Skillz Platform Inc. v. AviaGames Inc.

Background

The court considered three administrative motions to seal material in the parties’ opposition briefs to motions for summary judgment. Because the filings were more than tangentially related to the case’s merits, the court applied the “compelling reasons” standard. Under that standard, sealing may be justified by information such as confidential business information, trade secrets, or source code whose disclosure could cause competitive harm. The court also applied Northern District of California Civil Local Rule 79-5, which requires sealing requests to explain the need for secrecy, provide supporting evidence when necessary, and be narrowly tailored to cover only sealable material.

ECF No. 169

AviaGames asked the court to consider sealing portions of its opposition to Skillz’s motion for partial summary judgment and three exhibits that Skillz had designated Highly Confidential. Skillz supported sealing the material, stating that it concerned aspects of Skillz’s business practices and strategy and that disclosure could disadvantage Skillz compared with competitors.

The court ruled on the materials as follows:

- The highlighted portion of AviaGames’ opposition, ECF No. 169-1, was granted sealing because it contained confidential business information whose release would cause competitive harm. - Exhibits 1, 2, and 4, ECF Nos. 169-2, 169-3, and 169-4, were denied sealing because sealing the entire documents was not narrowly tailored.

The denials were without prejudice to refiling a motion seeking to seal specified redacted portions.

ECF No. 171

Skillz asked to seal highlighted portions of its opposition to AviaGames’ motion for summary judgment. AviaGames did not oppose the request. Skillz said the material contained extremely sensitive, nonpublic business information whose public release would harm Skillz.

The court granted sealing of the highlighted portion of Skillz’s opposition, ECF No. 171-3, because it contained confidential business information whose release would cause competitive harm.

ECF No. 172

Skillz asked the court to consider sealing highlighted portions of its opposition to AviaGames’ motion for summary judgment and six exhibits that AviaGames had designated Highly Confidential. AviaGames supported sealing, stating that the material concerned aspects of its business practices and strategy and its products’ source code. The court recognized that compelling reasons exist to seal trade secrets and that confidential source code qualifies as a trade secret.

The court ruled on the materials as follows:

- The purple-highlighted portion of Skillz’s opposition, ECF No. 172-3, was granted sealing because it contained confidential business information and source code whose release would cause competitive harm. - Exhibit 2, ECF No. 172-5, was granted sealing because it contained confidential business information whose release would cause competitive harm. - Exhibits 1, 3, 4, 5, and 6, ECF Nos. 172-4 and 172-6 through 172-9, were denied sealing because sealing the entire documents was not narrowly tailored.

Order

Judge Beth Labson Freeman ordered that ECF No. 169 was granted in part and denied in part; ECF No. 171 was granted; and ECF No. 172 was granted in part and denied in part. The denials were without prejudice to renewed motions containing exhibits with narrowly tailored redactions. Any renewed motions had to be filed within 21 days.