Reald Spark, LLC v. Microsoft Corporation

CourtDistrict Court, W.D. Washington
DecidedApril 27, 2023
Docket2:22-cv-00942
StatusUnknown

This text of Reald Spark, LLC v. Microsoft Corporation (Reald Spark, LLC v. Microsoft Corporation) is published on Counsel Stack Legal Research, covering District Court, W.D. Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Reald Spark, LLC v. Microsoft Corporation, (W.D. Wash. 2023).

Opinion

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5 6 7 8 UNITED STATES DISTRICT COURT WESTERN DISTRICT OF WASHINGTON 9 AT SEATTLE 10 11 REALD SPARK LLC, CASE NO. 2:22-cv-00942-TL 12 Plaintiff, ORDER DENYING v. MOTIONS TO SEAL 13 MICROSOFT CORPORATION, 14 Defendant. 15

16 17 Pending before this Court are three motions to seal (Dkt. Nos. 47, 52, and 56). Having 18 considered the relevant record and finding oral argument unnecessary, see LCR 7(b)(4), these 19 motions are DENIED for the reasons set forth below. 20 I. BACKGROUND 21 All three motions involve discovery responses provided by the parties and attached as 22 exhibits to the briefing related to Defendant Microsoft Corporation’s (“Microsoft”) Motion to 23 Compel Discovery Response (Dkt. No. 46) as well as references to the material contained in the 24 briefing. A Stipulated Protective Order is in place affording limited protection against public 1 disclosure of certain designated confidential material. Dkt. No. 36 ¶ 1. However, by its own 2 terms, the protective order does not “presumptively entitle parties to file confidential material or 3 information under seal.” Id. 4 Two of the motions (Dkt. Nos. 47 and 56) are brought by Microsoft solely because they

5 contain material designated by Plaintiff RealD Spark LLC (“RealD”) as confidential under the 6 Protective Order in place in this case (Dkt. No. 36) or are alleged by RealD to contain trade 7 secrets. See Dkt. No. 47 at 2; Dkt. No. 56 at 2. Microsoft’s first motion seeks to seal in their 8 entirety RealD’s First Supplemental Objections and Responses to Microsoft’s First Set of 9 Interrogatories (No. 1) (Dkt. No. 47-3) as well as RealD’s Objections and Responses to 10 Microsoft’s First Set of Interrogatories (No. 1) (Dkt. No. 47-4). Microsoft’s second motion seeks 11 to redact portions of its reply brief (Dkt. No. 58) as well as the Declaration of Andrew V. Devkar 12 in Support of Defendant’s Reply in Support of Motion to Compel Discovery Response (Dkt. No. 13 58-1). RealD filed a motion to seal (Dkt. No. 52) that seeks to seal the entirety of Defendant’s 14 Objections and Responses to Plaintiff’s First Set of Requests for Production to Microsoft (Nos.

15 1-66) (Dkt. No. 55). 16 II. DISCUSSION 17 The public has a right to inspect and copy judicial records. Nixon v. Warner Commc’ns, 18 Inc., 435 U.S. 589, 597–98 (1978). Indeed, there is a “strong presumption in favor of access” to 19 these records. Kamakana v. City & Cnty. of Honolulu, 447 F.3d 1172, 1178 (9th Cir. 2006) 20 (internal citations omitted). Requests to seal judicial records attached to a dispositive motion are 21 held to a “compelling reasons” standard. Id. at 1179–80. However, non-dispositive materials that 22 are “unrelated, or only tangentially related to the underlying cause of action” can be sealed if 23 “‘good cause’ exists to protect this information . . . by balancing the needs for discovery against

24 the need for confidentiality.” Id. at 1179–80. One exception where a party only need satisfy the 1 “good cause” standard is for “sealed materials attached to a discovery motion unrelated to the 2 merits of a case.” Ctr. for Auto Safety v. Chrysler Grp., LLC, 809 F.3d 1092, 1097 (9th Cir. 3 2016). See also Phillips ex rel. Ests. of Byrd v. Gen. Motors Corp., 307 F.3d 1206, 1213 (9th Cir. 4 2002) (“when a party attaches a sealed discovery document to a nondispositive motion, the usual

5 presumption of the public's right of access is rebutted”); Fed. R. Civ. P. 26(c) (“The court may, 6 for good cause, issue an order to protect a party or person from annoyance, embarrassment, 7 oppression, or undue burden or expense. . .”). Given that all three of the instant motions to seal 8 are connected to a discovery motion, the Court reviews them for a showing of “good cause.” 9 In its motions to seal, Microsoft takes no position as to whether the interrogatory 10 propounded to RealD and RealD’s responses satisfy the “compelling reasons” standards for 11 sealing documents. Dkt. No. 47 at 2; Dkt. No. 56 at 2. With regard to RealD’s requests for 12 production issued to Microsoft and Microsoft’s response, the parties agreed that it was properly 13 filed under seal. Dkt. No. 52 at 2. RealD asserts in its motion that the information attached to its 14 motion as well as Microsoft’s motion to compel should be sealed under Local Civil Rule

15 5(g)(3)(B) because: 16 (i) revealing this information publicly risks public disclosure of RealD’s trade secrets, creating a strong private interest in the relief 17 sought; (ii) if this information if disclosed, RealD will suffer further injuries of trade secret misappropriation, the exact injury 18 RealD is seeking to cure through this litigation; and (iii) this is the least restrictive means of protecting RealD’s interest because 19 RealD’s redactions are as minimal as possible while still providing full protection for those secrets 20 Dkt. No. 52 at 3. RealD did not respond to Microsoft’s motion to seal its reply and supporting 21 declaration (Dkt. No. 56) but the redactions in those papers repeat language that RealD requests 22 be sealed in the first two motions to seal. 23 24 1 Even under the lower “good cause” standard for non-dispositive motions, the Parties do 2 not carry their burden to justify the sealing of the information at issue. The discovery requests 3 themselves do not reveal any trade secrets. Beginning with Defendant’s Objections and 4 Responses to Plaintiff’s First Set of Requests for Production to Microsoft (Nos. 1-66) that are

5 attached to Plaintiff’s motion to seal (Dkt. No. 55), the requests made are typical of what one 6 would expect in a case such as this and are phrased without referencing any specifics as to the 7 product at issue. The responses mostly assert the typical objections and run-of-the-mill promise 8 to produce non-privileged and/or responsive documents that are often made at the early stages of 9 discovery. The Court sees no trade secrets whatsoever in Microsoft’s responses to RealD’s 10 requests for production. 11 Microsoft’s single interrogatory asks RealD to describe with particularity the trade 12 secrets it contends Microsoft misappropriated and quotes from the publicly-filed Complaint. 13 RealD’s original and supplemental responses assert some general objections, basically repeat the 14 allegations from the Complaint, and provide the location of some of the information within the

15 discovery it provided in its supplemental response. See Dkt. Nos. 47-3, 47-4. It appears that most 16 of the material redacted from the briefs themselves and the Devkar declaration are related to the 17 descriptions of certain categories of trade secrets at issue. 18 One major problem with redacting this information is that it is information that RealD 19 openly stated in their publicly-filed complaint. In the Complaint, RealD alleges: 20 RealD shared confidential information about SocialEyes with Microsoft including, without limitation, the following high-level 21 groups of trade secrets:

22 • Image recognition algorithms for different types of faces, lighting, eye color, and eyeglasses; 23 • Datasets to support SocialEyes’ image recognition methods; 24 1 • Know-how resulting from RealD’s lengthy and costly R&D process used to develop SocialEyes and its corresponding 2 datasets; • Negative know-how that resulted from RealD’s lengthy and 3 costly R&D process that was used to develop SocialEyes and its corresponding datasets; and 4 • Source code that contained and implemented the aforementioned trade secrets. 5 Dkt. No.

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Related

Nixon v. Warner Communications, Inc.
435 U.S. 589 (Supreme Court, 1978)
Phillips v. General Motors Corporation
307 F.3d 1206 (Ninth Circuit, 2002)
Center for Auto Safety v. Chrysler Group, LLC
809 F.3d 1092 (Ninth Circuit, 2016)

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Reald Spark, LLC v. Microsoft Corporation, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reald-spark-llc-v-microsoft-corporation-wawd-2023.