Koninklijke Philips N.V. et al v. Elec-Tech International Co., Ltd. et al
Filing
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Order by Hon. Beth Labson Freeman granting in part and denying in part 84 Administrative Motion to File Under Seal. (blflc3S, COURT STAFF) (Filed on 2/10/2015)
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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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KONINKLIJKE PHILIPS N.V., et al.,
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Case No. 14-cv-02737-BLF
Plaintiffs,
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v.
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ELEC-TECH INTERNATIONAL CO.,
LTD., et al.,
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Defendants.
United States District Court
Northern District of California
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ORDER GRANTING IN PART AND
DENYING IN PART PLAINTIFFS’
MOTION TO FILE DOCUMENTS
UNDER SEAL
[Re: ECF 84]
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I.
INTRODUCTION AND LEGAL STANDARD
Plaintiffs move to file a number of documents under seal, in full or in part. Specifically,
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Plaintiffs move to seal: (1) portions of their opposition to the motion to dismiss for lack of subject
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matter jurisdiction; (2) the entirety of exhibits 1-34 and 39-50 to the James Declaration in support
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of the opposition to the subject matter jurisdiction motion; (3) portions of their opposition to the
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motion to dismiss for lack of personal jurisdiction; (4) the entirety of exhibits 1-34 and 39-50 of
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the James Declaration in support of the opposition to the personal jurisdiction motion;1 (5) the
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entirety of exhibits 1 and 2 of the Munkholm Declaration in support of the opposition to the
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personal jurisdiction motion; and (6) exhibit 1 of the Craven Declaration in support of the
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opposition to the personal jurisdiction motion.
Counsel for Defendants filed a declaration stating a basis for nearly all of the sealing
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requests sought by Plaintiffs. See Chan Decl. at 1- 11 (a chart describing the specific foundation
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for each sealing request). The Chan Declaration, however, does not include any basis for sealing
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exhibits 34, 49, or 50 of the James Declarations. See id.
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Exhibits 1-34 and 39-50 to both James Declarations are identical. See ECF 88-7; ECF 91-7.
The Court has engaged in an individualized examination of each sealing request to
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determine if it comports with the law of this circuit and this district’s Civil Local Rules. See
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Kamakana v. City & Cnty. of Honolulu, 447 F.3d 1172, 1180 (9th Cir. 2006) (holding that a party
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must make a “particularized showing” of good cause for each individual document it seeks to
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seal); see also In re High-Tech Employee Antitrust Litig., 2013 WL 163779, at *2 (N.D. Cal. Jan.
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15, 2013) (“Broad allegations of harm, unsubstantiated by specific examples or articulated
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reasoning [are insufficient].”).
Courts recognize a “general right to inspect and copy public records and documents,
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including judicial records and documents.” Id. at 1178. Two standards govern motions to seal
documents, a “compelling reasons” standard, which applies to most judicial records, and a “good
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United States District Court
Northern District of California
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cause” standard, which applies to “private materials unearthed during discovery.” Cf. Phillips ex
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rel. Estates of Byrd v. Gen. Motors Corp., 307 F.3d 1206, 1213 (9th Cir. 2002). A party that seeks
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to seal portions of a motion to dismiss, or any documents filed in support or in opposition to that
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motion, must meet the “compelling reasons” standard articulated in Phillips.
For the reasons outlined below, the Court GRANTS IN PART AND DENIES IN PART
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Plaintiffs’ request to file these documents, or portions thereof, under seal.
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II.
DISCUSSION
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A.
Exhibits 1-34 and 39-50 to the James Declarations
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These exhibits, which Plaintiffs seek to seal in their entirety, include a series of emails
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containing information about Elec-Tech’s business practices, recruitment efforts, and discussions
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regarding potential partnerships with other product manufacturers. See Exhs. 1-7, 10-20, 23-25,
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28-32, 39-42, 44-48. These exhibits also include several contracts that include the confidential
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terms and conditions of employment for certain Elec-Tech employees. See Exhs. 8-9, 21-22, 43.
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The Chan Declaration states that the disclosure of these emails and contracts would
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publicize highly sensitive and confidential business information, which would result in substantial
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competitive harm to Elec-Tech. See Chan Decl. ¶ 4. This information could inform competitors of
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Elec-Tech’s non-public recruitment efforts, as well as inform its competitors of its non-public
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attempts to develop new business relationships with other LED designers and manufacturers. See
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id. at ¶ 5.
The Court finds that the sealing request for exhibits 1-32 and 39-48 to the James
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Declaration meets the “compelling reasons” standard articulated by Phillips, and due to the nature
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of the documents, and the significant amount of non-public confidential information contained in
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them, that Plaintiffs’ request is sufficiently narrowly tailored in conformance with Civil Local
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Rule 79-5(d)(1)(C). The Court therefore GRANTS Plaintiffs’ request to seal these exhibits.
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Plaintiffs’ request to seal exhibits 33, 34, 49, and 50, however, is insufficient for several
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reasons. Neither exhibit 33 or 34 is a sensitive email or contract. Rather, both are simply printouts
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from corporate websites – exhibit 33 regarding Elec-Tech’s history, and exhibit 34 regarding the
production facilities for a company called Retop LED Display Co., Ltd. This is despite Ms. Chan’s
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United States District Court
Northern District of California
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declaration describing exhibit 33 as an “Email containing confidential and sensitive business
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information concerning [Elec-Tech’s] non-public recruiting efforts.” Chan Decl., ECF 97 at 8. The
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Chan Declaration does not provide any rationale for sealing exhibit 34. Plaintiff also requests to
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seal exhibit 49, which is Plaintiffs’ first set of requests for production of documents. Defendants
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do not provide a rationale in favor of sealing this document, and have publicly filed a non-redacted
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version of the document. See ECF 90-10. None of these three exhibits – 33, 34, and 49 – meet
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Phillips’ “compelling reasons” standard, and the Court therefore DENIES Plaintiffs’ request to
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seal these three exhibits.
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Plaintiffs further seek to file exhibit 50 under seal. The Chan Declaration, however, fails to
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articulate any specific rationale in support of sealing the exhibit. See Chan Decl. at 10. Though
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much of the document is written in Chinese, the exhibit seems to be a series of emails regarding an
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employment contract, similar to the other employment contracts in the James Declarations that the
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Court has ordered sealed. Because the Chan Declaration fails to provide a particularized showing
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as to why this document should be sealed, however, the Court DENIES the request to seal exhibit
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50, without prejudice. See Kamakana at 1180.
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B.
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The two exhibits to the Munkholm Declaration that Plaintiffs request to seal in their
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Exhibits 1 and 2 to the Munkholm Declaration
entirety consist of contracts regarding the terms and conditions of employment, as well as
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information regarding non-public recruitment efforts and business practices of Elec-Tech.
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Defendants contend that public disclosure of these employment contracts would result in the same
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harm as would disclosure of the employment contracts filed as exhibits to the James Declarations.
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Cf. Chan Decl. ¶ 4.
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The Court finds that this sealing request meets the “compelling reasons” standard
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articulated in Phillips, for the same reasons offered above regarding the exhibits to the James
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Declarations, and thus GRANTS Plaintiffs’ request to file these two exhibits under seal.
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C.
Exhibit 1 to the Craven Declaration
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This exhibit, which Plaintiffs request to seal in its entirety, also consists of a contract
containing confidential information regarding terms and conditions of employment at Elec-Tech,
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United States District Court
Northern District of California
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as well as including confidential and sensitive information regarding the company’s business
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practices and recruitment efforts. Defendants contend that public disclosure of this employment
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contract would result in the same harm as the employment contracts filed as exhibits with the
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James Declarations. See Chan Decl. ¶ 4.
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The Court finds that this sealing request meets the “compelling reasons” standard
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articulated in Phillips, for the same reasons offered above regarding the James Declaration
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exhibits, and thus GRANTS Plaintiffs’ request to file the exhibit under seal.
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D.
Portions of the Oppositions to the Motions to Dismiss
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Plaintiffs request that portions of their oppositions to the motions to dismiss for lack of
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subject matter jurisdiction and personal jurisdiction also be filed under seal. See James Decl. at 2.
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The Chan Declaration provides ample reasons why these references to the sealed exhibits
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should be redacted: disclosure of this private, confidential business information could harm Elec-
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Tech’s recruitment efforts and could provide its competitors with confidential information
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regarding its attempts to forge new commercial relationships with other LED designers,
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developers, and manufacturers. See, e.g., Chan Decl. ¶ 5. The Court has reviewed the redactions
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sought by Plaintiffs, and finds that Plaintiffs seek to seal only as much information as is necessary
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to protect Elec-Tech’s confidential and proprietary information, consistent with Civil Local Rule
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79-5(d)(1)(C). The Court therefore GRANTS Plaintiffs’ request to file portions of both
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oppositions under seal, as outlined in the James Declaration to the Motion to Seal. See ECF 84-1
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at 2.
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III.
ORDER
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Plaintiffs’ request to file under seal exhibits 1-32 and 39-48 to the James
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Declarations, as well as exhibits 1 and 2 to the Munkholm Declaration and exhibit 1 to the Craven
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Declaration, is GRANTED.
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Plaintiffs’ request to file under seal exhibits 33, 34, and 49 to the James
Declarations is DENIED.
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Plaintiffs’ request to file under seal exhibit 50 to the James Declarations is
DENIED WITHOUT PREJUDICE, pending a particularized showing that the document should be
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United States District Court
Northern District of California
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sealed.
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4.
Plaintiffs’ request to partially redact the opposition to the motion to dismiss for lack
of subject matter jurisdiction is GRANTED.
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Plaintiffs’ request to partially redact the opposition to the motion to dismiss for lack
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of personal jurisdiction is GRANTED.
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IT IS SO ORDERED.
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Dated: February 10, 2015
______________________________________
BETH LABSON FREEMAN
United States District Judge
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