Skillz Platform Inc. v. AviaGames Inc.

Background

The court considered two motions to seal materials connected to Skillz Platform Inc.’s motion for leave to file a second amended complaint. Skillz asked the court to consider whether material designated confidential by AviaGames should remain sealed in clean and redlined versions of the proposed complaint. AviaGames separately moved to seal highlighted portions of its opposition to Skillz’s motion for leave to amend.

Legal standards

The court explained that judicial records more than tangentially related to the merits may be sealed only for compelling reasons. Records only tangentially related to the merits may be sealed for good cause. The court also stated that Civil Local Rule 79-5 requires sealing requests to explain the private or public interests supporting sealing, provide evidentiary support when needed, and narrowly tailor the request to seal only material that can properly be sealed.

Skillz’s motion concerning AviaGames’ material

Because the materials included the proposed second amended complaint, the court applied the compelling-reasons standard. AviaGames represented that the highlighted portions contained confidential business communications and information about the operation of its servers and source code. The court stated that trade secrets, including confidential source code, and confidential business information that could harm a party’s competitive standing can provide compelling reasons for sealing.

The court found compelling reasons to seal the highlighted portions of both the clean and redlined versions of Skillz’s second amended complaint. It also found that AviaGames’ request was narrowly tailored. The court therefore ruled that the highlighted portions of ECF Nos. 385-3 and 385-4 were GRANTED for sealing.

AviaGames’ motion to seal

Because AviaGames sought to seal portions of its opposition to Skillz’s motion for leave to file a second amended complaint, the court applied the good-cause standard. AviaGames argued that the highlighted portions discussed confidential business information, source code, technology, and business practices, and that disclosure could harm its reputation and competitive standing. No party opposed this motion.

The court concluded that the information satisfied the good-cause standard because the same types of confidential source-code and business information could support sealing under the more demanding compelling-reasons standard. The court found good cause to seal the highlighted portions and found the request narrowly tailored. AviaGames’ motion to seal was GRANTED as to the highlighted portions of ECF No. 457-2.

Disposition

Judge Beth Labson Freeman ordered that Skillz’s administrative motion to consider whether another party’s material should be sealed, ECF No. 385, was GRANTED. The court also ordered that AviaGames’ administrative motion to seal, ECF No. 457, was GRANTED. The opinion ruled on sealing only and did not decide Skillz’s motion for leave to file a second amended complaint.