Cengage Learning, Inc. v. Doe 1

Background

Cengage Learning, Inc., Bedford, Freeman & Worth Publishing Group, LLC, Elsevier Inc., McGraw Hill LLC, and Pearson Education, Inc. asked for permission to file under seal a proposed order concerning immediate compliance with an asset freeze. The proposed order would implement part of the plaintiffs’ motion seeking to amend a preliminary injunction and require compliance with the asset freeze, or alternatively obtain expedited consideration of that motion.

The plaintiffs said they would file a redacted version of the proposed order. The redacted version would omit the name of the financial institution to which the order was directed and the name of the Doe defendant whose accounts were to be frozen. According to the plaintiffs, disclosure of those identities while the motion was pending could cause the defendant to move or dispose of assets.

Parties’ Positions

The plaintiffs asserted that the Doe defendant knew the accounts were subject to an asset freeze but had already removed funds after being served with the order imposing that freeze. They also asserted that the defendant had sold unauthorized copies of the plaintiffs’ textbooks, had not participated in the action after being served, and had taken steps to conceal the defendant’s identity and involvement with the websites at issue.

The plaintiffs argued that the private nature of the account information, the risk of further movement of funds, and the limited scope of the redactions outweighed the usual presumption that court filings should be public. They stated that the unredacted proposed order could be made public if the financial institution were ordered to comply with the asset freeze.

Ruling

Judge John G. Koeltl granted the application to file the proposed order under seal. The opinion text says the plaintiffs overcame the presumption of public access because disclosure could allow the Doe defendant to remove remaining funds and because the only withheld information was the financial institution’s name and the account holder’s name. The text does not state the precise duration or other terms of the sealing order.