Unlockd Media, Inc. Liquidation Trust v. Google LLC

Background

Google filed an administrative motion asking the court to decide whether materials belonging to another party should be sealed. The motion concerned discrete portions of Google’s pending motion to dismiss. The Trust argued that those portions contained nonpublic information protected as trade secrets.

Legal standard

The court explained that documents attached to a dispositive motion—one that may resolve claims or the case—are ordinarily subject to a strong presumption of public access. A party seeking to seal such material must show “compelling reasons” supported by specific facts that outweigh the public’s interest in disclosure. The court noted that releasing trade secrets can constitute a compelling reason for sealing. By contrast, documents attached to nondispositive motions generally require only a showing of good cause.

Ruling

The court applied the compelling-reasons standard because the information appeared in a motion to dismiss. Google’s motion referred to dollar amounts from the Trust’s first amended complaint. Those amounts represented the average monthly revenue per user that the Trust had received and its projected future revenue had its business continued. The court stated that it had previously found compelling reasons to seal this confidential business and financial information and granted the motion on the same basis.

Judge Haywood S. Gilliam, Jr. ordered that the motion to seal be granted. Under the cited local rule, documents filed under seal for which the administrative sealing motion is granted will remain under seal.