Skillz Platform Inc. v. AviaGames Inc.

Background

The court considered three administrative motions to seal filings connected to motions for summary judgment. AviaGames sought to seal highlighted portions of its summary-judgment motion and several exhibits. Skillz did not oppose that request.

Skillz separately sought to seal highlighted portions of its motion for partial summary judgment and several exhibits. AviaGames did not oppose that request. Skillz also asked the court to decide whether material designated by AviaGames as highly confidential should be sealed. AviaGames supported sealing the identified material, which it said concerned business practices, strategy, and product source code.

Legal standard

Because the materials were more than tangentially related to the merits, the court applied the “compelling reasons” standard. Under that standard, a party must show sufficiently strong reasons for restricting public access to judicial records. The court also applied Civil Local Rule 79-5, which requires sealing requests to be supported when necessary, narrowly tailored, and directed only at material that can properly be sealed.

The court stated that compelling reasons support sealing trade secrets, including confidential source code. It also found that confidential business information whose release would cause competitive harm may be sealed.

Rulings

For AviaGames’ motion, the court granted sealing of the highlighted portion of AviaGames’ summary-judgment motion because it described confidential source code. The court denied sealing of Exhibits A, F, H, I, J, and O in their entirety because those requests were not narrowly tailored. Those denials were without prejudice to refiling a motion seeking to seal specified redacted portions.

For Skillz’s motion to file materials under seal, the court granted sealing of the highlighted portion of Skillz’s motion for partial summary judgment and Exhibits 1 through 5. The court found that the materials contained confidential business information whose release would cause competitive harm.

For Skillz’s motion concerning AviaGames’ material, the court granted sealing of the highlighted portion of Skillz’s motion for partial summary judgment because it contained confidential business information and source code whose release would cause competitive harm. The court denied sealing of Exhibits 8 and 9 in their entirety because the requests were not narrowly tailored. Those denials were without prejudice to refiling renewed motions with narrowly tailored redactions.

Disposition

The court ordered that AviaGames’ administrative motion to seal, ECF No. 161, was granted in part and denied in part; Skillz’s administrative motion to file under seal, ECF No. 164, was granted; and Skillz’s administrative motion concerning another party’s material, ECF No. 165, was granted in part and denied in part. Any renewed motions had to be filed within 21 days.