Storebound LLC v. Sensio, Inc.

Background

Storebound LLC and Sensio Inc. d/b/a Made by Gather jointly requested a 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 limited confidentiality order covering the pretrial phase of the case.

What the Order Provides

The order permits a party to designate discovery material as “Confidential” or “Restricted – Attorneys’ Eyes Only” when the material includes confidential or proprietary information, trade secrets, previously undisclosed financial information, ownership or control information concerning a nonpublic company, business or marketing plans, product-development information, personal or intimate information, or another category the court later protects. Designations must generally identify the protected portion of the material, and a party may correct an inadvertent failure to designate material before trial.

Confidential material may be disclosed only to specified recipients, including the parties, their relevant counsel and service providers, mediators or arbitrators, certain witnesses, outside experts or consultants, deposition transcription providers, and the court. Some recipients must first sign a nondisclosure agreement. Attorneys’-eyes-only material is limited to a narrower group of recipients, primarily counsel, certain litigation vendors, mediators or arbitrators, witnesses, and outside experts or consultants.

Recipients may use designated material only to prosecute or defend this case and related appeals. They may not use it for business, commercial, competitive, or other litigation purposes. The order also requires precautions against unauthorized disclosure, provides a process for challenging confidentiality designations, and addresses disclosures required by subpoenas or other compulsory legal processes.

Court Filings and End of the Case

A party filing designated material must publicly file a redacted version and file the unredacted version under seal. A party seeking continued sealing must submit a letter brief and supporting declaration explaining the need for sealing. The court retains discretion over whether to keep material confidential when it is submitted in connection with a motion or proceeding, and it stated that material introduced at trial is unlikely to remain sealed.

Within 60 days after final disposition of the action, including appeals, recipients generally must return or destroy designated material and certify that they have kept no copies or summaries. Counsel specifically retained for the case may keep archival copies of certain litigation materials, but those copies remain subject to the order. The order continues after the litigation ends, and the court retains jurisdiction to enforce it and impose contempt sanctions.

Ruling

Judge Vernon S. Broderick entered the stipulated protective order and required covered persons to follow its terms. The order is limited to confidentiality and discovery-management issues; the text does not resolve the parties’ underlying claims or defenses.