13-11-13 Apple Opposition to Motorola Motion for Exception

download 13-11-13 Apple Opposition to Motorola Motion for Exception

of 17

Transcript of 13-11-13 Apple Opposition to Motorola Motion for Exception

  • 8/14/2019 13-11-13 Apple Opposition to Motorola Motion for Exception

    1/17

    APPLES OPPOSITION TO MOTOROLASMOTION FOR EXCEPTION FROM PROTECTIVE ORDER

    CASE NO. 12-CV-00355-GPC-BLM

    1

    2

    3

    4

    5

    6

    7

    8

    9

    10

    11

    12

    13

    14

    15

    16

    17

    18

    19

    20

    21

    22

    23

    24

    25

    26

    27

    28

    MERYL L. YOUNG (CA SBN 110156) Y. ERNEST HSIN (CA SBN 201668)[email protected] [email protected], DUNN & CRUTCHER LLP GIBSON, DUNN & CRUTCHER LLP3161 Michelson Drive 1881 Page Mill RoadIrvine, CA 92612-4412 Palo Alto, CA 94304-1211Telephone: (949) 451-3800 Telephone: (650) 849-5322Fax: (949) 451-4220 Fax: (650) 849-5333

    JOSH A. KREVITT (CA SBN 208552)

    [email protected] (admittedpro hac vice)

    GIBSON, DUNN & CRUTCHER LLP

    200 Park Avenue

    New York, NY 10166-0193

    Telephone: (212) 351-4000

    Fax: (212) 351-4035

    Attorneys for PlaintiffsAPPLE INC. and APPLE SALES INTERNATIONAL

    UNITED STATES DISTRICT COURT

    SOUTHERN DISTRICT OF CALIFORNIA

    APPLE INC. and APPLE SALES

    INTERNATIONAL,

    Plaintiffs,

    v.

    MOTOROLA MOBILITY LLC,

    Defendant.

    CASE NO. 3:12-CV-00355-GPC-BLM

    PLAINTIFFS APPLE INC.S AND

    APPLE SALES INTERNATIONALS

    OPPOSITION TO MOTOROLASMOTION FOR EXCEPTION FROM

    PROTECTIVE ORDER

    CONFIDENTIAL FILED UNDER SEAL

    Case 3:12-cv-00355-GPC-BLM Document 154-2 Filed 11/13/13 Page 1 of 17

  • 8/14/2019 13-11-13 Apple Opposition to Motorola Motion for Exception

    2/17

    iAPPLES OPPOSITION TO MOTOROLAS

    MOTION FOR EXCEPTION FROM PROTECTIVE ORDER

    CASE NO. 12-CV-00355-GPC-BLM

    1

    2

    3

    4

    5

    6

    7

    8

    9

    10

    11

    12

    13

    14

    15

    16

    17

    18

    19

    20

    21

    22

    23

    24

    25

    26

    27

    28

    TABLE OF CONTENTS

    Page

    I.

    Introduction............................................................................................................ 1II. Background ............................................................................................................ 2

    A. Motorola Agreed to a Protective Order that Prohibits It from Using ApplesConfidential Business Information Outside this Case ................................... 2

    B. Apple Produced Confidential Business Information Regarding Its SupplyChain and License Agreements .................................................................... 3

    1. Document 1 Contains Highly Confidential Apple BusinessInformation ........................................................................................ 4

    2. Document 2 Contains Highly Confidential Apple BusinessInformation ........................................................................................ 5

    C. Motorola Conducted an Unjustified Fishing Expedition and Now Seeks toBenefit from Its Behavior ............................................................................ 5

    III. ARGUMENT ......................................................................................................... 7A. Legal Standard ............................................................................................. 8B. Abiding by the Protective Order Will Not Prejudice Motorolas Case ......... 9C. Disclosure of Apples Confidential Information Would Be Highly

    Prejudicial .................................................................................................... 9

    D. Motorolas Motion Is Hypocritical and Contrary to Motorolas Own StatedPositions Regarding Confidential Business Information ............................ 12

    IV. Conclusion ........................................................................................................... 13

    Case 3:12-cv-00355-GPC-BLM Document 154-2 Filed 11/13/13 Page 2 of 17

  • 8/14/2019 13-11-13 Apple Opposition to Motorola Motion for Exception

    3/17

    iiAPPLES OPPOSITION TO MOTOROLAS

    MOTION FOR EXCEPTION FROM PROTECTIVE ORDER

    CASE NO. 12-CV-00355-GPC-BLM

    1

    2

    3

    4

    5

    6

    7

    8

    9

    10

    11

    12

    13

    14

    15

    16

    17

    18

    19

    20

    21

    22

    23

    24

    25

    26

    27

    28

    TABLE OF AUTHORITIES

    Page(s)

    CasesAm. Standard, Inc. v. Pfizer, Inc.,

    828 F.2d 734 (Fed. Cir. 1987)....................................................................................... 9

    Brown Bag Software v. Symantec Corp.,

    960 F.2d 1465 (9th Cir. 1992) .............................................................................8, 9, 10

    Citizens of Humanity LLC v. Costco Wholesale Corp.,

    171 Cal. App. 4th 1 (Cal. Ct. App. 2009) .................................................................... 10

    Golden Eagle Dist. Corp. v. Burroughs Corp.,

    801 F.2d 1531 (9th Cir. 1986) .................................................................................. 7, 8

    Intel Corp. v. Via Tech., Inc.,

    198 F.R.D. 525 (N.D. Cal. 2000) ................................................................... 8, 9, 11, 12

    Kwikset Corp. v. Sup. Ct.,

    51 Cal. 4th 310 (Cal. 2011)......................................................................................... 10

    U.S. Steel Corp. v. U.S.,

    730 F.2d 1465 (Fed. Cir. 1984) ............................................................................8, 9, 12

    Yeti by Molly Ltd. v. Deckers Outdoor Corp.,

    259 F.3d 1101 (9th Cir. 2001) .................................................................................... 10

    RulesFed. R. Civ. P. 26(b)(1) .................................................................................................... 6

    Fed. R. Civ. P. 26(c) ........................................................................................................ 8

    Case 3:12-cv-00355-GPC-BLM Document 154-2 Filed 11/13/13 Page 3 of 17

  • 8/14/2019 13-11-13 Apple Opposition to Motorola Motion for Exception

    4/17

  • 8/14/2019 13-11-13 Apple Opposition to Motorola Motion for Exception

    5/17

    2APPLES OPPOSITION TO MOTOROLAS MOTION

    FOR EXCEPTION FROM PROTECTIVE ORDER

    CASE NO. 12-CV-00355-GPC-BLM

    1

    2

    3

    4

    5

    6

    7

    8

    9

    10

    11

    12

    13

    14

    15

    16

    17

    18

    19

    20

    21

    22

    23

    24

    25

    26

    27

    28

    demand that the Court remove the protections over Apples confidential dealings with

    that same non-party.

    For nearly two years, Motorola has expected Apple to litigate this case while

    keeping its in-house counsel in the dark. Now, without any legal basis for disclosing

    Apples confidential information, Motorola is asking this Court to hold it to a lower

    standard than the one to which Motorola has held Apple, just so Motorola may benefit in

    its dealings outside this case. The Court should reject Motorolas unfair and hypocritical

    demand.

    II. BACKGROUNDA.Motorola Agreed to a Protective Order that Prohibits It from Using Apples

    Confidential Business Information Outside this Case

    On December 5, 2012, Motorola and Apple agreed to a Joint Protective Order

    signed by this Court. Dkt. No. 101 (Protective Order). The parties entered the

    Protective Order in order to facilitate production and receipt of information during

    discovery in the above-referenced action, and they recognized the need to protect trade

    secret and other confidential research, development or commercial information that may

    be produced or otherwise disclosed by a party or by non-parties during the course of this

    action. Id. at Preamble. Motorola and Apple agreed that:

    Protected Material1 . . . shall be used by a Receiving Party

    2

    solely for the purpose of this action, and any appeals therefrom,

    including any efforts to settle this action, and shall not be

    disclosed or used for any other purpose whatsoever, including

    without limitation any other legal proceeding, including any

    1

    Protected Material is defined as all information, documents, testimony and/orthings, or portions thereof, subject to discovery in this action, which contain non-public,confidential information and/or trade secrets designated pursuant to the terms of thisOrder, as well as any secondary material, such as pleadings, written discovery, expertreports, notes, summaries or any other materials that contain, describe or reflect suchinformation. Protective Orderat 1.

    2 Receiving Party is defined as any person who receives Protected Material

    from a party . . . or non-party producing materials or information in response to asubpoena or otherwise. Id. at 1, 3.

    Case 3:12-cv-00355-GPC-BLM Document 154-2 Filed 11/13/13 Page 5 of 17

  • 8/14/2019 13-11-13 Apple Opposition to Motorola Motion for Exception

    6/17

    3APPLES OPPOSITION TO MOTOROLAS MOTION

    FOR EXCEPTION FROM PROTECTIVE ORDER

    CASE NO. 12-CV-00355-GPC-BLM

    1

    2

    3

    4

    5

    6

    7

    8

    9

    10

    11

    12

    13

    14

    15

    16

    17

    18

    19

    20

    21

    22

    23

    24

    25

    26

    27

    28

    legal proceeding involving any of the parties, patent

    prosecution or acquisition, or any business or competitive

    purpose or function of any kind.

    Id. at 12 (emphases added). Pursuant to Motorolas agreement not to use Apples

    confidential business information for purposes beyond this case, Apple produced

    documents spanning pages, including of highly confidential emails

    from the files of its top ranking licensing and supply-chain management executives

    Motorola now seeks to profit from two Apple documents that have proven to have

    nothing to do with this case.

    B.Apple Produced Confidential Business Information Regarding Its SupplyChain and License Agreements

    This case is properly focused on the question of whether Apple, as a Qualcomm

    customer, is entitled to rights under an agreement between Qualcomm and Motorola (the

    Qualcomm-Motorola Agreement). See Dkt. 135 (Apples Count Two MSJ).

    Accordingly, during discovery, Apple produced documents concerning its customer

    relationship with Qualcomm, including

    On June 7, 2013, Apple produced two emails (with attachments) from

    , which Motorola has identified as Document 1 and Document 2,

    respectively. Declaration of Y. Ernest Hsin (Hsin Decl.), Ex. 1

    Email between Apple Executives (Document 1)) at [001-005]; id., Ex. 2

    Email from Qualcomm to Apple (Document 2)) at [006-010]. Both Documents

    contain Apples confidential business information, the disclosure of which would be

    prejudicial to Apple.3

    3 Motorola does not acknowledge, much less address, Apples interest in protecting

    this confidential information. Instead, it offers Qualcomm-produced versions of theDocuments and claims, without support, that Qualcomms agreement to permit disclosureshould bind Apple. But because the information in these Documents is sensitive to

    Apple, it is entirely irrelevant whether Qualcomm consents to the disclosure. OnMotorolas theory, Qualcomms consent would be sufficient to permit Apples in-housecounsel to review confidential Motorola information contained in Qualcomm-Motorolacommunications.

    Case 3:12-cv-00355-GPC-BLM Document 154-2 Filed 11/13/13 Page 6 of 17

  • 8/14/2019 13-11-13 Apple Opposition to Motorola Motion for Exception

    7/17

    4APPLES OPPOSITION TO MOTOROLAS MOTION

    FOR EXCEPTION FROM PROTECTIVE ORDER

    CASE NO. 12-CV-00355-GPC-BLM

    1

    2

    3

    4

    5

    6

    7

    8

    9

    10

    11

    12

    13

    14

    15

    16

    17

    18

    19

    20

    21

    22

    23

    24

    25

    26

    27

    28

    1. Document 1 Contains Highly Confidential Apple Business InformationDocument 1 is a

    4

    According to Motorolas own reasoning, which its counsel has repeated throughout

    this case, the text of a business agreement in this industry is highly sensitive, confidential

    information.5 Moreover, Apple considers the terms upon which Apple will agree to

    purchase mobile device components commercially sensitive, proprietary business

    information. Hsin Decl., Ex. 3 (October 14, 2013 Deposition of Boris Teksler (Teksler

    Depo.)) at 143:15-145:20 [014]; id., Ex. 4 (August 23, 2013 Deposition of David Tom

    (Tom Depo.)) at 41:9-25, 72:2-73:5 [019, 021]. The need for confidentiality in this

    case is further heightened by the fact that Motorola is one of Apples direct competitors

    in the mobile device industry and itself a potential customer of Qualcomm components.

    The date of the email and the identities of the Apple recipients are also highly

    sensitive, confidential information. To maintain its competitive position in the mobile

    telecommunications industry, and to deter outsiders from ascertaining where Apple is in

    the product development cycle, Apple closely guards information about when and how it

    engages with components suppliers such as Qualcomm. And the specific identities of the

    Apple executives involved indicate not only the relative importance of the Qualcomm

    4

    Motorola has redacted the versions of Document 1 and Document 2 that it seeks todisclose, but these redactions are insufficient to cover Apples confidential businessinformation. Except as noted, the descriptions in this memorandum relate to the redactedversions of Documents 1 and 2.

    5 In fact, Motorola has consistently refused to allow Apples outside counsel to

    make even a limited disclosure of the Qualcomm-Motorola Agreement terms in disputein this case to the one Apple in-house attorney in

    to disclose Document 1, containing, tofourGoogle and Motorola in-ho

    Case 3:12-cv-00355-GPC-BLM Document 154-2 Filed 11/13/13 Page 7 of 17

  • 8/14/2019 13-11-13 Apple Opposition to Motorola Motion for Exception

    8/17

    5APPLES OPPOSITION TO MOTOROLAS MOTION

    FOR EXCEPTION FROM PROTECTIVE ORDER

    CASE NO. 12-CV-00355-GPC-BLM

    1

    2

    3

    4

    5

    6

    7

    8

    9

    10

    11

    12

    13

    14

    15

    16

    17

    18

    19

    20

    21

    22

    23

    24

    25

    26

    27

    28

    relationship to Apple, but also the stage of negotiations and status of the parties

    relationship as of

    2. Document 2 Contains Highly Confidential Apple Business InformationDocument 2 is

    As stated above, the who and when of Apples supply negotiations compose

    highly sensitive, confidential business information subject to protection as trade secrets.

    Document 2

    6

    C.Motorola Conducted an Unjustified Fishing Expedition and Now Seeks toBenefit from Its Behavior

    After Apple produced Documents 1 and 2, Motorola apparently sensed that the

    Documents might create leverage against Qualcomm, which had provided corporate

    6

    Depo.)) at 184:23-185:10[026]; id., Ex. 6 (September 20, 2013 Deposition of Michael Hartogs (Hartogs Depo.))at 27:20-24 [031]; id., Ex. 7 (September 25, 2013 Deposition of Eric Koliander(Koliander Depo.)) at 96:23-97:16 [035].

    ve Order (Motorola Memo.) at 12. This non sequitur is a holdover fromMotorolas defunct equitable estoppel defense, discussed below, and yet another degreeremoved from the contractual

    Case 3:12-cv-00355-GPC-BLM Document 154-2 Filed 11/13/13 Page 8 of 17

  • 8/14/2019 13-11-13 Apple Opposition to Motorola Motion for Exception

    9/17

    6APPLES OPPOSITION TO MOTOROLAS MOTION

    FOR EXCEPTION FROM PROTECTIVE ORDER

    CASE NO. 12-CV-00355-GPC-BLM

    1

    2

    3

    4

    5

    6

    7

    8

    9

    10

    11

    12

    13

    14

    15

    16

    17

    18

    19

    20

    21

    22

    23

    24

    25

    26

    27

    28

    testimony Motorola thus set

    out to use the remaining period for discovery in this case to develop more information

    about the alleged disclosure of Qualcomm-Motorola Agreement terms allegedly

    evidenced by Documents 1 and 2. Motorola had already asked Apple executives Tim

    Butzow and David Tom during their depositions about

    but Motorola then went further, serving additional deposition subpoenas on

    Qualcomm employees Eric Koliander and Michael Hartogs, demanding additional

    document discovery from Qualcomm, and even moving this Court to compel additional

    Qualcomm corporate testimony regarding possible disclosures of terms.

    Prior to the close of discovery in October 2013, Apple countenanced Motorolas

    fishing expedition because it believed that Motorola was acting in good faith to develop

    evidence that would be admissible in this case. See Fed. R. Civ. P. 26(b)(1). Motorola

    had contended that Apple was equitably estopped from claiming rights under the

    Qualcomm-Motorola Agreement, based on Apples allegedly improper receipt of certain

    terms of the Agreement. But by the close of fact discovery, Motorola had failed to

    adduce evidence to establish the necessary elements of equitable estoppel, prompting

    Apple to move for summary judgment against that defense. Dkt. 138, 150.7 Thus, by the

    close of discovery, the apparent justification for Motorolas fishing expedition had

    evaporated, and Motorola was left with nothing to show for its efforts.

    Now, because its equitable estoppel theory is no longer viable, Motorola moves

    this Court for permission to salvage something from its discovery efforts that will benefit

    Motorola elsewhere. Motorola claims that it must disclose Documents 1 and 2 to four

    7

    The alleged fact of disclosure is irrelevant to this case because, among otherthings, Motorola cannot show that Apple was under any duty to tell Motorola that it wasaware of certain terms of the Qualcomm-Motorola Agreement. As discussed in detail inApples Count Two MSJ and Apples Motion for Summa

    fenses (Dkt. 138), Motorola admits that, and Motorola has failed to identify ahat would apply. Nonetheless, in an effort to add an air of legitimacy to

    its instant motion, Motorola boasts that Motorola is already permitted to use[Documents 1 and 2] on an outside attorneys eyes only basis for purposes of this case . .. . Motorola Memo. at 13.

    Case 3:12-cv-00355-GPC-BLM Document 154-2 Filed 11/13/13 Page 9 of 17

  • 8/14/2019 13-11-13 Apple Opposition to Motorola Motion for Exception

    10/17

    7APPLES OPPOSITION TO MOTOROLAS MOTION

    FOR EXCEPTION FROM PROTECTIVE ORDER

    CASE NO. 12-CV-00355-GPC-BLM

    1

    2

    3

    4

    5

    6

    7

    8

    9

    10

    11

    12

    13

    14

    15

    16

    17

    18

    19

    20

    21

    22

    23

    24

    25

    26

    27

    28

    Google and Motorola in-house attorneys involved not only in litigation, but also in

    Motorolas patent licensing business:

    Motorola seeks to disclose Documents 1 and 2:

    in order to allow Motorola to properly address any breach;

    in order for Motorola and its personnel to address issues ofwhether Qualcomm complied with contractual obligations;

    for purposes of addressing Qualcomms breach with Qualcommas needed; and

    for purposes of correspondence with Qualcomm and, ifnecessary, through Court action against Qualcomm.

    Dkt. 153, Memorandum in Support of Motorola Motion for Exception from Protective

    Order (Motorola Memo.) at 2, 12-13.

    III. ARGUMENTThe parties agreed-upon Protective Order states that Protected Materials in this

    case shall be used only in this matter. Protective Order at 1. Motorola conspicuously

    avoids providing any legal basis for modifying the Protective Order here.8 Motorola does

    not explain the applicable legal standards because it has no colorable argument under

    them: Motorola must show (1) that its case defense in this litigation would be prejudiced

    without the requested modification to the Protective Order, and (2) that such prejudice

    would outweigh the harm to Apple that would be caused by the disclosure of its

    8 See Golden Eagle Dist. Corp. v. Burroughs Corp., 801 F.2d 1531, 1539 (9th Cir.

    1986) (A court has a right to expect that counsel will state the controlling law fairly andfully; indeed, unless that is done the court cannot perform its task properly. A lawyermust not misstate the law, fail to disclose adverse authority (not disclosed by hisopponent), or omit facts critical to the application of the rule of law relied on.).

    Case 3:12-cv-00355-GPC-BLM Document 154-2 Filed 11/13/13 Page 10 of 17

  • 8/14/2019 13-11-13 Apple Opposition to Motorola Motion for Exception

    11/17

    8APPLES OPPOSITION TO MOTOROLAS MOTION

    FOR EXCEPTION FROM PROTECTIVE ORDER

    CASE NO. 12-CV-00355-GPC-BLM

    1

    2

    3

    4

    5

    6

    7

    8

    9

    10

    11

    12

    13

    14

    15

    16

    17

    18

    19

    20

    21

    22

    23

    24

    25

    26

    27

    28

    confidential information. Motorola has not shown (or even argued) that it meets either of

    these requirements. Therefore, Motorolas motion should be denied.9

    A.Legal StandardUnder the Federal Rules of Civil Procedure, the Court may issue a Protective

    Order to ensure that a trade secret or other confidential research, development, or

    commercial information not be revealed or be revealed only in a specified way. Fed. R

    Civ. P. 26(c)(1)(G). In order to modify the parties Protective Order to allow disclosure

    of confidential information, Motorola must establish good cause. See Brown Bag

    Software v. Symantec Corp., 960 F.2d 1465, 1471-72 (9th Cir. 1992).

    First, Motorola must show how abiding by the current protective order will

    prejudice its defense here. See id.; see also Intel Corp. v. Via Tech., Inc., 198 F.R.D.

    525, 528 (N.D. Cal. 2000) (The protective order must actually prejudice presentation of

    the moving partys case, not merely increase the difficulty of managing the litigation.).

    Second, Motorola must show that such prejudice outweighs the risk of injury to

    Apple. See Brown Bag Software, 960 F.2d at 1471-72;see also Intel Corp. v. Via Tech.,

    Inc., 198 F.R.D. 525, 528 (N.D. Cal. 2000). The risk of injury is especially great where,

    as here, the parties to whom the information would be disclosed are employees involved

    in competitive decisionmaking at a direct competitor of the party whose information is

    being disclosed. See U.S. Steel Corp. v. United States, 730 F.2d 1465, 1468 (Fed. Cir.

    1984); Am. Standard, Inc. v. Pfizer, Inc., 828 F.2d 734, 741 (Fed. Cir. 1987) (Courts

    have presumed that disclosure to a competitor is more harmful than disclosure to a

    noncompetitor.). Such disclosure would give the disclosing party an unfair competitive

    advantage over its competitor.

    Courts have found good cause when, for example, the specialized technical

    knowledge of in-house counsel was essential to the proper handling of litigation, and

    9 SeeGolden Eagle at 1542 (A lawyer should not be able to proceed with impunity

    in real or feigned ignorance of authorities which render his argument meritless.).

    Case 3:12-cv-00355-GPC-BLM Document 154-2 Filed 11/13/13 Page 11 of 17

  • 8/14/2019 13-11-13 Apple Opposition to Motorola Motion for Exception

    12/17

    9APPLES OPPOSITION TO MOTOROLAS MOTION

    FOR EXCEPTION FROM PROTECTIVE ORDER

    CASE NO. 12-CV-00355-GPC-BLM

    1

    2

    3

    4

    5

    6

    7

    8

    9

    10

    11

    12

    13

    14

    15

    16

    17

    18

    19

    20

    21

    22

    23

    24

    25

    26

    27

    28

    such counsel was not involved in a companys competitive decisionmaking. See Intel

    Corp., 198 F.R.D. at 528; see also U.S. Steel, 730 F.2d at 1468 (finding good cause

    where the party seeking disclosure had no outside counsel, the litigation was extremely

    complex and at an advanced stage, and both parties agreed that in-house counsel was

    not involved in competitive decisionmaking).

    B.Abiding by the Protective Order Will Not Prejudice Motorolas CaseTo show good cause for an exception from the Protective Order, Motorola must

    demonstrate that its case presentation would be actually prejudiced without such

    exception. See Brown Bag, 960 F.2d at 1472. Motorola cannot do so. Motorola has not

    argued that its in-house counsel possess any specialized knowledge that makes them

    indispensable to this litigation. See Intel Corp., 198 F.R.D. at 528. In fact, Motorola

    has not advanced any explanation for how its defense in this case would be prejudiced

    unless its four in-house licensing and litigation counsel review Documents 1 and 2. To

    the contrary, Motorola actually admitsthat it is not seeking an exception to the Protective

    Order for the proper purpose of advancing its defense in this case, but rather that it is

    seeking to use [Documents 1 and 2] for purposes of correspondence with Qualcomm

    and, if necessary, through Court action against Qualcomm. Motorola Memo. at 13

    This is precisely the type of business or competitive purpose or function explicitly

    contemplated, andprohibited, by the Protective Order. Protective Order at 12.

    C.Disclosure of Apples Confidential Information Would Be Highly PrejudicialEven if Motorola could show that its case would be prejudicedsomething it has

    not even tried to doit would also have to show that the prejudice outweighs the harm of

    disclosing Apples confidential business information. See Brown Bag Software, 960 F.2d

    at 1472. Again, Motorola does not even attempt to make the required showing.

    Disclosure of Documents 1 and 2 would prejudice Apple by providing one of its

    direct competitors as well as trade

    secrets concerning Apples supply chain. The Documents reveal

    Case 3:12-cv-00355-GPC-BLM Document 154-2 Filed 11/13/13 Page 12 of 17

  • 8/14/2019 13-11-13 Apple Opposition to Motorola Motion for Exception

    13/17

    10APPLES OPPOSITION TO MOTOROLAS MOTION

    FOR EXCEPTION FROM PROTECTIVE ORDER

    CASE NO. 12-CV-00355-GPC-BLM

    1

    2

    3

    4

    5

    6

    7

    8

    9

    10

    11

    12

    13

    14

    15

    16

    17

    18

    19

    20

    21

    22

    23

    24

    25

    26

    27

    28

    as well as information about

    and

    In fact, the Documents contain

    information that Motorola itself considers critically sensitive and unfit for disclosure to

    opposing in-house counsel.

    California law protects the identities of Apples suppliers and Apples negotiations

    with those suppliers regarding as trade secrets. See Citizens of Humanity

    LLC v. Costco Wholesale Corp., 171 Cal. App. 4th 1, 13 (Cal. Ct. App. 2009), overruled

    on other grounds by Kwikset Corp. v. Sup. Ct., 51 Cal. 4th 310, 337 (Cal. 2011);see also

    Yeti by Molly Ltd. v. Deckers Outdoor Corp., 259 F.3d 1101, 1108 (9th Cir. 2001) (The

    identity of a supplier can be a trade secret.). Moreover, the circumstances of Apples

    and Qualcomms negotiations are sensitive information that a competitor such as

    Motorola would find advantageous to have. Cf. Intel, 198 F.R.D. at 530 ([Intel in-house

    counsels] knowledge of technical aspects of VIAs products, VIAs licensing

    agreements, and marketing information, would be directly relevant to her evaluation of

    licensing agreements of related products of Intel. Confidential information in this case

    may provide Intel a competitive advantage in negotiating related licenses in the future.).

    Motorolas outside counsel knows from discovery in this case that Apple considers

    the information reflected in Documents 1 and 2 to be confidential, but Motorola

    nonetheless failed to raise that point with the Courtinstead suggesting that Apples

    justification for opposing Motorolas motion is flimsy. Motorola Memo. at 1. In fact,

    Apple witnesses consistently testified that Apples history with Qualcomm, as well as the

    specific negotiations between the two parties, is information that is valuable to Apple and

    that Apple desires to keep secret. See Teksler Depo. at 143:15-145:20 [014]; Tom Depo.

    at 41:9-25; 72:2-73:5 [019, 021].10

    10 Apple has always emphasized to Motorola that such information was highly

    confidential. For example,

    Case 3:12-cv-00355-GPC-BLM Document 154-2 Filed 11/13/13 Page 13 of 17

  • 8/14/2019 13-11-13 Apple Opposition to Motorola Motion for Exception

    14/17

    11APPLES OPPOSITION TO MOTOROLAS MOTION

    FOR EXCEPTION FROM PROTECTIVE ORDER

    CASE NO. 12-CV-00355-GPC-BLM

    1

    2

    3

    4

    5

    6

    7

    8

    9

    10

    11

    12

    13

    14

    15

    16

    17

    18

    19

    20

    21

    22

    23

    24

    25

    26

    27

    28

    Motorola, for its part, feels the same way about its own confidential business

    agreements. In its applications to file motion papers under seal in this case, filed just last

    month, Motorola routinely redacted even general discussion of the contents of

    confidential agreements and information that reveals the scope of those agreements.

    Dkt. 147 at 3. Motorola maintains, as it has throughout this litigation, that its

    agreements are confidential and considered trade secrets and commercially sensitive

    proprietary business information, the public of which could be damaging to

    those [contracting] entities. Id. at 3-4.

    Furthermore, Motorola does not even suggest that the four in-house counsel to

    whom it proposes to disclose Documents 1 and 2 are not involved in competitive

    decision-making. See U.S. Steel, 730 F.2d at 1468. Motorolas legal department is not

    just a litigation support center; to the contrary, proposed recipients

    serve the in a strategic

    capacity. SeeHsin Decl., Ex. 9 (September 6, 2013 Deposition of Kirk Dailey (Dailey

    Depo.)) at 25:7-9 (emphasis added) [043]; id., Ex. 10 (September 5, 2013 Deposition of

    Timothy Kowalski (Kowalski Depo.) at 16:12-24:16 [048-050].11

    Motorolas arguments suggest that it does not intend to bring a particular in-house

    attorneys expertise to bear on Documents 1 and 2; rather, it seeks permission to disclose

    the Documents to a team of four attorneys, so they can exercise their discretion in

    advancing Motorolas various business interests related to Qualcomm. Motorola requests

    disclosure for purposes of correspondence with Qualcomm and, if necessary, through

    Court action against Qualcomm, and for purposes of addressing Qualcomms breach

    with Qualcomm as needed. Motorola Memo. at 13 (emphases added).12

    11 Moreover,

    12 If Motorola merely needs advice on the viability of a legal claim against

    Qualcomm, it can consult with its attorneys at Winston & Strawn LLP. See Intel Corp.,

    Case 3:12-cv-00355-GPC-BLM Document 154-2 Filed 11/13/13 Page 14 of 17

  • 8/14/2019 13-11-13 Apple Opposition to Motorola Motion for Exception

    15/17

    12APPLES OPPOSITION TO MOTOROLAS MOTION

    FOR EXCEPTION FROM PROTECTIVE ORDER

    CASE NO. 12-CV-00355-GPC-BLM

    1

    2

    3

    4

    5

    6

    7

    8

    9

    10

    11

    12

    13

    14

    15

    16

    17

    18

    19

    20

    21

    22

    23

    24

    25

    26

    27

    28

    D.Motorolas Motion Is Hypocritical and Contrary to Motorolas Own StatedPositions Regarding Confidential Business Information

    This litigation concerns intellectual property rights Qualcomm secured from

    Motorola. Unlike the material at issue in this motion, the subject matter of this litigation

    is naturally public facing, in that the contract terms in dispute here were

    Apple has, therefore,

    consistently sought for its in-house counsel access to the contract language at issue in this

    litigation. Motorola has repeatedly refused, hindering Apples ability to litigate the case

    and to evaluate the strength of its claims

    Motorolas interest in keeping those terms secret appears driven more by

    an interest in extracting double recovery from Apple than it does by any genuine concern

    over the protection of confidential business information. Even now,

    Motorola

    refuses to allow the one Apple in-house counsel in charge of the litigation to view

    3

    Not only does Motorola refuse Apple permission to discuss the terms of the

    Agreement at issue here with the in-house counsel managing the case, but Motorola also

    claims to consider a secret that cannot be

    disclosed. Last month, Motorola filed a summary judgment motion contending that

    Apples in-house counsel in charge of this litigation has not been

    permitted to review the substance of that motion, and Motorola has gone so far as to

    request that Apples outside counsel refrain from even suggesting

    198 F.R.D. at 529. Of course, Motorolas motion belies the notion that the Documentswill be considered only in the context of litigation.

    13

    Case 3:12-cv-00355-GPC-BLM Document 154-2 Filed 11/13/13 Page 15 of 17

  • 8/14/2019 13-11-13 Apple Opposition to Motorola Motion for Exception

    16/17

    13APPLES OPPOSITION TO MOTOROLAS MOTION

    FOR EXCEPTION FROM PROTECTIVE ORDER

    CASE NO. 12-CV-00355-GPC-BLM

    1

    2

    3

    4

    5

    6

    7

    8

    9

    10

    11

    12

    13

    14

    15

    16

    17

    18

    19

    20

    21

    22

    23

    24

    25

    26

    27

    28

    Indeed, Motorolas outside counsel has requested that Apple limit

    discussion of Motorolas motion to a statement that

    Hsin Decl., Ex. 11 (Chassman Oct. 25 Email to Hsin) at

    [052].

    Thus, Motorola has moved the Court for an opportunity to fully assess the facts,

    determine its options, and take them if necessary, while insisting that Apples in-house

    counsel continue to litigate thiscase in the dark. Motorola Memo. at 1.14

    IV. CONCLUSIONFor the aforementioned reasons, this Court should deny Motorolas motion for

    exception from the parties Protective Order. However, if the Court is inclined to grant

    Motorolas motion in whole or in part, then to the extent that the Court permits disclosure

    of Documents 1 and 2, Apple respectfully requests leave to submit proposed redactions

    designed to protect Apples confidential business information.

    Dated: November 13, 2013 Respectfully submitted,

    GIBSON, DUNN & CRUTCHER LLP

    By: /s Y. Ernest Hsin

    MERYL L. YOUNG (CA SBN 110156)

    [email protected]

    3161 Michelson Drive

    Irvine, CA 92612-4412

    Telephone: (949) 451-3800

    Facsimile: (949) 451-4220

    JOSH A. KREVITT (CA SBN 208552)

    14 Finally, Motorola is being disingenuous when it states that [t]ime is short for

    Motorola to act on information that Qualcomm should have provided five months ago.Id. Apple produced versions of Documents 1 and 2 in June of 2013, and Motorolaconducted extensive discovery on them through the beginning of October. Motorolaelected to offer the Court versions of the Documents later produced by Qualcomm in anapparent attempt to suggest that it is acting swiftly and to encourage the Court to do thesame. The Court should reject this meritless motion.

    Case 3:12-cv-00355-GPC-BLM Document 154-2 Filed 11/13/13 Page 16 of 17

  • 8/14/2019 13-11-13 Apple Opposition to Motorola Motion for Exception

    17/17

    14APPLES OPPOSITION TO MOTOROLAS MOTION CASE NO 12 CV 00355 GPC BLM

    1

    2

    3

    4

    5

    6

    7

    8

    9

    10

    11

    12

    13

    14

    15

    16

    17

    18

    19

    20

    21

    22

    23

    24

    25

    26

    27

    28

    [email protected]

    (admitted pro hac vice)

    200 Park Avenue

    New York, NY 10166-0193

    Telephone: (212) 351-2490

    Facsimile: (212) 351-6390

    Y. ERNEST HSIN (CA SBN 201668)

    [email protected]

    GIBSON, DUNN & CRUTCHER LLP

    1881 Page Mill Road

    Palo Alto, CA 94304-1211

    Telephone: (650) 849-5322

    Fax: (650) 849-5333

    Attorneys for Apple Inc. and Apple SalesInternational

    CERTIFICATE OF SERVICE

    I hereby certify that on November 13, 2013, I caused this motion document and the

    declaration and exhibits in support to be electronically filed with the Clerk of the Court

    using the ECF System of the U.S. District Court for the Southern District of California,

    which will send notification of such filings to all known counsel of record.

    I declare under penalty of perjury under the laws of the United States of America

    and the State of California that the above is true and correct.

    Executed on November 13, 2013, at Palo Alto, California.

    By: s/ Y. Ernest HsinY. Ernest Hsin

    Case 3:12-cv-00355-GPC-BLM Document 154-2 Filed 11/13/13 Page 17 of 17