MasterObjects, Inc. v. Amazon.com, Inc.

District Court, N.D. California·Decided September 5, 2022·No. 3:20-cv-08103·Unknown

Opinion

NORTHERN DISTRICT OF CALIFORNIA

Plaintiff, No. C 20-08103 WHA

v.

AMAZON.COM, INC., OMNIBUS ORDER RE MOTIONS TO SEAL Defendant.

This omnibus order addresses all currently pending motions to seal for completed motion practice (Dkt. Nos. 174, 189, 199, 203, 224, 227, 230, 242, 247, 251, 264, 267, 268, 278, 279, 281, 289, 294, 296, 305, 336, 344, 345, 356, 357). 1. THE LEGAL STANDARD. There is a strong public policy in favor of openness in our court system and the public is entitled to know to whom we are providing relief (or not). See Kamakana v. City & Cty. of Honolulu, 447 F.3d 1172, 1178–80 (9th Cir. 2006). 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. The compelling limine and Daubert motions can be strongly correlative to the merits of a case. Id. at 1098– 1100. In addition, sealing motions filed in this district must contain a specific statement that explains: (1) the legitimate private or public interests that warrant sealing; (2) the injury that will result should sealing be denied; and (3) why a less restrictive alternative to sealing is not sufficient. The material requested to be sealed must be “narrowly tailored to seal only the sealable material.” Civ. L.R. 79-5(c). For example, “[t]he publication of materials that could result in infringement upon trade secrets has long been considered a factor that would overcome [the] strong presumption” in favor of access and provide compelling reasons for sealing. Apple Inc. v. Psystar Corp., 658 F.3d 1150, 1162 (9th Cir. 2011). Compelling reasons may also warrant sealing for “sources of business information that might harm a litigant’s competitive standing,” especially where the public has “minimal interest” in the information. See Nixon v. Warner Comms., Inc., 435 U.S. 589, 598 (1978). Finally, “[s]upporting declarations may not rely on vague boilerplate language or nebulous assertions of potential harm but must explain with particularity why any document or portion thereof remains sealable under the applicable legal standard.” Bronson v. Samsung Elecs. Am., Inc., 2019 WL 7810811, at *1 (N.D. Cal. May 28, 2019) (citing Civ. L.R. 79-5). “Reference to a stipulation or protective order that allows a party to designate certain documents as confidential is not sufficient to establish that a document, or portions thereof, are sealable.” Civ. L.R. 79-5(c). 2. MOTIONS TO SEAL STEMMING FROM AMAZON’S MOTION TO STRIKE MASTEROBJECTS’ INFRINGEMENT CONTENTIONS. A. DEFENDANT’S MOTION TO STRIKE PLAINTIFF’S Amazon moved to seal its motion to strike MasterObjects’ infringement contentions and two exhibits (Dkt. No. 174). This order rules as follows: Dkt. Document to be Result Reasoning No. Sealed 174-4 Defendant As to the Amazon seeks to seal statements Motion to Strike portions, confidential software architecture and Plaintiff’s sealing is source code,” including software that Infringement GRANTED. has been “considered and/or tested but Contentions not implemented” (Anderson Decl. ¶ 3). Amazon explains the references include nonpublic trade secrets where disclosure would “cause serious competitive consequences to Amazon’s business positioning” (ibid.). Given the potential for competitive harm caused by the information’s disclosure, sealing is warranted. 174-4 Exhibit A, Excerpts of As to the Amazon seeks to seal portions of MasterObjects’ Second highlighted MasterObjects’ Second Amended Supplemental portions, Infringement Contentions, including Disclosure of Asserted sealing is screenshots of Amazon’s confidential, Claims and GRANTED. internal documents (Anderson Decl. ¶ Infringement 3). For the reasons provided in the Contentions previous entry, sealing is warranted.

174-4 Exhibit B, Declaration As to the Amazon seeks to seal portions of a of Grant Miller highlighted declaration from Grant Miller, an portions, Amazon engineer, which describes sealing is “the functionality and/or architecture GRANTED. of Amazon’s software and source code” (Anderson Decl. ¶ 3). For the reasons provided in the previous entry, sealing is warranted. B. PLAINTIFF’S OPPOSITION TO DEFENDANT’S MOTION TO STRIKE PLAINTIFF’S INFRINGEMENT CONTENTIONS. MasterObjects filed conditionally under seal its opposition to Amazon’s motion to strike its infringement contentions and supporting documents (Dkt. No. 189). Amazon filed a filed a supporting declaration for some of the documents (Dkt. No. 192). This order rules as follows: Dkt. Document to be Result Reasoning No. Sealed 189-4 Opposition to Sealing as to Amazon seeks to seal statements Defendant 5:20–24, “relat[ing] to Amazon’s highly Amazon.com, Inc.’s 7:27–8:26 is proprietary software—including Motion to Strike GRANTED. information that Amazon maintains as Plaintiff’s trade secrets” (Anderson Decl. ¶ 3). Infringement This order agrees that public Sealing as to internal documentation may harm the rest is Amazon’s competitive standing. Amazon does not seek to seal the other proposed redactions to the document (id. ¶ 4). With no justification for keeping that material confidential, it will be unsealed. 189-6 Exhibit A, excerpt of Sealing is Amazon’s request to seal the entirety letter from DENIED up of this exhibit is overbroad and MasterObjects’ until the contains material that clearly does not counsel to Amazon’s sentence that qualify as confidential. This order counsel ends with will seal the statements directly “that referencing Amazon’s software Amazon architecture and code (Anderson Decl. produce ¶ 3). Discussion of Amazon’s method these for technical document production documents does not qualify for sealing. as actually maintained in its wiki.”

Sealing as to the rest of the document is GRANTED. 189-8 Exhibit B, letter sent DENIED. Amazon does not seek to seal this from MasterObjects exhibit (Anderson Decl.). With no counsel to Amazon’s justification for keeping it counsel confidential, the exhibit will be unsealed. 189- Exhibit D, excerpt As to the Amazon seeks to seal statements 10 from a supplemental highlighted referencing its software architecture set of Amazon’s portions, and code (Anderson Decl. ¶ 3). interrogatory responses sealing is Potential harm to Amazon’s GRANTED. competitive standing stemming from this information’s public release supports sealing. C. PLAINTIFF’S ADMINISTRATIVE MOTION FOR LEAVE TO SUPPLEMENT THE RECORD WITH NEW FACTUAL MATERIAL ON DEFENDANT’S MOTION TO STRIKE PLAINTIFF’S MasterObjects filed conditionally under seal its administrative motion for leave to contentions. (Dkt. No. 199). Amazon filed a declaration in support of sealing some of the documents (Dkt. No. 207). This order rules as follows: Dkt. Document to be Result Reasoning No. Sealed 199-4 Plaintiff’s Motion for Sealing as to Amazon seeks to seal two statements Leave to Supplement page 1:4–6 arising from “highly confidential is deposition testimony” by Amazon’s GRANTED. 30(b)(6) witness, containing “confidential information about the Sealing as to structure and operation of Amazon’s 1:10–13 is highly propriety software, hardware DENIED. structures, and source code” (Anderson Decl. ¶ 3). The earlier statement contains information that may qualify as trade secret information and is subject to sealing. But the latter discussion of the methods and tactics with respect to the code’s production is not. Sealing is warranted in part.

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MasterObjects, Inc. v. Amazon.com, Inc., (N.D. Cal. 2022).

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