the basis of that request as well as the challenge to the highly confidential designation. Id. discuss the discovery request issues previously briefed in its May 20, 2020 motion to stay discovery, the impact of the court’s August 5 order on the re-served discovery requests, and some of its basis for challenging the designations. Id. at 2. Plantronics followed-up the next day. Id. On September 10, 2020, Plantronics filed the instant motions. I. Motion to Strike the Disclosure A. Legal Standard Federal Rule of Civil Procedure 12(f) provides that the court “may strike from a pleading any insufficient defense or any redundant, immaterial, impertinent, or scandalous matter.” Fed. R. Civ. P. 12(f). “The function of a [Rule] 12(f) motion to strike is to avoid the expenditure of time and money that must arise from litigating spurious issues by dispensing with those issues prior to trial.” Whittlestone, Inc. v. Handi-Craft Co., 618 F.3d 970, 973 (9th Cir. 2010). Motions to strike are not favored and “should not be granted unless it is clear that the matter to be stricken could have no possible bearing on the subject matter of the litigation.” Colaprico v. Sun Microsystem, Inc., 758 F. Supp. 1335, 1339 (N.D. Cal. 1991). When a court considers a motion to strike, it “must view the pleadings in light most favorable to the pleading party.” Uniloc v. Apple, Inc., 2018 WL 1640267, at *1 (N.D. Cal. Apr. 5, 2018). A court must deny the motion to strike if there is any doubt whether the allegations in the pleadings might be at issue in the action. In re 2TheMart.com, Inc., Sec. Litig., 114 F. Supp. 2d 955, 965 (C.D. Cal. 2000). Ultimately, the decision “to grant a motion to strike lies within the sound discretion of the district court.” Rees v. PNC Bank, N.A., 308 F.R.D. 266, 271 (N.D. Cal. 2015). B. Analysis As previously stated, Plantronics challenges the disclosure on two grounds.3 First, 3 Plantronics also challenged the disclosure on grounds that plaintiff unreasonably designated the entirety of the 80-pag

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