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Shfl Entertainment, Inc. v. Kardwell International, Inc.

United States District Court, Ninth Circuit

August 1, 2013

SHFL ENTERTAINMENT, INC. (formerly SHUFFLE MASTER, INC.), a Minnesota corporation, Plaintiff,
v.
KARDWELL INTERNATIONAL, INC., a New York corporation, Defendant.

ADRIAN M. PRUETZ-State Bar No. 118215, ERICA J. VAN LOON-State Bar No. 227712, JESSICA WOOD-State Bar No. 269562, KOLLIN J. ZIMMERMANN-State Bar No. 273092, GLASER WEIL FINK JACOBS, HOWARD AVCHEN & SHAPIRO LLP, Los Angeles, California, Attorneys for Plaintiff SHFL entertainment, Inc. (fka Shuffle Master, Inc.).

MULCAHY LLP, James M. Mulcahy (SBN 213547), Kevin A Adams (SBN 239171), Irvine, CA.

LUTZKER & LUTZKER LLP, Arnold P. Lutzker (DC BAR No. 101816), Admitted PRO HAC VICE, Counsel for Defendant, Kardwell International, Inc.

[PROPOSED] STIPULATED PROTECTIVE ORDER TRIAL DATE: October 15, 2013

RALPH ZAREFSKY, Magistrate Judge.

1. GOOD CAUSE AND LIMITATIONS

Disclosure and discovery activity in this action are likely to involve production of confidential, proprietary, or private information for which the Parties (as defined below), in good faith, believe that protection from public disclosure and from use for any purpose other than prosecuting this litigation may be warranted. Accordingly, the parties hereby stipulate to and petition the court to enter the following Stipulated Protective Order. The Parties believe that good cause exists for the entry of this Order because Protected Material (as defined below) constitutes trade-secret or other confidential or proprietary information, the disclosure of which in the context of discovery is likely to have the effect of harming the competitive position of the Designating Party (as defined below) or violating an obligation of confidentiality owed to a third party. Protected Material designated under the terms of this Order shall be used by a Receiving Party (as defined below) solely for this litigation and shall not be used directly or indirectly for any other purpose whatsoever, and its disclosure is prohibited except as expressly provided in this Order.

The Parties acknowledge that this Order does not confer blanket protections with respect to all disclosures or responses to discovery and that the protection it affords from public disclosure and use extends only to the limited information or items that are entitled to confidential treatment under the applicable legal principles. By stipulating to the entry of this Order, the Parties do not acknowledge the propriety of any claim by any Party that any information produced during the course of discovery in this action constitutes Protected Material as defined herein. The Parties further acknowledge, as set forth in Paragraph 12, below, that this Stipulated Protective Order does not entitle them to file confidential information under seal; Civil Local Rule 79-5 and the provisions of this Stipulated Protective Order set forth the procedures that must be followed and the standards that will be applied when a party seeks permission from the court to file material under seal.

2. DEFINITIONS

2.1 Challenging Party: a Party or Non-Party that challenges the designation of information or items under this Order.

2.2 "CONFIDENTIAL" Information or Items: information (regardless of how it is generated, stored or maintained) or tangible things that qualify for protection under Federal Rule of Civil Procedure 26(c) including any type of information which the Designating Party believes in good faith is sensitive, confidential, proprietary and/or personal; constitutes, contains, reveals, or reflects trade secrets or other confidential research, development, commercial, proprietary, non-public, data, technical, sales, marketing, personnel, customer, vendor, business, financial, sensitive, or private information that a Producing Party believes in good faith can be disclosed to select employees of a Receiving Party (as described in Paragraph 2.13 below) solely for purposes of this litigation, but which must be protected from dissemination or disclosure to Non-Parties (as described in Paragraph 2.8 below). Such information may include customer lists, sales records, invoices, price lists, planning documents, market surveys, competitive intelligence, test methods, or other documents referring to, reflecting, and/or incorporating the foregoing. The term "trade secret" shall be defined according to the definition in California Civil Code § 3426.1 as "information, including a formula, pattern, compilation, program, device, method, technique, or process, that: (1) Derives independent economic value, actual or potential, from not being generally known to the public or to other persons who can obtain economic value from its disclosure or use; and (2) Is the subject of efforts that are reasonable under the circumstances to maintain its secrecy." Nothing herein precludes such information from being designated as "HIGHLY CONFIDENTIAL - ATTORNEYS' EYES ONLY" if appropriate.

2.3 Outside Counsel of Record: current attorneys of record who are not employees of a party to this action but are retained to represent or advise a party to this action and have appeared in this action on behalf of that party (as well as their support staff).

2.4 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".

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

2.6 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.

2.7 "HIGHLY CONFIDENTIAL - ATTORNEYS' EYES ONLY" Information or Items: extremely sensitive "Confidential Information or Items" (as defined above), that a Producing Party believes in good faith (a) disclosure of which to another Party or Non-Party would create a very substantial risk of serious harm that could not be avoided by less restrictive means; (b) is required to be kept confidential to protect the privacy interests of an individual; or (c) is subject to an express obligation of confidentiality owed by the Producing Party to a third party. Such material may include but is not limited to: documents containing extremely sensitive trade secrets, research and competitive intelligence, or other documents referring to, reflecting, and/or incorporating the foregoing; as well as financial information including but not limited to accounting records, revenues, costs, profits, confidential pricing, and overhead; information relating to a party's suppliers, licensees, licensors, distributors or present or prospective customers including but not limited to names, addresses, phone numbers and email addresses not otherwise publicly available; business strategy including but not limited to future business plans; information of an extremely high degree of current commercial sensitivity that may provide a competitive advantage to competitors if disclosed. The term "trade secret" shall be defined according to the definition in California Civil Code § 3426.1.

2.8 Non-Party: any natural person, partnership, corporation, association, or other legal entity not named as a Party to this action.

2.9 Party: any party to this action, including all of its officers, directors, employees, consultants, retained experts, and Outside Counsel of Record (and their support staffs).

2.10 Producing Party: a Party or Non-Party that produces Disclosure or Discovery Material in this action.

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

2.12 Protected Material: any Disclosure or Discovery Material that is designated as "CONFIDENTIAL, " or as "HIGHLY CONFIDENTIAL - ATTORNEYS' EYES ONLY."

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

3. SCOPE

3.1 The protections conferred by this Stipulation and Order cover not only Protected Material (as defined above), but also (1) any information copied or extracted from Protected Material; (2) all copies, excerpts, summaries, or compilations of Protected Material; and (3) any testimony, conversations, or presentations by Parties or their counsel that might reveal Protected Material. However, the protections conferred by this Stipulation and Order do not cover the following information: (a) any information that is in the public domain at the time of disclosure to a Receiving Party or becomes part of the public domain after its disclosure to a Receiving Party as a result of publication not involving a violation of this Order, including becoming part of the public record through trial or otherwise; and (b) any information known to the Receiving Party prior to the disclosure or obtained by the Receiving Party after the disclosure from a source who obtained the information lawfully and under no obligation of confidentiality to the Designating Party.

3.2 Good Faith. The Parties recognize that designation of discovery materials as "CONFIDENTIAL" or as "HIGHLY CONFIDENTIAL - ATTORNEYS' EYES ONLY" may burden each of them in terms of discovery and trial preparation, and therefore that designation should only be used where required and must be made in good faith. The Parties have also agreed that as discovery progresses in this action they will confer in an effort to resolve any of their differences ...


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