Apple Inc. v. Samsung Electronics Co. Ltd. et al

Filing 1408

Corrected Renewed Administrative Motion to File Under Seal filed by Apple Inc.. (Attachments: # 1 Proposed Order, # 2 Declaration of Nathan Sabri, # 3 Declaration of Mark D. Selwyn, # 4 Declaration of Erica Tierney)(Jacobs, Michael) (Filed on 7/27/2012) Modified text on 7/30/2012 (dhm, COURT STAFF).

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HAROLD J. MCELHINNY (CA SBN 66781)
[e-mail]
MICHAEL A. JACOBS (CA SBN 111664)
[e-mail]
RACHEL KREVANS (CA SBN 116421)
[e-mail]
JENNIFER LEE TAYLOR (CA SBN 161368)
[e-mail]
ALISON M. TUCHER (CA SBN 171363)
[e-mail]
RICHARD S.J. HUNG (CA SBN 197425)
[e-mail]
JASON R. BARTLETT (CA SBN 214530)
[e-mail]
MORRISON & FOERSTER LLP
425 Market Street
San Francisco, California 94105-2482
Telephone: [phone]
Facsimile: [phone]

WILLIAM F. LEE
[e-mail]
WILMER CUTLER PICKERING
HALE AND DORR LLP
60 State Street
Boston, MA 02109
Telephone: [phone]
Facsimile: [phone]
MARK D. SELWYN (SBN 244180)
[e-mail]
WILMER CUTLER PICKERING
HALE AND DORR LLP
950 Page Mill Road
Palo Alto, California 94304
Telephone: [phone]
Facsimile: [phone]

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Attorneys for Plaintiff and
Counterclaim-Defendant APPLE INC.

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UNITED STATES DISTRICT COURT

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NORTHERN DISTRICT OF CALIFORNIA

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SAN JOSE DIVISION

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APPLE INC., a California corporation,
Plaintiff,

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v.

Case No. 11-cv-01846-LHK
DECLARATION OF ERICA TIERNEY IN
SUPPORT OF APPLE’S CORRECTED
RENEWED MOTION TO SEAL

SAMSUNG ELECTRONICS CO., LTD., a
Korean corporation; SAMSUNG
ELECTRONICS AMERICA, INC., a New
York corporation; and SAMSUNG
TELECOMMUNICATIONS AMERICA,
LLC, a Delaware limited liability company,
Defendants.

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DECLARATION OF ERICA TIERNEY IN SUPPORT OF APPLE’S CORRECTED RENEWED MOTION TO SEAL
CASE NO. 11-CV-01846-LHK

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I, Erica Tierney, hereby declare as follows:

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1.

I am an attorney for Apple Inc. (“Apple”). I submit this declaration in support of

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Apple’s Corrected Renewed Motion to Seal filed herewith. I have personal knowledge of the

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matters set forth below or understand them to be true from internal discussions at Apple. If called

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as a witness I could and would competently testify as follows.

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2.

Apple seeks in its Corrected Renewed Motion to Seal only to seal the most

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critically sensitive categories of information: (a) highly sensitive and non-public financial and

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manufacturing information (cost data, product line details, profit margins, and capacity data);

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(b) third-party confidential research from Apple’s business partners that would severely impact

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the market for the third-party’s research reports; (c) specific terms of licenses, past settlements,

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and acquisitions, and (d) a detailed, 200-page electrical schematic with extensive details on the

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touchscreen modules and other components of Apple’s products. Each of these categories of

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information would expose Apple to serious and irreparable competitive harm if filed publicly.

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3.

Apple’s cost, product line information, profit margins, and capacity data would

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severely harm Apple competitively if released to the public. This information provides

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significantly more detail than companies in this industry disclose. It would allow competitors to

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tailor their expenditures, budgets, and production strategies specifically to counter Apple. With

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respect to capacity information, competitors would learn when Apple is typically stretched thinly

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and when Apple typically has excess capacity, and could alter their production timing

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accordingly. The capacity information at issue is extensive and comprehensive, covering periods

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as recent as the first quarter of 2012. With respect to cost information, Apple’s competitors and

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suppliers could use this information to alter their pricing on products competitive to Apple or

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components Apple uses in its products. With respect to product line information, Apple’s

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competitors would know precisely which of Apple’s products are selling the most strongly and

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could alter their development, product offerings, and marketing strategies to counter Apple.

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None of this information is publicly disclosed by Apple or its competitors in the industry, for the

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above reasons. Third parties may also consider information relating to the price Apple pays for

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DECLARATION OF ERICA TIERNEY IN SUPPORT OF APPLE’S CORRECTED RENEWED MOTION TO SEAL
CASE NO. 11-CV-01846-LHK
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its components to be confidential trade secret information that would cause them harm if released

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to the public.

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4.

Public disclosure of licenses, settlements, and acquisitions would negatively affect

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Apple’s future licenses, settlements, and acquisitions. Competitors and potential counterparties to

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licensing, settlement and acquisition agreements would gain an unfair insight into Apple’s

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business strategies and cost/benefit analyses. Using their knowledge of the precise substantive

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and financial terms of previously nonpublic agreements, they would be able to calibrate their

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negotiation strategies with Apple using that unfair advantage.

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5.

Apple’s license agreements are also the subject of nondisclosure agreements and

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are highly confidential to the third parties that signed those agreements with Apple. Those third

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parties would likely consider public disclosure of information about these license agreements to

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be extremely harmful to them.

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6.

The detailed electrical schematic at issue is trade secret information. It is a more

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than 200 page detailed schematic that shows the electrical configuration of Apple’s proprietary

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touchscreen modules and other components of the iPhone. Disclosure of the details of Apple’s

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products to this level of specificity gives competitors highly sensitive information that would

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enable them to copy numerous aspects of Apple’s engineering. Apple’s competitors would learn

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the precise makeup and limits of the products to which the schematic is relevant. The

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comprehensiveness and level of detail provided are not publicly available.

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7.

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portions thereof:

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

The following documents consist of the Expert Report of Terry L. Musika or

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to Samsung’s Daubert Motion
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Exhibit A to the Declaration of Terry Musika in Support of Apple’s Opposition

Exhibit 3 to the Declaration of Joby Martin in Support of Samsung’s Daubert
Motion

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Exhibit Q to the Declaration of Mia Mazza in Support of Apple’s Opposition
to Samsung’s Daubert Motion

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DECLARATION OF ERICA TIERNEY IN SUPPORT OF APPLE’S CORRECTED RENEWED MOTION TO SEAL
CASE NO. 11-CV-01846-LHK
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

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Exhibit 6 to the Declaration of Joby Martin in Support of Samsung’s Daubert
Motion

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This report and exhibits contain highly sensitive financial data, capacity data, and third-party

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consumer research as described in more detail above and in the Declaration of Nathan B. Sabri in

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Support of Renewed Motion to Seal (“Sabri Declaration”) filed herewith. Proposed redacted

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versions are attached in highlighted form as Exhibits 1, 2, 3, and 3A, respectively

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8.

The following exhibits consist of the Supplemental Expert Report of Terry Musika

or portions thereof:
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to Samsung’s Daubert Motion
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Exhibit 10 to the Declaration of Joby Martin in Support of Samsung’s Daubert
Motion

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Exhibit Y to the Declaration of Terry Musika in Support of Apple’s Opposition
to Samsung’s Daubert Motion

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Exhibit K to the Declaration of Terry Musika in Support of Apple’s Opposition
to Samsung’s Daubert Motion

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Exhibit E to the Declaration of Terry Musika in Support of Apple’s Opposition
to Samsung’s Motion for Summary Judgment

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Exhibit C to the Declaration of Terry Musika in Support of Apple’s Opposition
to Samsung’s Motion for Summary Judgment

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Exhibit 1 to the Declaration of Joby Martin in Support of Samsung’s Daubert
Motion

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Exhibit B to the Declaration of Terry Musika in Support of Apple’s Opposition

Exhibit Z to the Declaration of Terry Musika in Support of Apple’s Opposition
to Samsung’s Daubert Motion

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Exhibit 7 to the Declaration of Joby Martin in Support of Samsung’s Daubert
Motion

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This report and exhibits also contain highly sensitive financial data, capacity data, and third-party

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consumer research as described in more detail above and in the Sabri Declaration. Proposed
DECLARATION OF ERICA TIERNEY IN SUPPORT OF APPLE’S CORRECTED RENEWED MOTION TO SEAL
CASE NO. 11-CV-01846-LHK
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redacted versions are attached in highlighted form as Exhibits 4 through 11 and 11A,

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respectively.

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Samsung’s Reply in Support of Motion to Strike and the Declaration of Michael

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Wagner in Support thereof include specific terms of licenses, settlements, and acquisitions, as

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discussed above. A proposed redacted version of this reply and supporting declaration is attached

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in highlighted form as Exhibit 12.

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10.

Exhibit B to the Declaration of Michael Wagner in Support of Samsung’s Reply in

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Support of Motion to Strike consists of the Corrected Expert Report of Michael J. Wagner

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(Vol. 1). This report contains product profit margin information and specific details of an

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acquisition. A proposed redacted version of this exhibit is attached in highlighted form as

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Exhibit 13.

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11.

Apple’s Opposition to Samsung’s Daubert Motion and the Declaration of

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Terry Musika in Support thereof include product profit margin information. A proposed redacted

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version of this opposition and supporting declaration is attached in highlighted form as

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Exhibit 14.

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12.

Exhibit AA to the Declaration of Terry Musika in Support of Apple’s Opposition

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to Samsung’s Daubert Motion includes product profit margin information. A proposed redacted

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version of this exhibit is attached in highlighted form as Exhibit 15.

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Exhibits 20 and 21 to the Declaration of Christopher Price in Support of

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Samsung’s Reply in Support of Samsung’s Motion to Strike consist entirely of documents

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showing Apple’s capacity from late 2010 through early 2012. They should be sealed in their

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entirety for the reasons described above.

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Exhibit G to the Declaration of Michael Maharbiz in Support of Apple’s

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Opposition to Samsung’s Motion for Summary Judgment consists of over 200 pages of electrical

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schematics relating to Apple’s products, including iPhone. It includes touchscreen schematics,

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system block diagrams, and audio schematics, among other things. It should be sealed in its

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entirety.

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DECLARATION OF ERICA TIERNEY IN SUPPORT OF APPLE’S CORRECTED RENEWED MOTION TO SEAL
CASE NO. 11-CV-01846-LHK
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15.

Exhibit P1 to the Declaration of David Hecht in Support of Samsung’s Opposition

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to Apple’s Motion for Partial Summary Judgment is an excerpt from the deposition of Boris

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Teksler. It contains confidential information related to Apple’s license agreements with third

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parties. It should redacted for the reasons described above. A proposed redacted version of this

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exhibit is attached in highlighted form as Exhibit 16.

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16.

Exhibit 32 to the Martin Declaration in Support of Samsung’s Daubert Motion is

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the Expert Report of Richard L. Donaldson, Esq. Pages 23-29 contain highly sensitive and

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confidential Apple and third party information about Apple’s current and past licenses and should

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be redacted for the reasons described above. Footnote 18 contains highly sensitive and

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confidential Apple and third party information about the cost of certain components in Apple’s

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products and should redacted for the reasons described above. A proposed redacted version of

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this exhibit is attached in highlighted form as Exhibit 17.

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17.

Exhibit 67 to the Declaration of Brett Arnold in Support of Samsung’s Motion for

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Summary Judgment is Apple Inc.’s Objections and Responses to Samsung’s Fourth Set of

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Interrogatories. It contains highly sensitive and confidential Apple and third party information

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about Apple’s current and past licenses and should redacted for the reasons described above. A

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proposed redacted version of this exhibit is attached in highlighted form as Exhibit 18.

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18.

Exhibit A to the Declaration of Janusz A. Ordover in Support of Apple’s

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Opposition to Samsung’s Motion for Summary Judgment is the Expert Report of Dr. Janusz A.

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Ordover. Footnote 161 contains confidential information regarding Apple’s licenses and should

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be redacted for the reasons described above. A proposed redacted version of this exhibit is

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attached in highlighted form as Exhibit 19.

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19.

Exhibit C to the Declaration of Michael Wagner in Support of Samsung’s Reply in

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Support of Motion to Strike is a true and correct copy of a summary of Apple’s Licenses and

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Agreements. It contains highly sensitive and confidential Apple and third party information

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about Apple’s current and past licenses and should redacted for the reasons described above. A

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proposed redacted version of this exhibit is attached in highlighted form as Exhibit 20.

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DECLARATION OF ERICA TIERNEY IN SUPPORT OF APPLE’S CORRECTED RENEWED MOTION TO SEAL
CASE NO. 11-CV-01846-LHK
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20.

Exhibits 1-6 and 13 to the Declaration of Christopher Price in Support of

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Samsung’s Reply in Support of Samsung’s Motion to Strike are license agreements and licensing-

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related documents between Apple and third parties and should be sealed in their entirety for the

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reasons described above.

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21.

I reviewed versions of the exhibits above that were redacted of Samsung

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confidential information. However, the attached exhibits highlight only the confidential

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information to which my declaration pertains. I understand that Samsung will file a supporting

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declaration to the extent it wishes to maintain a claim of confidentiality on these and other

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documents.

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I declare under penalty of perjury that the foregoing is true and correct. Executed this
27th day of July, 2012 at Cupertino, California.

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/s/ Erica Tierney
Erica Tierney

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DECLARATION OF ERICA TIERNEY IN SUPPORT OF APPLE’S CORRECTED RENEWED MOTION TO SEAL
CASE NO. 11-CV-01846-LHK
sf-3174344

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ATTESTATION OF E-FILED SIGNATURE
I, Michael A. Jacobs, am the ECF User whose ID and password are being used to file this

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Declaration. In compliance with General Order 45, X.B., I hereby attest that Erica Tierney has

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concurred in this filing.

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Dated: July 27, 2012

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/s/ Michael A. Jacobs
Michael A. Jacobs

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DECLARATION OF ERICA TIERNEY IN SUPPORT OF APPLE’S CORRECTED RENEWED MOTION TO SEAL
CASE NO. 11-CV-01846-LHK
sf-3174344

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