Cohen v. Apple Inc.

Background

Apple moved to seal portions of its bill of costs. The information concerned invoices for an e-discovery vendor and included rates negotiated between Apple and OpenText. Apple argued that disclosure could reveal confidential pricing strategies, harm Apple’s negotiations with other vendors, and harm OpenText by revealing its proprietary rates and the discount provided to Apple.

The proposed redactions did not cover the nature of the services or the total amounts in the bill of costs.

Court’s analysis

The court applied the “compelling reasons” standard for sealing records, which requires a specific factual basis for restricting public access rather than vague or speculative assertions. The court noted that preserving a competitive advantage, including information contained in vendor invoices, can be a compelling reason for sealing.

The court found that Apple had identified with particularity how disclosure of the negotiated rates could cause competitive harm to both Apple and its third-party vendor. Because the nature of the costs and the total amount of the bill of costs would remain public, the court concluded that the redactions would not interfere with the public’s understanding of the case.

Disposition

The court granted Apple’s motion to seal the specified information in its bill of costs. The order was signed by Liam Alsup, United States District Judge.