Beijing Neu Cloud Oriental System Technology Co. v. International Business…

Background

The defendants—International Business Machines Corporation, IBM World Trade Corporation, and IBM China Company Limited—asked for permission to file Exhibits A through D to the Second Declaration of Kevin S. Reed under seal in support of their motion to dismiss Neu Cloud’s amended complaint.

The exhibits consisted of four agreements between IBM World Trade Corporation and Beijing Neu Cloud Oriental System Technology Co., Ltd.: an original equipment manufacturer agreement, Amendment Number 2 to that agreement, a Business Partner Agreement, and a Business Partner Agreement Special Bid Addendum. The defendants stated that the agreements contained sensitive information about IBM products, including pricing and other negotiated terms. They argued that public disclosure could disadvantage IBM World Trade Corporation in future negotiations and could be used by competitors against IBM World Trade Corporation or its partner. The letter also stated that the parties had agreed to keep the original agreement confidential and that plaintiff’s counsel requested sealing of Amendment Number 2, the Business Partner Agreement, and the Special Bid Addendum.

Legal standard

The letter explained that documents relevant to judicial proceedings generally carry a presumption of public access. That presumption may be outweighed by competing considerations, including privacy interests and the nature and degree of harm that disclosure could cause. The defendants argued that protecting sensitive business information and confidential agreements justified sealing and that their request was narrowly tailored to the four agreements and related documents.

Ruling

Judge Alvin K. Hellerstein ordered: “The request to file the identified documents under seal is granted.” The ruling granted the request to seal the identified documents. The opinion text does not describe any ruling on the defendants’ motion to dismiss or on the merits of the parties’ dispute.