Mosaid Technologies Inc. v. LSI Corp.

878 F. Supp. 2d 503, 2012 U.S. Dist. LEXIS 101102, 2012 WL 2951389
CourtDistrict Court, D. Delaware
DecidedJuly 20, 2012
DocketCiv. Action No. 10-192-RGA-CJB
StatusPublished
Cited by15 cases

This text of 878 F. Supp. 2d 503 (Mosaid Technologies Inc. v. LSI Corp.) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mosaid Technologies Inc. v. LSI Corp., 878 F. Supp. 2d 503, 2012 U.S. Dist. LEXIS 101102, 2012 WL 2951389 (D. Del. 2012).

Opinion

MEMORANDUM ORDER

CHRISTOPHER J. BURKE, United States Magistrate Judge.

Pending before the Court in this contract dispute is the issue of whether and to what extent to seal the transcript from oral argument proceedings that were held on April 24, 2012. For the reasons discussed below, the Court ORDERS that only those portions of the transcript that quote or discuss confidential financial terms of licensing agreements will be redacted.

A. Procedural Posture

On March 9, 2010, Plaintiff Mosaid Technologies Inc. (“Mosaid”) filed a two-count complaint against Defendants LSI Corporation and Agere Systems, Inc. (collectively, “Defendants”) for breach of express warranty and breach of a Patent Assignment Agreement that was executed in 2007 (“the 2007 PAA”). (D.I. 2) Thereafter, Defendants filed their answer and two counterclaims seeking declaratory judgments of no breach of express warranty and no breach of the 2007 PAA against Mosaid. (D.I. 10) Defendants also added Lenovo (United States) Inc., Lenovo Group Ltd., and Lenovo (Singapore) Ptd. Ltd. (collectively, “Lenovo”) as counterclaim-defendants, asserting a third counterclaim seeking a declaration that Lenovo does not possess a license to any patent through operation of five patent license agreements that were executed from 1995-2005 among the parties and their prede[506]*506cessors-in-interest. (D.I. 17 at ¶ 61) Lenovo also asserted its own counterclaim for specific performance of certain license agreements. (D.I. 31)

Four case-dispositive motions were filed on March 25, 2011. (D.I. 87, 92, 93, 98) Mosaid moved for partial summary judgment in its favor on Count 1 of its Complaint and on Counts 1 and 3 of the Counterclaims filed by Defendants. (D.I. 92) Defendants moved for summary judgment in their favor on their Counterclaims 1 and 2 (D.I. 93) and on their Counterclaim 3 (D.I. 98). Finally, Lenovo moved for summary judgment in its favor on its Counterclaim and on Count 3 of Defendants’ Counterclaims. (D.I. 87) The Court heard oral argument on the parties’ summary judgment motions on April 24, 2012, which lasted more than three hours. The resulting transcript (“the Transcript”) spans 175 pages.

At oral argument, the parties discussed, referenced, and quoted from documents that had been marked by one or more parties as “CONFIDENTIAL” or “HIGHLY CONFIDENTIAL” pursuant to the Protective Order entered in this case on February 16, 2011.1 (D.I. 70, 74) On May 3, 2012, the parties jointly moved to seal the Transcript “pending the Court’s determination, following consideration of the parties’ submissions, of which portions of the [Tjranscript shall remain confidential.” (D.I. 176) In an Order dated May 3, 2012, the Court granted the parties’ joint motion, and ordered that:

The parties, either jointly or individually, shall file with the Court proposed redactions to the [T]ranscript by no later than May 23, 2012. Any proposed redactions should be accompanied by a written submission supporting the ... assertion that those portions of the [Tjranscript should be redacted and/or sealed, including explanation as to why good cause exists to believe that disclosure of those portions of the [Tjranscript would work a “clearly defined and serious injury” to the party. Pansy v. Borough of Stroudsburg, 23 F.3d 772, 786 (3d Cir.1994) (internal quotation marks and citation omitted).

(D.I. 177 at 2 (emphasis omitted)) On May 23, 2012, the parties submitted their proposed redactions. (D.I. 178, 179,180)

Lenovo’s proposed redactions comprise roughly 102 pages of the Transcript. (D.I. 180, ex. A) Lenovo’s proposal is not supported by any explanation, except for a general statement that those “portions ... are highly confidential, and therefore should be redacted and protected from public disclosure.” (D.I. 180 at 1)

Mosaid’s proposed redactions comprise roughly 70 pages of the Transcript. (See D.I. 178) In support of these redactions, Mosaid filed a one-paragraph letter, asserting that “[gjood cause exists [to seal those portions of the Transcript] because the redactions are MOSAID’s confidential business information, including the confidential terms of the 2007 [PAA] and the communications between MOSAID and [Defendants] leading to that agreement.” (Id. at 1) Mosaid also noted that it “redacted confidential information referenced by [Mosaid]’s counsel at the hearing if the information was derived from confidential agreements and communications produced by other parties in this case and designat[507]*507ed ‘Confidential’ or ‘Highly Confidential’ under the Protective Order.” (Id. at 1)

Defendants’ proposed redactions comprise roughly 54 pages of the Transcript. (D.I. 179, ex. A) Unlike Mosaid and Lenovo, Defendants submitted a three-page letter-brief in support of their proposed redactions. Defendants identify three categories of proposed redactions: (1) confidential financial information and licensing strategy; (2) terms of patent licenses and other agreements to which one or both of Defendants are parties; and (3) terms of third-party agreements that contain information relating to intellectual property rights. (D.I. 179 at 2) Generally speaking, Defendants argue that if this information is disclosed to the public, then it could be used by competitors to harm Defendants’ standing in the marketplace. (Id. at 3) Defendants allege that this harm outweighs any public interest in access to this information, particularly given that this is a case involving private litigants. (Id.)

B. Legal Standard

The public has a common law right of access to judicial proceedings and records, as well as a recognized interest in observing, participating in, and commenting on court events. See Littlejohn v. BIC Corp., 851 F.2d 673, 677-78 (3d Cir.1988) (noting that the public’s interest in access is “beyond dispute”) (internal quotation marks and citation omitted); accord United States v. Martin, 746 F.2d 964, 968 (3d Cir.1984). The exercise of this right to access, among other benefits, “promotes public confidence in the judicial system by enhancing the ... quality of justice dispensed by the court” and “diminishes possibilities for injustice, incompetence, perjury and fraud” while “providing] the public with a more complete understanding of the judicial system and a better perception of its fairness.” Littlejohn, 851 F.2d at 678 (citations omitted). As such, there is a strong presumption in favor of public access to all judicial records and documents, including “transcripts, evidence, pleadings, and other materials submitted by litigants.” Martin, 746 F.2d at 968 (internal quotation marks and citations omitted).

That presumption is not absolute, however. Every court has inherent supervisory power, and the Third Circuit has held that courts may exercise that power to deny access to judicial records, for example, “where they are sources of business information that might harm a litigant’s competitive standing.” Littlejohn, 851 F.2d at 678. Indeed, the

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878 F. Supp. 2d 503, 2012 U.S. Dist. LEXIS 101102, 2012 WL 2951389, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mosaid-technologies-inc-v-lsi-corp-ded-2012.