The opinion
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4 UNITED STATES DISTRICT COURT
5 NORTHERN DISTRICT OF CALIFORNIA
6 SAN JOSE DIVISION
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FLEXTRONICS INTERNATIONAL USA,
8 INC., Case No. 5:19-cv-00078-EJD
9 Plaintiff, ORDER GRANTING IN PART AND
DENYING IN PART DEFENDANTS’
10 v. ADMINISTRATIVE MOTION TO SEAL
PARTS OF PLAINTIFF’S THIRD
11 MURATA MANUFACTURING CO., LTD., AMENDED COMPLAINT
et al.,
12 Re: Dkt. No. 91
Defendants.
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This order addresses Plaintiff’s administrative motion to file portions of its second
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amended complaint under seal. Dkt. 68. For the reasons discussed herein, the Court GRANTS
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the motion in part DENIES it in part.
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Courts recognize that the public has “a general right to inspect and copy public records and
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documents, including judicial records and documents.” Whitewater W. Indus., Ltd. v. Pac. Surf
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Designs, Inc., 2019 WL 1590470, at *1 (S.D. Cal. Apr. 12, 2019) (quoting Nixon v. Warner
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Communications, Inc., 435 U.S. 589, 597 (1978)). “When considering a sealing request, ‘a strong
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presumption in favor of access is the starting point.’” Space Data Corp. v. Alphabet Inc., 2019
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WL 2305278, at *1 (N.D. Cal. May 30, 2019) (quoting Kamakana v. City & Cty. of Honolulu, 447
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F.3d 1172, 1178 (9th Cir. 2006)). The right to access, however, is not absolute. Whitewater W.
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Indus., 2019 WL 1590470, at *1 (quoting Nixon, 434 U.S. at 598). A court may grant a party’s
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motion to seal judicial records that are “more than tangentially related to the underlying cause of
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action,” if the moving party presents “compelling reasons” for maintaining confidentiality that
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outweigh the presumption in favor of disclosure. Space Data, 2019 WL 2305278, at *1 (citing
27 Case No.: 5:19-cv-00078-EJD
ORDER GRANTING IN PART AND DENYING IN PART DEFENDANTS’
1 Ctr. for Auto Safety v. Chrysler Grp., 809 F.3d 1092, 1099 (9th Cir. 2016)). To make this
2 showing, the moving party must provide “specific factual findings that outweigh the general
3 history of access and the public policies favoring disclosure.” Opperman v. Path, Inc., 2017 WL
4 1036652, at *1 (N.D. Cal. Mar. 17, 2017). Courts applying the compelling reasons standard have
5 upheld the sealing of trade secrets, marketing strategies, product development plans, detailed
6 product-specific financial information, customer information, internal reports and other such
7 materials that could harm a party’s competitive standing. See, e.g., In re Elec. Arts, Inc., 298 F.
8 App’x 568, 569 (9th Cir. 2008); Opperman, 2017 WL 1036652; Lucas v. Breg, Inc., 2016 WL
5464549, at *1 (S.D. Cal. Sept. 28, 2016); Rodman v. Safeway Inc., 2015 WL 13673842 (N.D.
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Cal. Aug. 4, 2015).
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However, courts should exercise caution not to allow these exceptions to swallow the
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strong presumption in favor of disclosure. “The mere fact that the production of records may lead
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to a litigant’s embarrassment, incrimination, or exposure to further litigation will not, without
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more, compel the court to seal its records.” Kamakana, 447 F.3d at 1179. “Broad allegations of
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harm, unsubstantiated by specific examples of articulated reasoning” will not carry the compelling
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standards burden. Space Data, 2019 WL 2305278, at *1 (quoting Beckman Indus., Inc. v. Int’l
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Ins. Co., 966 F.2d 470, 476 (9th Cir. 1992)). Mere designation of a document as confidential
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under a protective order is not sufficient to establish that said document, or portions thereof, are
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sealable. N.D. Cal. Civ. L.R. 79- 5(d)(1)(A).
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Here, there is no objection to Plaintiff’s motion to seal. The designating party is
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Defendant. While Defendant filed a declaration supporting its motion to seal, the Court finds parts
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of the sealing motion unsupported. See Space Data, 2019 WL 2305278, at *1 (noting that broad
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allegations of harm are insufficient to meet the compelling interest standard).
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27 Case No.: 5:19-cv-00078-EJD
ORDER GRANTING IN PART AND DENYING IN PART DEFENDANTS’
1 Paragraph
Sought to be Ruling
2 Sealed
3 99] 235, 239, GRANTED. This material relates to confidential customer identities and/or
240-44, 246— customers’ trade secrets. According to Defendants, disclosure of this
4 ||| 47, 249-50, information would violate nondisclosure agreements and would disadvantage it
5 252, 255-57, in future negotiations with current and potential customers. See Johnstech □□□□□
260, 264-65, Corp. v. JF Microtechnology SDN BHD, 2016 WL 4091388, at *4 (N.D. Cal.
6 268, 270 Aug. 2, 2016).
4] 259 GRANTED IN PART/DENIED IN PART. The phrase “Joint unlawful
7 activity by TDK, Taiyo Yuden, and Murata” may not be sealed. Likewise, the
phrase “By January of 2013, Murata, Taiyo Yuden, and TDK were supplying”
8 may not be sealed. This material relates to the Plaintiff’s general allegations
9 against the Defendants. See In re Apple Inc. Device Performance Litig., 2019
WL 1767158, at *2 (N.D. Cal. Apr. 22, 2019). The Court reminds Defendants
10 that embarrassment and/or incrimination do not present cause to seal.
Kamakana, 447 F.3d at 1179. The remainder of the information sought to be
11 sealed (customer names/products) may be sealed.
a 12 For the foregoing reasons, the Court DENIES in part and GRANTS in part the sealing
13 motion at ECF 91.
14 IT IS SO ORDERED.
15 Dated: January 21, 2020
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EDWARD J. DAVILA
17 United States District Judge
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27 Case No.: 5:19-cv-00078-EJD
ORDER GRANTING IN PART AND DENYING IN PART DEFENDANTS’
28 || ADMINISTRATIVE MOTION TO SEAL PARTS OF PLAINTIFF’S THIRD AMENDED
COMPLAINT