Fibrogen, Inc. v. Hangzhou Andao Pharmaceutical LTD.

District Court, N.D. California·Decided September 22, 2023·No. 3:22-cv-07148·Unknown

Opinion

4 FIBROGEN, INC. Case No. 3:22-cv-07148-AMO 5 [PROPOSED] OMNIBUS ORDER 6 Plaintiff, SEALING DOCUMENTS

7 v. Re: Dkt. Nos. 5, 22, 23, 30, 37, 54, 62, 77, 8 HANGZHOU ANDAO PHARMACEUTICAL 94. LTD.; KIND PHARMACEUTICALS LLC; DR. 9 DONG LIU; AND DR. SHAOJIANG DENG, 10 Defendants. 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 1 Pursuant to the Court’s Order Re: Administrative Motions to Seal Re: Dkt. Nos. 5, 22, 30, 2 37, 54, 62, 77 (Dkt. No. 89) 1, plaintiff FibroGen Inc. (“Plaintiff” or “FibroGen”) and defendants 3 Hangzhou Andao Pharmaceutical Ltd., Kind Pharmaceuticals LLC, Dr. Dong Liu, and Dr. 4 Shaojiang Deng (collectively “Defendants” and, with FibroGen, “the Parties”) submit this 5 Proposed Order Sealing Documents. Having considered the arguments of the parties and the 6 papers submitted the Court hereby ORDERS as follows: 7 8 A. Legal Standard 9 Pursuant to Civil Local Rule 79-5, the party seeking to file a document or portions of it 10 under seal must explain “(i) the legitimate private or public interests that warrant sealing; (ii) the 11 injury that will result if sealing is denied; and (iii) why a less restrictive alternative to sealing is 12 not sufficient.” Civil L.R. 79-5(c)(1). The request must be “narrowly tailored to seal only the 13 sealable material.” Id. at 79-5(c)(3). 14 A party seeking to seal judicial records relating to motions that are “more than 15 tangentially related to the underlying cause of action,” Ctr. for Auto Safety v. Chrysler Grp., 16 LLC, 809 F.3d 1092, 1099 (9th Cir. 2016), bears the burden of overcoming the “strong 17 presumption in favor of access” with “compelling reasons supported by specific factual findings 18 that outweigh the general history of access and the public policies favoring disclosure, such as 19 the public interest in understanding the judicial process.” Kamakana v. City & Cty. Of 20 Honolulu, 447 F.3d 1172, 1178-79 (9th Cir. 2006) (internal quotation marks and citation 21 omitted). The standard derives from the “common law right ‘to inspect and copy public records 22 and documents, including judicial records and documents.’” Pintos v. Pac. Creditors Ass’n, 23 605 F.3d 665, 678 (9th Cir. 2010) (quoting Kamakana, 447 F.3d at 1178). The party must make 24 a “particularized showing” that “specific prejudice or harm will result” if the information is 25 1 Dkt. Nos. 22 (Defs. Kind Pharm. LLC and Dr. Shaojiang Deng’s Admin. Mot. to Unseal 26 Plaintiffs’ Compl.) and 37 (FibroGen’s Statement ISO Defs.’ Admin. Mot. to Consider Whether 27 Another Party’s Material Should Be Sealed) do not contain any confidential or highly confidential information and therefore have been omitted from the chart below. 28 1 disclosed. Phillips ex rel. Estates of Byrd v. Gen. Motors Corp., 307 F.3d 1206, 1210-11 (9th 2 Cir. 2002). 3 Complaints are “more than tangentially related to the underlying cause of action.” Ctr. 4 for Auto Safety, 809 F.3d at 1099; see In re Google Location Hist. Litig., 514 F. Supp. 3d 1147, 5 1161 (N.D. Cal. 2021) (citing cases using compelling reasons standard for sealing complaint). 6 “[T]he strong presumption of access to judicial records [also] applies fully to dispositive 7 pleadings . . . [t]hus, ‘compelling reasons’ must be shown to seal judicial records attached to a 8 dispositive motion.” Kamakana, 447 F.3d at 1179 (citation omitted). Motions to dismiss are 9 dispositive motions which must be considered under the “compelling reasons” standard. See, 10 e.g., Plexxikon Inc. v. Novartis Pharms. Corp., No. 17-CV-04405-HSG, 2020 WL 1233881, at 11 *2 (N.D. Cal. Mar. 13, 2020) (compelling reasons standard applied to summary judgment 12 motions); Santelices v. Apttus Corp., No. 19-cv-07414-HSG, 2020 WL 5870509, at *4 (N.D. 13 Cal. Oct. 2, 2020) (compelling reasons standard for motion to dismiss). 14 However, records attached to motions that are only “tangentially related to the merits of 15 a case” are not subject to the strong presumption of access. Ctr. for Auto Safety, 809 F.3d at 16 1101. Instead, a party need only make a showing under the good cause standard of Rule 26(c) 17 to justify the sealing of the materials. Id. at 1097. Thus, motion for sanctions may be judged 18 under the “good cause” standard. 19 It is in the “sound discretion of the trial court” to determine what constitutes a 20 “compelling reason” for sealing a court document. Ctr. for Auto Safety, 809 F.3d at 1097 21 (quoting Nixon v. Warner Commc’ns, Inc., 435 U.S. 589, 599 (1978)). Compelling reasons 22 justifying sealing court records generally exist when such “court files might . . . become a 23 vehicle for improper purposes” such as “releas[ing] trade secrets,” Kamakana, 447 F.3d at 1179, 24 or “as sources of business information that might harm a litigant’s competitive standing,” Ctr. 25 26 for Auto Safety, 809 F.3d at 1097 (citation omitted); see In re Elec. Arts, Inc., 298 F. App’x 568, 27 28 1 569 (9th Cir. 2008) (sealing trade secret information about “the pricing terms, royalty rates, and 2 guaranteed minimum payment terms” in the parties’ licensing agreement). 3 B. Rulings 4 FibroGen seeks to seal materials in the following general categories: (1) the codenames, 5 date of first synthesis, and number of the allegedly misappropriated compounds; (2) references 6 to patent documents disclosing the chemical names of the compounds; and (3) employee 7 confidentiality agreements. See ECF 5 at 2; ECF 28 at 3-6. The Court considers each in turn. 8 FibroGen alleges in a conclusory manner that disclosing the number of overlapping 9 compounds, their codenames, and synthesis date would “allow FibroGen’s competitors to obtain 10 an unfair competitive advantage.” ECF 5-1 ¶ 4. FibroGen claims that “details of compounds in 11 FibroGen’s proprietary library and their dates of discovery would give competitors insight into 12 13 FibroGen’s research strategy, progress, and internal operations, allowing competitors to gain an 14 advantage over FibroGen in the development of a competing product.” ECF 28 at 4. However, 15 FibroGen fails to provide particularized facts or examples showing how disclosing the 16 codenames, synthesis dates of compounds, and number of overlapping compounds would 17 impact FibroGen’s competitive standing. “Broad allegations of harm, unsubstantiated by 18 specific examples or articulated reasoning,” do not even satisfy the lower “good cause” 19 20 standard. Beckman Indus., Inc. v. Int’l Ins. Co., 966 F.2d 470, 476 (9th Cir. 1992) (citation 21 omitted); see In re Twitter Inc. Sec. Litig., No. 16-CV-05314-JST, 2020 WL 2519888, at *2 22 (N.D. Cal. May 18, 2020) (finding no compelling reasons where motion and declaration 23 “consist merely of generic assertions that the Court’s Order contains ‘highly sensitive, 24 confidential, and proprietary information, including non-public information about Twitter’s 25 operating metrics, the public disclosure of which would place Twitter at a competitive 26 disadvantage’”); In re Google Location Hist. Litig., 514 F. Supp. 3d at 1164 (no compelling 27 28 1 reason to seal codename that did not reveal detailed information because possibility of others 2 uncovering additional information was “largely speculative”). Like in Whitecryption, the 3 moving party failed to explain “how a competitor would use the information to obtain an unfair 4 advantage.” Whitecryption Corp. v. Arxan Techs., Inc., No. 15-cv-00754-WHO, 2016 WL 5 7852471, at *2 (N.D. Cal. Mar. 9, 2016).

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Fibrogen, Inc. v. Hangzhou Andao Pharmaceutical LTD., (N.D. Cal. 2023).

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