Skillz Platform Inc. v. AviaGames Inc.

Filing 492

ORDER RE: 351 352 381 382 SEALING MOTIONS RELATED TO AVIAGAMES MOTIONS IN LIMINE. Signed by Judge Beth Labson Freeman on 11/13/23. (blflc2, COURT STAFF) (Filed on 11/13/2023)

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1 2 3 UNITED STATES DISTRICT COURT 4 NORTHERN DISTRICT OF CALIFORNIA 5 SAN JOSE DIVISION 6 7 SKILLZ PLATFORM INC., Plaintiff, 8 AVIAGAMES INC., [Re: ECF No. 351, 352, 381, 382] Defendant. 11 United States District Court Northern District of California ORDER ON SEALING MOTIONS RE: AVIAGAMES MOTIONS IN LIMINE v. 9 10 Case No. 21-cv-02436-BLF 12 Before the Court are Defendant AviaGames Inc.’s sealing motions relating to its motions 13 14 in limine. ECF Nos. 351, 352, 381, 382. The Court has considered the motions, and its rulings 15 are laid out below. 16 17 I. LEGAL STANDARD “Historically, courts have recognized a ‘general right to inspect and copy public records 18 and documents, including judicial records and documents.’” Kamakana v. City and Cnty. of 19 Honolulu, 447 F.3d 1172, 1178 (9th Cir. 2006) (quoting Nixon v. Warner Commc’ns, Inc., 435 20 U.S. 589, 597 & n.7 (1978)). Consequently, access to motions and their attachments that are 21 “more than tangentially related to the merits of a case” may be sealed only upon a showing of 22 “compelling reasons” for sealing. Ctr. for Auto Safety v. Chrysler Grp., LLC, 809 F.3d 1092, 23 1101–02 (9th Cir. 2016). Filings that are only tangentially related to the merits may be sealed 24 upon a lesser showing of “good cause.” Id. at 1097. 25 In addition, in this district, all parties requesting sealing must comply with Civil Local 26 Rule 79-5. That rule requires, inter alia, the moving party to provide “the reasons for keeping a 27 document under seal, including an explanation of: (i) the legitimate private or public interests that 28 warrant sealing; (ii) the injury that will result if sealing is denied; and (iii) why a less restrictive 1 alternative to sealing is not sufficient.” Civ. L.R. 79-5(c)(1). Further, Civil Local Rule 79-5 2 requires the moving party to provide “evidentiary support from declarations where necessary.” 3 Civ. L.R. 79-5(c)(2). And the proposed order must be “narrowly tailored to seal only the sealable 4 material.” Civ. L.R. 79-5(c)(3). Further, when a party seeks to seal a document because it has been designated as United States District Court Northern District of California 5 6 confidential by another party, the filing party must file an Administrative Motion to Consider 7 Whether Another Party’s Material Should be Sealed. Civ. L.R. 79-5(f). In that case, the filing 8 party need not satisfy the requirements of subsection (c)(1). Civ. L.R. 79-5(f)(1). Instead, the 9 party who designated the material as confidential must, within seven days of the motion’s filing, 10 file a statement and/or declaration that meets the requirements of subsection (c)(1). Civ. L.R. 79- 11 5(f)(3). A designating party’s failure to file a statement or declaration may result in the unsealing 12 of the provisionally sealed document without further notice to the designating party. Id. Any 13 party can file a response to that declaration within four days. Civ. L.R. 79-5(f)(4). 14 15 II. DISCUSSION Because motions in limine seek to exclude evidence from the trial, the Court finds that 16 they are more than tangentially related to the merits of the case and applies the compelling reasons 17 standard. See MasterObjects, Inc. v. Amazon.com, Inc., No. C 20-08103 WHA, 2022 WL 18 1144634, at *1 (N.D. Cal. Mar. 9, 2022) (“Evidentiary motions such as motions in limine and 19 Daubert motions can be strongly correlative to the merits of a case.”); Space Data Corp. v. 20 Alphabet Inc., No. 16-CV-03260-BLF, 2019 WL 8012584, at *1 (N.D. Cal. July 18, 2019) 21 (applying the compelling reasons standard to motions to seal related to motions in limine); Fed. 22 Trade Comm'n v. Qualcomm Inc., No. 17-CV-00220-LHK, 2018 WL 6575544, at *2 (N.D. Cal. 23 Dec. 12, 2018) (same). 24 25 A. Defendant AviaGames Inc.’s Administrative Motion to Seal Relating to Its Motions in Limine (ECF No. 351) AviaGames argues that the information it seeks to seal “describes and/or quotes from the 26 Highly Confidential documents produced by AviaGames, including source code printouts, that 27 contain aspects of AviaGames’ business practices and strategy, its products, and source code 28 2 United States District Court Northern District of California 1 algorithms.” ECF No. 351 ¶ 3. Skillz did not file an opposition to the motion. 2 Compelling reasons exist to seal trade secrets. Kamakana, 447 F.3d at 1179. 3 “Confidential source code clearly meets the definition of a trade secret,” and it thus meets the 4 compelling reasons standard. See Apple, Inc. v. Samsung Elecs. Co., Ltd., No. 11-CV-01846- 5 LHK, 2012 WL 6115623, at *2 (N.D. Cal. Dec. 10, 2012). And the “compelling reasons” 6 standard is met for confidential business information that would harm a party’s competitive 7 standing. See Jam Cellars, Inc. v. Wine Grp. LLC, No. 19-cv-01878-HSG, 2020 WL 5576346, at 8 *2 (N.D. Cal. Sept. 17, 2020) (finding compelling reasons for “confidential business and 9 proprietary information relating to the operations of both Plaintiff and Defendant”); Fed. Trade 10 Comm’n v. Qualcomm, Inc., No. 17-cv-00220-LHK, 2019 WL 95922, at *3 (N.D. Cal. Jan. 3, 11 2019) (finding compelling reasons for “information that, if published, may harm [a party’s] or 12 third parties’ competitive standing and divulges terms of confidential contracts, contract 13 negotiations, or trade secrets”); In re Elec. Arts, Inc., 298 F. App’x 568, 569 (9th Cir. 2008) 14 (finding sealable “business information that might harm a litigant’s competitive standing”). 15 Although the Court finds compelling reasons to seal some of the information in 16 AviaGames’ motions in limine and its exhibits, the Court finds that there are not compelling 17 reasons to seal entire exhibits. In fact, such broad sealing requests are not “narrowly tailored to 18 seal only the sealable material.” Civ. L.R. 79-5(c)(3). For example, AviaGames seeks to seal the 19 entirety of four expert reports including the experts’ qualifications, for which there are no 20 compelling reasons to seal. 21 22 23 The Court rules as follows: ECF No. 351-1 Document AviaGames’ Motion in Limine 1 Portions to Seal Page 1:8–10 351-2 AviaGames’ Motion in Limine 2 Highlighted Portions 24 25 26 27 28 3 Ruling GRANTED as containing confidential business information, the release of which would cause a party competitive harm. GRANTED as containing confidential source code and confidential business information, the release of which would cause a party competitive 1 351-3 2 3 4 351-4 5 6 351-5 7 8 351-6 9 10 United States District Court Northern District of California 11 12 351-7 351-8 13 14 15 16 20 21 22 23 24 25 26 27 Entire Document DENIED as not narrowly tailored. Entire Document DENIED as not narrowly tailored. Entire Document DENIED as not narrowly tailored. Entire Document DENIED as not narrowly tailored. Entire Document DENIED as not narrowly tailored. to seal specified redacted portions of these exhibits. The Court notes that redactions must be “narrowly tailored to seal only the sealable material.” Civ. L.R. 79-5(c)(3). B. 19 Entire Document The above denials are WITHOUT PREJUDICE to AviaGames filing a renewed motion that seeks 17 18 Ex. 1: Dr. Zagal’s Supplemental Expert Report dated October 13, 2023 Ex. 2: Mr. Bergman’s Supplemental Expert Report dated October 13, 2023 Ex. 8: Ex. B to Skillz’s August 27, 2021 Infringement Contentions Ex. 9: Ex. B to Skillz’s December 17, 2021 Amended Infringement Contentions Ex. 10: Dr. Zagal’s Expert Report dated May 26, 2023 Ex. 11: Dr. Zagal’s Supplemental Report dated June 19, 2023 harm. DENIED as not narrowly tailored. Defendant AviaGames Inc.’s Administrative Motion to Consider Whether Another Party’s Material Should be Sealed Relating to Its Motions in Limine (ECF No. 352) AviaGames filed an administrative motion to consider whether another party’s material should be sealed in connection with its motions in limine. ECF No. 352. AviaGames identified highlighted portions of its motions in limine and attached exhibits as containing information that Skillz has designated as highly confidential. Id. at 1. Skillz filed a statement in support of the motion. ECF No. 403. No party has filed an opposition to the statement. Skillz states that the highlighted portions of ECF Nos. 352-1 and 3523 and the entirety of ECF Nos. 352-6, 352-7, 352-8, 352-9, 352-12, and 352-14 “contain descriptions of Skillz’s proprietary technology, including explanations of Skillz’s efforts to develop its own products.” Id. at 1. This information includes confidential business information 28 4 1 about the development and operation of Skillz’s products, the release of which would cause Skillz 2 to suffer competitive harm. Id. Because Skillz does not seek to seal ECF Nos. 352-2, 352-4, 352- 3 5, 352-10, 352-11, and 352-13, the Court will DENY AviaGames’ motion with respect to those 4 documents. 5 6 source code and confidential business information that, if published, may harm a party’s 7 competitive standing. See Apple, 2012 WL 6115623, at *2; Jam Cellars, 2020 WL 5576346, at 8 *2; Qualcomm, 2019 WL 95922, at *3; Elec. Arts, 298 F. App’x at 569. 9 United States District Court Northern District of California As noted above, compelling reasons exist to seal trade secrets, which includes confidential Although the Court finds compelling reasons to seal some of the information that Skillz 10 identifies in AviaGames’ motions in limine and the attached exhibits, the Court does not find 11 compelling reasons to seal certain exhibits in their entirety. Such broad sealing requests are not 12 “narrowly tailored to seal only the sealable material.” Civ. L.R. 79-5(c)(3). For example, Skillz 13 seeks to seal the entirety of two of Dr. Zagal’s expert reports, including his qualifications, for 14 which there are no compelling reasons to seal. 15 16 17 The Court rules as follows: ECF No. 352-1 Document AviaGames’ Motion in Limine 1 Portions to Seal Highlighted Portions 352-2 AviaGames’ Motion in Limine 2 AviaGames’ Motion in Limine 4 Highlighted Portions Highlighted Portions Ex. 1: Dr. Zagal’s Supplemental Expert Report dated October 13, 2023 Ex. 2: Mr. Bergman’s Supplemental Expert Entire Document 18 19 20 21 352-3 22 23 24 25 352-4 26 27 28 352-5 Entire Document 5 Ruling GRANTED as containing confidential source code and confidential business information, the release of which would cause a party competitive harm. DENIED because Skillz’s statement did not request sealing. GRANTED as containing confidential source code and confidential business information, the release of which would cause a party competitive harm. DENIED because Skillz’s statement did not request sealing. DENIED because Skillz’s statement did not request sealing. 1 2 352-6 Report dated October 13, 2023 Ex. 4: SKLZPAT00057289 Entire Document 3 4 5 352-7 Ex. 5: SKLZPAT00466825 Ex. 6: SKLZPAT00212701 Entire Document 352-9 Ex. 7: SKLZPAT00016164 Entire Document 352-10 Ex. 8: Ex. B to Skillz’s August 27, 2021 Infringement Contentions Ex. 9: Ex. B to Skillz’s December 17, 2021 Amended Infringement Contentions Ex. 10: Dr. Zagal’s Expert Report dated May 26, 2023 Ex. 11: Dr. Zagal’s Supplemental Report dated June 19, 2023 Ex. 12: Dr. Zagal’s deposition transcript Entire Document 6 352-8 7 Entire Document 8 9 10 United States District Court Northern District of California 11 12 13 14 15 352-11 16 17 352-12 18 19 20 352-13 352-14 21 GRANTED as containing confidential source code and confidential business information, the release of which would cause a party competitive harm. DENIED as not narrowly tailored. GRANTED as containing confidential business information, the release of which would cause a party competitive harm. GRANTED as containing confidential business information, the release of which would cause a party competitive harm. DENIED because Skillz’s statement did not request sealing. Entire Document DENIED because Skillz’s statement did not request sealing. Entire Document DENIED as not narrowly tailored. Entire Document DENIED because Skillz’s statement did not request sealing. Entire Document DENIED as not narrowly tailored. 22 The above denials are WITHOUT PREJUDICE to Skillz filing a renewed statement that seeks to 23 seal specified redacted portions of these exhibits. The Court notes that redactions must be 24 “narrowly tailored to seal only the sealable material.” Civ. L.R. 79-5(c)(3). 25 26 27 28 C. Defendant AviaGames Inc.’s Administrative Motion to Consider Whether Another Party’s Material Should be Sealed Relating to Its Motions in Limine #2 and #4 (ECF No. 381) AviaGames filed an administrative motion to consider whether another party’s material should be sealed in connection with motions in limine #2 and #4. ECF No. 381. AviaGames 6 1 identified highlighted portions of its motions in limine and attached exhibits as containing 2 information that Skillz has designated as highly confidential. Id. at 1. 3 4 opposition to the statement. Skillz states that the highlighted portions of ECF Nos. 381-1 and 381- 5 2 and the entirety of ECF Nos. 381-3, 381-4, 381-5, 381-6, 381-7, 381-8, 381-9, 381-10, 381-11, 6 381-12 “contain descriptions of Skillz’s proprietary technology, including explanations of Skillz’s 7 efforts to develop its own products.” Id. at 1. This information includes confidential business 8 information about the development and operation of Skillz’s products, the release of which would 9 cause Skillz to suffer competitive harm. Id. 10 United States District Court Northern District of California Skillz filed a statement in support of the motion. ECF No. 428. No party has filed an As noted above, compelling reasons exist to seal trade secrets, which includes confidential 11 source code and confidential business information that, if published, may harm a party’s 12 competitive standing. See Apple, 2012 WL 6115623, at *2; Jam Cellars, 2020 WL 5576346, at 13 *2; Qualcomm, 2019 WL 95922, at *3; Elec. Arts, 298 F. App’x at 569. 14 As above, the Court finds compelling reasons to seal some of the information that Skillz 15 identifies in AviaGames’ motions in limine #2 and #4 and the attached exhibits, but the Court does 16 not find compelling reasons to seal certain exhibits in their entirety. Such broad sealing requests 17 are not “narrowly tailored to seal only the sealable material.” Civ. L.R. 79-5(c)(3). For example, 18 Skillz seeks to seal the entirety of two of Dr. Bergman’s expert reports, including his 19 qualifications, for which there are no compelling reasons to seal. 20 21 22 The Court rules as follows: ECF No. 381-1 Document AviaGames’ Motion in Limine 2 Portions to Seal Highlighted Portions 381-2 AviaGames’ Motion in Limine 4 Highlighted Portions 381-3 Ex. 13: Opening Report Entire Document 7 23 24 25 26 27 28 Ruling GRANTED as containing confidential source code and confidential business information, the release of which would cause a party competitive harm. GRANTED as containing confidential business information, the release of which would cause a party competitive harm. DENIED as not narrowly 1 381-4 2 of Jim W. Bergman Exhibit 14: SKLZPAT0005708 Entire Document 3 4 381-5 5 6 7 381-6 8 Exhibit 15: Second Supplemental Expert Report of Jim Bergman served October 13, 2023 Exhibit 16: SKILPAT00000798 Entire Document Exhibit 19: June 6, 2023 deposition transcript of Casey Chafkin Exhibit 20: Jim Bergman Deposition Transcript (excerpted) Exhibit 21: Andrew Paradise Deposition Transcript Exhibit 22: Opening Expert Report of Jose P. Zagal Regarding Infringement Exhibit 23: May 12, 2023 deposition transcript of Casey Chafkin Exhibit 24: Jose Zagal Deposition Transcript (excerpted) Entire Document Entire Document 9 10 381-7 United States District Court Northern District of California 11 12 381-8 13 14 381-9 15 16 381-10 17 18 381-11 19 20 381-12 21 22 tailored. GRANTED as containing confidential business information, the release of which would cause a party competitive harm. DENIED as not narrowly tailored. GRANTED as containing confidential business information, the release of which would cause a party competitive harm. DENIED as not narrowly tailored. Entire Document DENIED as not narrowly tailored. Entire Document DENIED as not narrowly tailored. Entire Document DENIED as not narrowly tailored. Entire Document DENIED as not narrowly tailored. Entire Document DENIED as not narrowly tailored. The above denials are WITHOUT PREJUDICE to Skillz filing a renewed statement that seeks to 23 seal specified redacted portions of these exhibits. The Court notes that redactions must be 24 “narrowly tailored to seal only the sealable material.” Civ. L.R. 79-5(c)(3). 25 26 27 28 D. Defendant AviaGames Inc.’s Administrative Motion to Seal Relating to Its Motions in Limine #2 and #4 (ECF No. 382) AviaGames argues that the information it seeks to seal “describes and/or quotes from the Highly Confidential documents produced by AviaGames, including source code printouts, that 8 1 contain aspects of AviaGames’ business practices and strategy, its products, and source code 2 algorithms.” ECF No. 382 ¶ 3. Skillz did not file an opposition to the motion. 3 4 source code and confidential business information that, if published, may harm a party’s 5 competitive standing. See Apple, 2012 WL 6115623, at *2; Jam Cellars, 2020 WL 5576346, at 6 *2; Qualcomm, 2019 WL 95922, at *3; Elec. Arts, 298 F. App’x at 569. 7 United States District Court Northern District of California As noted above, compelling reasons exist to seal trade secrets, which includes confidential As above, the Court finds compelling reasons to seal some of the information in 8 AviaGames’ motions in limine #2 and #4 and the attached exhibits, but the Court finds that there 9 are not compelling reasons to seal entire exhibits. In fact, such broad sealing requests are not 10 “narrowly tailored to seal only the sealable material.” Civ. L.R. 79-5(c)(3). For example, 11 AviaGames seeks to seal the entirety of three expert reports including the experts’ qualifications, 12 for which there are no compelling reasons to seal. 13 14 15 The Court rules as follows: ECF No. 382-2 Document AviaGames’ Motion in Limine No. 2 to Exclude New “Bot” Arguments Portions to Seal Highlighted Portions 382-3 AviaGames’ Motion in Limine No. 4 to Exclude Certain Opinions of Jim. W. Bergman and Jose P. Zagal Ex. 13: Opening Report of Jim W. Bergman Exhibit 15: Second Supplemental Expert Report of Jim Bergman served October 13, 2023 Exhibit 20: Jim Bergman Deposition Transcript (excerpted) Exhibit 22: Opening Expert Report of Jose Highlighted Portions 16 17 18 19 20 21 22 382-4 23 382-5 24 25 26 382-6 27 28 382-7 Entire Document Entire Document Ruling GRANTED as containing confidential source code and confidential business information, the release of which would cause a party competitive harm. GRANTED as containing confidential business information, the release of which would cause a party competitive harm. DENIED as not narrowly tailored. DENIED as not narrowly tailored. Entire Document DENIED as not narrowly tailored. Entire Document DENIED as not narrowly tailored. 9 P. Zagal Regarding Infringement 1 2 The above denials are WITHOUT PREJUDICE to AviaGames filing a renewed motion that seeks 3 to seal specified redacted portions of these exhibits. The Court notes that redactions must be 4 “narrowly tailored to seal only the sealable material.” Civ. L.R. 79-5(c)(3). United States District Court Northern District of California 5 III. ORDER 6 For the foregoing reasons, IT IS HEREBY ORDERED that: 7 1. Defendant AviaGames Inc.’s Administrative Motion to Seal Relating to Its Motions 8 in Limine (ECF No. 351) is GRANTED IN PART and DENIED WITHOUT PREJUDICE IN 9 PART. AviaGames may file a renewed motion with more narrow redactions within 7 days of the 10 date of this Order. 11 2. Defendant AviaGames Inc.’s Administrative Motion to Consider Whether Another 12 Party’s Material Should be Sealed Relating to Its Motions in Limine (ECF No. 352) is GRANTED 13 IN PART and DENIED WITHOUT PREJUDICE IN PART. Skillz may file a renewed statement 14 in support of sealing with more narrow redactions of the documents for which the Court denied 15 sealing as not narrowly tailored within 7 days of the date of this Order. 16 3. Defendant AviaGames Inc.’s Administrative Motion to Consider Whether Another 17 Party’s Material Should be Sealed Relating to Its Motions in Limine #2 and #4 (ECF No. 381) is 18 GRANTED IN PART and DENIED WITHOUT PREJUDICE IN PART. Skillz may file a 19 renewed statement in support of sealing with more narrow redactions within 7 days of the date of 20 this Order. 21 4. Defendant AviaGames Inc.’s Administrative Motion to Seal Relating to Its Motions 22 in Limine #2 and #4 (ECF No. 382) is GRANTED IN PART and DENIED WITHOUT 23 PREJUDICE IN PART. AviaGames may file a renewed motion with more narrow redactions 24 within 7 days of the date of this Order. 25 26 27 28 Dated: November 13, 2023 ______________________________________ BETH LABSON FREEMAN United States District Judge 10

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