PNY Technologies, Inc. v. Sandisk Corporation
Filing
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ORDER DENYING ADMINISTRATIVE MOTION TO FILE UNDER SEAL by Hon. William H. Orrick denying 173 Administrative Motion to File Under Seal. (jmdS, COURT STAFF) (Filed on 1/2/2014)
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UNITED STATES DISTRICT COURT
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NORTHERN DISTRICT OF CALIFORNIA
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PNY TECHNOLOGIES, INC.,
Case No. 11-cv-04689-WHO
Plaintiff,
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v.
ORDER DENYING ADMINISTRATIVE
MOTION TO FILE UNDER SEAL
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SANDISK CORPORATION,
Re: Dkt. No. 173
Defendant.
United States District Court
Northern District of California
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INTRODUCTION
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On December 20, 2013, plaintiff PNY Technologies, Inc. (“PNY”) filed an Administrative
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Motion to File Under Seal Portions of PNY’s Motion for Leave to Amend and Supplement Its
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First Amended Complaint and Its Proposed Second Amended Complaint. Dkt. No. 173. PNY
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submitted the Declaration of Robert D. Hallman in support of its motion. Dkt. No. 173-1.
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Because the documents sought to be filed under seal contain information that defendant Sandisk
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Corporation (“Sandisk”) considers confidential, Sandisk also submitted a declaration in support of
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the motion. Dkt. No. 174.
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For the reasons below, the motion is DENIED.
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LEGAL STANDARD
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Courts have long recognized a “general right to inspect and copy public records and
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documents, including judicial records and documents.” Nixon v. Warner Commc’ns, Inc., 435
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U.S. 589, 597 & n.7 (1978). But this right is not absolute. To balance the competing interests of
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the public’s right of inspection against litigants’ need for confidentiality, a party seeking to file
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under seal matters related to dispositive motions must provide “compelling reasons” to do so;
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similarly, a party seeking to file under seal matters related to non-dispositive motions must
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provide “good cause” to do so. Kamakana v. City & Cnty. of Honolulu, 447 F.3d 1172, 1180 (9th
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Cir. 2006). Even under the laxer “good cause” standard, a party seeking to seal materials must
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make a “particularized showing . . . with respect to any individual document” to justify its request.
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Foltz v. State Farm Mut. Auto. Ins. Co., 331 F.3d 1122, 1138 (9th Cir. 2003). Under that standard,
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a party that only offers “tepid and general justifications” necessarily “fail[s] to demonstrate any
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specific prejudice or harm.” See Kamakana, 447 F.3d at 1186. “Broad allegations of harm,
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unsubstantiated by specific examples or articulated reasoning,” are insufficient. Beckman Indus.,
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Inc. v. Int’l Ins. Co., 966 F.2d 470, 476 (9th Cir. 1992) (internal quotation marks and citation
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omitted).
DISCUSSION
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United States District Court
Northern District of California
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The motion to seal is DENIED. As an initial matter, PNY has not fully complied with
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Civil Local Rule 79-5, which governs the filing of documents under seal. It failed to (1) provide
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an unredacted version of the documents that “indicate[s], by highlighting or other clear method,
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the portions of the document that have been omitted from the redacted version,” CIVIL L. R. 79-
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5(d)(1)(D); (2) provide a proposed order “which lists in table format each document or portion
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thereof that is sought to be sealed,” CIVIL L. R. 79-5(d)(1)(B); and (3) properly mark its
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documents according to the rule, CIVIL L. R. 79-5(d)(1)(C)–(D). This alone warrants denying the
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motion to seal.
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More importantly, the declarations in support of the motion from both parties are utterly
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deficient. As the Ninth Circuit has instructed, the failure to provide specific and articulated
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explanations of prejudice or harm is insufficient to justify filing documents under seal. In
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addition, Civil Local Rule 79-5(d)(1)(A) states, “Reference to a stipulation or protective order that
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allows a party to designate certain documents as confidential is not sufficient to establish that a
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document, or portions thereof, are sealable.” For certain materials, PNY provides nothing more
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than a bare assertion of harm, stating that the documents “contain confidential and proprietary
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business information” and that “[o]n information and belief, PNY would likely be harmed by the
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disclosure of such information, which includes competitively sensitive information regarding
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pricing, costs and profit margins.” Hallman Decl. ¶ 4. For other materials, PNY justifies sealing
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based solely on a confidentiality agreement between the parties themselves without explaining
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what harm or prejudice may result from disclosure. Hallman Decl. ¶¶ 3, 5. Sandisk, on the other
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hand, makes no attempt to explain how it will be harmed by any disclosure and instead justifies
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sealing the materials by only referencing the stipulated protective order in this case. Such
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declarations do not comport with Ninth Circuit law or the Court’s rules requiring a particularized
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showing of need. Without adequately explaining the basis for the motion, the motion must be
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denied.
CONCLUSION
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Because the parties provide nothing more than “[b]road allegations of harm,
unsubstantiated by specific examples or articulated reasoning” of “specific prejudice or harm” and
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United States District Court
Northern District of California
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only point to the protective order to justify sealing, the motion to seal is DENIED. Any renewed
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motion to seal must comply with Ninth Circuit law and the Court’s rules.
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IT IS SO ORDERED.
Dated: December 31, 2013
______________________________________
WILLIAM H. ORRICK
United States District Judge
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