Sony Computer Entertainment America, Inc. v. NASA Electronics Corp.

249 F.R.D. 378, 2008 U.S. Dist. LEXIS 10220, 2008 WL 410131
CourtDistrict Court, S.D. Florida
DecidedFebruary 12, 2008
DocketNo. 07-20819-CIV
StatusPublished
Cited by3 cases

This text of 249 F.R.D. 378 (Sony Computer Entertainment America, Inc. v. NASA Electronics Corp.) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sony Computer Entertainment America, Inc. v. NASA Electronics Corp., 249 F.R.D. 378, 2008 U.S. Dist. LEXIS 10220, 2008 WL 410131 (S.D. Fla. 2008).

Opinion

ORDER ON DISCOVERY MOTIONS

ANDREA M. SIMONTON, United States Magistrate Judge.

This cause comes before the Court on the Motion for Protective Order filed by Defendants, World International Trading, Inc. and Filippo Boceara (DE # 60);1 and the Motion to Compel Rule 30(b) (6) Deposition of Defendant World International Trading, Inc., filed by Plaintiff, Sony Computer Entertainment America, Inc. (“SCEA”) (DE # 65).2 The Honorable Federico A. Moreno, Chief United States District Judge, has referred this case to the undersigned Magistrate Judge to take all necessary and proper action as required by law, with respect to any and all pretrial matters (DE # 44). Based upon a review of the record and for the reasons stated herein, Defendants’ motion is GRANTED, in part, and Plaintiffs motion is DENIED without prejudice.

[380]*380I. INTRODUCTION

Plaintiff Sony Computer Entertainment America Inc (“SCEA” or “Sony America”) brought this action “to enjoin the distribution and sale of PlayStation® videogame consoles and systems that are not legitimate, authorized, nor even functional for the North American market” (DE # 1 at 1).

Plaintiff contends that “Defendants are shipping and importing tens of thousands of the infringing systems into the United States and elsewhere where consumers who purchase them will be deceived, frustrated, and confused when they realize that these systems will not play videogames that are sold in and for the North American market” (DE # 1 at 1). Plaintiff asserts the following claims for relief: federal trademark infringement, pursuant to 15 U.S.C. § 1114; (Count 1); federal unfair competition, pursuant to 15 U.S.C. § 1125 (Count 2); illegal importation of goods bearing infringing trademarks, pursuant to 15 U.S.C. § 1124 (Count 3); and, Florida unfair competition (Count 4). The Complaint also seeks an equitable accounting and constructive trust,

Plaintiff alleges that Defendants are shipping, importing, distributing and/or selling into and in the United States and elsewhere, PlayStation® systems that are illegitimate versions that use the trademarks without authorization, since those systems are manufactured and marketed for use only in Asia, and will not play videogames marketed for and available in North America, or elsewhere outside Asia (DE # 1,1125).

When Plaintiff, Sony Computer Entertainment America, Inc. (“SCEA”) sought to depose a corporate representative of Defendant, World International Trading, Inc. (“WIT”), pursuant to Federal Rule of Civil Procedure 30(b)(6), WIT, in a motion filed jointly with its President and co-defendant Fillipo Boceara, sought the entry of a protecfive order to shield the disclosure of confidential information it expected to divulge during the deposition (DE #60). Plaintiff, on the other hand, filed a motion to compel the deposition (DE # 65). The parties appear to agree that this Court should approve a confidentiality order protecting sensitive materials exchanged during the course of discovery from harmful disclosure, and each party has attached its own version of a proposed confidentiality order to its pleadings. They have not, however, been able to agree on a final proposed order that satisfies their disagreement over certain, key terms and conditions that should be included in the order (DE # 60, Ex. B; DE # 63, Ex. A).

II. THE PENDING DISPUTE*

Three areas of concern constitute the heart of the parties’ disagreement.3 4 The first pertains to the inclusion (and amount) of a liquidated damages provision intended to address any party’s disclosure of confidential materials in contravention of the confidentiality order. The second pertains to whether the “attorney eyes only” designation of confidential materials will include in-house counsel. The third pertains to the scope of permissible uses of confidential information.

A. Liquidated Damages

Defendants argue that a liquidated damages provision for the disclosure of confidential material is necessary because requiring proof of damages is “unrealistic since it is often hard to put a concrete dollar value on the harm of an unauthorized disclosure” (DE # 60 at 6). SCEA asserts that the remedy for an unauthorized disclosure “should be based on the specific circumstances surrounding the disclosure, the effect of the disclosure, and whether any harm occurred,” rather than imposing the same penalty for any disclosure, no matter how minimal its [381]*381consequences or inadvertent its release (DE # 68 at 4).

Defendants further propose that unauthorized disclosure of documents by WIT should range from $5,000 to $10,000 per disclosure, while the penalties for SCEA’s unauthorized disclosures should be ten times greater— between $50,000 and $100,000 — in order to account for the financial disparity between WIT and SCEA, and to ensure that the sanctions for violating the confidentiality order are somewhat proportionate and therefore have a similar deterrent effect upon both parties (DE # 66).

This Court has broad authority to fashion a protective order that serves the interests of the parties and the administration of justice. Fed.R.Civ.P. 26(c). To be sure, there is also non-binding caselaw indicating that other courts have, on a rare occasion or two, hinted that confidentiality orders might include liquidated damages provisions in the event of a breach. See Wendt v. Walden Univ., Inc., 1996 WL 84668, at *3 (D.Minn.1996) (unpub.op.); cf. Denison v. Oregon, 211 F.R.D. 408, 410 (D.Or.2002).

Those authorities provide scant support for Defendants’ position since there is no ease that is squarely and expressly on point; in fact, the case most favorable to Defendants, and the one cited in their reply brief, only goes so far as to conclude that the parties might agree to include a liquidated damages provision in a proposed order. Wendt, supra. Defendants have not cited — nor has this Court found — any case in which a valid and binding confidentiality order requires the imposition of liquidated damages without regard to the circumstances surrounding the breach, to say nothing of a confidentiality order that sets a stiffer penalty for one party’s breach in order to ensure that both parties are similarly deterred from committing an unauthorized disclosure.

The record is devoid of any indication (1) that SCEA is particularly inclined to flout an Order of this Court; (2) that this Court lacks the enforcement authority to appropriately penalize a breach of the confidentiality order by SCEA; or (3) that this Court cannot fashion adequate sanctions to deter future violations. It is simply not necessary at the present juncture to replace the Court’s flexibility to address either party’s non-compliance of a Court Order by examining the surrounding circumstances on a case-by-case basis with a liquidated damages provision.

B.

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249 F.R.D. 378, 2008 U.S. Dist. LEXIS 10220, 2008 WL 410131, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sony-computer-entertainment-america-inc-v-nasa-electronics-corp-flsd-2008.