IBM Corporation v. Micro Focus, Inc.

Background

The court considered the parties’ requests to seal Exhibits 1 and 2 to IBM Corporation’s opposition to Micro Focus (US), Inc.’s objections under Federal Rule of Civil Procedure 72. IBM requested sealing because the exhibits had been designated “Confidential” and “Highly Confidential.” Micro Focus stated that it did not object to the exhibits remaining under seal because they contained nonpublic information and trade secrets.

Legal standard

The court stated that the common law and the First Amendment generally create a presumption that the public may access judicial documents. A judicial document is a filed item relevant to the court’s work and useful in the judicial process. To overcome that presumption, the court must make specific findings that sealing is necessary to protect important interests and is narrowly tailored to protect those interests. The court also noted that the public-access presumption is generally lower for filings connected to discovery disputes than for material introduced at trial or filed with motions that would resolve the case. Courts in the district regularly allow sealing or redaction of commercially sensitive and financial information.

Ruling

The court determined that Exhibits 1 and 2 were judicial documents submitted in connection with resolving Micro Focus’s Rule 72 objections. It also determined that the exhibits appeared to be marked “HIGHLY CONFIDENTIAL” and discussed confidential commercial information. The requests to seal were granted. The Clerk was ordered to maintain ECF Nos. 161-1 and 161-2 under seal and make them available only to selected parties.

The order further states that, if any document is designated highly confidential under the protective order only until the end of the 30-day review period after the final transcripts become available, the parties must submit a joint letter when that period ends. If they want the documents to remain sealed, the letter must state the basis for continued sealing.