VLSI Technology LLC v. Intel Corporation

Background

The parties filed a joint administrative motion to seal portions of the court’s supplemental order denying their motions for summary judgment on Intel’s license defense. The order concerned patent infringement issues. The sealing request covered green-highlighted and blue-highlighted portions of the document.

Arguments

Intel argued that the green-highlighted information contained licensing information from prior license agreements, including the types of patents licensed, payment terms, and the scope of Intel’s licenses. Intel said disclosure would give competitors and potential counterparties unfair insight into its business strategies and cost-benefit analyses.

VLSI argued that the blue-highlighted information contained proprietary contractual terms and practices. VLSI said disclosure could harm its business and licensing efforts by interfering with its ability to license its patent portfolio and giving Intel and other potential counterparties an unfair advantage in future negotiations.

Court’s analysis

The court applied the “compelling reasons” standard because the records concerned issues more than tangentially related to the merits of the case. The court found compelling reasons to seal the highlighted portions. It determined that the green-highlighted information was highly confidential and had previously been sealed. It determined that the blue-highlighted information contained highly confidential and proprietary details of the Patent Purchase and Cooperation Agreement between VLSI and NXP, and that disclosure could cause significant competitive and business harm to VLSI. The court also found the request narrowly tailored.

Disposition

The court granted the joint administrative motion to seal at ECF No. 783. The ruling sealed the specified green-highlighted and blue-highlighted portions of the supplemental summary-judgment order.