Gold IP LLC v. Augury Inc.

Background

Gold IP LLC and Augury, Inc. jointly requested a confidentiality and protective order under Federal Rule of Civil Procedure 26(c). They sought protection for nonpublic and competitively sensitive information that might be disclosed during discovery. The court found good cause for an appropriately tailored order governing the pretrial phase of the action.

What the Order Covers

The order applies to discovery material designated “Confidential” or “Highly Confidential.” It permits designations for categories including previously undisclosed financial information, ownership or control information, business and marketing plans, trade secrets, customer and pricing lists, contracts and licenses, vendor information, intellectual-property information, third-party confidential information, legally protected information, personal or intimate information, and other information maintained confidentially for which disclosure should be restricted.

A producing party may designate material as “Highly Confidential” when it reasonably and in good faith believes the material includes trade secrets or highly confidential, nonpublic, personal, or proprietary business information whose disclosure beyond a limited group would be especially harmful.

Disclosure Limits

Confidential material may be disclosed only to listed recipients, including the parties and their insurers, counsel, necessary in-house counsel, litigation vendors, mediators or arbitrators, certain persons connected to the document, witnesses and their attorneys during depositions, experts and their staff, deposition stenographers, trial consultants, and the court. Certain recipients must first receive a copy of the order and sign the required nondisclosure agreement. Highly Confidential material is subject to more restrictive disclosure limits.

Recipients may use designated material only to prosecute or defend this action and any appeals, not for another litigation or purpose. Covered persons must take precautions against unauthorized or inadvertent disclosure. The order also addresses third-party discovery, inadvertently produced privileged material, subpoenas and other compulsory process, and the return or destruction of protected material after the action ends.

Court Filings and Challenges

A party filing protected material must publicly file a redacted version and seek permission to file the unredacted version under seal in accordance with the court’s rules. A confidentiality designation does not itself establish that the material is confidential, and the court retains discretion over whether to give material confidential treatment. The order also warns that the court may not seal material introduced at trial absent the required findings.

Parties may object to confidentiality designations or request additional disclosure limits. If the parties cannot resolve those issues, they must present the dispute to the court under the court’s practices.

Ruling and Effect

The court ordered the parties and other persons with notice of the order to comply with its terms, subject to contempt. The order did not resolve the underlying dispute between Gold IP LLC and Augury, Inc., decide the admissibility of evidence, or make a finding that any particular material was confidential. It remains binding after the litigation ends, and the court retains jurisdiction to enforce it and address contempt. Judge Gregory H. Woods signed the order on May 3, 2022.