Impossible Foods Inc. v. Impossible X LLC

District Court, N.D. California·Decided September 17, 2025·No. 5:21-cv-02419·Unknown

Opinion

IMPOSSIBLE FOODS INC., Case No. 21-cv-02419-BLF

Plaintiff, ORDER REGARDING IMPOSSIBLE v. FOODS INC.’S ADMINISTRATIVE MOTIONS IMPOSSIBLE X LLC, et al., [Re: ECF Nos. 275, 276] Defendants.

1. Impossible Foods Inc.’s Administrative Motion to Consider Whether Another Party’s Material Should Be Sealed. ECF No. 275. 2. Impossible Foods Inc.’s Administrative Motion to File Under Seal. ECF No. 276. For the reasons described below, the Court rules as follows: the administrative motion at ECF No. 275 is GRANTED IN PART AND DENIED IN PART, and the administrative motion at ECF No. 276 is GRANTED. I. LEGAL STANDARD “Historically, courts have recognized a ‘general right to inspect and copy public records and documents, including judicial records and documents.’” Kamakana v. City & Cnty. of Honolulu, 447 F.3d 1172, 1178 (9th Cir. 2006) (quoting Nixon v. Warner Commc’ns, Inc., 435 U.S. 589, 597 & n.7 (1978)). Consequently, access to motions and their attachments that are “more than tangentially related to the merits of a case” may be sealed only upon a showing of “compelling reasons” for sealing. Ctr. for Auto Safety v. Chrysler Grp., LLC, 809 F.3d 1092, 1101–02 (9th Cir. 2016). Filings that are only tangentially related to the merits may be sealed upon a lesser showing of “good cause.” Id. at 1097. In addition, in this district, all parties requesting sealing must comply with Civil Local Rule 79-5. That rule requires, inter alia, the moving party to provide “the reasons for keeping a document under seal, including an explanation of: (i) the legitimate private or public interests that warrant sealing; (ii) the injury that will result if sealing is denied; and (iii) why a less restrictive alternative to sealing is not sufficient.” Civ. L.R. 79-5(c)(1). Civil Local Rule 79-5 requires the moving party to provide “evidentiary support from declarations where necessary.” Civ. L.R. 79- 5(c)(2). And the proposed order must be “narrowly tailored to seal only the sealable material.” Civ. L.R. 79-5(c)(3). Further, when a party seeks to seal a document because it has been designated as confidential by another party, the filing party must file an Administrative Motion to Consider Whether Another Party’s Material Should be Sealed. Civ. L.R. 79-5(f). In that case, the filing party need not satisfy the requirements of subsection (c)(1). Civ. L.R. 79-5(f)(1). Instead, the party who designated the material as confidential must, within seven days of the motion’s filing, file a statement and/or declaration that meets the requirements of subsection (c)(1). Civ. L.R. 79- 5(f)(3). A designating party’s failure to file a statement or declaration may result in the unsealing of the provisionally sealed document without further notice to the designating party. Id. Any party can file a response to that declaration within four days. Civ. L.R. 79-5(f)(4). A. ECF No. 276 The Court will first address Plaintiff Impossible Foods Inc.’s (“Plaintiff” or “Impossible Foods”) motion to seal portions of its Opposition to Defendants’ Motion for Partial Summary Judgment and an exhibit attached thereto. ECF No. 276. Defendants Impossible LLC and Joel Runyon (collectively, “Defendants” or “ILLC”) did not submit any response. Impossible Foods asserts that this information pertains to “critical business information” and “financial data and marketing strategies,” the disclosure of which would “result in significant harm” to Plaintiff. Id. at 2–3. Plaintiff further asserts that the disclosure of this information would put it at a competitive disadvantage. Id. at 3. As the sealing request relates to an opposition to a motion for partial summary judgment, Court will apply the “compelling reasons” standard. Ctr. for Auto Safety, 809 F.3d at 1099–101. The Court finds that compelling reasons exist to seal the materials Impossible Foods identifies. The “compelling reasons” standard is met for confidential business information that would harm a party’s competitive standing if publicly disclosed, including materials discussing “internal business and financial decision-making strategies.” See Laatz v. Zazzle, Inc, No. 22-cv- 04844, 2023 WL 4983670, at *2 (N.D. Cal. Aug. 3, 2023); Jam Cellars, Inc. v. Wine Grp. LLC, No. 19-cv-01878, 2020 WL 5576346, at *2 (N.D. Cal. Sept. 17, 2020) (finding compelling reasons for sealing “confidential business and proprietary information”); Fed. Trade Comm’n v. Qualcomm Inc., No. 17-cv-00220, 2019 WL 95922, at *3 (N.D. Cal. Jan. 3, 2019) (finding compelling reasons to seal “information that, if published, may harm . . . competitive standing and divulges terms of confidential contracts, contract negotiations, or trade secrets”); In re Elec. Arts, Inc., 298 F. App’x 568, 569 (9th Cir. 2008) (finding sealable “business information that might harm a litigant’s competitive standing”). The Court also finds that the request is narrowly tailored. See Civ. L.R. 79-5(c)(3). The Court’s ruling is summarized below: Public ECF Document Portion(s) Requested to Seal Ruling No. / Sealed ECF No. 274 / 276-2 Plaintiff’s Highlighted portions at GRANTED as containing Memorandum in 13:3–5. sensitive information Opposition to regarding Impossible Defendants’ Motion Foods’s financial for Partial Summary information and marketing Judgment strategies, the release of which could cause Impossible Foods competitive harm. 274-7 / 276- Ex. F to Declaration Highlighted portions at GRANTED as containing 3 of Forrest 7:13– 15; 8:19-25. sensitive information Flemming, III regarding Impossible (“Flemming Decl.”) Foods’s financial information and marketing strategies, the release of which could cause Impossible Foods competitive harm. B. ECF No. 275 Plaintiff filed an Administrative Motion to Consider Whether Another Party’s Material Should be Sealed. ECF No. 275. Defendants filed a statement in support of sealing the materials identified in Plaintiff’s motion. ECF No. 281. Plaintiff did not submit any response to Defendants’ statement in support of sealing. ILLC asserts that this information pertains to confidential “commercial development information,” including “the identities of presently unannounced commercial collaborators.” Id. at 2. Defendants argue that the disclosure of these “valuable insights into its business and financial decision-making strategies” would interfere with its ability to “form commercial relationships with potential collaborators in the future” and otherwise harm ILLC’s competitive standing. Id. As the sealing request relates to an opposition to a motion for partial summary judgment, which the Court finds is “more than tangentially related to the underlying cause[s] of action,” the Court will apply the “compelling reasons” standard. Ctr. for Auto Safety, 809 F.3d at 1099–101. With the exception of materials identified below, the Court finds that Defendants have established compelling reasons to seal the identified materials. The “compelling reasons” standard is met for confidential business information that would harm a party’s competitive standing if publicly disclosed, including materials discussing “internal business and financial decision- making strategies.” See Laatz v. Zazzle, Inc, No. 22-cv-04844, 2023 WL 4983670, at *2 (N.D. Cal. Aug. 3, 2023); Jam Cellars, Inc. v. Wine Grp. LLC, No. 19-cv-01878, 2020 WL 5576346, at *2 (N.D. Cal. Sept. 17, 2020) (finding compelling reasons for sealing “confidential business and proprietary information”); Fed. Trade Comm’n v. Qualcomm Inc., No. 17-cv-00220, 2019 WL 95922, at *3 (N.D. Cal. Jan. 3, 2019) (finding compelling reasons to seal “information that, if published, may harm . . . competitive standing and divulges terms of confidential contracts, contract negotiations, or trade secrets”); In re Elec. Arts, Inc., 298 F. App’x 568, 569 (9th Cir. 2008) (finding sealable “business information that might harm a litigant’s competitive standing

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