Epic Games, Inc. v. Apple Inc.

District Court, N.D. California·Decided April 30, 2021·No. 4:20-cv-05640·Unknown

Opinion

1 2 UNITED STATES DISTRICT COURT 3 NORTHERN DISTRICT OF CALIFORNIA 4 5 EPIC GAMES, INC., Case No. 4:20-cv-05640-YGR

6 Plaintiff, PRETRIAL ORDER NO. 7 RE: THIRD PARTY ADMINISTRATIVE MOTIONS TO SEAL 7 vs.

8 APPLE INC., Dkt. Nos. 486, 504, 506, 507, 513, 514, 516, 522, 525, 526, 528, 543 9 Defendant.

10 AND RELATED COUNTERCLAIM 11 12 TO ALL PARTIES AND COUNSEL OF RECORD: 13 The Court is in receipt of multiple third-party motions to seal, namely one filed by 14 NVIDIA Corporation (Dkt. No. 504), Google LLC (Dkt. Nos. 506, 507), App Annie, Inc. (Dkt. 15 No. 513), Sony Interactive Entertainment LLC (Dkt. No. 516), Yoga Buddhi Co (Dkt. No. 522), 16 Roblox Inc (Dkt. No. 525), Valve Corporation (Dkt. No. 526), and Match Group Inc. (Dkt. No. 17 528.), as well as two filed by defendant Apple Inc. relating to PayPal, Inc. (Dkt. No. 486, see also 18 Dkt. No. 543) and AMZN Mobile LLC (“Amazon”). (Dkt. No. 514.) 19 Local Rule 79-5 provides that documents, or portions thereof, may be sealed if a party 20 “establishes that the documents, or portions thereof, are privileged, protectable as a trade secret, or 21 otherwise entitled to protection under the law.” Civ. L. R. 79-5(b). In general, a “strong 22 presumption in favor of access” to court records exists, especially during trial. At times, 23 compelling reasons which are “sufficient to outweigh the public’s interest in disclosure and justify 24 sealing court records exist when such ‘court files might have become a vehicle for improper 25 purposes,’ such as the use of records to . . . release trade secrets.” Kamakana v. City and Cty. of 26 Honolulu, 447 F.3d 1172, 1178 (9th Cir. 2006) (quoting Nixon v. WarnerCommc’ns, Inc., 435 27 U.S. 589, 598 (1978) (“[C]ourts have refused to permit their files to serve as . . . sources of 1 Here, and importantly, the gravamen of this case is business competition, including 2 whether competition exists; if so, among which players; and how such competition influences the 3 market. The Court understands that the standard is more lenient when the information concerns 4 third parties, but this is not dispositive. The third-party information must be balanced with the 5 Court’s ultimate resolution of the instant dispute which should be transparent in its analysis. 6 Accordingly, the Court makes the following findings based upon the current state of the record:1 7 1. NVIDIA Corporation (Dkt. No. 504) 8 The motion is GRANTED as to all documents except for: 9  PX-2480/DX-3554 (Exhibit A) 10 o Page 6-7: the title of the slides shall be disclosed. The remainder is sealed. 11  PX-0729 (Exhibit B) 12 o All pages shall disclose the title of the slides/pages. The remainder is 13 sealed. 14 The Court otherwise finds that the requested information is narrowly tailored toward 15 sealing highly confidential information, including pricing strategy, business decision-making, and 16 financial records, belonging to NVIDIA, a third-party non-party to this action, and that there are 17 compelling reasons for such sealing. See, e.g., Arista Networks, Inc. v. Cisco Sys., Inc., No. 16-cv- 18 00923-BLF, 2018 WL 2010622, at *2-3 (N.D. Cal. Apr. 30, 2018) (sealing “highly confidential 19 and sensitive information relating to Cisco’s financial information and internal development 20 strategies” and “highly confidential and sensitive information relating to Arista’s financial and 21 customer information”); Juicero, Inc. v. iTaste Co., No. 17-cv-01921-BLF, 2017 WL 8294276, at 22 *2 (N.D. Cal. Jun. 28, 2017) (sealing “confidential financial and business information”); Lathrop 23 v. Uber Techs., Inc., No. 14-cv-05678-JST, 2016 WL 9185002, at *2 (N.D. Cal. Jun. 17, 2016) 24 (“[U]nder Ninth Circuit law . . . internal reports are appropriately sealable under the ‘compelling 25 reasons’ standard where that information could be used to the company’s competitive 26 1 Litigants are advised that if the Court ultimately decides that certain information is 27 important to disclose which has been sealed, it will provide an opportunity for the moving party to 1 disadvantage.”). 2 NVIDA shall provide the parties with revised redacted versions of the documents which 3 may be used in any public portion of the trial, assuming they are admissible. 4 2. Google LLC (Dkt. Nos. 506, 507) 5 The motion is GRANTED as to all documents except for: 6  DX4172, DX-4910 (duplicate of DX-4172), DX-5325 (duplicate of DX-4172) 7 (Exhibit A) 8 o GOOG-APPL-00125075: the text under business model shall be 9 unredacted. The remainder is sealed. 10  DX-4046 (Exhibit F) 11 o The entirety of the document shall be unredacted. 12  DX-3779 (Exhibit H) 13 o GOOG-APPL-00106407: the final bullet point above the privileged bullet 14 point, starting with “We can’t afford…” shall be unredacted. The remainder 15 is sealed. 16  DX-3165 (Exhibit L), DX-3250 (Exhibit M), DX-3598 (Exhibit N), DX-3942 17 (Exhibit O), DX-4001 (Exhibit P), DX-4310 (Exhibit Q) 18 o The Court DEFERS considerations of these documents until their use at trial. 19 The documents reflect general consumer survey data. There may be a 20 strong public interest in disclosure of these documents, especially for 21 certain pages that are otherwise reflective of the market, including 22 consumer preferences. Google is on notice that certain pages may be 23 unsealed depending on the testimony and use of these documents at trial. 24  DX-4478 (Exhibit R) 25 o The entirety of the document shall be unredacted. 26 These documents, or portions thereof, do not reveal information which is so confidential as 27 to be damaging if revealed as balanced against the need for public access. Moreover, these 1 action. 2 Google shall provide the parties with redacted versions of the documents which may be 3 used in any public portion of the trial, assuming they are admissible.2 4 3. App Annie Inc. (Dkt. No. 513) 5 This motion to seal is PROVISIONALLY GRANTED. Annie seeks to seal data showing 6 estimates of app usage across various apps. (Dkt. No. 513-1 ¶ 8.) Annie is in the business of 7 selling such data as part of providing analytics to developers. (Id. ¶ 2.) Accordingly, it may be 8 harmed by being forced to provide its main product for free. Moreover, Apple indicates that it 9 will only use such data in summary exhibits. (Id. ¶ 9.) The public's interest in accessing the 10 specific exhibits is therefore reduced. For these reasons, the Court finds that the public interest in 11 accessing the documents is outweighed by potential for harm to a third-party. 12 However, neither Annie nor Apple have provided the exhibits at this time. Accordingly, 13 this portion of the Order is contingent on the Court reviewing the documents. 14 4. Sony Interactive Entertainment LLC (Dkt. No. 516) 15 The motion is DENIED. Sony seeks to file under seal three exhibits (DX-3520, DX-4354, 16 and DX-4357) evidencing policies that developers must follow regarding pricing information, 17 virtual currency, and the setting of wholesale pricing. Sony has not demonstrated any harm of 18 public disclosure where each of these policies are disclosed to developers who wish to sell on their 19 digital marketplace. Indeed, per Sony’s motion, these documents are disclosed to all developers, 20 indicating their wide and broad dissemination to developers engaging with Sony’s digital 21 marketplace. Moreover, there is a significant public interest in accessing documents relating to 22 alternative digital distribution platforms, including assessing the competition therein. 23 5. Yoga Buddhi Co. (Dkt. No. 522) 24 The motion is GRANTED. The motion is narrowly tailored in redacting personal 25 2 The Court does not understand the import of Google’s request that the redacted 26 documents only be used in trial “so long as the public monitors or other displays are turned off while 27 they are being displayed,” which is DENIED. All admitted documents will be readily available to the public at the end of each trial day.

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Epic Games, Inc. v. Apple Inc., (N.D. Cal. 2021).

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