Workplace Technologies Research, Inc. v. Project Management Institute, Inc.

District Court, S.D. California·Decided August 10, 2021·No. 3:18-cv-01927·Unknown

Opinion

1 2 3 4 5 6 9 10 WORKPLACE TECHNOLOGIES Case No.: 18cv1927 JM (MSB) RESEARCH, INC., 11 ORDER ON MOTIONS TO SEAL Plaintiff, 12 v. 13 PROJECT MANAGEMENT INSTITUTE, 14 INC., 15 Defendant. 16

PROJECT MANAGEMENT INSTITUTE, 18 Counter-Claimant, 19 v. RESEARCH, INC., et al., 21 Counter-Defendants. 22 23 Presently before the court is Plaintiff Workplace Technologies Research, Inc. 24 (“WTRI”) and Defendant Project Management Institute, Inc. (“PMI”)’s “Joint Motion to 25 Seal Documents.” (Doc. No. 166). For the reasons set forth below, the Parties’ Joint 26 Motion is GRANTED IN PART and DENIED IN PART. 27 The Parties previously filed numerous separate Motions to Seal in connection with 28 their Motions for Summary Judgment and Daubert Motions. (Doc. Nos. 125, 130, 133, 1 141, 147, 159). On July 6, 2021, the court denied the Parties’ motions without prejudice, 2 finding the Parties had failed to provide compelling reasons to justify their sealing 3 requests. (Doc. No. 165 at 3). As it was evident the Parties had not sufficiently met and 4 conferred prior to filing their separate motions, the court directed the Parties to renew 5 their requests in a joint motion. Id. at 5-6. On July 16, 2021, in accordance with the 6 court’s order, the Parties filed the instant Joint Motion to Seal. (Doc. No. 166). 7 Here, the Parties are generally seeking to seal portions of expert reports, deposition 8 transcripts, and other exhibits that contain, reference or discuss non-public business 9 information. Id. at 2-, 9-11. WTRI also seeks to seal its “confidential communications” 10 with a third-party, the National Science Foundation (“NSF”), regarding a funding 11 proposal. Id. at 6. In support of their Joint Motion to Seal, the Parties submitted the 12 declarations of: (1) Dr. Lia DeBello, the CEO, President and Director of Research of 13 WTRI (Doc. No. 166-2); (2) Karen Holloway, a Content Developer at PMI (Doc. No. 14 166-3); and (3) Christopher Mancus, a Technical Manager for Cloud Integration and 15 Core Services at PMI (Doc. No. 166-4). The Parties have not opposed each other’s 16 sealing requests. (See Doc. No. 166). 17 “Documents containing commercially sensitive information have been held 18 sealable in this Circuit.” Orthopaedic Hosp. v. Encore Med., L.P., No. 19-CV-970 JLS 19 (AHG), 2021 WL 1966121, at *2 (S.D. Cal. Apr. 12, 2021) (collecting cases); see also 20 Apple Inc. v. Psystar Corp., 658 F.3d 1150, 1162 (9th Cir. 2011) (“The publication of 21 materials that could result in infringement upon trade secrets has long been considered a 22 factor that would overcome [the] strong presumption” in favor of public access to court 23 records); In re Incretin-Based Therapies Prod. Liab. Litig., No. 13MD2452 AJB (MDD), 24 2021 WL 873290, at *1 (S.D. Cal. Mar. 9, 2021) (“Courts have long acknowledged that 25 the risk of competitive harm through disclosure of confidential and proprietary 26 information warrants maintaining documents under seal, even in light of the general 27 presumption of public access to judicial documents.”). 28 1 “Even where records do not include trade secrets, they may still be sealed where 2 they could be a source of business information that might harm a litigant’s competitive 3 standing.” Golden Eye Media USA, Inc. v. Trolley Bags UK Ltd., No. 3:18-CV-02109- 4 BEN-LL, 2021 WL 1821376, at *2 (S.D. Cal. Mar. 15, 2021) (quotations omitted). 5 Courts have “routinely found” that “non-public financial, pricing, and strategy 6 information could harm litigants’ competitive standing and grant motions to seal such 7 information.” Monster Energy Co. v. Vital Pharms., Inc., No. EDCV181882JGBSHKX, 8 2019 WL 3099711, at *2 (C.D. Cal. June 17, 2019) (collecting cases). 9 In this case, the court finds the Parties have presented compelling reasons to justify 10 sealing limited portions of the Parties’ exhibits. Specifically, the exhibits contain 11 confidential, non-public information, including alleged trade secrets regarding PMI’s 12 Flows, the identities of customers, pricing information, internal marketing research, and 13 source code. The court is satisfied the Parties have submitted sufficient factual support 14 that they would be placed at a competitive disadvantage if this information was publicly 15 released. (See Doc. Nos. 166-2 at ¶¶ 2-3; 166-3 at ¶ 8; 166-4 at ¶ 6). 16 The court also finds there are compelling reasons to justify sealing confidential 17 communications between WTRI and NSF. As Dr. DiBello states in her declaration, “[i]f 18 such information was released to the public, potential clients could use the reasoning 19 discussed in those communications as a negotiating tool in potential business transactions 20 with WTRI, to WTRI’s competitive disadvantage.” (Doc. No. 166-2 at ¶ 4). Courts have 21 found such communications with third-parties to be sealable where they could “present a 22 threat of competitive harm” if the terms of these negotiations were disclosed publicly. See 23 Aya Healthcare Servs. v. Amn Healthcare, Inc., No. 17cv205-MMA (MDD), 2020 WL 24 1911502, at *3 (S.D. Cal. Apr. 20, 2020) (agreement reflected terms upon which 25 defendant was willing to do business with its associate vendors); Icon-IP Pty Ltd. v. 26 Specialized Bicycle Components, Inc., No. 12-CV-03844-JST, 2015 WL 984121, at *3 27 (N.D. Cal. Mar. 4, 2015) (disclosing terms of agreement between Defendant and third- 28 1 || party “would result in an invasion of the third-party’s privacy” and “put [Defendant] at a 2 || disadvantage in future negotiations for similar agreements.”’). 3 Despite this, as articulated below, the court notes a number of the Parties’ requests 4 still not narrowly tailored. Wasito v. City of San Diego, No. 19-CV-2395 JLS (JLB), 5 1/2019 WL 6877554, at *2 (S.D. Cal. Dec. 16, 2019) (quoting Ervine v. Warden, 214 F. 6 || Supp. 3d 917, 919 (E.D. Cal. 2016) (“Any order sealing documents should be ‘narrowly 7 || tailored’ to remove from public view only the material that is protected.”). 8 The court has considered and ruled on each of the exhibits the Parties designated 9 || for sealing as set forth in the following table: 10 |||___ Document | Portions | Order il Expert Report of Dr. Ricardo 9] 25-27: 62-70: | GRANTED Valerdi, dated December 11, 78: 81 12 ||| 2020 (Penner Decl., Ex. 2) 3 Doc. No. 127-1 Excerpts from the Deposition 260:12-263:20 GRANTED 14 ||| Transcript of Ricardo Valerdi, 15 ||| dated April 26, 2021 (Penner Decl., Ex. 3) (Doc. No. 16 || 127-2 17 ||| Excerpts from the Deposition 38:2-41:2: GRANTED Transcript of Karen Holloway, | 54:1-55:15: 18 ||| dated October 2, 2020 56:13-58:14 19 ||| (Penner Decl., Ex. 4) (Doc. No. 127-3 20 ||| Excerpts from the Deposition 359:24: 360:3: GRANTED IN PART and 2] Transcript of Lia DiBello, 346:24-349:18: DENIED IN PART. WTRI’s Ph.D., Vol. II, dated October 6, | 351:11-353:15 request to seal Dr. DiBello’s 22 ||| 2020 (Penner Decl., Ex. 6) testimony on pricing and 93 ||| (Doc. No. 127-5) revenue information (359:24 and 360:3) is GRANTED. 24 25 PMI’s remaining request to seal testimony “discussing and 26 describing” it’s trade secrets 97 (346:24-349:18: 351:11-353:15) is DENIED as not being 28 narrowly tailored. The portions

Document | Portions | Order > of Dr. DiBello’s deposition transcript PMI seeks to seal 3 largely consist of testimony 4 where Dr. DiBello is simply asked if she recognizes a 5 document to which she responds 6 in the negative. PMI has not adequately explained how this is 7 a “discussion” or “description” 8 of its alleged trade secrets. Excerpts from the Rebuttal 4] 169-170; 175; | GRANTED 9 ||| Expert Report of Dr. Rajeev 180 10 Surati, dated April 7, 2021 (Penner Decl., Ex. 10) (Doc. 11 No. 127-6

Ex. 13) (Lodged

14 ||LEx. 14) (Doc. No. 127-10 PMI00000917 (Penner Decl., Entirety GRANTED ey fe 7 Ex. 17) (Doc. No.

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Workplace Technologies Research, Inc. v. Project Management Institute, Inc., (S.D. Cal. 2021).

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