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Enagic USA, Inc. v. Tseng

October 25, 2010


And related Counterclaims and Cross-Claims



The parties represent that pretrial discovery in this case will necessarily include matters that are confidential and proprietary to the ongoing business of the parties or of third parties, namely, among other things, the production of material describing the parties' respective confidential design research, pricing, profitability, and sales information, and costs and manufacturing information.

Such information falls within recognized categories of information which may be protected from public disclosure through confidentiality designations under a protective order and which may include non-public, proprietary, or confidential information that constitutes or concerns trade secrets as defined by Cal. Civ. Code §3426.1(d). See Fed. R. Civ. P. 26(c) (allowing protection of "trade secret or other confidential research, development or commercial information.").

The parties further represent that unrestricted disclosure of such material poses a substantial risk of great economic harm in that discovery of a party's trade secrets or other proprietary and confidential commercial information would put the party at a competitive disadvantage and would be a windfall to the discovering (competing) party.

More specifically, good cause exists for this Court to enter this Stipulated Protective Order, because it allows the parties to disclose such material in the litigation of this matter without suffering from an economic and business detriment that would result from the disclosure of "CONFIDENTIAL" or "HIGHLY CONFIDENTIAL -- ATTORNEYS' EYES ONLY" material. The disclosure of any "CONFIDENTIAL" or "HIGHLY CONFIDENTIAL -- ATTORNEYS' EYES ONLY" material would harm the parties financially and result in loss of business opportunities because the parties' competitors would gain an unfair advantage over the parties if they learn the parties' "CONFIDENTIAL" or "HIGHLY CONFIDENTIAL -- ATTORNEYS' EYES ONLY" material. The parties themselves are competitors. This material should be protected because it may reveal the parties' financial status, and research and development activities.

Moreover, entry of this Order will permit the parties to be forthcoming in the exchange of confidential information, which may promote resolution of this case.

For the foregoing reasons, good cause exists for entry of this Order to facilitate pretrial disclosure while assuring the safety of these sensitive disclosures. See Fed. R. Civ. P. 26(c).

The parties acknowledge that this Order does not confer blanket protections on all disclosures or responses to discovery and that the protection it affords extends only to the limited information or items that are entitled under the applicable legal principles to treatment as confidential. The parties further acknowledge, as set forth in Section 11, below, that this Stipulated Protective Order creates no entitlement to file confidential information under seal; Civil Local Rule 79--5.1 sets forth the procedures that must be followed and reflects the standards that will be applied when a party seeks permission from the court to file material under seal. Furthermore, the parties acknowledge that this Order is not intended to circumscribe the confidential or proprietary topics the parties may request or exchange.

2. DEFINITIONS 2.1 Party: any party to this action, including all of its officers, directors, employees, consultants, retained experts, and outside counsel (and their support staff).

2.2 Disclosure or Discovery Material: all items or information, regardless of the medium or manner generated, stored, or maintained (including, among other things, testimony, transcripts, or tangible things) that are produced or generated in disclosures or responses to discovery in this matter.

2.3 "Confidential" Information or Items: information (regardless of how generated, stored or maintained) or tangible things that qualify for protection under standards developed under Fed. R. Civ. P. 26(c).

2.4 "Highly Confidential -- Attorneys' Eyes Only" Information or Items: extremely sensitive Confidential Information or Items whose disclosure to another Party or nonparty would create a substantial risk of serious injury that could not be avoided by less restrictive means.

2.5 Receiving Party: a Party that receives Disclosure or Discovery Material from a Producing Party.

2.6 Producing Party: a Party or non-party that produces Disclosure or Discovery Material in this action.

2.7 Designating Party: a Party or non-party that designates information or items that it produces in disclosures or in responses to discovery as "Confidential" or "Highly Confidential -- Attorneys' Eyes Only."

2.8 Protected Material: any Disclosure or Discovery Material that is designated as "Confidential" or as "Highly Confidential -- Attorneys' Eyes Only."

2.9. Outside Counsel: attorneys who are not employees of a Party but who are retained to represent or advise a Party in this action.

2.10 House Counsel: attorneys who are employees of a Party. 2.11 Counsel (without qualifier): Outside Counsel and House Counsel (as well as their support staffs).

2.12 Expert: a person with specialized knowledge or experience in a matter pertinent to the litigation who has been retained by a Party or its counsel to serve as an expert witness or as a consultant in this action and who is not a past or a current employee of a Party or of a competitor of a Party's and who, at the time of retention, is not anticipated to become an employee of a Party or a competitor of a Party's. This definition includes a professional jury or trial consultant retained in connection with this litigation.

2.13 Professional Vendors: persons or entities that provide litigation support services (e.g., photocopying; videotaping; translating; preparing exhibits or demonstrations; organizing, storing, retrieving data in any form or medium; etc.) and their employees and subcontractors.


The protections conferred by this Stipulation and Order cover not only Protected Material (as defined above), but also any information copied or extracted therefrom, as well as all copies, excerpts, summaries, or compilations thereof, plus testimony, conversations, or presentations by parties or ...

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