ZTE Inc. v. AGIS Software Development LLC

Background

ZTE (USA) Inc. filed a renewed administrative motion to seal portions of its motion to supplement the record, portions of Bradford C. Schulz’s supporting declaration, and Exhibits 1 and 2 to that declaration in their entirety. The court had previously denied a motion to seal the same materials because the parties had relied only on an “ATTORNEYS’ EYES ONLY” designation and had not shown specific prejudice or harm from disclosure.

In support of the renewed motion, AGIS Software Development LLC submitted a declaration stating that the materials contained confidential business and proprietary information concerning the operations of nonparty Advanced Ground Information Systems, Inc. The exhibits were deposition transcripts from a separate proceeding and included information about AGIS Inc.’s technology, business strategies, and classified dealings with the government and military. The declaration stated that public disclosure could place AGIS Inc. at financial risk and give competitors an unfair advantage.

Legal Standard

The court explained that documents attached to dispositive motions generally require “compelling reasons” to overcome the public’s strong presumption of access. Documents attached to non-dispositive motions, however, are subject to the lower “good cause” standard under Federal Rule of Civil Procedure 26(c). That standard requires a particularized showing that disclosure would cause specific prejudice or harm.

Ruling

Because the materials related to a non-dispositive motion, the court applied the good-cause standard and found the renewed showing sufficient. It granted the motion to seal Exhibits 1 and 2 in their entirety and granted the requests to seal the specified pages and lines of ZTE’s motion to supplement the record and Schulz’s supporting declaration. Under Civil Local Rule 79-5(f)(1), the identified documents were to remain under seal. Judge Haywood S. Gilliam, Jr. signed the order.