Skillz Platform Inc. v. AviaGames Inc.

Background

The court considered two administrative motions asking whether materials designated confidential by the other party should be filed under seal. The materials were connected to the parties’ reply briefs supporting motions for summary judgment.

AviaGames’s motion concerned Exhibit W to its reply in support of its summary-judgment motion. Skillz had designated the entire exhibit as highly confidential. Skillz stated that the exhibit described aspects of its internal practices and strategy, including the design, development, structure, implementation, functionality, and operation of its games and platform. Skillz argued that disclosure would place it at a disadvantage compared with competitors.

Skillz’s motion concerned highlighted portions of its reply in support of its motion for partial summary judgment. AviaGames had designated those portions as highly confidential. AviaGames stated that they described aspects of its business practices and strategy and its products’ source code, and that disclosure would cause competitive harm.

Legal Standard

Because the materials related to motions for summary judgment, the court applied the “compelling reasons” standard. Under that standard, materials connected more than indirectly to the merits may be sealed only when compelling reasons support sealing. The court also required compliance with the Northern District of California’s Civil Local Rule 79-5, including a narrowly tailored request and support showing why disclosure would cause injury and why a less restrictive alternative would not be sufficient.

The court explained that confidential business information that could harm a party’s competitive position may support sealing. It also stated that trade secrets, including confidential source code, meet the compelling-reasons standard.

Rulings

The court granted AviaGames’s administrative motion, ECF No. 186. It ordered the entire document identified as Exhibit W to AviaGames’s reply in support of its motion for summary judgment, ECF No. 186-2, sealed because it contained confidential business information whose release would cause competitive harm.

The court also granted Skillz’s administrative motion, ECF No. 191. It ordered the highlighted portion of Skillz’s reply in support of its motion for partial summary judgment, ECF No. 191-3, sealed because it contained confidential business information and descriptions of source code whose release would cause competitive harm.

The order did not decide the parties’ underlying motions for summary judgment.